2010

Organizational Roles
For an organizational role to exist
and be meaningful, it must incorporate:
(1) verifiable objectives, which, are a
major part of planning
(2) a clear idea of the major duties or
activities involved and
(3) an understood area of discretion or
authority so that the person filling
the role knows what he or she can
do to accomplish goals

Organizing involves:
(1) the identification and classification
of required activities
(2) the grouping of activities necessary
to attain objectives
(3) the assignment of each grouping to
a manager with the authority
(delegation) necessary to supervise it
(4) the provision for coordination horizontally
(on the same or a similar organizational
level) and vertically (for example,
corporate headquarters, division, and
department) in the organization structure

Definition of Organization
Organization
intentional
positions.

implies
structure

a
of

formalized
roles

or

FORMAL AND INFORMAL

ORGANIZATION
Formal organization pertains to the intentional
structure of roles in a formally organized enterprise

The informal organization is a network of personal

and social relations not established or required by the
formal organization but arising spontaneously as
people associate with one another

FORMAL AND INFORMAL

ORGANIZATION

FORMAL AND INFORMAL

ORGANIZATION

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What is a Department?
The department designates a distinct
area,

division,

or

branch

of

an

organization over which a manager

has authority for the performance of
specified activities.

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Problems with Organization

Levels
Levels are:
Expensive
Complicate Communication
Complicate Planning and Control

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Organization with Narrow Spans

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Organization with Wide Spans

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The Operational-Management
Position: A Situational Approach
The principle of the span of management
states that there is a limit to the number of
subordinates

manager

can

effectively

supervise, but the exact number will depend

on the impact of underlying factors.

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Need for Balance

Widening spans and reducing the
number

of

answer

in

levels
some

may

be

cases;

reverse may be true in others.

the
the

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Difference Between an
Intrapreneur and an Entrepreneur
An intrapreneur is a person who
focuses on innovation and creativity and
who transforms a dream or an idea into
a profitable venture by operating within
the organizational environment
The entrepreneur is a person who
does similar things as the intrapreneur,
but outside the organizational setting

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Creating an Environment
for Entrepreneurship
Since it is managerial responsibility
to
create
an
environment
for
effective and efficient achievement
of group goals, managers must
promote
opportunities
for
entrepreneurs
to
utilize
their
potential for innovation.

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Innovation and
Entrepreneurship
Innovation applies not only to
high-tech companies but equally
to

low-tech,

businesses.

established

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Definition of Reengineering
"...the fundamental rethinking and
radical redesign of business processes
to achieve dramatic improvements in
critical contemporary measures of
performance, such as cost, quality,
service, and speed.
The underlined words are considered
key aspects of reengineering by
Hammer and Champy

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Key Aspects of Reengineering

Fundamental rethinking of what the organization
is doing and why
Radical redesign of the business processes
[Note: Downsizing or "rightsizing" is not the
primary purpose of reengineering, although in
many cases it does result in a need for fewer
people]
Reengineering calls for dramatic results
The fourth key word in the reengineering
definition is processes. The need for carefully
analyzing and questioning business processes

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Management by Processes

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The Logic of Organizing

Six steps of organizing process:

1.
Establishing enterprise objectives
2.
Formulating supporting objectives, policies,
and plans
3.
Identifying, analyzing, and classifying the
activities necessary to accomplish these
4.
Grouping these activities in light of the human
and material resources available and the best
way, under the circumstances, of using them
5.
Delegating to the head of each group the
authority necessary to perform the activities
6.
Tying the groups together horizontally and
vertically, through authority relationships and
information flows

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BASIC QUESTIONS FOR EFFECTIVE

ORGANIZING
It is useful to analyze the managerial function of organizing
by raising and answering the following questions:
1. What determines the span of management and hence the
levels of organization? (answered in this chapter)f
2. What determines the basic framework of departmentation,
and what are the strengths and weaknesses of the basic
forms? (answered in Chapter 8)
3. What kinds of authority relationships exist in
organizations? (answered in Chapter 9)
4. How should authority be dispersed throughout the
organization structure, and what determines the extent of
this dispersion? (answered in Chapter 9)
5. How should the manager make organization theory work
in practice? (answered in Chapter 10)

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CASE STUDIES