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Organisations are very interesting
• An organisation is a group of people intentionally organized to accomplish an overall, common goal or set of goals.
Coffee shops to small businesses.July 2008, there were 1.93 million small businesses in Australia, representing 96% of all businesses.
Technology
Internal/ExternalEnvironment Strategy
People
Structure
Elements of an Organisation
People
How people work together is the essence of the organisation.
– Culture • explicit
– deliberate– careful cultivation of image and mode of operation
• implicit– operating unrecognised– behind the scenes
– Roles of management– Management styles– Employee responsibilities
Corporate culture
• Is a term used to describe the shared values and beliefs of the people in an organisation.
• Staff uniforms are an example of culture• Staff training days• Use of internet • Policies on bullying in the workplace• Policies on advancement
The organisational “iceburg”
Mission, visionGoals and objectives
Business plan Formal organisation specific tasksspan of control operating
policiesLines of communication
controls channels of authority
Relationships between needs of individualsManagers and workers group feelings friendships and networks
Individual hopes and informal organisation AspirationPerceptions of trust interpersonal relationshipsHonesty and ethics
influential employees power plays and politics and managers
Management RolesHenri Fayol outlined FOUR main
functions of management.1 Planning setting objectives and how to achieve them
2 Organising arranging resources of the business to achieve its goals
3 Leading influencing people to work towards achieving set objectives
4 Controlling evaluating and modifying tasks to ensure set objectives are being
achieved
Leadership styles
There is no questioning this function, just how managers operate is interesting.Leadership styles range on a continuum
Management style
AutocraticDemocratic /participative
Laissez- faire
Structure
• an organisation’s structure refers to the way divisions, departments, functions, and people link together and interact.
• Reveals– vertical operational responsibilities– horizontal linkages
• may be represented by an organisation chart– Visual representation of the formal structure
• complexity of an organisation's structure is often proportional to its size and its geographic dispersal.
Vertical specialisation
Top Management
Middle management
Lower or frontline management
Long term or strategic planning
Operational and supervision of lower management
Daily management and rosters
Vertical Specialisation
• chain of command from top to front line management– Chain of command is a system that determines
responsibility, supervision and accountability of members of the organisation.
• delegation of responsibilities and duties to others within the same line of authority
• management hierarchy – provides increasing authority at higher levels – Senior managers have greater
• Accountability• Responsibility and• Power compared to those at lower levels
• organisation requires coordinated effort of all levels of management to achieve goals
Top/Senior/
ExecutiveManagement Team
Top/Senior/
ExecutiveManagement Team
Middle Management Team
Middle Management Team
Frontline/Supervisory Management TeamFrontline/Supervisory Management Team
More
Less
Accountability
Responsibility
Authority
Board of Directors
Chief Executive Officer (CEO
Managing Director
Department Head
Divisional Head
Plant Manager
Store Manager
Team Manager
Supervisor
Team Leader
Frontline Manager
Horizontal Specialisation
• Division of tasks required to be performed into separate departments.
Functional Model Divisional Model Matrix Model
Functional Model
• Division occurs based on organisational functions eg HR, Finance, Marketing
GeneralManager
FinanceManager
MarketingManager
FinanceManager
OperationsManager
Func
tions
Divisional Model
• Model organised based on division by:– Product– Service– Geography General
Manager
ProduceManager
MeatManager
DeliManager
GroceryManager
Div
isio
ns
Matrix Model• Combines function and division• Permits specialisation by project while each person
remains part of a department based on function
Production Manager
General Manager
Dinnerware
Jewellery
Marketing Manager
Strategy
• Organisations require strategies to formulate appropriate decisions
– Decision making & problem solving– SWOT analysis
Decision Making: making choices among possible courses of action
Problem Solving: consists of making a series of decision to resolve an issue.
1. Define the Objective
2. Outline the Facts
3.Decide on the Causes
4. Develop Several Solutions
5. Implement Preferred Solution
6. Evaluate Effectiveness of Solution
6 Step Approach to DECISION MAKING & PROBLEM SOLVINGIf
solu
tion
unsu
cces
sful
rest
art
proc
ess
OverlyFatChildrenSeeIce creamEverywhere
Decision-making conditions
Certainty• Outcome of
alternative known in advance
• Rarely the case
Minimal Risk High Risk
Risky• Outcome of
alternatives not completely known
• Probabilities exist• Statistical models can
be used• Common condition
Uncertainty• Difficult condition• Probabilities do not
exist• Condition exists
more at top management level
• Decisions of a long term nature affected by externalities
3 conditions under which decisions can occur:
• Minor problems – management not needed
• Many matters may already be covered by established policy – decisions already in place
• Avoid crisis conditions and therefore rush decisions
• Provide leadership – avoid situation of indecision
• Errors can be made – decisions should not be considered permanent.
SWOT
• Strategic planning strategy
• Strengths• Weaknesses
• Opportunities• Threats
Internal – People, organisation, systems, communications, products, production, finance, credentials, knowledge
External – market, technology, finance, economic climate, society, legislation, ecology
Environment – Internal / External
• Major impact on how organisations operate• Organisations lack of response to environmental challenges
can be a determinant to success - flexibility
Technology
To remain competitive organisations must:• Make creative use of modern technology• Technology, generally, aims to:
– Improve efficiencies– Increase productivity
• Inevitable that workplaces will continue to change as a result of our reliance on technology