principle of management chp#5-8

8/8/2019 Principle of Management Chp#5-8

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Important Notes

Chap-5-8


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Organization

Apattern of manyinterwoven,simultaneousrelationship- through

which people,under the

direction of

managers,pursue theircommon goals.


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Organization

Formal organization : formalized intentional tructure of

role or po ition (organizational chart)

Informal organization:The undocumented and

officially unrecognized relation hip bet eenmember of an organization that inevitably emerge

out of the per onal and group need of employee .


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Organization Chart

It sho s ormal authority

relationship and omits the manysigni icant i formal and

in ormational relationship

advantage


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Organization Chart

disadvantage

Organization structure is dynamic

chart may obsolete

Make people overly conscious o

being superiors or in eriors


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Organization Chart

Importance o Informal organization

and Grapevine

Bring cohesiveness to ormal

organization

Channel o communication

Inevitable and valuable

Is a network of interpersonal relationship that arisewhen people associate with each other (not charted)


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Identification of required activities

Grouping of activities necessary to attainobjective( departmentalization )

Assignment of each group to a manager

with authority necessary to supervise

The provision for coordination horizontallyand vertically

Organizing -4 building blocks


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Three level of strategy

CORPOR TE STR TEGY

UNCTION L LEVEL STR TEGY

BUSINESS UNIT STR TEGY

OPER TING PL NS

What kind o businesses,goals/expectations/resources

Marketing/Production

Sales o a particular businesses

Day to day activities


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strategic business unit is a significant

organization segment that is analyzed to

develop organizational strategy aimed at

generating future business or revenue.

Strategic Business Units

Increase the ocus on a particular Business


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It might be a certain product/companys

division or product lines are promoted. It

has its;

Own mission

Definable group of competitorsOwn integrative

plan/resources/appropriate size


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The Deming Cycle

A company ithin the company


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The role of the Business unit Head /Business unit Manager

Guiding and promoting product/product lines

Close liaison ith all the unctional department

Enhances the Entrepreneurship

BOTTOM-LINE responsibility or its PRO ITABILITY

Accountable o all operations


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Combination of both skills

component and quality of

resources that leads to obtain

streams of technology.

Potential problem with SBU

Not willing to share talented

people

Core competency


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Power

PowerThe ability of individuals or groups to

induce or influence the beliefs or actions of

other persons or groups.


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Power of knowledge (Expertness of a person)

Referent power(Influence people bcoz believe in them andtheir ideas)

Reward power(Ability to reward)

Coercive power(Ability to punish)

Types of Power


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Empowerment (employee

participation/TQM

Act of providing

authority,knowledge,and resources to

individual so they can achieve work .2 ways to Empowerment

Job Enlargement (Enlarging the scope of the job by adding similarkind of the job without enhancing responsibility ) Horizontal

Job Enrichment(Building into jobs a higher sense of challenge and achievement ) Vertical


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Belief- values-attitude-behavior actions


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Culture is the general pattern of

behavior,shared beliefs and

values that organization members

have in common


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Can corporate culture change?

Leader has a major role on organization culture

It takes time 5-10yearsUnderstand the old culture

Identi y the subculture

And re ar ding those living ne culture


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It is total system of social and

cultural relationship where people

working together and fill inintended roles to ensure the

required activities should be done

effectively and efficiently i-

e(organizational communication and decision making

Organizational

Culture(corporate Culture)

principle of management chp#5-8

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