Principle of Management Chp#5-8
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Transcript of Principle of Management Chp#5-8
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Important Notes
Chap-5-8
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Organization
Apattern of manyinterwoven,simultaneousrelationship- through
which people,under the
direction of
managers,pursue theircommon goals.
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Organization
Formal organization : formalized intentional tructure of
role or po ition (organizational chart)
Informal organization:The undocumented and
officially unrecognized relation hip bet eenmember of an organization that inevitably emerge
out of the per onal and group need of employee .
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Organization Chart
It sho s ormal authority
relationship and omits the manysigni icant i formal and
in ormational relationship
advantage
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Organization Chart
disadvantage
Organization structure is dynamic
chart may obsolete
Make people overly conscious o
being superiors or in eriors
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Organization Chart
Importance o Informal organization
and Grapevine
Bring cohesiveness to ormal
organization
Channel o communication
Inevitable and valuable
Is a network of interpersonal relationship that arisewhen people associate with each other (not charted)
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Identification of required activities
Grouping of activities necessary to attainobjective( departmentalization )
Assignment of each group to a manager
with authority necessary to supervise
The provision for coordination horizontallyand vertically
Organizing -4 building blocks
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Three level of strategy
CORPOR TE STR TEGY
UNCTION L LEVEL STR TEGY
BUSINESS UNIT STR TEGY
OPER TING PL NS
What kind o businesses,goals/expectations/resources
Marketing/Production
Sales o a particular businesses
Day to day activities
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strategic business unit is a significant
organization segment that is analyzed to
develop organizational strategy aimed at
generating future business or revenue.
Strategic Business Units
Increase the ocus on a particular Business
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Strategic Business Units
It might be a certain product/companys
division or product lines are promoted. It
has its;
Own mission
Definable group of competitorsOwn integrative
plan/resources/appropriate size
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The Deming Cycle
A company ithin the company
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Strategic Business Units
The role of the Business unit Head /Business unit Manager
Guiding and promoting product/product lines
Close liaison ith all the unctional department
Enhances the Entrepreneurship
BOTTOM-LINE responsibility or its PRO ITABILITY
Accountable o all operations
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Combination of both skills
component and quality of
resources that leads to obtain
streams of technology.
Potential problem with SBU
Not willing to share talented
people
Core competency
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Power
PowerThe ability of individuals or groups to
induce or influence the beliefs or actions of
other persons or groups.
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Power of knowledge (Expertness of a person)
Referent power(Influence people bcoz believe in them andtheir ideas)
Reward power(Ability to reward)
Coercive power(Ability to punish)
Types of Power
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Empowerment (employee
participation/TQM
Act of providing
authority,knowledge,and resources to
individual so they can achieve work .2 ways to Empowerment
Job Enlargement (Enlarging the scope of the job by adding similarkind of the job without enhancing responsibility ) Horizontal
Job Enrichment(Building into jobs a higher sense of challenge and achievement ) Vertical
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Belief- values-attitude-behavior actions
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Culture is the general pattern of
behavior,shared beliefs and
values that organization members
have in common
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Can corporate culture change?
Leader has a major role on organization culture
It takes time 5-10yearsUnderstand the old culture
Identi y the subculture
And re ar ding those living ne culture
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It is total system of social and
cultural relationship where people
working together and fill inintended roles to ensure the
required activities should be done
effectively and efficiently i-
e(organizational communication and decision making
Organizational
Culture(corporate Culture)