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A Global and Entrepreneurial Perspective
MANAGEMENT
PRINCIPLES OF MANAGEMENT
Sr. No. Chapter No. Chapter Heading1 1 Management: Science, Theory and Practice (27th September 2010)2 4 Essentials of Planning and Managing by Objectives (4th Oct)3 5 Strategies, Policies and Planning Premises (11th Oct)4 6 Decision Making (18th Oct)
5 7 The Nature of Organizing, Entrepreneuring, and Reengineering
6 8 Organization Structure: Departmentation7 9 Line/ Staff Authority, Empowerment and Decentralization8 10 Effective Organizing and Organization Culture9 14 Human Factors and Motivation
10 15 Leadership11 16 Committees, Teams and Group Decision Making12 18 The System and Process of Controlling
Sessional Evaluation External Evaluation15 15 20 50 50
Quiz per Class Assignment & Presentation Mid-term Total Sessional External Exam
The Nature of Organizing, Entrepreneuring, and Reengineering
Chapter 5
TABLE OF CONTENTS
1. FORMAL AND INFORMAL ORGANIZATIONS2. ORGANIZATIONAL DIVISION: THE DEPARTMENT3. ORGANIZATIONAL LEVELS AND THE SPAN OF
MANAGEMENT4. AN ORGANIZATIONAL ENVIRONMENT FOR
ENTREPRENUERING AND INTRAPRENEURING5. REENGINEERING THE ORGANIZATION6. THE STRUCTURE AND THE PROCESS OF
ORNGANIZING7. xBASIC QUESTIONS FOR EFFECTIVE
ORGANIZING
QUIZDRAW THE ORGANIZATIONAL HIERARCHY OF ANY COMPANY THAT YOU ARE GOING TO SET UP
ORGANIZATION
Organizing is: The identification and classification of required
activities The grouping of activities necessary for attaining
objectives The assignment of each group to a manager with
the authority (delegation) necessary to supervise it The provision for coordination horizontally or
vertically in the organization structure
Organizing is: The identification and classification of required
activities The grouping of activities necessary for attaining
objectives The assignment of each group to a manager with
the authority (delegation) necessary to supervise it The provision for coordination horizontally or
vertically in the organization structure
A formalized intentional structure of roles or positions
A formalized intentional structure of roles or positions
FORMAL AND INFORMAL ORGANIZATION
FORMAL AND INFORMAL ORGANIZATION
Formal Organization: “The intentional and flexible structure of roles in a
formally organized enterprise, in which individuals and teams perform to attain the common objectives”
Informal Organization: It is a network of interpersonal relationships that
arises when people associate with one another. For example, the cricket team, the female association, the dars group, the regular namazis etc
Department: A distinct area, division or branch of an
organization over which a manager has the authority for the performance of specified activities.
ORGANIZATIONAL LEVELS & THE SPAN OF MANAGEMENT
Organizations with narrow spans: Advantages:
Close supervision Close control Fast Communication between subordinates and supervisors
Disadvantages: Superiors tend to get too involved in subordinates’ work Many levels of management High costs due to many levels Excessive distance between the highest and lowest tiers
Organizations with wide spans: Advantages:
Superiors are forced to delegate Clear policies must be made Subordinates must be carefully selected
Disadvantages: Tendency of overloaded superiors to become decision bottlenecks Danger of superior’s loss of control Requires exceptional quality of managers
PRINCIPLE OF THE SPAN OF MANAGEMENT
There is a limit to the number of subordinates a manger can effectively supervise, but the exact number will depend upon the impact of the underlying factors
FACTORS DETERMINING AN EFFECTIVE SPANNarrow span of management may be more effective when
Wide span of management may be more effective when
Little or no training of the subordinates
Thorough training of the subordinates
Inadequate or unclear authority delegation
Clear delegation and well defined tasks
Unclear plans for non repetitive operations
Well- defined plans for repetitive operations
Non verifiable objectives and standards
Verifiable objectives and standards
Use of poor or inappropriate communication techniques, including vague instructions
Use of appropriate techniques, such as proper org structure and clear communication
Ineffective interaction of superior and subordinate
Effective interaction of superior and subordinate
Greater number of specialities at lower and middle levels
Greater number of specialities at upper levels
Incompetent and untrained manager Competent and trained manager
Complex task Simple task
Subordinates’ unwillingness to assume responsibility and reasonable risks
Subordinates’ willingness to assume responsibility and reasonable risks
Immature subordinates Mature subordinates
THE ENTREPRENEUR AND THE INTRAPRENEUR
The Intrapreneur: “An intrapreneur si a person who focuses on innovation
and creativity and who transforms a dream or an idea into a profitable venture by operating within the organization”
The Entrepreneur: “The entrepreneur is a person who does similar things but
outside the organizational settings” An entrepreneur takes substantial risk in being the owner
and operator of a business with expectations of financial profit and other rewards that the business may generate
Example of intrapreneurship: A classic case of intrapreneurs is that of the founders of Adobe,
John Warnock and Charles Geschke. They both were employees of Xerox. As employees of Xerox, they
were frustrated because their new product ideas were not encouraged. They quit Xerox in the early 1980s to begin their own business. Currently, Adobe has an annual turnover of over $3 billion.
REENGINEERING THE ORGANIZATION The definition was given by Hammer and Champy in 1990 The fundamental rethinking and radical redesign of
business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service and speed.
Fundamental rethinking: what the organization is doing and why
Radical redesign: change of structures and processes Dramatic results: Processes: the careful analysis of systems,
processes and their integration
THE STRUCTURE AND PROCESS OF ORGANIZING
The process of organizing needs several fundamentals be considered:
The organizational structure must reflect objectives and plans It must reflect the authority available to an enterprise’s
management Organization must reflect its environmental relative factors such
as political, economical, social, technological and cultural People’s limitations and customs be taken care of while managing
or organizing their group or individual activities What are the steps of organizing process:
Establishing enterprise objectives Formulating support objectives, policies and plans Identifying, analyzing and classifying the activities to attain the
objectives Grouping the activities, keeping in mind the human and material
resources Delegation of authority to respective managers Tying the groups together horizontally and vertically
THE ORGANIZING PROCESS
Detailed picture is in book p179