MGF1010 TUTORIAL 6 WEEK 6
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This document provides an overview of a university course on management functions. It discusses organizing as a management function and key aspects of organizational design such as structure, departmentalization, and centralization/decentralization. It also covers traditional and contemporary organizational designs and challenges managers face in keeping a dispersed workforce connected. The document emphasizes that organizational structure should support effective and efficient work to accomplish goals.
MGF1010 TUTORIAL 6 WEEK 6
- 1. www.monash.edu.au MGF1010: Introduction to Management Week 6: Functions of Management (O): Organising
- 2. www.monash.edu.au 2 Assignment Reminder: Case Study Report • Friday, May 8, 2015 • Case Study Style • 2000 words (+/- 10%) • Worth 30% • Case: Bahfen and Associates (Moodle) • Minimum 5 Journal Articles • Moodle is the place for lots of information goodies
- 3. www.monash.edu.au 3 Learning objectives Explain why organising is important. Describe six key elements in organisational design. Contrast mechanistic and organic structures. Identify the contingency factors that favour either the mechanistic model or the organic model of organisational design. Describe traditional organisational designs. Discuss contemporary organisational designs. Describe today’s organisational design challenges.
- 4. www.monash.edu.au 4 ORGANISING - is how an organisation’s structure is created -Organisational structure is the formal arrangement of jobs within an organisation. -Managers need to establish structural designs that will best support and allow employees to do their work effectively and efficiently Organisational design is the process of developing or changing an organisation’s structure. This process involves decisions about six key elements: work specialisation, departmentalisation, chain of command, span of control, centralisation/decentralisation and formalisation.
- 5. www.monash.edu.au 5 Elements of organising Work specialisation: is the degree to which tasks in an organisation are divided into separate jobs. Another term for this is division of labour . Departmentalisation: process of grouping tasks (function, geography, process, customer and product). Chain of Command: is the line of authority that extends from the upper organisational levels to the lowest levels and clarifies who reports to whom. Three concepts related to chain of command are authority, responsibility and unity of command . Span of Control: refers to the number of employees a manager can effectively and efficiently manage. Centralisation/de-centralisation: address who, where and how decisions are made in organisations. Formalisation: refers to the degree to which jobs within an organisation are standardised and the extent to which employee behaviour is guided by rules and procedures.
- 6. www.monash.edu.au 6 ORGANISATIONAL DESIGN • Mechanistic Organisation Rigid, Tightly Controlled – High Specialisation, – Rigid Departmentalisation, – Narrow spans of control, – High formalisation, – Limited information network – Little participation in decision making by low- level employees. • Organic Organisation Highly adaptive and flexible – Little work specialisation, – Minimal formalisation, – Little direct supervision of employees.
- 7. www.monash.edu.au 7 ORGANISATION DESIGN Traditional organisational designs E.g. bureaucracy Simple structures Emerging/Contempo rary organisational designs E.g. Outsourcing Teams Virtual teams Global teams
- 8. www.monash.edu.au 8 REVIEW QUESTIONS • Explain why organising is important. Organising, which involves arranging and structuring work to accomplish the organisation’s goals, is important for managers because an appropriate structure allows employees to effectively and efficiently do their work while accomplishing organisational goals and objectives. Organising results in the development of an organisational structure, which is the formal framework by which job tasks are divided, grouped and coordinated.
- 9. www.monash.edu.au 9 • TRADITIONAL The traditional view of work specialisation was that it was seen as an unending source of increased productivity—and for a time it was. Discuss the traditional and contemporary views of work specialisation . • CONTEMPORARY The contemporary view of work specialisation is that it is an important organising mechanism but not a source of ever-increasing productivity. Managers recognise the economies it provides in certain types of jobs, but they also recognise the problems it creates when it is carried to extremes.
- 10. www.monash.edu.au 10 EXPLAIN THE RELATIONSHIP BETWEEN • Strategy and Structure Structure should follow strategy. Most current strategy–structure frameworks tend to focus on three dimensions: (1) innovation, (2) cost minimisation, and (3) imitation. Innovators need the flexibility and free flow of information from the organic structure, whereas cost minimisers seek the efficiency, stability and tight controls of the mechanistic structure. Imitators use structural characteristics of both—the mechanistic structure to maintain tight controls and low costs and the organic structure to mimic the industry’s innovative directions. • Organisational size and Structure Organisational size influences structure in that large organisations tend to have more specialisation, departmentalisation, centralisation and rules and regulations than do small organisations.
- 11. www.monash.edu.au 11 Describe the factors that influence the amount of centralisation and decentralisation. Factors that influence greater centralisation include stable environments, when lower-level managers are not as capable or experienced at making decisions as upper-level managers, when lower- level managers do not want to have a say in decisions, when decisions are significant, when the organisation is facing a crisis or the risk of company failure, when the company is large, and when effective implementation of company strategies depends on managers retaining a say over what happens. Factors that influence greater decentralisation include when the environment is complex and uncertain, when lower-level managers are capable and experienced at making decisions and want a voice in decisions, when decisions are relatively minor, when corporate culture is open to allowing managers to have a say in what happens, when the company is geographically dispersed, and when effective implementation of company strategies depends on managers having involvement and the flexibility to make decisions.
- 12. www.monash.edu.au 12 DESCRIBE THE CHARACTERISTICS OF A LEARNING ORGANISATION A learning organisation is one that has developed the continuous capacity to adapt and change because all its members take an active role in identifying and resolving work-related issues. The important characteristics of a learning organisation revolve around organisational design, information sharing, leadership and culture. Some organisational design experts even go so far as to say that an organisation’s ability to become a learning organisation may be the only sustainable source of competitive advantage.
- 13. www.monash.edu.au 13 Discuss the organisational design challenges facing managers today in relation to keeping employees connected. Many organisational design concepts were developed during the 20th century, when work tasks were fairly predictable and constant, most jobs were full-time and continued indefinitely, and work was done at an employer’s place of business under a manager’s supervision. Today’s challenge for managers is to develop structural designs that keep widely dispersed and mobile employees connected to the organisation. The fact is that whether you are a large or small company in today’s business world, changes in information technology and globalisation have made old hierarchical structures less suitable in this new environment.
- 14. www.monash.edu.au 14 Describe the design of virtual and network organisations. A boundaryless organisation is one whose design is not defined by, or limited to, the horizontal, vertical or external boundaries imposed by a predefined structure. Two types of boundaryless organisations are virtual and network. A virtual organisation is an organisation that consists of a small core of full- time employees and which temporarily hires outside specialists to work on opportunities that arise. A network organisation is a small core organisation that outsources major business functions. A number of factors have influenced the increasing emergence of boundaryless organisational designs. First there is the increasing globalisation of markets and competitors. Another factor is the rapidly changing technology that permits boundaryless organisations to work. Finally, the need for innovation has contributed to the evolution and development of the boundaryless organisation.
- 15. www.monash.edu.au 15 Assignment Two Executive Summary (10%) – This section should comprise a brief overview of the case, giving a brief background of the current situation to set the scene for the report and noting any important assumptions made. (You will not have all the information you would like - so you may need to make some assumptions). As well as this, you should give a synopsis of your case report, outlining the major problems identified and – the recommendations that have been made in the report. This should be NO more than one page double spaced. The executive summary should be on its own page. It is numbered in ROMAN NUMERALS – eg ii or iii. – Separate Page – What you found – Recommendations, 150-250 words
- 16. www.monash.edu.au 16 Assignment Two • Problem Identification and Analysis (25%) – Analysing the case – Identify the theories that are relevant – i.e. Motivation > e.g Maslow (Hierarchy of Needs) > e.g McClelland (Three Needs) – I want to see the theorists and I want you to reference them (not the textbook) – Don’t tell me the theory, tell me the case and explain the theory through the case.
- 17. www.monash.edu.au 17 Assignment Two • Statement of Major Problems (5%) – Clearly what are the major problems 1. Leadership a) Lack of transformational leadership b) Too focus on process and not on people 2. Motivation a) Employees feel a lack of equity b) Employees need to be intrinsically motivated
- 18. www.monash.edu.au 18 Assignment Two • Generation and Evaluation of a Range of Alternate Solutions (20%) – Under each of the problem headings speak about 2 to 3 recommendations for each problem – Advantages and disadvantages of each – Be able to link them to the relevant theory – Make it clear and creative – Ensure that they are practical solutions – You must reference!
- 19. www.monash.edu.au 19 Assignment Two • Recommendations (15%) – Choose one recommendation for each problem – So for the sake of this example 4 recommendations – Justify why using theory – You must reference – Make sure you are suggesting things that would actually work!
- 20. www.monash.edu.au 20 Assignment Two • Implementation (10%) – What are the steps for implementing this change – What will happen – Who should be responsible for each step – How will it be implemented – What are the costs – This can be in a table if it is nicely presented
- 21. www.monash.edu.au 21 Assignment Two • Presentation (10%) – The paragraphs are correct – Spelling and grammar – Consistency of wording – Double spaced – Page numbers at the bottom right hand corner – Sub-headings (report) – Size 11/12 font Times / Calibri – Justify the paragraphs
- 22. www.monash.edu.au 22 Assignment Two • Referencing (5%) – 5 Journal Articles APA Style > Peer-reviewed journals > Business Week / New York Times is not a journal > A book is not a journal > Big Dog Little Dog Blog is not a journal > Wikipedia is not a journal > Sparknotes is not a journal > Lecture Slides are not a journal > Websites are not a journal > Mickey Mouse is not a journal
- 23. www.monash.edu.au 23 Case Study:De Best Fashions You are consultants. • Group 1: Accenture • Group 2: Delloitte • Group 3: Ernst & Young • Group 4: KPMG Consulting • Group 5: PWC (Price Waterhouse Coopers) Lighthart has contacted you because Wishnoski has suggested she is not happy with another raise, and is looking for another job. Lighthart wants to know what to do next.
- 24. www.monash.edu.au 24 Next Week • Read Chapter 18 pp. 649-661, 667-668 • Answer related review questions • Download Fresh Produce from the Moodle, read and prepare for discussion next week.