chap5 organizing bách khoa

Fundamentals oF manaGement BY: LAI VAN TAI LAI VAN TAI Chapter ORGANIZING Learning Objectives After studying the chapter, you should be able to:      Identify the factors that influence managers’ choice of an organizational structure Explain how managers group tasks into jobs that are motivating and satisfying for employees Describe the types of organizational structures managers can design, and explain why they choose one structure over another Explain why there is a need to both centralize and decentralized authority Explain why managers must coordinate and integrate between jobs, functions, and divisions as an organization grows Organizational Structure  Organizational Architecture  The organizational structure, control systems, culture, and human resource management systems that together determine how efficiently and effectively organizational resources are used Designing Organizational Structure  Organizing   Organizational Structure   The process by which managers establish working relationships among employees to achieve goals Formal system of task and reporting relationships showing how workers use resources Organizational design  The process by which managers make specific choices that result in a particular kind of organizational structure Organization Structure Organization Design The framework Developments in for dividing, or changes to assigning, and the structure of coordinating work an organization Factors Affecting Organizational Structure Figure 9.1 Key Elements of Organization Structure Work Specialization Authority and Responsibility Chain of Command Centralization vs Decentralization Span of Control Departmentalization High Work Specialization   Low Productivity  Job is broken down into a number of steps Each step is completed by a separate individual Makes efficient use of the diversity of skills that workers have Low Work Specialization High The Chain of Command Chief Executive Officer Executive Vice President Executive Vice President President Vice President Vice President Vice President Vice President Vice President Region Region Region Region Region District A District B District C District D District E District F District G Organizational Change Questions for Consideration    What forces create the need for organizational change? What kinds of changes organizations make? Can organizations stop changing? What causes resistance to change? How can it be overcome? Change Options What are the change options? Culture Structure Technology Physical setting People What Do Organizations Change?  Culture   Structure   changing the underlying values and goals of the organization altering authority relations, coordination mechanisms, job redesign, or similar structural variables Technology  modifying how work is processed and methods and equipment used What Do Organizations Change?  Physical Settings   altering the space and layout arrangements in the workplace People  changes in employee skills, expectations and/or behaviour Undergoing Change to Improve Products and Services    TQM and Continuous Improvement Processes Re-engineering Work Processes Flexible Manufacturing Systems Exhibit 14-3 The PDCA Cycle Act Plan Check Do Why TQM Fails      Some firms were not performing TQM, just calling it that Some managers have unrealistic expectations, and effect results too quickly Some programs did not assure employees’ job security Some firms did not provide adequate training Some firms did not appreciate the complexity of changes involved Elements of Re-engineering    Identifying an organization’s distinctive competencies Assessing core processes Reorganizing horizontally by process Flexible Manufacturing Systems   Integration of computer-aided design, engineering, and manufacturing to produce low-volume products at mass-production costs Change happens by changing computer programs, not producing new parts   Pratt and Whitney in Halifax can produce 127 different engine models, up from 20 models for the flexible mfg system was introduced Best used with   Employees: high tech skills, initiative, self-managing Organizations: organic structures, teams Lewin’s Three-Step Change Model Unfreezing Moving Refreezing Sources of Individual Resistance to Change Selective information processing Habit Individual Resistance Security Fear of the unknown Economic factors Unfreezing the Status Quo Desired state Restraining forces Status quo Driving forces Time Unfreezing  Arouse dissatisfaction with the current state   Activate and strengthen top management support   Need to break down power centres Use participation in decision making   Tell them about deficiencies in organization Get people involved Build in rewards  Tie rewards to change/use recognition, status symbols, praise to get people to go along Moving  Establish goals   Institute smaller, acceptable changes that reinforce and support change   E.G Procedures and rules, job descriptions, reporting relationships Develop management structures for change   E.G Make business profitable by end of next year E.G Plans, strategies, mechanisms that ensure change occurs Maintain open, two-way communication Refreezing  Build success experiences   Reward desired behaviour    GOOD - reward behaviour that reinforces changes BAD - reward old system (e.g., people relying on old systems while computerization is going on) Develop structures to institutionalize the change   Set targets for change, and have everyone work toward targets Organizational retreats, appropriate computer technology, performance appraisals that examine change efforts Make change work ... Flexible Manufacturing Systems   Integration of computer-aided design, engineering, and manufacturing to produce low-volume products at mass-production costs Change happens by changing computer... occurs Maintain open, two-way communication Refreezing  Build success experiences   Reward desired behaviour    GOOD - reward behaviour that reinforces changes BAD - reward old system (e.g.,... complexity of changes involved Elements of Re-engineering    Identifying an organization’s distinctive competencies Assessing core processes Reorganizing horizontally by process Flexible Manufacturing