MG4031 Week 07 Lecture 01 PDF

MG4031 Wk.07 Lec.01 Organising: The process of dividing tasks to be achieved and then co-ordinating them to achieve organisational goals. Reflect on plans and objectives Establish the major tasks that need to be done Divide major tasks into sub tasks and allocate resourc...

MG4031 Wk.07 Lec.01 Organising: The process of dividing tasks to be achieved and then co-ordinating them to achieve organisational goals. Reflect on plans and objectives Establish the major tasks that need to be done Divide major tasks into sub tasks and allocate resources accordingly Evaluate the outcomes of the process and make changed where needed Organisational Structure: The pattern of how activities are divided and later co-ordinated. The system of task, reporting and authority relationships within which the work of an organisation is completed. The components of an organisation structure are structural configuration and structural operation. Structural Configuration: The size and shape of the structures, concentrating on the size of the hierarchy, spans of control, division of labour and means on co-ordination (departmentalisation). It is shown on the company’s organisational chart. - Division of Labour: The extent to which the work of the organisation is broken down into different tasks to be completed by different people. While narrow job specification can lead to the efficient use of labour, increased standardisation and employee expertise, it also leads to reduced job satisfaction and motivation, absenteeism, high turnover and poor output. It has evolved from task specialisation to job enlargement to job enrichment to socio-technical systems. - Spans of Control: The number of employees reporting directly to a manager. A narrow span involves few employees and vice versa. Employees under a wide span of control usually have more freedom and discretion, as opposed to intense supervision. Effective spans of control allow employees a certain degree of freedom, while also having adequate guidance. The ideal span will vary depending on each business. - Hierarchy: Outlines the reporting relationships within the business from top down. Those with few levels are called flat structures, as opposed to tall structures. Narrow spans of control typically lead to more levels in the hierarchy. - Departmentalisation: Co-ordinating the various activities of the organisation. 1. Functional: Organises the units of the business into functions they perform, typically manufacturing, marketing, finance, engineering and HR. Advantages: Disadvantages: → The function of each person is → Large departments are difficult to emphasised, allowing them to manage. concentrate on their job. → Resources are used efficiently and → Employees focus more on their economies of scale are generated. department’s goals rather than the → There is a clear process to decision organisation’s. making and communications. → It costs a lot to co-ordinate the → Performance and output can be activities of each department. monitored easily. → Managers don’t have a wide range → Employees specialise and become of experience. experts in their areas. → Departments can compete against → Control from the top is facilitated. each other, leading to lower customer satisfaction. 2. Product/Service: Structuring the company by what it makes/does, typically used by larger companies. Advantages: Disadvantages: → Product areas can be evaluated → Co-ordination between different individually. product areas can be problematic. → Additions to the product line are → Functional services are expensively easy, allowing growth. duplicated for each product. → Co-ordination and communication → Less communication occurs between functions working on between functional specialists. something is quick. → More emphasis is put on the → Focuses on customer’s needs. product rather than the entire → Develops managers with a wide organisation’s objectives. range of skills. → Employees are committed to their product area. 3. Geographical: The organisation is structured by its locations, suitable for MNCs. Advantages: Disadvantages: → Logistic efficiency. → Large number of managers needed. → Allows each division to adapt to the → Top management loses some local market conditions. control over operations. → Minimised legal, cultural and → Support services must be political differences between the duplicated. company and customers. → Employees can focus on regional → Good training ground for managers. objectives and disregard wider organisational goals. 4. Mixed: Any combination of any of the above. References: Notes based on MG4031 Lecture Slides and Modern Management: Theory and Practice for Students in Ireland (5th Ed.) - Tiernan S. and Morley, M.J. Chapter 6.