Great Land Addiional Matrial For MGT Principle

Organizational objecive
Girma Birhanu (B.E.D,M.B.A)

Additional martial for management principle
1
Organization Leadership
 Organizational leadership is the study of
leadership in different types of organizational
settings, including for-profit and non-profit
organizations.
2
Organizational Leadership
 The principles and theories students learn in
this concentration can be applied to various
situations such as working with teams,
working in a multinational corporation, or
running your own company.
3
 Students studying organizational leadership

learn how to become leaders within a variety
of organizational and structural contexts
4
 There are many different types of organizing.
5
 Organizational diversity is determined by;
 1. Internal Structures
 2. External factors
 3 Organizational objectives
6
Organizational Objectives
 Organizational
 Organizations are geared towards;
 1. Enabling an organization to achieve its objectives

 2. Use efficient and time sensitive ways of fulfilling
organizational objectives
 3. Achieve goals easily or with less labor and power
output
 4. Realize set objectives in cost effective and
inexpensive ways.
7
Context factor
 Context is one of the major factors that
determines differing views on the types of
organizations
 Organizations are structured differently in

order to adapt to contextual realities and gain
high performance efficiency.
8
Four Key Factors Determining
Organizational Types
1. Issues of power and formality
9
2. Organizational types, Private or Public
Copyright@2014 Dr. Gemechis

Desta Leadstar UC 10
3. Centralized or decentralized structuce
11
3. Centralized or decentralized structure
4. Organizational power base
12
13
Because no body
Organizations
can do
are salient
everything alone
Organizational Significance
Organizational Diversity
 Organizational diversity is determined by

context, structure and objectives.
 There is no wrong or right structure for an

organization
14
Organization Diversity and Efficiency
Theories
 Few best known authors;

 Henry Mintzberg;
 Mintzberg states that most organizations

have five main parts;

Theories
The Operating
Core
16
The Operating core
 People who make the product or who provide

the service.
 Small organization keep their overhead down

by having nothing more than the operating
core
17
Theories
The Operating The Middle

Core Line
18
The Middle line
 This is a position for the middle managers.
This line gets directives from the senior
management team and supervise the junior
management team.
 The middle line is created due to

organizational growth and due to limited
capacity of senior management to oversee the
entire organizational existence and
operations.
19
Theories
The Operating
The Middle Line Technostructure
Core

Technostructure
 This refers to efficiency and productivity
designers and consultants in the
organization.
 They decide on technoly types organizations

should use or they advice on;
◦ 1. How work processes are defined
◦ 2. How work processes are standardized
◦ 3. How work process are refined for improvements
21
Theories
The Operating
Core
Support Staff

Support Staff
 These are employed staff or consulting staff
working directly with the operating core to
increase efficiency, productivity and avoid
mistakes.
 These category includes, HR, Legal advisers,
Security, Cafeteria …
23
Theories
The Operating
Core
Support Staff The Apex
24
The Apex
 The top or final authority that determines
organizational nature, objectives and
direction
 This can be a single manager or it can be

board of directors.
 This are the dominant coalition who

determines where the organization is going
to go and how it gets there.
25
Two Major Categories
Line Positions Staff Positions

• The Apex • Technostructure
• The Middle Line • Support staff
• The Operating
Core
26
Mintzberg Theory on Organizational
Problem Solving
 Coordinating Mechanisms;
Organizations face different kinds of problems and

challenges
Organizations employ various ways of solving the

problems they face
Those employed problem solving mechanisms are

determined through organizational means
27
28
• Fixing and adjusting systems and
of Work
procedures
3. Standardization
• Senior management or the middle line Supervision
spending too much time and energy 2. Direct
through direct involvement
• That is when employees in the operational
Adjustment
core cooperate fruitfully with each other
1. Mutual
Major Coordinating Mechnisms
29
• Shaping and reshaping organizational culture of Norms
by establishing a common set of beliefs in how 6. Standardization
tasks are best achieved or approached.
• Skill development and capacity building of Skills
through further training and continuing 5. Standardization
education.
• Dealing with challenges through systems of Outputs
approach and dealing with operational 4. Standardization
procedures
Major Coordinating Mechanisms
Designing Organizational Structure
 Organizational structures are one of the

major defining factors in deciding the very
identity, performance, objectives and
direction of a given organization.
30
Major Factors in Defining
Organization Structures
Planning and
Job
Indoctrination Control
Specialization
systems
Behavior
Unit Grouping Liaison Devices
Specialization
Training Unit Size
31
Using Common Sense for
Organizational Structuring
 Organizations should use common sense to
design their own organizational structur
 That common sense is determined by;

◦ Organizational objectives
◦ Contextual reality
◦ Market analysis
◦ Human resource or human capital review
◦ Organizational size in terms of scope of service and
organizational resources such as financial capita
32
Using Common Sense for Organizational
Structuring-Professional firm as an example
Operating Core
Senior Partners
Back Room Team

33
34
Decentralized Centralized
POWER
Power – Centralized Vs. Decentralized
 In a given organization power can be

centralized or decentralized.
 The merit of power arrangement depends on

what the organization is and how it proposes
to achieve its objectives
35
Laurie Mullins – Management and
Organizational Behavior
 This book suggests and discusses different

types of organization and suggests that no
matter what they are set up to do, all
organizations have one thing in common.
 What is that one thing?
36
Organizational Common Point
• Interactions and efforts of people to achieve
objectives channeled and coordinated
through structure directed and controlled via
management.
People Objectives Structure Managment
37
38
• Plans changes Organizations
• Coordinates its activities well Formal
• Usually structures in a hierarchy
Formal and Informal Organizations
Formal Organizaiton
 Known for the strength and clarity of their
structures
 They are very well managed and most of their
activities are well researched, prioritized,

clearly assigned tasks and precise plan
execution
 Efficient time and resource management
 Cares about reputation and organizational
image
39
40 Desta Leadstar UC
• Loose and flexible structure Organization
• Less well defined relationships Informal
• Can be more spontaneous
• Plans changes Organization
• Coordinates its activities well Formal
• Usually structures in a hierarchy
Formal and Informal Organizations
Informal Organzations
 Loose and flat structures,

 Based on lean and simple structures,
 Flexible, spontaneous and creative
 Cares more about edgy than age
 Relationship driven and non heirarchical
 Productivity and profit driven
41
Private and Public Sectors
Private Public
Sector Sector
Organizational
Diversity Based
on Objectives
42
Private and Public Sectors
Private Public
Sector Sector
Key difference
factor can be
summed up as
PROFIT
43
44
• Exist to provide service for the citizens
of the country
Organizations
• They serve free of charge or at modest Public Sector
fee
• Exist to make profit Organizations
• Enable their employees and share Private Sector
holders to thrive
Public and Private Sectors
45
• Local authority council,
Organizations
health, police, schools …
Public Sector
• Business firms, companies, Organizations
small and large businesses Private Sector
…
Public and Private Sectors
Private – Public Sector Cycle
 In the 1940 all the way to the early 1970s

most governments became pro labor and
socialist leaning
 Therefore there was major emphasis in public
sector through nationalization of the private

sector.
 Most services and businesses were
nationalized and private sector grew weak.
46
Private – Public Cycle
 In the 1980s and in the post cold war era,
there was major global wave of privatization
 This wave of privatization was aimed at

increasing;
 efficiency,
 profitability and
 expanding the scope of service
47
Private – Public Cycle
Mid
Late
Late19
Mid to
toththMid
19
th
to
to Early
Mid 19
19th 20
th
Early Century
th
20 th Century
Century
Century
Early 20
Early 20 th – to the 21st
– to the 21st Century
Century
PRIVATE
PUBLIC
PUBLICSECTOR
PRIVATE SECTOR
SECTOR
SECTOR
PRIVATE
PRIVATE SECTORSECTOR
48
Organizational Categorization Per
Primary Activities
 Organizational classification according to

Katz and Kahn (Mullins P. 79)
 You may go to Leadstar University College

website and research through Bussiness Elite
resource
 Four Main Parts;
49
Primary Activities
1. Productive
50
Productive Organization
Effective sells
Increased capacity strategy to sell
in manufacturing goods and
and production services to the
public
Concerned with
creating Wealth
and prosperity
51
Primary Activities
1. Productive
2. Maintenance

Maintenance Organization
Retention Sustenance
Maintenance
organizations
are concerned
with two things
53
Primary Activities
1. Productive
2. Maintenance
3. Adaptive
4.
54
Adaptive Organization
Strategic planning
to explore new
directions
Tactical planning
Comprehensive
to answer
analysis of
immediate
contextual
concerns and
realities
questions
Adaptive
Organizations
are concerned
with;
55
Primary Activities
1. Productive
2. Maintenance
3. Adaptive
4. Managerial or Political
56
4. Managerial or Political
Adjudication
Governance and
and influencing
political
human behavior
pressure
at a larger scale
Managerial or
Political
Organizational
concerns
57
Organizational Descriptions Per
Organizational Task
 In the process of understanding, explaining

and defining organizations describing
organizational task is critical.
 Organizational task is primarily led by the set

goals and objectives of the organization.
58
Organizational Task – Five Ways of Describing
Organizational task
1.
Task
Set goals of
the
organization
Objectives to
be achieved
59
60
Organizational task
1. Task 2. Technology
Set goals of the Manner in which

organization task is carried out
Mainly but not

Objectives to be limited to
achieved computerized
efficiency
61
Organizational task
1. Task 2. Technology
3.
Structure
How
Set goals of the Manner in which
organizations are
organization task is carried out
set up
Mainly but not How lines of

Objectives to be limited to communication
achieved computerized work between
efficiency differing sections
62
Organizational task
4. People 5. Management
Employee attitude and How tasks are organized,

need decided and achieved
How organizational
Employee skills and
strategy and over all
expetation
direction are determined
63
Part Two
64
The Nature of Managerial Work
 The Second part deals with managers; dealing

with the question, “What do managers do?”
 The relevance and the state of managers in

the act of management;
65
Managers
Management
66
Six Major Theories
Machiavelli Taylor Fayol
Pedler,
Peters and
Luther Gullick Burgoyne and
Waterman
Boydell
67
Machiavelli
 Miccolo Machiavelli, a political advisor to the

Medici family in Florence,
 His rise was around the end of the 15th
century, being secretary to the Florentine

Republic from 1496-1512
 He produced and left behind on of the
greatest political and managerial works of all

time entitled, “The Prince”
68
Machiavelli
 The Prince was suggestions for a leader who

was;
 Strategic
 Tactical
 Cold
 Who planned for the long-term
 Pragmatic
 Sly and cunning
 Manipulative and immoral
69
Machiavelli
 In short Machiavelli outlined the kind of

qualities a great leader needed to succeed in
those opportunistic days.
 This proposition is called Machiavellianism.

Machiavellianism refers to;
70
Machiavellianism;
 I. Cold and Cynical world view with pragmatic

and immoral beliefs
 II. Lack of emotionality
 III. Strategic Long term planning in self-

beneficial goal pursuit
 IV. Various Manipulative behaviors
71
Taylor
 FW Taylor was an American Thinker who
worked at the turn of the 20th century
 Taylor was noted for helping Henry Ford
 He was the first to make management an

scientific art form and he did it with
remarkable success mainly through three
major innovations.

Taylor’s thee major innovation Points
I. An emphasis on Productivity
73
I. Emphasis on Productivity
 1. Observed best practices of highly

productive workers
 2. Recorded and synthesized into a work

process and
 3. Rolled that process out to all the others

workers in the factory
74
II. Selection and Training
75
Selection and Training
 I. Always recruiting/selecting the best

workers in the first place
 II. Measuring quality of workers based on

skills and attitude. Skills can be learned
howevere attitude is inherent in individuals.
 III. Training was salient to extract the best

efforts from workers
76
II. Selection and Training
III. Job Analysis
77
Job Analysis
 Job analysis process was critical to find out the
state of employee performance
 In job analysis process each worker is monitored

in terms of time and motion with particular
emphasis on difficulties faced and also the
method used to resolve them.
 The ultimate goal of job analysis process was to

develop a training process for managers and to
equip them for management reality

Taylor’s Theory and Impact
Manag Analyzed ford motor company

●
●
and managed to cut time spent
erial
in making one car from 13 man
hours to 4 hours, which made
cars to be mass produced and
be affordable to masses, he
Impact
democratized the car industry.

Henri Fayol
 H. Fayol wrote a book entitled, “General and
Industrial Administration” published in 1916.
 This book became a model for most of the

managerial administration and followed in the
20th century.
 In this book Fayol outlined what became known

as the traditional framework of management
which consisted mainly five key points;
80
Traditional Framework of
Management
1. ●
●Predicting what will happen in the future
●Devising courses of action to met the
Planning
●
situation
81
Traditional Framework of Managment
●
1. Planning ●Devising courses of action to met the
●
situation
●
●Mobilizing materials and resources
2. Organizing ●Allocating separate tasks to
●
department units and individuals
82
●
1. Planning ●Devising courses of action to met the
●
situation
●
●Mobilizing materials and resources
2. Organizing ●Allocating separate tasks to
●
department units and individuals
Ensuring that activities and resources

●
●
3. Coordinating are working effectively towards the

overall goals
83
This is that act of directing or

●
4.
●
providing clear and decisive

Commanding direction to employees
Monitoring work progress to

●
●
ensure precise execution of plan

5. Controlling and implementation of set
processes
84
 These five parts of the management framework
are interdependent and interconnected.
 Achieving one while ignoring the others is likely

to be counterproductive.
 Fayol’s work lasted for over a century and laid

the foundation of most of the routine
managerial process that is now seen the many
organizations.
85
Luther Gullick
 Gullick further developed Fayol’s work into a

newer form and called it POSDCORB
 This redeveloped work of Fayol’s theory has

gained tremendous traction with many
management thinkers.
 Here is PODSCORB

Luther Gullick’s - PODSCORB
Organizi
Planning ng
Staffing -
Directing
HRM
Coordina Reportin
ting g
Budgetin
g
87
Peters and Waterman
 Tom Peters and Robert H. Waterman, Jr. they
are one of the world’s foremost authorities in
management and leadership areas,
 In 1982 Peter and Waterman picked 43 most

prominent companies in the world and
analyzed what they had in common.
 The came up with two basic maxims;
88
Two Basic Maxims for Organizational
Success
Brillianc Be brilliant at what you do

●
●
●Excellence brings organizational

●
e Factor
distinction giving you business
advantage over your competitors
89
Two Basic Maxims for Organizational
Success
Brillianc Be brilliant at what you do

●
●
●Excellence brings organizational

●
e Factor
distinction giving you business
advantage over your competitors
Work hard at the

Diligenc
●
●
fundamentals of
e factor management
90
Part III
91
Organizational Structure
 Organizational structure arise out of

functions
 Functions mean distinct group of activities

carried out by an organization
 What is the function of general management

in a given organization?
92
Functions of general managment
1. Setting
Looking at where organizations are
strategic
●
●
going and how it is going to get there

direction
93
1. Setting
strategic
●
●

direction
2. Identifying What the organization stands for and

●
●
Core Values equally what it does not stand for
94
1. Setting
strategic
●
●

direction
2. Identifying What the organization stands for and

●
●
Core Values equally what it does not stand for
3. Leading Inspire and encourage employees,

●
●
with a vision customers and other stakeholders
95
4. Setting Setting organizational goals and
●
●
Objectives setting organizational objectives
5. Decision ●
● Making decision to move
Making the organization forward
6. Controlling and coordinating by

●
●
moving the organization towards its

Directing goals
96
7. Evaluating
performance
8. Reviewing
Strategic
direction
97
Structure
 Management work is vast and complex.

Organizational managers navigate through
this complex and vast task by using simple
and clear organizational structure.
98
Six Major Types of Organizational
Structures
Organizational Organizational Organizational
Structure Structure Structure
1. Unitary 3. Decentralized 5. Matrix
6. Process
2. Centralized 4. Divisionalized
structure
99
Structures
Every things starts ●

Simple and clear line of
at the center, with
●
communication
all function heads ●Fragmentation can and sometimes
●
occur
report to the head
2. Centralized ●
●Central
Central policy
going to
policy makers
do
makers determine
and how
determine what
and when it
what the
is
the organization
going
organization is
to do
going to do and how and when it is going to do it.it.
is
Structure
●Strong control, standardization of process and norms.
Strong control, standardization of process and norms.
●
●Limits freedom of local leaders and hampers creativity

Limits freedom of local leaders and hampers creativity
●
10
0
Structures
Power and responsibily is

3. Decentralized
●
●
shared among local and

Structure regional leaders
2. Centralized ●
●Central
Central policy
going to
policy makers
do
makers determine
and how
determine what
and when it
what the
is
the organization
going
organization is
to do
going to do and how and when it is going to do it.it.
is
Structure
●Strong control, standardization of process and norms.
Strong control, standardization of process and norms.
●
●Limits freedom of local leaders and hampers creativity

Limits freedom of local leaders and hampers creativity
●
10
1
10
2
I. Achieve efficient use of
resources, or do the work
efficiently.
10
3
II. Ensure accountability and
monitoring
10
4
III. Allow coordination between
different parts of the
organization.eg ehio telecom
10
5
IV. Provide for communication.
up ward, dawn ward or
horizontally. any direction along
the layers of organizational
structure
10
6
V. Adapt to change
10
7
Structural Clarity
 In organizational leadership having structural
clarity in important.
 In order to achieve structural clarity having

organizational organogram is critical.
 In this art of drawing up organizational

organogram there is a process that involves
four stages;
10
8
The art of developing Organogram
1. Define
who is
responsible
for groups
activities and
place this
posts in
boxes on the
grid
10
9
1. Define 2. Establish
who is reporting
responsible relationships
for groups and connect
activities and the boxes
place this with solid
posts in lines to show
boxes on the who reports
grid to whom
11
0
who is reporting
3. Define
responsible relationships
functional
for groups and connect
relationships
activities and the boxes
and connect
place this with solid
them with
posts in lines to show
doted line
grid to whom
11
1
who is reporting
3. Define
responsible relationships 4. Cross
functional
for groups and connect reference
relationships
activities and the boxes any positions
and connect
place this with solid to outline job
them with
posts in lines to show descriptions,
doted line
grid to whom
11
2
Thank you all
Girma
Birhanu(B.E.D,M.B.A)
11
3

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Organizational objecive

Girma Birhanu (B.E.D,M.B.A)

 Students studying organizational leadership

 There are many different types of organizing.

 Organizations are geared towards;

 1. Enabling an organization to achieve its objectives

 Organizations are structured differently in

1. Issues of power and formality

1. Issues of power and formality

2. Organizational types, Private or Public

Copyright@2014 Dr. Gemechis

1. Issues of power and formality

2. Organizational types, Private or Public

3. Centralized or decentralized structuce

1. Issues of power and formality

2. Organizational types, Private or Public

3. Centralized or decentralized structure

4. Organizational power base

 Organizational diversity is determined by

 There is no wrong or right structure for an

 Few best known authors;

 Mintzberg states that most organizations

Copyright@2014 Dr. Gemechis

 People who make the product or who provide

 Small organization keep their overhead down

The Operating The Middle

 The middle line is created due to

Copyright@2014 Dr. Gemechis

 They decide on technoly types organizations

Copyright@2014 Dr. Gemechis

Support Staff The Apex

 This can be a single manager or it can be

 This are the dominant coalition who

Line Positions Staff Positions

Organizations face different kinds of problems and

Organizations employ various ways of solving the

Those employed problem solving mechanisms are

 Organizational structures are one of the

Training Unit Size

 That common sense is determined by;

Back Room Team

 In a given organization power can be

 The merit of power arrangement depends on

 This book suggests and discusses different

 What is that one thing?

People Objectives Structure Managment

activities are well researched, prioritized,

 Loose and flat structures,

 In the 1940 all the way to the early 1970s

sector through nationalization of the private

nationalized and private sector grew weak.

 This wave of privatization was aimed at

 Organizational classification according to

 You may go to Leadstar University College

 Four Main Parts;

Copyright@2014 Dr. Gemechis

 In the process of understanding, explaining

 Organizational task is primarily led by the set

Set goals of the Manner in which

Mainly but not

Mainly but not How lines of

Employee attitude and How tasks are organized,

 The Second part deals with managers; dealing