Organization and Management (Chapter 3 -4 )

Kaoru Ishikawa

A Japanese businessman who invented the fishbone diagram

Top Level Managers

Chairperson, Board of Directors, President, CEO, CFO, COO, Vice - President, Corporate Head

Middle Level Managers

More involved in day to day working of a company and execute organizational plans

Planning

Process by which managers establish goal, define methods and think of strategies by which these goals are to be attained

Planning

Process of thinking before doing

Functional Authority Organizational Structure

The development of staff departments and positions led quite naturally to attempt complete organization on a functional basis

Functional Authority Organizational Structure

The line officers/ managers have the direct power to achieve the organizational goals

Formal Organization

the official structures, usually delineated by an organizational chart and job description

Brainstorming

Powerful technique that draws out ideas from a group of people to create new ideas, solve problems, motivate and develop teams

Goals

Represent an end statement, the targets and results that managers hope to achieve

Action Plan

Represent the means by which an organization goes ahead to attain its goals

Middle Level Managers

Responsible for carrying out the goals by top management

Top Level Managers

Responsible for controlling and directing the entire business

Types of Plans

Strategic Plan, Tactical Plan and Operational Plan

Organization as a Structure

Systematic combination of people function and physical facilities

Henry l. Gantt

A US Engineer and consultant who invented the Gantt Chart

Strategic Plan

A high level overview of the entire business, its vision, mission, corporate, objectives and values

Organization as a Process

An executive function, therefore it becomes a managerial function which involves the ff. activities: Accomplishment of business objectives, division of labor, departmentalization, delegation of duties and responsibilities, coordination of report

Behavioral Organization Theory

Assumes employees complete the required work if their company provides a suitable business environment

Contingency Organization

Assumes that organizations adapt to their environments in the absence of formal structure

Organization as a Structure

The organization is a network of internal responsibility and authority relationships

Line Organization

There are only line departments directly involved in the accomplishing the primary goal of an organization

Planning Tools

These are used by organization, schools, businesses and the like

Divisional Organizational Structure

They are function, product, geographic territory, project and combination approach

Middle Level Managers

They do so by setting goals for their departments and other business units

Top Level Managers

They have a great deal of managerial experience

Top Level Managers

They set goals and lead the entire business

Accountability

This is the ability of the obligation to performed delegated responsibility and to exercise the authority for the proper performance of the work

Line Organization

This is the simplest form of structure and refers to a direct straight line responsibility and control from the top management to the middle management and to the lower level

Responsibility

This is the work or duty assign to a particular position

Classical Structure Theory

Traditional organization have either a pure or hierarchical structure or a modified one such as matrix structure that add additional reporting paths to positions at the working level

Short - Range

Financial goals are smaller and need lesser financial resources and easier to achieve than long term goals

Lower Level Managers

Focus on controlling and directing employees or subordinates

Strategic Plan

Foundational basis of the organization and will form part of the long term decision

Organization as a Structure

Framework of relationships among various levels of operation to accomplish common objectives

Middle Level Managers

General Manager, Division Manager, Regional Manager

Basic Components of Planning

Goal and Action Plan

Fishbone Diagram

Has a central spine running left to right, around which is built a map of factors which contribute to the final result of the problem

Line Organization

Has direct vertical relationships between different levels in the firm

Brainstorming

Usually the first crucial stage of the project management and planning process

Vision

What the company wants to be five years from now?

Values

How do you want to inspire the world? How do you want to be known?

Organization

Is a group of people who work together, coordinate and collaborate their actions to achieve a broad scope of goals

Delegation

Is the process of entrusting and transferring responsibility and authority by the management to the lowest level

Organization Theories

It can help you address business issues successfully by highlighting specific organizational problems and how a suitable structure can deal with them

Mission

It is a more realistic overview of the company's aim and ambitions

Matrix Organizational Structure

It is a permanent organization designed to achieve specific results by using teams of specialists from different functional areas in the organization

Organizing

It is a process of grouping together of men and establishing relationship among them, defining the authority and responsibility of personnel by using the company other basic resources to attain predetermined goals or objectives

Fishbone Diagram

It is a very effective planning model and tool for mapping and entire operation

Line Organization

It promotes fast decision making and very simple to understand

Authority

It refers to the power or right to be obeyed. It is also the sum of the powers and rights and trusted to make possible the performances of the work delegated

Informal Organization

is a set of evolving friendships and patterns of human interaction within an organization that is not officially prescribed

Fishbone Diagram

Also called cause and effect diagram or Ishikawa diagram

Top Level Managers

Most of them have an advanced degree such as MBA, groomed and trained

Lower Level Managers

Called first line managers or supervisors

Ongoing Plans

Can be used in multiple setting

Lower Level Managers

Cascade the goals among their subordinate to be carried out specifically

Planning

Considered as conceptual framework of management

Single Use Plans

Created or events/activities with single occurence

Lower Level Managers

Daily activities are being supervised and monitored to ensure quality of work

Matrix Organizational Structure

Decentralized decision making, improved environmental monitoring, responses to change and has flexibility in the use of resources

Operational Plan

Describe the day to day running of the company. Charts out a road map to achieve the tactical goals within the time frame

Tactical Plan

Describes the tactics the organizations plan to use to achieve the ambitions outlined in the strategic plan

Classical Structure Theory

Employees report to one or more managers for their work and disciplinary matters

Gantt Chart

Excellent models for scheduling and budgeting, and for reporting, presenting and communicating project plans

Lower Level Managers

Office Manager, Department Manager, Store Manager, Supervisor

Weihrich and Koontz

Planning involves selecting missions and objectives and the actions to achieve them; it requires decision making, which is choosing from among future alternative course of action

Newman

Planning is deciding in advance, what is to be done; that is plan is a projected course of action

Henri Fayol

Planning is deciding the best alternatives among others to perform different managerial operations to achieve the predetermined goals

Long - Range

Planning is defined as an exercise that is aimed at formulating a long term plan to meet future needs