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