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What is an Organization ?
Management

• Suggest few organization that you are familiar with

• Identify common features of them
• Make definitions for “an organization”
• Identify different facets & perspectives of
organizations

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A business is …. Functions of a Business

• An Activity Use of Limited Production of Achievement

• Producing goods and services Resources Goods & of Objectives
Services
• Use of limited resources
• Focus on objectives
Staff Functions Line Functions Outputs
Goods
Use of Limited Production of Achievement Human Resource Mgt Production Mgt Services
Resources Goods & of Objectives Financial Mgt Marketing Mgt Outcomes
Services Information Mgt
Profit
Wellbeing
Etc.

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Internal Stakeholders External Stakeholders

Trade Political
Unions Parties

Share holders
Customers

General Media Debtors

Community Professional
Bodies
Labour
Employees
Business Unions
Competitors Business Suppliers

Managers NGOs Educational

Institutions
Government Creditors
Local
Bodies

Financial Trade
Institutions Associations

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Ecological Environment
Macro Environment
Technological
Forces Political
Micro & Legal
Forces
Environment
Community Customers

Political
Internal
Parties Environment Suppliers
Resources Culture
Media Structure Leadership
Trade
Debtors Unions
Processes

Business Environment Social &

Creditors Government
Competitors Economic
Cultural Forces
Forces

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Effectiveness
Efficiency

The degree to which limited resources are

optimally utilized

The degree to which the objectives are

achieved

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Management – as a Process

Use of Limited Production of Achievement Planning

Resources Goods & of Objectives
Services

Controlling Organizing
Efficiency Effectiveness

Getting the best Achieving the

use of resources objectives as
planned Directing

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To be an effective and efficient manager, we need

Managerial Skills
Knowledge Skills Positive Attitudes

Conceptual Know-what Know-how Positive attitudes on work

Skills
Top Positive attitudes on people
Leve
l General Skills Specific Skills Positive attitudes on environment
Middle Human
Relation
Level Skills Conceptual Positive attitudes on self
Skills
Technical
Lower Level Skills Technical Skills

Human Skills

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Planning
Planning
Organizing
Directing
Controlling
Process of establishing goals
and
Strategies

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The Process of Planning

Activities Involved in Planning
Social Policy
Responsibilit Establishment of Mission Statement
y
Agree/Revise Strategic Objectives

Environmental Analysis
Internal External
Favourable Strengths Opportunities
Unfavourable Weaknesses Threats

Determination Of Corporate Strategies

1. Setting the goals & objectives Agree On Strategic Plan

Issuance of Key Targets to Departments

2. Setting Strategies Preparation of Tactical/Operational Plans

Evaluation and Revision as necessary

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Formulation of Mission Mission

Management
Values The fundamental, unique
purpose that sets a business
apart from other firms of its
types
Mission
and
identifies the scope of its
Interests Interests
of owners of the Society operations in product and
market terms.

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MISSION Mission Vs Vision

"To be the most
innovative, trusted
and best process-
quality provider of
financial services
in the region."
• " A Vision Statement is... a lighthouse that gives
direction rather than a destination"

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Colourful LECO - Vision

dream of the
future of the
business,
deeply
embedded in
the founder’s
mind Enjoy being the light for lives of people
through innovative eco-friendly business

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Corporate Goals
Environmental Analysis
• Market Standing
• Innovation
• Productivity
Environment Internal External
Long Term goals
established for the • Resourcing Effect
whole Business
in the • Profitability Favourable
areas such as
• Employee Development Strengths Opportunities
• Employee relations
Unfavourable
•
•
Social Responsibility
……..
Weaknesses Threats
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Corporate Strategies Tactical Plans

• Normally refers to

– Business Unit Plans

XY Group
• The broad programme for achieving an of – Functional plans
organization’s objectives and implementing Companies Ltd.
its mission. (Stoner & Freeman)
• A comprehensive plan for accomplishing an XY XY XY
organization’s goals (Griffin) Electronics
Ltd.
Newspapers
Ltd.
Foods &
Beverages Ltd.

P M F E P D P M F

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Operational Plans Hierarchy of Plans

Plans that provide the details needed to Corporate plan
incorporate strategy into day to day
operations. Eg,
SBU Plans
• Policies • Rules and regulations
Functional Plans
• Procedures • Budgets
• Programs Operational Plans

• Projects

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Types of Plans Benefits of Planning

Corporate Strategic Plan
(At Corporate Level) 1. Provide a sense of direction
Group 2. Prerequisite to successful growth
SBU Strategic Plans 3. Set up the organizational framework
SBUs (At SBU Level) 4. Helps delegation
SBUs Tactical
5. Helps motivate people
Plans 6. Serves as a communication media
7. Lays the basis for control
Functional 8. Provides coordination
Divisions Plans 9. Facilitates efficient use of resources.
Operational • Single use 10. Reduces uncertainty by anticipating change
Plans • Standing
4

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Effective Plan Implementation Contents of a Good Planning Document

1. Communicate strategies • Organisational Profile
2. Develop and communicate planning assumptions etc. • Executive Summary
3. Make sure actions plans reflect major objectives and
strategies • Detailed SWOT Analysis (Highlight distinct Competencies)
4. Review strategies regularly • Hierarchy of Aims (Vision, Mission, Goals & Objectives)
5. Develop contingency plans and programs
• Strategies (Corporate, Functional and Operational Level)
6. Ensure that organization’s structure follows planning
needs • Policies and Ground Rules
7. Continue to remember plans implementations
• Programmes and Procedures (SOP’s)
8. Create an organization culture which drives for
planning • Work Instructions and Operational Guidelines
9. Establish a supporting organizational leadership and
• Budgets
culture
• Monitoring and Review Guidelines

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Organizational Structure.

The results of
Organizing & organizing
Organizational Structure

The way in which an organization’s work,

resources and authority are divided and
coordinated.

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Elements of an Organizational Structure

Organizational Chart
• Work specialization
• Departmentalization
Visual Presentation of the
• Chain of command organizational
• Span of Management Structure
• Delegation
• Formalization
• Coordination

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Structural Elements No: 1

Types of Organizational Charts
Work Specialization

Circular Breaking a complete and a complex work

down in to small and simple jobs in which
each worker can specialize and having
them perform such simplified jobs
repetitively and continuously.

Vertical Horizontal

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Structural Elements No: 2

Departmentalization Bases of Departmentalization

Basis Example
1. Functional Production, Marketing, Finance etc.

2. Product Yarn, Textiles, Garments, Dye etc.

The process of grouping jobs Southern, Western, Eastern etc.
3.Geographical
together so that common tasks can Drying, Cutting, Milling, Filtering, Packing
4. Process
easily be coordinated and control.
5. Customer ENT, Cardiology, Maternity, etc.

6. Mixed
Products A B C

Functions P M F

Regions 1 2 3

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Structural Elements No: 3

Chain of Command / Hierarchy Types of Authority

Definition: • Line Authority: The legal right of a superior to give

Unbroken line of authority that extends
from top of the organization to the lowest
level clarifying who reports to whom
orders to subordinates.
• Staff Authority: The legal right given to Staff
Managers to give advice to other managers
regarding specific staff responsibilities

• Functional Authority: The legal right given to Staff

Managers to give orders to other managers
Sequential arrangements of positions regarding specific staff responsibilities
on the basis of level of authority

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Management and Power Power Vs Authority

Reward Coercive Legitimate Expert Referent Information
Power Power Power Power Power Power

Power
Power
Authority
Influence

Getting Things Done Power:Ability to exert influence

Through Other People
(Management) Authority: Legal right inherent in a position
to make job related decision.

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Structural Elements No: 4

Authority Vs Responsibility Span of Management

Number of subordinates
Definition:

Authority: Legal right inherent in a position to reporting directly to a given manager

make job related decision.

Responsibility: Legal or moral obligation for Number of immediate subordinates of

Definition:

the proper performance of a manager

assigned task

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Structural Elements No: 5

Tall Structures Delegation of Authority
• One with narrow spans
and many hierarchical Definition: The act of assigning formal
levels Flat Structures authority and responsibility for completion
of specific activities to a subordinate
Tall CEO • One with wide
spans and few
hierarchical
16 Operative-level employees & 15 Managers

Flat
levels
CEO
Passing authority to a
lower level
16 Operative-level employees & 5 Managers

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The Process of Delegation Centralization and Decentralization

1. Assign the work

2. Delegate Authority Centralization: The degree to which
3. Create a Responsibility decision-making is concentrated at the top
of the organization.

Decentralization: The extent to which

Authority
decision discretion is pushed down to
Work = = Responsibility
lower level employees.

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Structural Elements No: 6 Structural Elements No: 7

Formalization Coordination

Definition: The degree to which jobs within

organization are standardized.
Definition: The process of integrating the
different work and objectives of different
people and departments so that the
common objective can be achieved.

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Types of Coordination
Horizontal Coordination
CEO Leading People and Groups
Production Marketing Personnel
Manager Manager Manager

Vertical Coordination
CEO

Production Marketing Personnel

Manager Manager Manager

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• Leadership is" the ability to influence individuals and

groups to work toward attaining organizational Power and Influence
objectives". (Mescrn,Albert and Khedourn)

• Leadership is “the ability to influence a group toward the

achievement of goals”. (Robinson, 1995)

• Leadership is "the process of directing and influencing • Power: The ability to influence others
the task-related activities of group members". (Stoner and
Freeman, 1992)
• Influence: The act of changing others
behaviour

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Criteria Manager Leader

Members known as Subordinates Followers
Leaders versus Managers
Sources of Power Positional Personal

Influencing mode Punishments Rewards and Charisma Managers who Leaders who are
are not leaders not managers
Future focus Short-sighted Far-sighted

Attitude towards change Status-quo Innovative

Respect Expect Receive Leaders

Managers
Type of decision making Rational, logical, Emotional, charismatic.
most often used analytical. Tends to rely May alter the mood of
on models, computers, followers and raise their
and number crunching hopes and expectations.

Orientation / Focus Inward Outward Managers who

Primary goal Company Goals Followers goals are also leaders

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Leadership Theories & Approaches Trait Approach

?
• In this approach, leadership is understood by
identifying the personal characteristics of leaders.
• Therefore leadership is determined by leader's own
personal characteristics believed to be taken from
• Trait Approach birth.
• Behavioural Approach • Hence, it is assumed that leaders are born but not made.
• Situational Approach

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Traits - Examples Behavioural approach

• Physique
• Intelligence
• Visionary and Farsightedness
• Self confidence
• Sociability
• Emotional Stability & stamina(Strength)
• Dominance
• Honesty & Integrity
• Surgency (Talkative, cheerfulness, geniality, enthusiasm, Focused on two aspects of leadership behaviour
expressiveness, Originality) namely
• Assertiveness
• Extroversion
• Credibility • leadership functions, and
• Fluency in Language • leadership styles.

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Leadership Functions Task-related Functions

Functions which directly help the organization

to achieve its objectives

Leadership functions are the set of activities that must be

performed by the leader, for a group to perform
effectively. Group-maintenance Functions

Those activities are

Functions that focus at furthering employees’
1. Task-related functions,
well-being.
2. Group-maintenance functions

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Task-orientation / Style
Leadership Styles
Task-orientation is the degree to which the leader organizes and
defines relationships in the group by activities such as
➢ Assigning specific tasks,
➢ Specifying procedures to be followed
➢ Scheduling work, and clarifying expectations
➢ Encourage people to work harder
➢ Emphasize meeting deadlines
➢ See to it that people in the work group are working up to
• Task Oriented Style capacity
➢ Closely supervise employees and
• People Oriented Style
➢ Getting the job done is more important to them than
employees’ growth or personal satisfaction

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Employee orientation / Style

Situational determinants of Leadership
Employee orientation is the degree to which the leader
creates an environment of emotional support, warmth, Superiors
Task
expectations and
friendliness, and trust. behaviour
requirements
Employee oriented leaders are
➢ Friendly,
Leaders Peers
➢ Trustful, Leadership
personality past expectations
➢ Earn respect, effectiveness
experience and and behaviours
➢ Have a warm relationship with team members, expectations
➢ Do personal favours for people in the work group,
➢ Treat all people in the work group as his/her equal,
➢ Be willing to make changes, Subordinates’
➢ Back up what people do Organizations characteristics,
➢ Have a participative decision making culture and policies expectations and
behaviours

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Charismatic Leadership Theories

Characteristics of Charismatic Leaders.
• charismatic leaders have some extraordinary or heroic
personal ability and they are capable of having profound
and extraordinary effects on followers.
• Self-confidence.
• Followers of charismatic leader identify the leader and • Ability to articulate the vision.
the mission of the leader and follow them, exhibit • Strong convictions about the ordinary.
extreme loyalty to the leader and have confidence in the
leader, emulate the leader’s values and behavior, and • Behavior that is of extra ordinary.
derive self-esteem from their relationship with the leader. • Perceived as being a change agent.
• Environment sensitivity.

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Motivation Unsatisfied needs Tension Drives

Generic Definition:
Internal drive of a person
to satisfy his or her Reduction of Satisfied need Search behaviour
unsatisfied needs tension

Work Motivation
The willingness to exert
high level of effort towards organizational
goals, conditioned
by the effort’s ability to satisfy some
individual need.” Process of Motivation

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Need Example Organizational Reward

Physiological hunger, thirst, shelter, sex Money,

Company Goods, etc..

Safety: Job security, security from

physical & emotional harm
Self- actualization
Needs Social: Love, attention, friendship

Esteem Needs
Esteem: self-respect, autonomy,
Social Needs achievement; status, recognition
and attention
Security Needs Self-actualisation growth, achieving one’s potential
and self-fulfillment
Physiological Needs

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Communication- Definitions

Communication means the

transfer of information
from the sender to the
receiver with the
information being
Communication understood by the receiver.

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Communication COMMUNICATION

Communication means
verbal or symbolic
behaviour by the sender
Communication is concerned with the
achieves an intended
creation, transmission, interpretation
effect on the behavior of
and correct use of information. the receiver.

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Interpersonal Communication
• Interpersonal communication is the
transmission and reception of thoughts,
facts, beliefs, values, attitudes and
feelings – through one or more media –
that produce a response. (Helleriegel
and Slocum)
Purpose of organizational
communication systems
• Organizations are human communities with
complex interpersonal relationships.
• Nature of these relationships is influenced by
the quality of communication among
members.
• Organization’s success is related to
effectiveness of organizational
communication.

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Basic purposes of organizational Communication Process

communication
Idea Message Reception Behaviour

• To obtain a common direction among Sender Transmission Receiver

Encoding Media Decoding Understanding
members
• To integrate the efforts of specialists
• To aid in making high quality decisions
Nois
• To build a community of employees with high e
Feedback
morale and trust among themselves.

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Formal Communication in Informal Communication in

Organizations Organizations

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Communication Networks
Common Grapevine Chains found in
Organizations
A pre-established
pattern dictating
who may
communicate with
whom

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Communication Networks (Centralized) Communication Networks

The degree to which information must flow
through a specific member of the network
(Decentralized)
Communication network in which all
members play an equal role in
transmitting information.

Wheel Chain All Channel Circle

“Y”
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Current Issues In Communication

Organizational Factors
Influencing Communication
Communication barriers between
women and men/
1. The formal channel of communication Individual differences
2. Information Ownership Politically correct communication
3. Degree of Centralization Cross-cultural communication
4. Levels of Hierarchy
Electronic communications
5. Geographical Dispersion
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❖Sources of nonverbal
Communication across cultures communication
There are a number of reasons leading to communication
breakdown across cultures.
1. Perceptual problems – perception means a person’s
interpretation of reality.
➢Body Language
2. Stereotyping problems – perceive another person as ➢Colour
belonging to a single class or category or constructing an
assumed overall profile of other people ➢Dress
3. Ethnocentric problems – the sense of superiority that
members of a particular culture has. ➢Physical environment
➢Silence

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Body Language Paralanguage

•Facial expressions Voice Quality

•Movements Volume
•Eye contacts Speech rate
•Touch Pitch

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Organizational Control Process of Controlling

Establish Performances Criteria and Standards
• Management control is the process of
ensuring that actual activities confirm to Measure Actual Performance
planned activities.
Compare Actual Performance against Standards
• The process of monitoring activities to
ensure they are being accomplished as Evaluate and Take Corrective Actions
planned and of correcting any significant
deviation.
Correct Change Maintain
Deviations Standards Status

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Importance of Control Types of Control

• Operational Control
• To monitor progress and correct mistakes Feed-forward Control
Concurrent Control
• Adopting to changing conditions Feed-back Control
• To facilitate delegation and teamwork
• Structural Control
• Limiting the magnification of errors Bureaucratic Control – Formal
• Dealing with organizational complexity Clan Control - Informal

• Minimizing cost • Strategic Control

Financial Controlling (Audit, Budgets, Ratios, FSA, etc)
Non – Financial Controlling (Inventory, Quality,
Supervision, etc.)

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Behavioral Guidelines for

Behavioral Implications of Control
• Control affects individual freedom
• Controls carry status and power implication
in organizations
• Control actions may creature inter group or
interpersonal conflicts
• Excessive number of controls may limit
flexibility and creativity
Effective Control
• Set meaningful, acceptable and attainable
standards
• Establish an effective, accurate and timely
two way communication
• Reward attainment of standards
• Develop voluntary co-operation,
participation, sense of responsibility, self
control and self discipline

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Essentials of Effective Control

System
• Flexibility
• Accuracy
• Timeliness
• Economic
• Integration with planning
• The whole hearted support of top management
• Participation of all managers in all control process
• A complementary relationship to manager’s
Thank You !
authority

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