Organisation in Management PDF

 Organisation in Management Process of bringing together physical, financial, and human resources and developing productive relationships among them to achieve organizational goals Organizing a business means: providing everything ne...

 Organisation in Management Process of bringing together physical, financial, and human resources and developing productive relationships among them to achieve organizational goals Organizing a business means: providing everything necessary for its operation (such as raw materials, tools, capital, and personnel) Organizing a business involves: determining and providing both human and non-human resources within the organizational structure Staffing means finding the right person for the right job Managerial Function of Staffing: hiring the right people and making sure they are trained and evaluated properly to fit the jobs in the company. total compensation Payment person receives for employment Process Worth evaluated based employees (Review : etc... on theirAchievements , strengths - There is always a bit private life in a company (sports teams, soccer fans, 7 Kitchen club etc.) The major components that determine group performance and satisfaction include external conditions, group member resources, group structure, group processes, and group tasks.  Business Organizations Government Organizations Non-Profit Organizations Companies, Startups,… Police, City Council,… Charities,… Educational Organizations Religious Organizations Community Groups Schools, Universities,… Churches,… Associations, Clubs,… Etzioni: categorizes organizations based on how they control their members and how members engage with the organization mandatory participation join for personal gain idealogically often unhappy Coercive Organization People are forced to join through physical obligation and feel forced to join alienated because participation is mandatory Utilitarian Organization Money or Benefits People join to receive material rewards like a salary, engaging in a calculating way for personal gain Normative Organization because of beliefs& values People join out of ideal conviction, driven by shared values and are morally engaged with the organizations mission Parson: categorized based on their social function and how they contribute to the stability of society Help keep the economy runnning Function: Focus on money and business (economic stability) Implement political goals and manage power and authority Function: Direct power structures and ensure political stability Hold society together by ensuring legal and social order LegalSocia Function: Maintain legal and social stability Preserve cultural values and traditions ValueCriendand Cultural & Function: Preserve traditions and ensure cultural stability  Joining the group and defining the groups purpose, structure and leadership Storming who will control the group and and what the group will be doing Norming group starts building close relationships, setting rules and working well together Performing group starts to focus on their task and works efficiently together Adjourning when group finishes their work and gets ready to split up Forming: Forming: Eagerness, socializing, polite tone, safe topics, some Take the lead, facilitate introductions, set clear expectations, share anxiety. the big picture. Storming: Storming: Resistance, conflicts, competition, high emotions. Encourage feedback, resolve conflicts, address issues, build trust. Norming: Norming: Shared goals, more confidence, cooperation, team support. Recognize efforts, provide learning opportunities, monitor team energy. Performing: Performing: High motivation, trust, self-management, consistent performance. Support self-management, celebrate successes, encourage problem- solving. Adjourning: Adjourning: Reflection, recognition, team disbanding. Reflect on achievements, provide feedback, ensure smooth transition.  Functions and laws come from government regulations (Bundesverband der Deutschen Industrie), industry standards (e.g Hauptverband des Deutschen Einzelhandels) and societal needs (e.g Red Cross). They are influenced by political systems, economic demands, and cultural values in each country Deutsches Rotes Kreuz (German Red Cross) Size and Work: 7 million members, 5,181 local associations, and 180,431 employees. Provides disaster relief, emergency medical services, blood donations, and social welfare support. Impact on Society: Helps in crisis situations (like floods or accidents), offers healthcare services, and supports vulnerable groups like the elderly Impact on Companies: Companies collaborate with the DRK for social projects and emergency training (like first aid), improving their corporate social responsibility (CSR) and public image Process of planning, organizing, leading, and controlling human, financial, and physical resources to achieve organizational goals efficiently and effectively It involves working with people and systems to create productive and organized environments Intervention on Subsystem-Areas Focuses on specific parts of the organization (Employees, Departments, Individual areas of work etc…) Meaning: more detailed and focused on internal components of the Areas of Organization in Management company. Intervention on Intersystem-Areas Private Sector (e.g., companies in competitive markets) Focuses on the whole organization or how it interacts with other Public Sector (e.g., government institutions) systems (external relations) —> market or society Meaning: broader view, focusing on the big picture of the Non-Profit Sector (e.g., charities or associations) organization. Intervention on All Areas of the Company Represents interventions that affect both subsystem (internal) and intersystem (external) areas simultaneously. Example: A company-wide digital transformation that changes both internal processes and external customer interactions  Not necessarily Some standardization is useful for consistency and efficiency However, Subsidiaries may need different organization grids based on industry, location, size, culture… e.g. —> Market differences: Subsidiaries in different countries face unique legal and economic conditions. —> Flexibility and innovation: Custom structures allow faster market responses and encourage creative solutions. —> Efficiency: Tailored structures improve effectiveness within specific sectors or regions. PDCA Cycle Organisation Leader Goals Angebot und Nachfrage e. g. USA. e g Nordkorea.  1. What Effect Do Company Goals Have on the Organization? Company goals influence the strategy, culture, and daily operations. At Apple, goals like innovation, user experience, and sustainability shape how products are created and how the company functions. 2. Which Groups Are Affected by Organizational Goals? Product Teams: Focus on innovative design and technology. Marketing Teams: Highlight privacy and sustainability in campaigns. Supply Chain Teams: Ensure carbon-neutral and eco-friendly production. HR & Culture: Promote diversity, education support, and inclusion. Customer Support: Deliver high-quality service to enhance user experience. Which goals does Twitter have after Elon Musk took over? Increase Revenue: Introduce paid features like Twitter Blue and charge for verification. Cut Costs: Mass layoffs of around 50% of staff to reduce expenses Promote Free Speech: Reduce content moderation to allow more open discussions Improve Efficiency: Simplify operations by firing top managers and dissolving the board. Are these goals clear for the organization and the team? No, the goals were not clearly communicated: Poor Communication: Employees were fired via email without clear explanations. Legal Issues: Layoffs led to lawsuits for violating labor laws. Internal Confusion: Many employees left, causing instability and uncertainty within the company. J Function of Communication includes: What keeps a Team motivated? Helps control employee behavior Offers a good Benefits Package Motivates employees Recognize success Lets people express feelings and meet social needs Compensate employees well Offer Feedback And shares important information. Set challenging goals Motivating employees: Offer good management and leadership Give them the tools they need Employees need to put in high effort in ways that help the company reach its goals. They must keep working hard to achieve these goals. Environmental Scanning 1. Competitor Intelligence: A fast growing area and a type of environmental scanning focused on analyzing competitors —> advertisements, annual reports, newspaper reports, and industry studies 2. Global Scanning: Another type of scanning that looks at global trends and forces affecting the organization. 3. Forecasting: Environmental scanning establishes the basis for forecasts Uses data from environmental scanning to predict future events and trends. Shows how companies use forecasting techniques to make better decisions during different stages of a product’s life cycle. 1. Product Development: Designing and planning the product. 2. Market Testing & Early Introduction: Testing the product in small markets. 3. Rapid Growth: Sales increase quickly if the product is successful. 4. Steady State: The product is stable in the market with slower growth. Forecasting Techniques: Different techniques are used at each stage to predict sales, market trends, and future risks. -  Culture and Change Management ( Organizational culture is both the glue that holds the company together and the engine that drives it toward its goals. Do we need role models? Passion and ability to inspire Yes, role models are important because they: Role model show passion for their work and have the capacity to 1. Inspire and motivate others to improve and achieve infect others with their passion goals. Commitment to community 2. Demonstrate positive behavior and professional values. role models are other-focussed as opposed to self-focussed 3. Guide and mentor employees, offering advice and Selflessness and acceptance of others support. Role models see others needs and act on them 4. Promote a strong organizational culture by setting Ability to overcome obstacles clear examples. Role models show that success is possible despite obstacles 5. Help overcome challenges by showing resilience and Clear set of values problem-solving skills Role models act in ways that support their beliefs and values  Groups that exist for a long time and share common experiences develop a culture. A company’s culture grows from: 1. Adapting to the outside world (like market changes). 2. Creating systems to organize work inside the company Guides behavior: Shapes how employees act, communicate, and solve problems Influences motivation: A positive culture increases motivation and job satisfaction, while a negative culture can cause stress Sense of belonging: Helps individuals feel part of the team and aligned with company values Adaptation: New employees must learn the culture to feel comfortable and successful. Organizational Culture: What a new employee needs to learn Organizational Socialization: The process by which a new employee learns the culture  Code of Conduct A Code of Conduct is a formal document that outlines a company’s values, ethical standards, and expected behaviors for employees. It serves as a guide for how individuals should act in the workplace Purpose: 1. Guides behavior of employees in professional and ethical situations. 2. Promotes ethical standards to prevent misconduct. 3. Ensures consistency across teams and locations. 4. Protects the company from legal issues and reputational harm. Includes: Company values and mission. Rules for ethical and professional behavior. Policies on legal compliance (e.g., anti-corruption, harassment). Tesla Code of Conduct 1. Ethical Standards: Integrity in business, transparency, and strict anti-corruption policies. 2. Labor and Human Rights: No forced or child labor, no discrimination, and respect for safe working conditions and freedom of association. 3. Environmental Responsibility: Focus on sustainability, reducing waste and pollution, and complying with environmental laws. 4. Health, Safety, and Legal Compliance: Ensure safe workplaces, follow legal regulations, protect confidential information, and uphold intellectual property rights.  Theoretical and empirical research shows a relationship between organizational culture and organizational performance Different theories explain how culture affects success Not easily imitated: hard for competitors to change their cultures to get the same advantages Difficulty of imitation follows from the rare features of some cultures and the difficulties managers have when trying to change a culture Organizational culture directly affects performance. A strong, consistent culture improves growth, profitability, and gives a competitive advantage. > Companies with adaptable cultures respond better to change, while weak cultures can lead to poor performance.  Culture is intentionally built by leaders or entrepreneurs to support a company’s vision It develops when a new company is formed or when managers shift culture in an existing organization At Google, a key value is innovation. The company encourages employees to spend 20% of their official work time on personal projects—work-related ideas they are passionate about but not part of their regular tasks. This culture of creativity led to products like Gmail and Google Maps and is supported across the entire organization.  The right time to change an organizational culture is during leadership changes, after a merger or acquisition, > or when the company faces poor performance. It’s also important when adapting to market changes or new business goals  Local cultures shape the behavior of individual company units in different countries Local traditions, business customs, and customer needs influence how multinational companies operate in different regions Teams in different countries often create their own subcultures based on local traditions and values Instead of blending all cultures into one, multinational companies may embrace local differences, keeping ties to employees’ native cultures  Focus: Maximizing overall benefit. Key Idea: The morally right action is the one that creates the greatest good for the most people. Example: Managers may change the culture if it benefits the majority of employees, even if some individuals disagree Focus: Protecting individual rights and Focus: Fairness and equality freedoms Key Idea: A culture is unethical if it prevents Key Idea: Employees should have the right to fairness, like when some employees can’t voice make free choices and be fully informed about their opinions or don’t have equal opportunities what affects them for growth Example: Managers must clearly explain Example: If certain groups are excluded from company values and any planned changes to promotions or decision-making, the culture is the culture. Failing to do so can lead to unfair and needs to change misunderstandings, especially if veteran employees resist changes # Lack of transparency in decisions Open and honest communication Poor communication between managers and Consistent actions matching words employees Fair treatment of all employees Unfair treatment or favoritism Empowering employees with responsibilities and Broken promises or unmet expectations recognizing their contributions. Employee surveys and feedback Low turnover rates and long employee tenure (wie lange Yes, empathy can be learned through active listening jemand im Unternehmen bleibt) and understanding others’ perspectives Observing employee engagement and commitment to Leaders can develop empathy by giving regular tasks. feedback sessions, practicing open communication, and being approachable Training programs and mentorship also help improve Retention rates and frequency of voluntary departures empathy in leadership Participation in company initiatives and willingness to go beyond tasks Employee Net Promoter Score (eNPS)—whether employees would recommend the company. Low productivity and poor performance High error rates and frequent mistakes Fair compensation and benefits Lack of problem-solving skills and dependence on Providing growth opportunities and career others for basic tasks development Resistance to learning new skills or adapting to Building a positive work environment and changes. strong company culture. Regular training programs (medium cost, high impact, fast implementation) Mentoring and coaching by experienced staff (low cost, high impact, slower implementation) Offering certifications and professional development opportunities (high cost, long-term impact) Clear feedback systems to identify areas for improvement (low cost, fast implementation) Organisation of Architecture (gleiche Rolle kann mehrfach aufkommen interes itemen wie viele Regeln und Vorschriften es in einer Firma gibt, die bestimmen, > wie Mitarbeiter ihre Arbeit machen sollen More like a traditional company More like Start-up or Tech a company Structural Contingency Factors helfen zu erklären, warum Unternehmen unterschiedliche Organisationsstrukturen wählen Es gibt nicht eine Struktur, die für alle Firmen passt – die Struktur hängt von bestimmten Faktoren ab —> Faktoren beeinflussen, ob ein Unternehmen besser mit einem mechanistischen oder organischen Modell arbeitet continued # 1. Simple Structure 2. Functional Structure —> A very basic structure with one boss (or a small —> Employees are grouped by departments, and each department leadership group) and a few employees. There are few focuses on a specific task (e.g., marketing, sales, production, rules and no complex hierarchy e.g a small family finance) e.g. a company has a marketing team, a finance team, business or a start-up with 5 people. and a production team, and each team handles its own area. Strengths: Strengths: Fast, flexible; Inexpensive to maintain; Decisions are Employees are specialized and efficient in their roles; cost made quickly. saving advantages from specialization Weaknesses: Weaknesses: As the company grows, it can become chaotic without Departments may not communicate well, making cross-team clear rules; risky to rely on one person collaboration difficult; Manager could lose sight of what’s best for the organization 3. Divisional Structure —> company is divided into sections (divisions), and each division handles a product, region, or customer group. Each division operates like a small company within the company e.g. a car company has one division for electric cars and another for gasoline cars Strengths: Each division can make decisions quickly and is flexible; division managers are responsible for what happens to the products Weaknesses: Work may be duplicated (e.g., each division has its own marketing team), which increases costs.  e. Google g. e. Nike g. e.. Boeing g # A flexible structure where employees work together, share A more formal structure with clear lines of authority and direct ideas, and adapt quickly. No strict hierarchy reporting relationships. Advantages: Disadvantages: Advantages: Disadvantages: Clear responsibilities and Can be rigid and slow to Encourages creativity and Can become chaotic authority adapt innovation without clear rules Fast decision-making Role confusion among Easy communication through Limits employee creativity Adapts well to changes employees direct lines Less effective for large Overload on managers Good for routine tasks organizations A simple chain of command where each person reports to one manager (can be functional like marketing, sales). Similar to the Line System but with executives giving extra guidance and important decisions Advantages: Disadvantages: Advantages: Disadvantages: Simple and easy to manage Can be inflexible in complex tasks Expert guidance from Slow decision-making due to Quick decisions because of clear executives extra layers authority Poor communication across departments Better strategic decisions Possible conflict between Strong discipline and control executives and managers Overdependence on top Combines control with management flexibility Can lead to over-management Employees report to two managers: one for the project and one for their department. Mixes functions and projects Advantages: Disadvantages: Encourages teamwork and Confusion from having two bosses collaboration Can lead to conflicts between Better use of resources departments Good for complex projects Complicated to manage