The key functions that managers perform include planning, organizing, leading, and controlling. This module focuses specifically on the organizing function. Organizing involves coordinating and allocating a firm’s resources so that the firm can carry out its plans and achieve its goals. This organizing or structuring process is accomplished by: Show
The result of the organizing process is a formal structure within an organization. An organization is the order and design of relationships within a company or firm. It consists of two or more people working together with a common objective and clarity of purpose. Formal organizations also have well-defined lines of authority, channels for information flow, and means of control. Human, material, financial, and information resources are deliberately connected to form the business organization. Some connections are long-lasting, such as the links among people in the finance or marketing department. Others can be changed at almost any time—for example, when a committee is formed to study a problem. Every organization has some kind of underlying structure. Typically, organizations base their frameworks on traditional, contemporary, or team-based approaches. Traditional structures are more rigid and group employees by function, products, processes, customers, or regions. Contemporary and team-based structures are more flexible and assemble employees to respond quickly to dynamic business environments. Regardless of the structural framework a company chooses to implement, all managers must first consider what kind of work needs to be done within the firm. Figure 6.4 (Credit: JJBers/ flickr/ Attribution 2.0 Generic (CC BY 2.0)) Founded in 1943, Sweden retailer IKEA has grown from a small mail-order operation to a global force in home furnishings with more than 390 stores throughout Europe, North America, Africa, Australia, and Asia. Best known for its contemporary furniture designs, highly trafficked store openings, and quirky advertising, the IKEA Group consists of multiple divisions corresponding to the company’s retail, supply chain, sales, and design and manufacturing functions. What factors likely influenced the development of IKEA’s organizational structure as the company expanded over the years? Division of Labor The process of dividing work into separate jobs and assigning tasks to workers is called division of labour. In a fast-food restaurant, for example, some employees take or fill orders, others prepare food, a few clean and maintain equipment, and at least one supervises all the others. In an auto assembly plant, some workers install rearview mirrors, while others mount bumpers on bumper brackets. The degree to which the tasks are subdivided into smaller jobs is called specialization. Employees who work at highly specialized jobs, such as assembly-line workers, perform a limited number and variety of tasks. Employees who become specialists at one task, or a small number of tasks, develop greater skill in doing that particular job. This can lead to greater efficiency and consistency in production and other work activities. However, a high degree of specialization can also result in employees who are disinterested or bored due to the lack of variety and challenge. Traditional StructuresAfter a company divides the work it needs to do into specific jobs, managers then group the jobs together so that similar or associated tasks and activities can be coordinated. This grouping of people, tasks, and resources into organizational units is called departmentalization. It facilitates the planning, leading, and control processes. An organization chart is a visual representation of the structured relationships among tasks and the people given the authority to do those tasks. In the organization chart in Figure 6.5: “Organization Chart for a Typical Appliance Manufacturer”, each figure represents a job, and each job includes several tasks. The sales manager, for instance, must hire salespeople, establish sales territories, motivate and train the salespeople, and control sales operations. The chart also indicates the general type of work done in each position. Figure 6.5: Organization Chart for a Typical Appliance Manufacturer (Attribution: Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0 license)As Exhibit 6.6 shows, five basic types of departmentalization are commonly used in organizations: Figure 6.6: Five Traditional Ways to Organize (Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)
What are the main determinant factors of organization structure?Determinants of Organisation Structure:. Nature of the Objectives: ... . Operative Activities: ... . Technology: ... . Sequence of Tasks: ... . Limitations of Skill and Working Capacity: ... . Managerial Functions: ... . Size and Scope: ... . Strategy:. What are the four most important factors affecting organization structure?What are the factors that influence organizational structure?. Business strategy. The way you position your company should also inform your organizational design. ... . Location. We live in a global, digital age. ... . Culture. ... . Technology.. What are the 4 main Organisational structures?The four types of organizational structures are functional, multi-divisional, flat, and matrix structures. Others include circular, team-based, and network structures.
What are the determination of organization?The structure of an organization will determine modes in which it operates and performs its operations. Organizational structure allows expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individuals.
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