Organising

Definitions
OrganisationsAn organisation is collection of interacting and interdependent individuals who work toward common goals and whose relationship is determined according to certain structure. OrganisingThe process of prescribing formal relationship among people and resources, to achieve goals. Organisational StructureThe way in which an organisations activities are divided, organised and coordinated.

Fundamentals of Organisational Structure

The organization structure is a diagram that illustrates the reporting lines between units and people within the organization. The organization structure conveys four kinds of information:
The boxes represent different units. The titles in each box show the work performed by that person. Reporting relationships are shown by the lines connecting superiors and subordinates. Levels of the organization are indicated by the number of vertical layers in the chart>

Vertical Organization Chart

Chairman of Board and CEO
Executive Vice President, Chief Financial Officer Executive Vice President, Legal Executive Vice President, International Technology Executive Vice President, Operations

Executive Vice President, Marketing

Executive Vice President, Human Resources

Executive Vice President, Merchandising

Vice President, Investor Relations

Senior Vice President, Real Estate

Senior Vice President, Operations

Senior Vice President, Customer Service

President, Mexico

President, Atlantic

President, Western

Fundamental Concepts of Organisation

1.Differentiation 2.Integration 3.Delegation 4.Centralization and Decentralization 5.Authority, Responsibility, and Accountability

Fundamental Concepts of Organizing

Differentiation means that the organization is composed of units that work on specialized task using different work methods and requiring employees with unique competencies.
Division of labor means that the work of the organization is divided into smaller tasks. Specialization is the process of identifying particular tasks and assigning them to departments, teams, or divisions.

Integration means that the various units must be put back together so that work is coordinated.>

Five Elements of Vertical Design (cont.)

Delegation is the process of giving authority to a person (or group or team) to make decisions and act in certain situations. Practices useful in effective delegation include:
Establish goals and standard Ensure clarity Involvement Expect completed work Provide training Timely feedback>

Five Elements of Vertical Design (cont.)

Centralization and Decentralization
Centralization is the concentration of authority at the top of an organization or department. Decentralization is the delegation of authority to lower level employees or departments. Cost of decisions Uniformity of policy Competency levels Control mechanisms Environmental influences>

Key factors affecting decision to centralization or decentralization.

Five Elements of Vertical Design (cont.)

Authority, Responsibility, and Accountability
Authority is the right to make a decision. Responsibility is an employees duty to perform the assigned task. Accountability is the managers expectation that the employee will accept credit or blame for his work.>

Classification of Organisations
As per Talcott Parson As per Blau and Scott 1.Economic Profit Based. 2.Political -Govt. Agencies 3.Integrative-Social Control, Police Dept., Courts etc. 4.Pattern Maintainance- Educational, Research,Religious etc. 1.Mutual Benefit-Trade Unions, Political Parties etc. 2.Business Organisations. 3.Service Organisations-Hospital, Educational Institutions etc. 4.Commonweal-Army,Police, Post Office etc.

Importance of sound organisation

Enlarges abilities. Facilitates administration. Facilitates growth and diversification. Permits optimum use of resources. Stimulates activity. Facilitates coordination.>

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Types of Organisation Charts

Chief Executive

Vertical Chart

Chief Executive Horizontal Chart

Vertical Organizational Design

Simple Structure Functional Design Product Design Geographical Design Network Design>

Functional Design
Function design means grouping managers and employees according to their areas of expertise and the resources they use to perform their jobs.>

Functional Design (cont.)

Potential Benefits
Supports skill specialization Reduces duplication of resources & increases coordination Enhances career development & training within functional area Allows superiors and subordinates to share common expertise Promotes high-quality technical decision making

Potential Pitfalls
Inadequate communication Conflicts over product priorities Difficulties with interunit coordination Focus on departmental rather than organizational issues and goals Develops managers who are experts in a narrow field

Function- Organization Chart

CEO

General Counsel

Controller

Manufacturing

Merchandise

Owners Groups (HOGS)

Strategic Planning

Engineering

Human Resources

Product Design
Product design means that all functions that contribute to a product are organized under one manager.>

Product-Organization Chart
Chairman & Chief Executive Officer
Information Systems & Technology

Combat Systems

Marine Systems

Aerospace

Land Systems

Armament Systems

Ordnance & Tactical Systems

Aviation Services

Bath Iron Works

Electric Boat

Geographical Design
Geographical design organizes activities around location.>

Geographical- Organization Chart

CEO President
Executive VP, Legal Executive VP, Executive VP, Executive VP, Supply Chain & Coffee Partner Resources Chief Financial Officer Senior VP, Coffee President, Japan President, Europe, Middle East, Africa President, North America VP, Southwest VP, South Central VP, Northwest President, International United Kingdom Australia Thailand

Network Design
Network design subcontracts some or many of its operations to other firms and coordinates them to accomplish specific goals.>

Network- Organization chart

Legal Makeup Artists Costume Designers Spielberg (Films) Katzenberg (Animation) Geffen (Music) Computer Hardware/ Software Marketing

Future Games

Agents

Technicians

Actors

Talent Scouts

Media Relations

Story of Poor Organiser--- ..\..\..\Story of a Poor Organiser.doc