Ch 07 Nature of Organizing , Presentation by : SA Qadri

8/13/2019 Ch 07 Nature of Organizing , Presentation by : SA Qadri

1/29

ManagementA GLOBAL AND ENTREPRENEURIAL PERSPECTIVEby Weihrich, Cannice, and Koontz

Sajjad Ahmad QadriMinhaj University

Ch

-07

The

Nature

ofOrganizing,

Entrepreneuring,and

Reeng

ineering

Chapter

7

Dec ision M ak ing


2/29

After studying this chapter, you should understand:

1. The purpose of an organization structure

2. The meaning of "organizing" and "organization."

3. The distinction between formal and informal organization.

4. How organization structures and their levels are due to thelimitations of the span of management.

5. The exact number of people a manager can effectively supervise

depends on a number of underlying variables and situations.

6. The nature of entrepreneuring and intrapreneuring.

7. The key aspects and limitations of reengineering.

8. The logic of organizing and its relationship to other managerial

functions.

9. That organizing requires taking situations into account. 2004 H.Weihrich

Chap. 7. The Nature of Organizing, Entrepreneuring, and Reengineering 2


3/29

Organizational Roles

For an organizational role to exist and be meaningful, it must incorporate

(1) verifiable objectives, which, are a major part of planning

(2) a clear idea of the major duties or activities involved and

(3) an understood area of discretion or authority so that the person fillingthe role knows what he or she can do to accomplish goals

2004 H.Weihrich



4/29

Organizing involves:

(1) the identification and classification of requiredactivities,

(2) the grouping of activities necessary to attainobjectives,

(3) the assignment of each grouping to a managerwith the authority (delegation) necessary tosupervise it, and

(4) the provision for coordination horizontally (on thesame or a similar organizational level) andvertically (for example, corporate headquarters,

division, and department) in the organizationstructure

2004 H.Weihrich



5/29

Definition of Organization

Organization implies a formalized intentional structure of roles or positions

2004 H.Weihrich



6/29

Formal and Informal Organization

Formal organization pertains to the intentional structure of roles in aformally organized enterprise

The informal organization is a network of interpersonal relationships thatarise when people associate with each other

2004 H.Weihrich



7/29

What is a Department?

The department designates a distinct area, division, or branch of anorganization over which a manager has authority for the performance of

specified activities

2004 H.Weihrich



8/29

Organization with Narrow Spans

2004 H.Weihrich



9/29

Organization with Wide Spans

2004 H.Weihrich



10/29

What is the Principle of the Span of

Management?

The principle of the span of management states that there is a limitto the number of subordinates a manager can effectively supervise,

but the exact number will depend on the impact of underlyingfactors

2004 H.Weihrich



11/29

What Determines an Effective Span of

Management?

2004 H.Weihrich



12/29

Difference Between an Intrapreneur andan Entrepreneur

An intrapreneur is a person who focuses on innovation

and creativity and who transforms a dream or an idea into

a profitable venture by operating within the

organizational environment

The entrepreneur is a person who does similar things as

the intrapreneur, but outside the organizational setting

2004 H.Weihrich



13/29

Definition of Reengineering "...the fundamental rethinking and radical redesign of business

processes to achieve dramatic improvements in critical contemporarymeasures of performance, such as cost, quality, service, and speed.

The underlined words are considered key aspects of reengineering byHammer and Champy

2004 H.Weihrich



14/29

Key Aspects of Reengineering

Fundamental rethinking of what the

organization is doing and why.

Radical redesign of the business processes

[Note:Downsizing or "rightsizing" is not theprimary purpose of reengineering, although in

many cases it does result in a need for fewer

people]

Reengineering calls for dramatic results

The fourth key word in the reengineering

definition is processes. The need for carefully

analyzing and questioning business processes 2004 H.Weihrich



15/29

Management by Processes

2004 H.Weihrich



16/29

2004 H.Weihrich



17/29

2004 H.Weihrich



18/29

The Steps in the Organizing Process:

1. Establishing enterprise objectives

2. Formulating supporting objectives, policies, and plans

3. Identifying, analyzing, and classifying the activities

necessary to accomplish these

4. Grouping these activities in light of the human and

material resources available and the best way, under

the circumstances, of using them

5. Delegating to the head of each group the authority

necessary to perform the activities

6. Tying the groups together horizontally and vertically,through authority relationships and information flows

2004 H.Weihrich



19/29

Basic Questions for Effective Organizing

It is useful to analyze the managerial function of

organizing by raising and answering the

following questions:

1.What determines the span of management andhence the levels of organization? (answered in

this chapter)

2.What determines the basic framework of

departmentation, and what are the strengths

and weaknesses of the basic forms? (answered

in Chapter 8)

2004 H.Weihrich



20/29

Basic Questions for Effective Organizing cont.

3.What kinds of authority relationshipsexist in organizations? (answered inChapter 9)

4.How should authority be dispersedthroughout the organization structure,and what determines the extent of thisdispersion? (answered in Chapter 9)

5.How should the manager make

organization theory work in practice?(answered in Chapter 10) 2004 H.Weihrich



21/29

.

Sajjad Ahmad Qadri Minhaj University, Lahore.

Defining the strategy


22/29

.


The concept of strategy


23/29

The concept of strategy

The concept of strategy is based on a number of associated concepts:


strategycompetitiveadvantage,

distinctive

capabilities

strategicmanagement

strategicgoals

strategiccapability

resource-based

strategy

strategic

plan

StrategicIntent


24/29

Strategic intent

The strategic intent sequence has been defined by Miller

and Dess (1996) as:


>> a broad vision of what the organization should be;

>> the organizations mission;

>> specific goals, which are operationalized as:

>> strategic objectives


25/29

Strategic plans

Strategic plans are formal expressions of how an organization

intends to attain its strategic goals.Boxall and Purcell (2003) make the point that

We should not make the mistake of equating the strategies of

a firm with formal strategic plans It is better if we

understand the strategies of firms as sets of strategic choices,

some of which may stem from planning exercises and set piece

debates in senior management, and some of which emerge in a

stream of action.Sajjad Ahmad Qadri Minhaj University, Lahore.


26/29

.


Strategy Formulation


27/29

Approaches to strategy formulation Cont..


strategy formulation as a rational process of deliberate calculation. Theprocess of strategy formulation is seen as being separate from the process ofimplementation.

1.Classical

strategy formulation as an evolutionary process that is a product of marketforces in which the most efficient and productive organizations win through.2. Evolutionary

strategy formulation as an incremental process that evolves through discussionand disagreement. It may be impossible to specify what the strategy is untilafter the event.

3.Processual

strategy is shaped by the social system in which it is embedded. Choices areconstrained by the cultural and institutional interests of a broader societyrather than the limitations of those attempting to formulate corporatestrategy.

4.Systemic


28/29

The reality of strategic management

The reality of strategic management is that managers attempt to

behave strategically in conditions of uncertainty, change and

turbulence, even chaos.

The phenomenon of bounded rationality as described by Miller et al

(1999) applies while people by their own lights are reasoned in

their own behaviour, the reasoning behind their behaviour is

influenced by human frailties and demands from both within and

outside the organization.



29/29


Documents

Ch 07 Nature of Organizing , Presentation by : SA Qadri