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Efficiency- doing thing right, getting the most output for the least inputs

Effectiveness- Doing thing right, attaining organizational goal

Conceptual skill, technical skill, interpersonal skill

P- Defining goals, establishing strategy and developing plans to coordinate activities


O-Determining what needs to be done, how it will be done and who is to do it
L-Motivating, leading and any other actions involved in dealing with people
C- Monitoring activities to ensure that they are accomplished as planned

Vision - A clear statement on where an organization wants to be in the future


Mission – A clear, concise, written declaration of an organization’s central and common
purpose, its reason for existence.

Strategic Plan: A plan that applies to an entire organization’s overall goals


Tactical Plan: A plan which specifies the details of how the overall goals are to be achieved.
Sometimes referred to operational goals

Planning process
Identify mission, goal, strategy > (i)SW(e)OT > formulate strategy > implement > evaluate
result

Specific: Your goal should be clear and specific, otherwise you won't be able to focus your
efforts or feel truly motivated to achieve it.
Measurable: It's important to have measurable goals, so that you can track your progress
and stay motivated.
Achievable: Your goal also needs to be realistic and attainable to be successful. In other
words, it should stretch your abilities but still remain possible. When you set an achievable
goal, you may be able to identify previously overlooked opportunities or resources that can
bring you closer to it.
Relevant: This step is about ensuring that your goal matters to you, and that it also aligns
with other relevant goals. We all need support and assistance in achieving our goals, but it's
important to retain control over them. So, make sure that your plans drive everyone
forward, but that you're still responsible for achieving your own goal.
Time-bound: Every goal needs a target date, so that you have a deadline to focus on and
something to work toward. This part of the SMART goal criteria helps to prevent everyday
tasks from taking priority over your longer-term goals.

Decision Making Steps


1. Identify the problem: Managers must first realize that a decision must be made.
2. Generate alternatives solutions: managers must develop feasible alternative course of
action
3. Evaluate alternatives: what are the advantages and disadvantages of each alternative?
4. Choose among alternatives: managers rank alternatives and decide
5. Implement chosen alternative: managers must now carry out the alternative
6. Learn from feedback: managers should consider what went right and wrong with the
decision and learn for the future

Organization process
1. Determining the activities to be performed to achieve the objectives of the organisation
2. Identification of the major functions to which these activities relate
3. Grouping and sub-diving the work within each functions
4. Establishing relationships among individuals and groups

Authority refers to the rights inherent in a managerial position to tell people what to do and
to expect them to do it
The Acceptance theory of Authority says that authority comes from the willingness of
subordinates to accept it. If an employee does not accept a manager’s order, then there is
no authority. Subordinates will only accept orders only if:
-They understand the order
-They feel the order is consistent with the organisation’s purpose
-The order does not conflict with their personal beliefs
-They are able to perform the task as directed

Line Authority – Authority that entitles a manager to direct the work of the employee
Staff Authority – Positions with some authority, that have been created to support, assist,
and advice those holding line authority.

Power refers to an individual’s capacity to influence decisions

Authority:
A right whose legitimacy is based on an authority figure’s position in the organization; it
goes with the job
Power:
An individual’s ability to influence decisions
Delegation process
1. Selecting the right task
2. Choosing the right person
3. Give clear direction
4. Monitor progress

Barriers to delegation are:


1. I can do it better myself.
2. My people are just not capable enough.
3. It takes too much time to explain what I want done.
4. If it goes wrong I’ll still be accountable.
5. Delegation reduces my own authority.
6. I’ll be shown up if they do too good a job.
7. My people prefer that I make the decisions.
8. Team members want to avoid responsibility (at least at work).
Mechanic approach
This is a more bureaucratic form of an organization. It thrives when the environment is
stable. However, this type of an organization experience difficulty when the environment is
changing and uncertain. ( A mechanistic design is centralized with many rules and
procedures, a clear-cut division of labor, narrow span of control, and formal coordination.)
Organic approach
The environment is less bureaucratic and this type of organization thrives best when there is
dynamics in the environment. It is capable of adapting to changes and uncertainty.

Contingencies in organizational design (Factors affecting the structures)

Environment :
i. The external environment and the uncertainty of that external environment influence
organizational design.

1.Certainty
A certain environment is composed of relatively stable and predictable elements. As the
result, the organization can succeed with relatively few changes in the goods and services
over time.
2.Uncertainty
This environment is more dynamic and less predictable. Changes occur frequently and may
catch decision makers by surprise. As the result, the organization must be flexible and
responsive over relatively short time horizon.
ii. Increasing uncertainty in the external environment calls for more horizontal and adaptive
design.
Strategy
i. Vertical structures and bureaucratic designs focus on efficiency and predictability.
ii.Horizontal structures and adaptive designs focus on innovation and flexibility

Technology
i. Technology is a combination of knowledge, skills, equipment, computers, and work methods used
to transform resource input into organizational outputs.
ii. Manufacturing technology is classified into three main categories:

1. Small batch production


Manufacture in small batch to fit customer needs. This tends to be more custom made production.

2. Mass production
Produce large quantity of uniform products in an assembly line system. Workers are highly
dependent on one another, as the product passes from stage to stage until completion.

3. Continuous-process production
This is highly automated production process. They produce few products by continuously feeding
raw materials – such as liquid, solid, and gases--- through a highly automated production system
with largely computerized control.

iii. Technological imperative


Technology is the major influence in the organizational structure. The influence of technology can be
appreciated in the manufacturing, as well as in service industries.

1. Intensive technology
Focus on the talents and efforts of many workers to serve the clients.
2. Mediating technology
Link together people in a beneficial exchange of values.
3. Long-linked technology
A client moves from point-to-point in during service delivery.

Size and life cycle


i. Birth
ii. Youth
iii. Midlife
iv. Maturity

Human resources
i. Another factor in organizational design is people - - - the human resources that staff the
organization for action. A good organizational design provides people with the supporting structures
they need to achieve both high performance and satisfaction in their work.

ii. An important human resource issue is skill. Any design must allow the full utilization of skills and
talents of the people in the organization.
Impoverished Management (1, 1): Managers with this approach are low on both the
dimensions and exercise minimum effort to get the work done from subordinates. The leader
has low concern for employee satisfaction and work deadlines

Task management (9, 1): Also called dictatorial or perish style. Here leaders are more
concerned about production and have less concern for people. The style is based on theory X
of McGregor. The employees’ needs are not taken care of and they are simply a means to an
end.
Middle-of-the-Road (5, 5): This is basically a compromising style wherein the leader tries to
maintain a balance between goals of company and the needs of people. The leader does not
push the boundaries of achievement resulting in average performance for organization.

Country Club (1, 9): This is a low task and high people orientation where the leader gives
thoughtful attention to the needs of people a friendly and comfortable environment. The
leader feels that such a treatment with employees will lead to self-motivation.

Team Management (9, 9): Characterized by high people and task focus, theory Y of
McGregor and has been termed as most effective style according to Blake and Mouton. The
leader feels that empowerment, commitment, trust, and respect are the key elements in
creating a team atmosphere which will automatically result in high employee satisfaction and
production.