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E.S. BIO
activities.
The grouping of similar activities necessary to
attain objectives.
The assignment of each group to a manager with the
authority necessary to supervise it.
The provision for coordination horizontally (on
the same or a similar organizational level) and
vertically (e.g., between corporate headquarters,
division, and department) in the organization
structure.
Organizing is
is
6.
5.
4.
3.
plans
Identifying, analyzing, and classifying the activities
necessary to accomplish these objectives
Grouping these activities in light of the human and
material resources
Delegating to the head of each group the authority
necessary to perform the activities
Tying the groups together horizontally and
vertically, though authority relationships and
information flows.
Part 2
(Planning)
2. Supporting
objectives,
policies, and
plans
1. Enterprise
Objectives
3. Identification and
classification of
required activities
4. Grouping of
activities in light of
resources and
situations
Part 3
(Organizing)
5. Delegation of
authority
6. Horizontal and
vertical coordination
of authority and
information
relationships
Part 4,5,6
(Other Functions)
9. Controlling
8. Leading
7. Staffing
roles or positions.
It includes all the behaviors of all
participants.
It is the total system of social and cultural
relationships.
Organization
Formal Organization
Informal Organization
departments.
A department is a distinct area, division, or
branch of an organization over which a manager
has authority for the performance of the specified
activities.
1.
Organization Structure
Organization Structure
Organization Structure
Organization Structure
3.
Organization Structure
Advantages:
Encourages focus on customer needs
Gives customers the feeling that they have an
understanding supplier (banker)
Develops expertness in customer area
Communitycity banking
Corporate
banking
President
Institutional
banking
Disadvantages:
May be difficult to coordinate operations
between competing customer demands
Requires managers and staff expert in
customers problems
Customer groups may not always be clearly
defined (e.g., large corporate firms vs. other
corporate business)
Agricultural
banking
Organization Structure
4.
Departmentation by Product
It is the grouping of activities according to
products or product line, especially in
multiline, large enterprises.
Organization Structure
Accounting
Sales
Engineering
Production
Advantages:
Places attention and effort on product line
Facilitates use of specialized capital, facilities, skills,
and knowledge
Permits growth and diversity of products and services
Improves coordination of functional activities
Places responsibility for profits at the division level
Furnishes measurable training ground for general
managers
Industrial
Tools
Division
Indicator
Lights
Division
Instrument
division
Sales
Accounting
Name
Title
Finance
Disadvantages:
Requires more persons with general manager
abilities
Tends to make maintenance of economical central
services difficult
Presents increased problem on top of management
control
Production
Engineering
Purchasing
Personnel
Marketing
President
Organization Structure
5.
Matrix Organization
It is the combining of functional and project
or product patterns of departmentation in the
same organization structure.
Organization Structure
Organization Structure
1.
Legitimate Power
It normally arises from and derives from our cultural
system of rights, obligations, and duties whereby a
position is accepted by people as being
legitimate.
2. Expertness of a person or a group
This is the power of knowledge. Physicians,
lawyers, and university professors may have
considerable influence on others because they are
respected for their specialized knowledge.
3. Referent Power
It is an influence that people or groups may exercise
because people believe in them and their ideas.
Bases of Power
Reward Power
It refers to the power that arises from the
ability of some people to grant rewards.
Coercive Power
It is the power to punish, whether by
firing a subordinate or by withholding a
merit pay increase.
4.
5.
Bases of Power
3.
2.
1.
Staff relationship
Line authority
Scalar principle
Decentralization of Authority
Delegation of Authority
Delegation of Authority
Willingness to let go
A manager who will effectively delegate authority
Recentralization is centralization of
Staffing
Staffing
Job Simplification
Job Rotation
Job Enlargement
Movement of Personnel
Movement of Personnel