Engineering Management Module 4 PDF

Organizing Engineering Management Module 4 Reason for Organizing is undertaken to facilitate the implementation of plans. In effective organizing, steps Organizing are undertaken to breakdown the total job into more manage...

Organizing Engineering Management Module 4 Reason for Organizing is undertaken to facilitate the implementation of plans. In effective organizing, steps Organizing are undertaken to breakdown the total job into more manageable man-size jobs. Doing these will make it possible to assign particular tasks to particular persons. In turn, these will help facilitate the assignment of authority, responsibility, and accountability for certain functions and tasks. 2  Organizing is a management function which refers to “the structuring of resources and activities to Organizing accomplish objectives in an effective and efficient manner.” The arrangement or relationship of positions within an organization is called the structure. The result of the organizing process is the structure. 3  Purpose of Here are some purpose of structure in organizing: Structure in 1. It defines the relationship between tasks and Organizing authority for individuals and departments. 2. It defines formal reporting relationships, the number of levels in the hierarchy of the organization and the span of control. 3. It defines the groupings of individuals into departments and departments into organizations. 4. It defines the system to effect coordination of effort in both vertical (authority) and horizontal (task) direction. 4  Purpose of In structuring an organization, one must be concerned Structure in with: Organizing 1. Division of Labor – determining the scope of work. 2. Delegation of authority – the process of assigning various degrees of decision-making authority to subordinates 3. Departmentation – the groupings of related jobs, activities, or processes into major organizational sub-units. 4. Span of control – the number of people who report directly to a given manager. 5. Coordination – the linking of activities in the organization that serves to achieve a common goal or objectives. 5  The Formal The formal organization is “the structure that details lines of responsibilities, authority, and position.” it is Organization usually depicted in the organizational charts. It is the planned structure that represents the patterned relationship among components in able to meet the objectives. The formal structure is described by management through: 1. Organizational Chart – diagram of the organization’s official positions. 2. Organizational Manual – provides description of authority relationships, functions of each units, and job procedures. 3. Policy Manuals – describes personal activities and 6 company policies.  The Formal Organization Large-scale organization 7  The Formal Organization Small-scale organization 8  There are instances when members of an organization Informal spontaneously form a group with friendship as a Groups principal reason of belonging. These groups are called informal groups. – Informal groups are useful in accomplishing a task especially if these tasks conform with the expectation of the members of the informal group. – However, informal group are vulnerable to manipulation and opportunism. With its low visibility, it is difficult for the management to detect these issues. 9 Formal vs. Informal Groups 10  Types of Organizations may be classified into three types depending on size and type of operations: Organizational 1. Functional Organization – a form of Structures departmentalization in which everyone engaged in one functional activity is grouped together. 2. Product or market organization – this refers to the organization of a company by division that brings together all those involved with a certain types of product or customer. 3. Matrix Organization – an organizational structure in which each employee reports to both a functional or division manager and to a project or group manager. 11  Types of Organizational Structures 1. Functional Organization 12  Types of Advantages: Organizational a. The grouping of employees who perform a common task permit economies of scale and Structures efficient resource use. b. Decision-making is centralized, providing unified direction from the top. c. Communication and coordination among employees within each department are excellent. d. The structure promotes high-quality technical problem-solving. e. The organization is provided with in depth skill 1. Functional Organization specialization and development. f. Employees are provided with career progress 13 within functional departments.  Types of Disadvantages: Organizational a. Communication and coordination between the departments are often poor. Structures b. Decision involving more than one department pile up at the top management level and are often delayed. c. Work specialization and division of labor produces routine, non-motivating employee tasks. d. It is difficult to identify which section or group is responsible for certain problems.’ e. There are limited view of organizational goals by 1. Functional Organization employees. f. There is limited general management training for 14 employees.  Types of Organizational Structures 2. Product or Market Organization 15  Types of Advantages: Organizational a. The organization is flexible and responsive to change. Structures b. The organization provides a high concern for customer’s needs. c. The organization provides excellent coordination across functional departments d. There is easy pinpointing of responsibility for product problems. e. There is emphasis on overall product and division goals 2. Product or Market f. The opportunity for the development of general Organization management skills is provided 16  Types of Disadvantages: Organizational a. There is a high possibility of duplication of resources across divisions. Structures b. There is less technical depth and specialization in division. c. There is poor coordination across divisions. d. There is less top management control. e. There is competition for corporate resources. 2. Product or Market Organization 17  Types of Organizational Structures 3. Matrix Organization 18  Types of Advantages: Organizational a. There is more efficient use of resources than the divisional structure. Structures b. There is flexibility and adaptability to changing environment. c. The development of both general and functional management skills are present. d. There is interdisciplinary cooperation and any expertise is available t all divisions. e. There are enlarged tasks for employees which motivate them better. 3. Matrix Organization 19  Types of Disadvantages: Organizational a. There is frustration and confusion from dual chain of command. Structures b. There is high conflict between divisional and functional interests. c. There are many meetings and more discussion than action. d. There is a need for human relations training for key employees and managers. e. There is a tendency for power dominance by one side of the matrix. 3. Matrix Organization 20  Types of Organizational Structures 3. Matrix Organization 21  Authority can be defined as “the power and right of a person to use and allocate the resources efficiently, to Authority take decisions and to give orders so as to achieve the organizational objectives.” Authority must be well- defined. All people who have the authority should know what is the scope of their authority is and they shouldn’t mis-utilize it. Authority is the right to give commands, orders and get the things done. The top level management has greatest authority. Authority should be accompanied with an equal amount of responsibility. Delegating the authority to someone else doesn’t imply escaping from accountability. Accountability still rest with the person 22 having the utmost authority.  Types of 1. Line authority - a manager’s right to tell subordinates what to do and then see that they do it. Line Authority departments perform tasks that reflect the organization’s primary goal and mission. 2. Staff authority – a staff specialist’s right to give advice to a superior. Staff department includes all that provide specialized skills in support of line department. 1. Personal Staff – individual assigned to a specific manager to provide needed staff services. 2. Specialized Staff – those individual providing needed staff services for the whole organization. 3. Functional authority – a specialist’s right to oversee lower level personnel involved in that specialty. This authority is given to a person or a work group to make decision 23 related to their expertise even if these decisions concern other department.  When certain formal groups are deemed inappropriate to meet expectations, committees are often-times Committees harnessed to achieve organizational goals. Many organizations make use of committees. A committee is a formal group of person formed for a specific purpose. They are useful most especially to engineering and manufacturing firms. When a certain concern, like product development, is under consideration, a committee is usually formed to provide necessary line-up of expertise needed ti achieve certain objectives. 24  Committees may be classified as follows: 1. Ad hoc committee – one created for a short-term Committees purpose and have a limited life. An example is the committee created to manage the anniversary festivities of a certain firm. 2. Standing committee – it is a relatively permanent committee that deals with issue on an ongoing basis. An example is the grievance committee set up to handle initially complains from employees. But we must always keep in mind that a committees may not work properly if they are not correctly managed. 25