أ. شريف نايف عوايص

محاضر في ادارة الأعمال- رئيس قسم التسجيل - عمادة القبول والتسجيل

عملية التنظيم


Organizing Process


A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization. Organizations are groups of people, with ideas and resources, working toward common goals. The purpose of the organizing function is to make the best use of the organization's resources to achieve organizational goals. Organizational structure is the formal decision-making framework by which job tasks are divided, grouped, and coordinated. Formalization is an important aspect of structure. It is the extent to which the units of the organization are explicitly defined and its policies, procedures, and goals are clearly stated. It is the official organizational structure conceived and built by top management. The formal organization can be seen and represented in chart form. An organization chart displays the organizational structure and shows job titles, lines of authority, and relationships between departments

The informal organization is the network, unrelated to the firm's formal authority structure, of social interactions among its employees. It is the personal and social relationships that arise spontaneously as people associate with one another in the work environment. The supervisor must realize that the informal organization affects the formal organization. The informal organization can pressure group members to conform to the expectations of the informal group that conflict with those of the formal organization. This can result in the generation of false information or rumors and resistance to change desired by management. The supervisor should recognize the existence of information groups, identify the roles member play within these groups, and use knowledge of the groups to work effectively with them. The informal organization can make the formal organization more effective by providing support to management, stability to the environment, and useful communication channels.

Organizational Structure

Even though the differences among organizations are enormous, there are many similarities that enable them to be classified. One widely used classification is the twofold system (mechanistic versus organic forms of organizational structure) developed by Tom Burns and G. M. Stalker in their study of electronics firms in theUnited Kingdom. (See Burns, Tom and G. M. Stalker, Management of Innovation, London: Tavistock Publications, 1961, p. 19.)

The mechanistic structure is the traditional or classical design, common in many medium- and large-size organizations. Mechanistic organizations are somewhat rigid in that they consist of very clearly delineated jobs, have a well-defined hierarchical structure, and rely heavily on the formal chain of command for control. Bureaucratic organizations, with their emphasis on formalization, are the primary form of mechanistic structures. According to Max Weber, bureaucracy is a form of organization characterized by a rational, goal-directed hierarchy, impersonal decision making, formal controls, and subdivision into managerial positions and specialization of labor. Bureaucratic organizations are tall consisting of hierarchies with many levels of management. In a tall structure, people become relatively confined to their own area of specialization. Bureaucracies are driven by a top-down or command and control approach in which managers provide considerable direction and have considerable control over others. Other features of the bureaucratic organization include functional division of labor and work specialization.

On the other hand, the organic structure is more flexible, more adaptable to a participative form of management, and less concerned with a clearly defined structure. The organic organization is open to the environment in order to capitalize upon new opportunities.

Organic organizations have a flat structure with only one or two levels of management. Flat organizations emphasize a decentralized approach to management that encourage high employee involvement in decisions. The purpose of this structure is to create independent small businesses or enterprises that can rapidly respond to customers' needs or changes in the business environment. The supervisor tends to have a more personal relationship with his or her employees.

Rensis Likert has conducted extensive research on a non-bureaucratic organization design referred to as System 4 (participative-democratic). Management and employees interact in a friendly environment characterized by mutual confidence and trust. (See Likert, Rensis, , New York: McGraw-Hill, 1967, pp. 4-10)

Contingency organization means that the most appropriate organization structure for each situation depends upon technology, organizational size, goals and strategy, environmental stability, and characteristics of the employees. Mechanistic organizations are best suited to repetitive operations and stable environments, while organic organizations are best suited to an uncertain task and a changing environment.

Organization Design

Designing an organization involves choosing an organizational structure that will enable the company to most effectively achieve its goals. Organization design is the creation of an organization's structure, traditionally functional, divisional, and/or matrix.

Functions or divisions arrange traditional organizations. In a functional organization, authority is determined by the relationships between group functions and activities. Functional structures group similar or related occupational specialties or processes together under the familiar headings of finance, manufacturing, marketing, accounts receivable, research, surgery, and photo finishing. Economy is achieved through specialization. However, the organization risks losing sight of its overall interests as different departments pursue their own goals.

In a divisional organization, corporate divisions operate as relatively autonomous businesses under the larger corporate umbrella. In a conglomerate organization, divisions may be unrelated. Divisional structures are made up of self-contained strategic business units that each produces a single product. For example, General Motors' divisions include Chevrolet, Oldsmobile, Pontiac, and Cadillac. A central headquarters, focusing or results, coordinates and controls the activities, and provides support services between divisions. Functional departments accomplish division goals. A weakness however, is the tendency to duplicate activities among divisions.

In a matrix organization, teams are formed and team members report to two or more managers. Matrix structures utilize functional and divisional chains of command simultaneously in the same part of the organization, commonly for one-of-a-kind projects. It is used to develop a new product, to ensure the continuing success of a product to which several departments directly contribute, and to solve a difficult problem. By superimposing a project structure upon the functional structure, a matrix organization is formed that allows the organization to take advantage of new opportunities. This structure assigns specialists from different functional departments to work on one or more projects being led by project managers. The matrix concept facilitates working on concurrent projects by creating a dual chain of command, the project (program, systems, or product) manager and the functional manager. Project managers have authority over activities geared toward achieving organizational goals while functional managers have authority over promotion decisions and performance reviews. An example is an aerospace firm with a contract from NASA.

Matrix organizations are particularly appealing to firms that want to speed up the decision-making process. However, the matrix organization may not allow long-term working relationships to develop. Furthermore, using multiple managers for one employee may result in confusion as to manager evaluation and accountability. Thus, the matrix system may elevate the conflict between product and functional interests.

Boundaryless organizations are not defined or limited by horizontal, vertical, or external boundaries imposed by a

predetermined structure. They share many of the characteristics of

 flat organizations, with a strong emphasis on teams. Cross-functional teams dissolve horizontal barriers and enable the organization to respond quickly to environmental changes and to spearhead innovation. Boundaryless organizations can form relationships (joint ventures, intellectual property, distribution channels, or financial resources) with customers, suppliers, and/or competitors. Telecommuting, strategic alliances and customer-organization linkages break down external barriers, streamlining work activities. Jack Welch, former CEO of General Electric, to facilitate interactions with customers and suppliers, first used this un-structure.

A boundaryless environment is required by learning organizations to facilitate team collaboration and the sharing of information. When an organization develops the continuous capacity to adapt and survive in an increasingly competitive environment because all members take an active role in identifying and resolving work-related issues, it has developed a learning culture. A learning organization is one that is able to adapt and respond to change. This design empowers employees because they acquire and share knowledge

and apply this learning to decision-making. They are pooling collective

intelligence and stimulating creative thought to improve performance. Supervisors facilitate learning by sharing and aligning the organization's vision for the future and sustaining a sense of community and strong culture

Organizing Function

The organizing function deals with all those activities that result in the formal assignment of tasks and authority and a coordination of effort. The supervisor staffs the work unit, trains employees, secures resources, and empowers the work group into a productive team. The steps in the organizing process include (1) review plans, (2) list all tasks to be accomplished, (3) divide tasks into groups one person can accomplish - a job, (4) group related jobs together in a logical and efficient manner, (5) assign work to individuals, (6) delegate authority to establish relationships between jobs and groups of jobs.

The nature and scope of the work needed to accomplish the organization's objectives is needed to determine work classification and work unit design. Division of labor, or work specialization, is the degree to which tasks in an organization are divided into separate jobs. Work process requirements and employee skill level determine the degree of specialization. Placing capable people in each job ties directly with productivity improvement. In order to maximize productivity, supervisors match employee skill level with task requirements.

Supervisors should perform workflow analysis to examine how work creates or adds value to the ongoing processes in an organization. Workflow analysis looks at how work moves from the customer or the demand source through the organization to the point at which the work leaves the organization as a product or service to meet customer demand. Thus, workflow analysis can be used to tighten the connection between employees' work and customers' needs. Also, it can help to make major performance breakthroughs throughout business process reengineering (BPR), a fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in costs, quality, service, and speed.  BPR uses workflow analysis to identify jobs that can be eliminated or recombined to improve company performance.

Departmentalization

After reviewing the plans, usually the first step in the organizing process is departmentalization. Once jobs have been classified through work specialization, they are grouped so those common tasks can be coordinated. Departmentalization is the basis on which work or individuals are grouped into manageable units. There are five traditional methods for grouping work activities.


· Departmentalization by function organizes by the functions to be performed. The functions reflect the nature of the business. The advantage of this type of grouping is obtaining efficiencies from consolidating similar specialties and people with common skills, knowledge and orientations together in common units.


· Departmentalization by product assembles all functions needed to make and market a particular product are placed under one executive. For instance, major department stores are structured around product groups such as home accessories, appliances, women's clothing, men's clothing, and children's clothing.


· Departmentalization by geographical regions groups jobs on

 the basis of territory or geography. For example, Merck, a major pharmaceutical company, has its domestic sales departmentalized by regions such as Northeast, Southeast,Midwest, Southwest, and Northwest.


· Departmentalization by process groups jobs on the basis of product or customer flow. Each process requires particular skills and offers a basis for homogeneous categorizing of work activities. A patient preparing for an operation would first engage in preliminary diagnostic tests, then go through the admitting process, undergo a procedure in surgery, receive post operative care, be discharged and perhaps receive out-patient attention. These services are each administered by different departments.


· Departmentalization by customer groups jobs on the basis of a common set of needs or problems of specific customers. For instance, a plumbing firm may group its work according to whether it is serving private sector, public sector, government, or not-for-profit organizations. A current departmentalization trend is to structure work according to customer, using cross-functional teams. This group is chosen from different functions to work together across various departments to interdependently create new products or services. For example, a cross-functional team consisting of managers from accounting, finance, and marketing is created to prepare a technology plan

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Managers And Managing

Management Theories

Org.Enviorenment

Planning Function

 

Motivation

 

ERP-Process

Management Study Guide


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