Organisational Theory 1

ORGANISATIONAL THEORY, STRUCTURE AND DESIGN.

CONCEPT OF ORGANISATION
Organization is

A consciously coordinated social entity With a relatively identifiable boundary That functions on a relatively continuous basis To achieve a common goal or set of goals

VALUE CREATION
A

THREE STAGE PROCESS

Inputs

Conversion

Outputs

Understand how organization operates .ORGANISATION THEORY Organization Theory has two aims: . .To develop conceptual tools to influence organizational situations in which you will find yourself.

Human Relations Theory. Weber·s Bureaucratic Theory.EARLIER APPROACHES TO ORGANIZATION Taylor·s Scientific Management. Fayol·s Administrative Theory. .

Standardization. Functional Foremanship. . Time and Motion Studies. Differential Piece Rate System.TAYLOR·S SCIENTIFIC MANAGEMENT: KEY CONCEPTS Scientific Task Planning.

WEBER·S BUREAUCRATIC THEORY: ELEMENTS Hierarchy. Division of Work. Administrative Class. Impersonal Relationship. Records. .

Authority and Responsibility. Initiative. Esprit de corps. Stability of Tenure. Unity of Command. Equity. Centralization. Subordination of Individual Interest. Discipline. . Remuneration.FAYOL·S ADMINISTRATIVE THEORY:PRINCIPLES Division of Work. Scalar Chain. Order.

Work Group. Work Environment.HUMAN RELATIONS THEORY: IDEAS Individual. Leader. .

Input. Output. .FUNDAMENTAL ELEMENTS OF AN OGANIZATION Mission and Objectives. Environment. Boundary. Outcome. Feedback. Process.

Various mechanisms to foster horizontal coordination. Organizational Structure. 3.ORGANIZATIONAL STRUCTURE: CONCEPT The organizational structure is designed to prevent chaos through an orderly set of reporting relationships and communication. The clustering of positions. 2. The assignment of tasks and responsibilities. according to John Child. consists mainly of four elements: 1. Various mechanisms to facilitate vertical coordination. . 4.

ORGANIZATIONAL CHART Managing Director General Manager R & D Division Chief Scientist. New Materials Material Scientist .

TYPES OF DEPARTMENTALIZATION Departmentalization Functional Divisional Hybrid Matrix .

. Horizontal Coordination.MANAGING COMPLEX STRUCTURES Managing Complex Structures Vertical Coordination.

.METHODS OF VERTICAL COORDINATION Formalization. Span of Management. Centralization and Decentralization Delegation of Authority.

Direct Contact Liaison Roles Task Force and Teams Integrating Manager . Lateral Relations.METHODS OF HORIZONTAL COORDINATION Information System.

SYSTEMS APPROACH TO ORGANIZATION Nature of System Katz and Kahn have described the following characteristics of a system: ‡ Input-throughput-output mechanism. ‡ ‡ . Delineation by boundary. Purposes and goals.

SYSTEMS VOCABULARY System. Sub-System. Feedback . System Boundary. Synergy. Flow. Open and Closed System.

An organizational design is how an organizational structure looks like.ORGANIZATIONAL DESIGN: AN INTRODUCTION The outcome of the process of developing an organizational structure is an organizational design. The process of constructing and adjusting an organization·s structure to achieve its goals results into formation of an organizational design. .

The Organization·s Size. Environment. . Organizational Goals.FACTORS INFLUENCING ORGANIZATIONAL DESIGN Technology.

Formalization vs. Balancing standardization and mutual adjustment.PROBLEMS IN ORGANIZATIONAL DESIGN Differentiation. . Integration. Balancing centralization and decentralization. Socialization.

Internal ‡ Changes in Managerial Personnel. ‡ Crisis. ‡ Employee Expectations. ‡ Changes in Work Climate.ORGANIZATIOANL DESIGN AND FLEXIBILITY FORCES FOR CHANGE IN ORGANIZATION External ‡ Technological Change. ‡ Workforce Diversity. ‡ Declining Effectiveness. ‡ Managing Ethical Behavior. . ‡ Globalization ‡ Social & Political Change.

Changing Competitive Forces.FLEXIBILITY MODEL: BUILDING BLOCKS. . Managerial Capabilities. Organizational Design.

ENVIRONMENTAL AND RESOURCE CONTEXT IN ORGANIZATION: SPECIFIC ENVIRONMENT Customers Unions ORGANIZATION Suppliers Dealers Competitors .

GENERAL ENVIRONMENT Economic InterNational TechnoLogical ORGANIZATION SocioCultur al Legal & Regulato ry Political Natural Factors .

SOURCES OF UNCERTAINTY Environmental Complexity. Environmental Richness. . Environmental Dynamism.

ORGANIZATIONAL LIFE CYCLE Start-up Stage Growth Stage Maturity Stage Decline Stage .

risks and finances in order to produce ideas or products. resources.VIRTUAL ORGANIZATION VO is viewed as an organization consisting of independent partners. who try to combine their strengths. Members of the VO are often geographically dispersed and communicate with the help of information technology. . skills.

Each partner contributes a world class core competence. IT an important element. .CHARACTERISTICS OF A VIRTUAL ORGANIZATION Represents structures that are motivated by specific market opportunities. Creates a network of interdependent relationships.

Star alliance model. .VIRTUAL ORGANIZATIONS MODELS Co-alliance model.

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