ch01 handy

  • View
    67

  • Download
    0

Embed Size (px)

DESCRIPTION

charleshandy

Text of ch01 handy

  • 7/16/2019 ch01 handy

    1/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.1

    Understanding

    Organisational Context 2eSlides by Claire Capon

    Chapter 1

    Inside organisationsOrganisational structures

    Handys cultures

  • 7/16/2019 ch01 handy

    2/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.2

    Organisational structures

    The simple structure

  • 7/16/2019 ch01 handy

    3/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.3

    Figure 1.2 The simple structure

  • 7/16/2019 ch01 handy

    4/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.4

    Main features

    Centralised

    Organised around owner Small companies or small

    companies in early stages of

    development

  • 7/16/2019 ch01 handy

    5/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.5

    Advantages

    Owner controls early growth

    and development of thebusiness

  • 7/16/2019 ch01 handy

    6/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.6

    Disadvantages

    Owner may lack specialist

    knowledge in some areas Appropriate up to a certain

    size only

  • 7/16/2019 ch01 handy

    7/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.7

    Organisational structures

    The functional structure

  • 7/16/2019 ch01 handy

    8/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.8

    Figure 1.3 The functional structure

  • 7/16/2019 ch01 handy

    9/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.9

    Main features

    Centralised

    Small company producinglimited range of products

    Organised around tasks to be

    carried out

  • 7/16/2019 ch01 handy

    10/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.10

    Advantages

    Simple lines of control

    Efficient lines ofcommunication and

    information flow -

    vertical and short

  • 7/16/2019 ch01 handy

    11/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.11

    Advantages (cont.)

    Specialist managers heading

    up each function Improved decision making

  • 7/16/2019 ch01 handy

    12/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.12

    Disadvantages

    Functional managers

    overburdened withoperational duties

    Longer-term planning

    may be neglected

  • 7/16/2019 ch01 handy

    13/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.13

    Disadvantages (cont.)

    Becomes stretched by

    growth and productdiversification

    Difficult to co-ordinate and

    manage across differentfunctions

  • 7/16/2019 ch01 handy

    14/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.14

    Organisational structures

    The divisional structure

  • 7/16/2019 ch01 handy

    15/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.15

    Figure 1.4 The divisional structure

  • 7/16/2019 ch01 handy

    16/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.16

    Main features

    Product or geographical

    divisions

    Diverse range of products or

    services offered, or

    geographically-diversemarkets served

  • 7/16/2019 ch01 handy

    17/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.17

    Advantages

    Divisions are profit centres in

    their own right

    Decentralised structure - easier

    to manage diversity

    Divisional managers responsiblefor short-term and medium-term

    planning

  • 7/16/2019 ch01 handy

    18/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.18

    Advantages (cont.)

    Top managers are free to

    concentrate on longer-term

    planning

    Profitability is spread across

    the divisions, products andmarkets

  • 7/16/2019 ch01 handy

    19/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.19

    Disadvantages

    Potential conflict between

    divisions over resource

    allocation

    Overall co-ordination of

    divisions can be difficult

  • 7/16/2019 ch01 handy

    20/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.20

    Organisational structures

    The holding company structure

  • 7/16/2019 ch01 handy

    21/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.21

    Figure 1.5 The holding company structure

  • 7/16/2019 ch01 handy

    22/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.22

    Main features

    Small head office - acts as an

    investment company

    Decentralised - operating

    companies are largely

    independent

  • 7/16/2019 ch01 handy

    23/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.23

    Main features (cont.)

    Operating companies trade

    under own name, rather than

    holding companys name

  • 7/16/2019 ch01 handy

    24/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.24

    Main features (cont.)

    Operating companies are

    required to meet strict

    financial targets

    Financial and legal sections

    support head office, not theoperating companies

  • 7/16/2019 ch01 handy

    25/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.25

    Advantages

    Low central overheads

    Risk and profit are spread Ease of divestment of

    operating companies

  • 7/16/2019 ch01 handy

    26/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.26

    Disadvantages

    Individual operating

    companies under risk of

    divestment by holding or

    parent company - may feel

    threatened No centralised skills

  • 7/16/2019 ch01 handy

    27/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.27

    Disadvantages (cont.)

    Potential lack of overall

    co-ordination and direction

    of the whole organisation

  • 7/16/2019 ch01 handy

    28/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.28

    Organisational structures

    The matrix structure

  • 7/16/2019 ch01 handy

    29/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.29

    Figure 1.6 The matrix structure: multinational

    company

  • 7/16/2019 ch01 handy

    30/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.30

    Main features

    Double definition of profit

    centres (two arms of the matrix)

    Found in different types of

    organisation:

    - large multinationals- university departments

    - sophisticated service companies

  • 7/16/2019 ch01 handy

    31/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.31

    Advantages

    Decentralised and localised

    decision making in the matrix

    Growth and complexity

    controlled by people in the

    matrix

  • 7/16/2019 ch01 handy

    32/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.32

    Advantages

    Direct contact between two

    arms of the matrix replaces

    bureaucracy

    Quality decision making and

    increased managerialmotivation

  • 7/16/2019 ch01 handy

    33/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.33

    Disadvantages

    In the matrix, potentially:

    - a high degree of conflict- a long time to make

    decisions

    - unclear job and task

    responsibilities

  • 7/16/2019 ch01 handy

    34/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.34

    Disadvantages (cont.)

    Difficult to implement

    High overhead costs

  • 7/16/2019 ch01 handy

    35/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.35

    Handys cultures

    The power cultureThe role culture

    The task culture

    The person culture

  • 7/16/2019 ch01 handy

    36/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.36

    Figure 1.9 The power cultureSource: Understanding Organizations by Charles Handy (Penguin Books 1976, Fourth Edition 1993). Copyright

    Charles Handy 1976, 1981, 1985, 1993. Reproduced by kind permission of Penguin Books Ltd.

  • 7/16/2019 ch01 handy

    37/48

    Capon: Understanding Organisational Context2nd edition Pearson Education 2004 1.37

    The power culture

    Usually found in small firms

    with simple structure

    Owners tend to recruit

    employees similar in

    character to themselves

  • 7/16/2019 ch01 handy

    38/48

    Capon: