Scribd
Upload
45 views48 pages

Fundamentals of Organizing: Md. Imran Hossain Assistant Professor Department of Finance Jagannath University

This document discusses fundamentals of organizing, including: 1. Organizing involves arranging people and resources to accomplish goals through organization structures like charts defining reporting relationships. Both formal and informal structures exist. 2. Traditional structures include functional groups by expertise, divisional groups by product/region, and matrix combining both. 3. Contemporary structures involve teams, networks, and boundaryless designs utilizing technology. 4. Organizational design should match the environment - mechanistic designs fit stability while organic designs empower workers for uncertainty. Trends include flatter structures, wider spans of control, and decentralization with central coordination.

Uploaded by

jh shuvo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
45 views48 pages

Fundamentals of Organizing: Md. Imran Hossain Assistant Professor Department of Finance Jagannath University

This document discusses fundamentals of organizing, including: 1. Organizing involves arranging people and resources to accomplish goals through organization structures like charts defining reporting relationships. Both formal and informal structures exist. 2. Traditional structures include functional groups by expertise, divisional groups by product/region, and matrix combining both. 3. Contemporary structures involve teams, networks, and boundaryless designs utilizing technology. 4. Organizational design should match the environment - mechanistic designs fit stability while organic designs empower workers for uncertainty. Trends include flatter structures, wider spans of control, and decentralization with central coordination.

Uploaded by

jh shuvo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 48

Fundamentals of

Organizing

Md. Imran Hossain


Assistant professor
Department of Finance
Jagannath University
1. What is organizing as a management function?
2. What are the traditional organization structures?
3. What are the types of horizontal organization structures?
4. How are organizational designs changing the workplace?
1. Organizing as a Management Function
1. What is organization structure?
2. Formal structures
3. Informal structures

2. Traditional Organization Structures


1. Functional structures
2. Divisional structures
3. Matrix structures
3. Horizontal Organization Structures
1. Team structures
2. Network structures
3. Boundaryless structures

4. Organizational Designs
1. Contingency in organizational design
2. Mechanistic and organic designs
3. Trends in organizational designs
• Organizing as a management function
• Organizing
• Arranges people and resources to work together to accomplish a
goal
• Organization structure
• The system of tasks, reporting relationships, and communication
linkages
• An organization chart is a diagram describing
reporting relationships and the formal arrangement
of work positions within an organization. It
includes:
• Informal structures 
• The set of unofficial relationships between organization members
• Social network analysis
• Identifies informal structures and social relationships in the organization

• Potential advantages of informal structures:


• Helping people accomplish their work
• Overcoming limits of formal structure
• Gaining access to interpersonal networks
• Informal learning
• Traditional organization structures
• Departmentalization
• Groups people with and jobs into work units or formal teams
• These formal teams are linked to create three major types of
traditional organizational structures
• Functional structures
• People with similar skills and performing similar tasks are grouped
together into formal work units
• Members work in their functional areas of expertise
• Are not limited to businesses
• Work well for small organizations producing few products or services
• Potential advantages of functional structures:
• Economies of scale
• Task assignments consistent with expertise and training
• High-quality technical problem solving
• In-depth training and skill development
• Clear career paths within functions
• Divisional structures
• Group together people who work on the same product or process, serve
similar customers, and/or are located in the same area or geographical
region
• Common in complex organizations
• Avoid problems associated with functional structures
• Potential advantages of divisional structures:
• More flexibility in responding to environmental changes
• Improved coordination
• Clear points of responsibility
• Expertise focused on specific customers, products, and regions
• Greater ease in restructuring
• Matrix structure
• Combines functional and divisional structures to gain advantages and
minimize disadvantages of each
• Used in:
• Potential advantages of matrix structures:
• Better cooperation across functions
• Improved decision making
• Increased flexibility in restructuring
• Better customer service
• Better performance accountability
• Improved strategic management
• Team structures
• Extensively use permanent and temporary teams to solve problems,
complete special projects, and accomplish day-to-day tasks
• Often use cross-functional teams composed of members from different
functional departments
• Project teams are convened for a specific task or project and disbanded
once completed
• Potential advantages of team structures:
• Eliminates difficulties with communication and decision
making
• Eliminates barriers between operating departments
• Improved morale
• Greater sense of involvement and identification
• Increased enthusiasm for work
• Improved quality and speed of decision making
Network structures
• Uses information technologies to link with networks of outside suppliers
and service contractors
• Own only core components and use strategic
alliances or outsourcing to provide other components
Potential advantages of network structures:
• Firms can operate with fewer full-time employees and less complex
internal systems
• Reduced overhead costs and increased operating efficiency
• Permits operations across great distances
Boundary less organizations
• Eliminate internal boundaries among subsystems and external
boundaries with the external environment
• A combination of team and network structures, with the addition of
“temporariness”

Boundary less organizations


• Key requirements:
• Absence of hierarchy
• Empowerment of team members
• Technology utilization
• Acceptance of
impermanence
Boundaryless organizations
• Encourage creativity, quality, timeliness, flexibility, and efficiency
• Knowledge sharing is both a goal and essential component

Virtual organization
• A special form of boundaryless organization
• Operates in a shifting network of external alliances that are
engaged as needed,
using IT and the Internet
Organizational design
• Process of creating structures that accomplish mission and objectives
• A problem-solving activity that should be approached from a
contingency perspective
Bureaucracy
• A form of organization based on logic, order, and the legitimate use of
formal authority
• Bureaucratic designs feature …
• Clear-cut division of labor
• Strict hierarchy of authority
• Formal rules and procedures
• Promotion based on competency

Contingency perspective on bureaucracy asks the questions:


• When is a bureaucratic form a good choice for an organization?
• What alternatives exist when it is not a good choice?
Environment determines the most appropriate design
• Mechanistic designs work in a stable environment
• Organic designs work in a rapidly changing and uncertain environment
• Adaptive organizations operate with a minimum of bureaucratic
feature and encourage worker empowerment and teamwork
Contemporary organizing trends include:
• Fewer levels of management
• Shorter chains of command
• Less unity of command
• Wider spans of control
• More delegation and empowerment
• Decentralization with centralization
• Reduced use of staff
• More delegation and empowerment
• Delegation is the process distributing and entrusting work to other
persons
• The manager assigns responsibility, grants authority to act, and creates
accountability
• Authority should be commensurate with responsibility
Three Steps in Delegation:
Decentralization with centralization

You might also like