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Kay 235: Introduction to Management

Kay 235: Introduction to Management. Lecture 7 Subject: Organizing Reading: Starling, Chapter 7. Announcements. The date of the 2nd Midterm is: December 17, Friday 13:30, D13-14 & DZ09 Chapters after the first midterm May include Maslow’s Hierarchy “If I were a rich man”song example

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Kay 235: Introduction to Management

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  1. Kay 235: Introduction to Management Lecture 7 Subject:Organizing Reading: Starling, Chapter 7

  2. Announcements • The date of the 2nd Midterm is: • December 17, Friday • 13:30, D13-14 & DZ09 • Chapters after the first midterm • May include Maslow’s Hierarchy • “If I were a rich man”song example • Planing, decision-making & organizing • And the “12 Angry Men” Movie

  3. 12 Angry Men” Movie

  4. 12 Angry Men” Movie Question Examples • What is the concept of “groupthink”? • Was the concept “groupthink” effective on Jury members: • At the beginning of the movie? • At the end of the movie? • Give examples to the advantages & disadvantages of group decision-making from the movie?

  5. Questions of Organizing? • What are the main types of organizational design? • What are the types of authority? • Which type of organization responds best after emergencies?

  6. Organizing • Definition: • The grouping of activities necessary to attain certain objectives • Main question: • Finding the fit between the task at hand and organizational structure

  7. ORGANIZATIONAL DESIGN • “Design must follow purpose”, Drucker • Key activities • Design Criteria: Clarity, simplicity, adaptability and coherence • Formal vs. Informal organizations • Delegation of authority • Example: Shooting airplanes

  8. Organizing • What kind of problem we are dealing with? • Repetitive tasks, innovation, flexibility • How urgent is the problem? • How specific is the job? • How much coordination is needed?

  9. 1. Leader-Follower Organizations • Sources of the leader’s authority (Max Weber) • Traditional • Charismatic • Legal-Rational • The Nemesis of Creativity • A leader rarely faces two consecutive challlenges sucessfully • Lack of Followership Studies

  10. 2. Networks • Two or more organizations brought together for a particular purpose • Associations • Consortia • Partnerships • Unions • They greatly vary according to their size, longevity & the amount of integration.

  11. 2. Networks • Institutions • A program imposed by society on the conduct of individuals • A set of shared values and rituals; beliefs, cultures • Certain patterns of behaviors and shared meanings • Family institution, religious institution

  12. Pros and Cons of Networks • Advantages • Adaptive, creative, conducive to innovation • Pragmatic, goal-searching, and problem-oriented • Detect and correct errors easily • Self-organizing, self-regulating

  13. Pros and Cons of Networks • Problems • Limited control • Political & persuasive skills, rather than orders become critical • Differences in cultures and sets of behavior • Free riders • Using the benefits of the network, while contributing as little as possible to it.

  14. Pyramidal Organizations • Key features • Division of labor • Hierarchy • Chain of command • Span of control • Efficient supervision • Line and staff • The notion of functional authority

  15. Pyramidal Organizations:Strengths and Problems • Strengths • Efficiency gain from specialization • Clear line of authority and responsibility

  16. Pyramidal Organizations:Strengths and Problems • Problems • Difficulty in coordination and communication between different functions • Rigidity (SOPs and Red Tape) • Low capacity for innovation • It is a performance structure, not a problem solving structure • Span of control (one way, only downward rel.ship?) • Span of managerial relationships • Growth of bureaucratic size

  17. Adhocracies (Example: Matrix) • Experts drawn from different disciplines into ad-hoc (spontaneous) groups • Characteristics • Organic: Highly flexible • Little concern about the four defining principles of pyramid organizations • Emphasis on horizontal processes • Deployed in project teams • Mutual adjustment: members need to assume responsibility

  18. Matrix:Strengths and Problems • Strengths • Work well for specific, narrowly defined projects • Ease in coordination • Capability for problem-solving

  19. Matrix:Strengths and Problems • Drawbacks • Development of specialty • Feeling isolated and rootless • Little accumulated wisdom • Institutional memory or capacity

  20. Team Approach • The essence: Common assignment • Complementary skills, common purpose, hold themselves mutually accountable • Types of teams • Cross-functional teams • Temporary or permanent teams

  21. Team Approach:Advantages and Disadvantages • Advantages • Quicker decision-making • Lowering administrative costs • Increase in morale

  22. Team Approach:Advantages and Disadvantages • Disadvantages • Conflicts and dual loyalties • Coordination costs • Danger of over-decentralization

  23. Question • When does an organization need to reorganize? • Performance deficit • Confidence/Trust deficit

  24. REORGANIZATION • Rationale: • Growth • Greater efficiency • Changes in public policy • More political responsiveness • Change in the business environment

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