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Organizing. What does it seem that managers over-delegate responsibility or pawn off their jobs to people below them? Who do you handle complaints form employee that they might have about upper management and how they are treated by them?.

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Previous slide was an organizational chart
Previous slide was an organizational chart the best?

  • Describes the arrangement of work positions within an organization (it reflect the formal or official organizational structure).

  • Different ways to organize.


Rondell--high tech company with rapidly changing Tech. Frank was recently hired. Predecessor lasted 10 months and one before him took to drinking. Problem in ES.


ES does pre-production lay out and design. Doc Reeves has many new ideas (over 900/year) and ES expected to modify pre-production changes quickly. Reeves underestimates time to implement.


Sales delivery dates get set further behind. Sales complains about resolving disputes between ES and production


Production complains about sloppy work in ES (Schwab). Forbus gets “a sack” for a Christmas present. Reason--costly delays that influenced customer satisfaction.


What would you do with Rondell. Are the problems Forbus or the structure? Assume you are on the management team and will make a recommendation.


Organizing in a team
Organizing in a team the structure? Assume you are on the management team and will make a recommendation.

  • Pretty much deciding how to break up the work and who does what.

  • Importantly, how to communicate and set up the work flow (who does what first).

  • Time components.

  • Allocating resources is not a significant issue.


Big issue
Big issue the structure? Assume you are on the management team and will make a recommendation.

  • Work collaboratively.

  • Specialize.


Key issues relevant to rondell
Key Issues--Relevant to Rondell the structure? Assume you are on the management team and will make a recommendation.

  • Differentiation—the degree task are divided into subtasks and performed by specialized individuals

  • Task differentiation by what employees do

  • Cognitive differentiation by what employees think.


Need for differentiation
Need for differentiation the structure? Assume you are on the management team and will make a recommendation.

  • Specialization of tasks

  • Devote resources towards critical needs such as technology, customer segments, or stakeholders.

  • Tied to Mission/strategy/operational plans


How does rondell do differentiation
How does Rondell do differentiation? the structure? Assume you are on the management team and will make a recommendation.


Integration
Integration the structure? Assume you are on the management team and will make a recommendation.

  • Various parts of the organization cooperate and interact with each other

  • Human resources and material resources

  • Efficient use of materials and people


HOW TO IMPROVE the structure? Assume you are on the management team and will make a recommendation.

SUBSYSTEM Integration

Rules and procedures

Direct contact among managers

Liaison roles

Task forces

Teams

Matrix organizations


Think about consequences if no integration
Think about consequences if no integration. the structure? Assume you are on the management team and will make a recommendation.


How does rondell do integration
How does Rondell do integration? the structure? Assume you are on the management team and will make a recommendation.


Management
Management the structure? Assume you are on the management team and will make a recommendation.

  • Constantly addressing organizing in higher positions. Given goals how can we best allocate are material resources and human resources to meet those goals from efficiency perspective and from goal success perspective.


In project teams
In project teams the structure? Assume you are on the management team and will make a recommendation.

  • Task force model/teams is integration. Direct communication


Functional structure
Functional structure the structure? Assume you are on the management team and will make a recommendation.

  • Groups together people with similar skills.

  • Rondell--research and engineering, production, and sales

  • Best when few product lines and competing demands for different products.


Advantages expertise and efficiency
Advantages (Expertise and efficiency) the structure? Assume you are on the management team and will make a recommendation.

  • Task assignments consistent with technical training.

  • Technical Problem solving.

  • Clear career paths.

  • Efficient use of resources time and cost within units.


Disadvantages
Disadvantages the structure? Assume you are on the management team and will make a recommendation.

  • Poor communication across functions

  • Too many problems get resolved at the top.

  • Loss of responsibility for getting product to market.

  • Self-centered viewpoints.


Divisional structures
Divisional structures the structure? Assume you are on the management team and will make a recommendation.

  • Groups people with diverse skills to work on the same product or with similar clients and customers.


Advantages over functional
Advantages over functional the structure? Assume you are on the management team and will make a recommendation.

  • Improved coordination (integration)

  • Responsibility assigned for product/service. Greater customer satisfaction with product or service.

  • Greater flexibility to adapt to environmental changes.


Disadvantages1
disadvantages the structure? Assume you are on the management team and will make a recommendation.

  • Divisions fight for resources

  • Loss of efficiencies (capital and human resources). (poor differentiation)

  • Lack of sharing of expertise across products.

  • New product development limited.


Movie
movie the structure? Assume you are on the management team and will make a recommendation.

  • Done individually.

  • Does Chrysler have a divisional or functional design. Why was this design effective. How did this influence employee behavior?


Overlay to create efficiencies
Overlay to create efficiencies the structure? Assume you are on the management team and will make a recommendation.

  • Larger Staff functions such as human resources or import/export

  • See page 10 Provide advice and support to line managers.

  • In reality it often does rules and constraints.


New trends
New Trends the structure? Assume you are on the management team and will make a recommendation.

  • Increased delegation--distributing and entrusting work to others (empowerment).

  • Increased responsibility and accountability.

  • See page 214 of text for delegation.

  • Trust and accountability are key.


Current trends cont
Current Trends (cont) the structure? Assume you are on the management team and will make a recommendation.

  • Flatter organizations--wider spans of control and shorter chains of command.


Wider spans of control associated with
Wider spans of control associated with the structure? Assume you are on the management team and will make a recommendation.

  • Less controlling/ more empowerment

  • decentralized decision making push the decision making authority down to the lowest level possible.


Example of company with new methods
Example of company with new methods the structure? Assume you are on the management team and will make a recommendation.

  • Nucor See p. W 39



Think small in spite of growth
Think small in spite of growth balls, fasteners, prefab buildings, and bearings. Started with just steel bars. Recycled steel in Mini meels

  • Flat organization with Wide spans of control

  • Delegation

  • Incentive systems


Layers
layers balls, fasteners, prefab buildings, and bearings. Started with just steel bars. Recycled steel in Mini meels

  • Top executives

  • General managers (by divisions)

  • Department supervisor

  • Supervisor

  • hourly employee

  • Example no shift supervisors just department supervisor


Incentives
incentives balls, fasteners, prefab buildings, and bearings. Started with just steel bars. Recycled steel in Mini meels

  • Weekly between 80-150% base pay

  • annual if outstanding performance of company.


Revisting rondell
Revisting Rondell balls, fasteners, prefab buildings, and bearings. Started with just steel bars. Recycled steel in Mini meels

  • What should we do to get them to work together. Nothing is perfect. What could be done to improve the situation?


Summary
Summary balls, fasteners, prefab buildings, and bearings. Started with just steel bars. Recycled steel in Mini meels

  • Differentiation and integration

  • Examined different ways to differentiate and integrate.

  • Current trends toward employee empowerment/accountability. Promoting integration


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