Perspective Management_4

Organizing

• Organizing is a formalized intentional structure of roles or position.
• In businesses or government designing and maintaining systems of roles is basically the managerial function of organizing.
• Organizing consists of following functions:
1. the identification and classification of required activities.
2. the grouping of activities necessary to attain objectives.
3. the assignment of each group to a manager with the authority (delegation) necessary to supervise it.
4. the provision for coordination horizontally (on the same or similar organizational level) and vertically (between corporate headquarters, divisions, and department) in the organization structure.

Organization
• It is a formalized intentional structure of roles or positions.
• It includes all the behaviors of all participants.
• People working together must fill certain roles.
• The roles people are asked to fill should be intentionally designed to ensure that required activities are done and the activities fit together so that people can work smoothly, effectively, and efficiently in groups.

Formal Organization
• Formal organization means the Intentional structure of roles in a formally organized enterprise.
• The structure must furnish an environment in which individual performance, both present and future, contributes more effectively towards the goals.
• The formal organization must be flexible. There should be room for discretion, for beneficial utilization of creative talents, and for recognition of individual like and capacities in the most formal organizations.
• Individual effort must be channeled towards group and organizational goals.

Informal Organization
• Informal organization is a network of interpersonal relationships that arise when people associate with each other.
• Informal organizations are described as any joint personal activity.
• These interpersonal relation ships does not appear in an organization chart.

Organizational Division
• The Department: A distinct area, division, or branch of an organization over which a manager has authority for the performance of specified activity.
• In some enterprises , departmental terminology is loosely applied.
• In large organizations, it is strictly followed.

Organizational levels and Span of Management
• Reasons for the levels in organization is the limitation of the span of management.
• A wide span of management is associated with few organizational levels.
• A narrow span consists of many levels.

Organizations with Narrow span
Advantages of narrow span:
• Close supervision
• Close control
• Fast communication between subordinates and superior
Disadvantages:
• Superiors tend to get too involved in subordinates’ work.
• Many levels of management
• High cost due to many levels.
• Excessive distance between lowest level and top level.

Organizations with Wide Span
Advantages:
• Superiors are forced to delegate.
• Clear policies must be made.
• Subordinates must be carefully selected.
Disadvantages:
• Tendency of overload to superiors.
• Dangers of superiors loss of control.
• Requires exceptional qualities of managers.

Problems with the organizational levels
• The division of activities into departments and the creation of multiple levels are not completely desirable in themselves.
• Levels are expensive, as they increase, more and more effort and money are devoted to managing because of additional managers, the staff to assist them, the necessity of coordinating departmental activities, and the cost of facilitating the staff.
• Departmental levels complicate the communication.
• Levels also complicate communication from the “firing line” to the commanding superiors, which is every bit as important as downward communication.
• Numerous department and levels complicate planning and control.
• A plan that may be definite and complete at the top level loses coordination and clarity as it is subdivided at lower levels.

The operational management position
• A classical school approach to a span of management deals with specifying the no. of subordinates for an effective span.
• Principle of the span of management: There is a limit to the number of subordinates a manager can effectively supervise, but the exact number will depend on the impact of the underlying factors.
• The dominant current guideline is to look for the causes of limited span in individual situations rather than to assume that there is a widely applicable numerical limit.
• Factors determining an effective span: comprehending quickly, getting along with people, commanding loyalty and respect, and managers ability to reduce the time he or she spends with people.
• Need for balance:
• In flat organizational structure managers have more subordinates that they can manage.
• Widening spans and reducing the number of levels.
• One must balance all the costs of adopting one course or the other.

Delegation of Authority
• Authority is delegated when a superior gives a subordinate discretion to make decisions.
• The process of delegation Involves:
• Determining the results expected from a position.
• Assigning task to the position.
• Delegating authority for accomplishing these tasks.
• Holding the person in that position responsible for the accomplishment of the task.

The Art of Delegation
1. • Personal attitude towards delegation:
• Receptiveness: willingness to give other people’s idea a chance.
2. Willingness to let go: willingness to release the right to make decision to subordinates. if the size of the organization forces delegation of authority, managers should realize that there is a “law of comparative managerial advantage”.
3. Willingness to allow mistakes by subordinate: A subordinate must be allowed to make some mistakes, and their cost must be considered as an investment in personal development. Patient counseling, asking leading or discerning questions, and carefully explaining the objectives and policies are some of the methods available to the manager.
• Willingness to trust subordinates: delegation implies a trustful attitude between superior and subordinate. Superior may put off delegation with the thought that subordinates are not yet experienced enough, however bosses distrust their subordinates, because they do not wish to let go.
• Willingness to establish and use broad controls: since superiors cannot delegate responsibility for performance, they should not delegate authority unless they are willing to find means of getting feedback.

Leadership and Management
• Committee: A group of persons to whom, as a group, some matter is committed.
• It is the characteristics of the group action that sets the committee and team apart from the other organizational devices.
The nature of committees and group
Group development in committee:
• forming: when the members of the group get to know each other.
• Storming: when the members of the group determine the objective of the meeting and conflict arises.
• Norming: when the group agrees on norms and some rules of behavior.
• Performing: when the group gets down to the task.

• People play certain roles in committee.
• To be effective in a group, one must not only listen to what is said but also observe the nonverbal behavior.
• The seating arrangement have an impact on the group interaction.
• Functions and formalities of committees and groups:
• Some committees and teams undertake the managerial functions of Planning, organizing, staffing, leading and controlling while others do not.
2. Some make decisions.
3. Some have authority to make recommendations to a manager, who may or may not accept them.
4. Some others are formed to receive information, without making recommendations or decisions.
• A committee either may have line or staff function depending on its authority.
• If its authority involves decision making affecting subordinates it is responsible for it, it is plural executive. Such as board of governers.
• If its authority relationship to superior is advisory, then it is a staff committee.
• Formal committee: if specifically delegated duties and authority, and established as a part of organizational structure.
• Informal Committee: its organized without specific delegation of authority, usually by some person desiring group thinking or a group decision on a particular problem.
• A committee may be temporary or permanent.
• One would expect a formal committee to be more permanent then the informal one.
• A formal committee might be established by order of the company president, with appropriate provision in the organization structure.
An informal committee set up by the factory manager to advise on the improvement of product quality or to help coordinate delivery dates with sales commitments might continue indefinitely.