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Elements of Organization
Coordination of effort
A common goal or purpose
Division of labor
A hierarchy of authority
Classifications of Organizations
Businesses
Nonprofit service organizations
Mutual benefit organizations
Commonweal organizations
Organizational Charts
Theories of Organizing
Closed-system Perspective
Treats the organization as focused on
economic efficiency in a reasonably
predictable environment
a) Hierarchy of authority
b) Principle of unity of command
c) Authority should be proportionate to
responsibility
d) Authority but not responsibility may be
delegated
Open-system Perspective
Treats the organization as focused on survival
in an uncertain environment
a) Adaption to changes
b) Characterized by synergism
c) Equifinality
d) Learning organization
Organizational Effectiveness
Productivity
Societys expectations
Time
Adaptive organization
Contingency Approach
Mechanistic Organization
Most likely to succeed in stable and certain
environments
Organic Organization
Most likely to succeed in unstable and
unscertain environments
Departmentation
Departmentation by Function
Departmentation by Territory
Departmentation by Product
Departmentation by Customer
Lean Production
Staff Positions
Serves the organization by indirectly
supporting line functions
Engage in activities that are supportive
Staff Authority
Has the right to advice or counsel those with
the line authority
Functional Authority
Limited line authority
Gives a staff person a power over a
particular function such as safety and
accounting
Usually it is given to a specific staff
personnel with expertise in a certain area
Special type of authority for staff
personnel which must be designated by
management
How to MINIMIZE:
Clearly define areas of activity and authority
Use concept of completed staff work
Span of Control
a.k.a. Span of Management or Span of
Authority
An upper limit to the number of people
who can be effectively and efficiently
supervised by one person
Graicunas formula
Managers must not only manage one-to-one
direct reporting relationships but also
relationships with various groups of
subordinates and the relationships that exist
between and among invididual subordinates
Span of Control
Behavioral school states that there has to
be an expansion of control if possible
Increases autonomy and morale of individual
workers
Decreases communication problems by
reducing organizational levels
Centralization and
Decentralization
Centralization
Process where the concentration of decision
making is in a few hands
Lower level decisions are subject to approval of
the top management
Implications:
Reservation of decision making power at the top level
Reservation of operating authority with the middle
level managers
Reservation of operations at lower level at the
directions of the top level
Centralization and
Decentralization
Decentralization
Systematic delegation of authority at ALL LEVELS of
management
Authority is retained by the top management for
taking the MAJOR decisions and framing policies
Implications:
diversification and horizontal can be easily implanted
there is greater motivation and morale of the employees
since they get more independence to act and decide.
the subordinates get a chance to decide and act
independently which develops skills and capabilities. This
way the organization is able to process reserve of talents in
it
Centralization and
Decentralization
Delegation
Formal process of assigning authority
downward
FINAL COMMUNICATION
Observations(findings): relevant
statement of fact
Recommendations: may suggest
approaches for correcting or improving
performance
Conclusions(opinions): evaluations of the
effects of the observations and
recommendations
QUALITY OF COMMUNICATIONS
1.
2.
3.
4.
5.
6.
7.
Accurate
Objective
Clear
Concise
Constructive
Complete
Timely
Effective Communication
5 Elements
Sender- the person who originates the
message.
Symbols- in which the message is encoded.
Medium- the channel through which the
message flows.
Receiver- the person who decodes the
message and interprets the senders
meaning
Feedback- acknowledging to the sender that
the message was correctly understood.
Communication is the
secret to the success of any
manager.
Direction of Communication
Downward
Upward
Horizontal
Organizational Structure
Traditional or Classical managementone way communication.
Participative managementmultidirectional communication
Systems Theory- stresses the
importance of feedback.
Nonverbal Communication
Occurs in clusters, whether or not
accompanied by verbal communication.
Easily misunderstood
Requires establishment of the norms in a
particular persons nonverbal repertoire
Communication Strategy
1.) Spray and Pray
- receivers are showered with information in
the hope that some of it will stick.
2.) Tell and Sell
- involves communicating a more restricted
set of messages and taking time to explain their
importance and relevance.
3.) Underscore and Explore
- allowing employees the freedom to explore
the implications of those ideas in a disciplined
way.
4.) Identify and Reply
- reactive and defensive strategy. Employees
concerns about prior communications are the
central focus here.
5.) Withhold and Uphold
Problems in Communication
Poorly encoded messages
Faulty media selection
Noise
Perceptual problems
Loss in transmission
Poor retention
Nonreception
Media breakdown