142: DIMENSIONS AND DETERMINANTS

• ORGANIZING 


  arranging and structuring
• ORGANIZATIONAL STRUCTURE


  FORMAL ARRANGEMENT OF JOBS WITHIN an organization
• ORGANIZATIONAL DESIGN 


  DEVELOPING/CHANGING an organizations structure?
• WORK SPECIALIZATION  


  DIVIDING WORK ACTIVITIES into SEPARATE job task
• DEPARTMENTALIZATION


  BASIS by which jobs are GROUPED TOGETHER
• 5 KINDS OF DEPARTMENTALIZATION

  1. FUNCTIONAL
  2. PRODUCT
  3. GEOGRAPHICAL
  4. PROCESS
  5. CUSTOMER
• FUNCTIONAL DEPARTAMENTALIZATION


  GROUPING JOBS BY FUNCTIONS performed
• PRODUCT DEPARTMENTALIZATION


  Grouping jobs by PRODUCT LINE
• GEOGRAPHICAL DEPARTMENTALIZATION


  grouping jobs BASED ON PHYSICAL LOCATION
• PROCESS DEPARTMENTALIZATION 


  grouping jobs BASED ON CUSTOMER FLOW
• CUSTOMER DEPARTMENTALIZATION 


  grouping jobs BASED SPECIFIC AND UNIQUE CUSTOMERS WHO HAVE COMMON NEEDS
• CROSS-FUNCTIONAL TEAMS


  Work TEAMS composed of individuals from VARIOUS FUNCTIONAL SPECIALTIES
• CHAIN OF COMMAND


  LINE OF AUTHORITY EXTENDING FROM UPPER ORG LEVELS TO THE LOWEST LEVELS, which CLARIFIES WHO REPORTS TO WHOM
• AUTHORITY


  rights on inherent on a MANAGERIAL POSITION TO TELL PEOPLE WHAT TO DO AND TO EXPECT THEM TO DO IT
• RESPONSIBILITY 


  OBLIGATION TO PERFORM ANY ASSIGNED DUTIES
• SPAN OF CONTROL 


  # OF EMPLOYEES A MANAGER CAN EFFECTIVELY AND EFFICIENTLY MANAGE
• CENTRALIZATION 


  DEGREE TO WHICH DECISION MAKING IS CONCENTRATED at upper levels of the organization
• ORGANIZATIONS 


  COMPRISED OF VARIOUS PARTS functioning INDEPENDENTLY & INTERDEPENDENTLY to deliver specific purposes and achieve goals
• 3 CLASSICAL AND NEOCLASSICAL APPROACHES

  1. SCIENTIFIC
  2. BUREAUCRATIC
  3. SYSTEM
• SCIENTIFIC APPROACH


  APPROACH BY FREDERICK TAYLOR THAT VALUES SCIENTIFIC METHOD, DESIGN OF FUNCTIONS ORGANIZATIONS, BETTER EFFICIENCY, AND HIGHER PRODUCTIVITY.
• BUREAUCRATIC APPROACH


  APPROACH BY MAX WEBER that values STRUCTURE, SPECIALIZATION, PREDICTABILITY & STABILITY, RATIONALITY & DEMOCRACY.
• SYSTEM APPROACH 


  APPROACH BY HENRI FAYOL THAT VALUES DIVISION OF WORK, AUTHORITY & RESPONSIBILITY, DISCIPLINE, UNITY OF COMMAND, DIRECTION, SUBORDINATION OF INDIVIDUAL INTEREST, REMUNERATION OF PERSONNEL, CENTRALIZATION, SCALAR CHAIN, ORDER, EQUITY, STABILITY OF TENURE PERSONNEL, INITIATIVE, ESPRIT DE CORPS, LINE & STAFF, COMMITTEES, & FUNCTIONS OF MANAGEMENT
• FREDERICK TAYLOR


  FATHER OF TIME & MOTION STUDIES
• 1ST PRINCIPLES OF SCIENTIFIC MANAGEMENT 


  DEVELOP A SCIENCE FOR EACH ELEMENT OF A MAN'S WORK, WHICH REPLACES THE OLD RULE-OF-THUMB METHOD.
• 2ND PRINCIPLES OF SCIENTIFIC MANAGEMENT 


  THEY SCIENTIFICALLY SELECT AND THEN TRAIN, TEACH, AND DEVELOP THE WORKMAN, WHEREAS IN THE PAST HE CHOSE HIS OWN WORK AND TRAINED HIMSELF AS BEST HE COULD
• 3RD PRINCIPLES OF SCIENTIFIC MANAGEMENT 


  THEY HEARTILY COOPERATE WITH THE MEN SO AS TO ENSURE ALL OF THE WORK BEING DONE IS IN ACCORDANCE WITH THE PRINCIPLES OF THE SCIENCE WHICH HAS BEEN DEVELOPED
• 4TH PRINCIPLES OF SCIENTIFIC MANAGEMENT 


  THERE IS AN ALMOST EQUAL DIVISION OF THE WORK AND THE RESPONSIBILITY BETWEEN THE MANAGEMENT AND THE WORKMEN. THE MANAGEMENT TAKE OVER ALL WORK FOR WHICH THEY ARE BETTER FITTED THAN THE WORKMEN, WHILE IN THE PAST ALMOST ALL OF THE WORK AND THE GREATER PART OF THE RESPONSIBILITY WERE THROWN UPON THE MEN.
• BUREAUCRACY 


  is the IDEAL FORM of organizational structure.
• SPECIALIZATION


  encompasses a defined “SPHERE OF COMPETENCE” based on its divisions of labor.
• CHAIN OF COMMAND 


  of offices gives a consistent organization of SUPERVISION based on DISTINCTIVE LEVELS OF AUTHORITY.
• POWER


  is principally exemplified within organizations by the PROCESS OF CONTROL
• 3 BASIC CLASSIFICATIONS OF LEGITIMACY OF POWER

  1. Charismatic
  2. Traditional
  3. Rational Legal
• CHARISMATIC AUTHORITY 


  based on the SACRED or OUTSTANDING CHARACTERISTIC OF THE PERSON
• TRADITIONAL AUTHORITY


  essentially a RESPECT FOR CUSTOMS
• RATIONAL LEGAL AUTHORITY


  based on a CODE OR SET OF RULES
• HENRI FAYOL 


  1ST TO IDENTIFY MANAGEMENT AS A CONTINUOUS PROCESS OF EVALUATION INCLUDING THE 14 PRINCIPLES OF MANAGEMENT
• PLANNING, ORGANIZING, COMMANDING, COORDINATING & CONTROLLING 


  HENRI FAYOL FUNDAMENTAL ROLES PERFORMED BY ALL MANAGERS
• DIVISION OF WORK

  AUTHORITY AND RESPONSIBILITY

  DISCIPLINE

  UNITY OF COMMAND

  UNITY OF DIRECTION

  INTEREST

  REMUNERATION

  CENTRALIZATION

  SCALAR CHAIN

  ORDER

  EQUITY

  STABILITY OF TENURE

  INITIATIVE

  ESPIRIT DE CORP

  14 PRINCIPLES OF HENRI FAYOL
• DOUGLAS MCGREGOR

  THEORY X & Y
• THEORY X 


  A theory where

  • MANAGEMENT ASSUMES THE WORST OF EMPLOYEES.
  • MANAGEMENT TREATS EMPLOYEES WITH RIGID CONTROL AND WITHOUT RESPECT
  • EMPLOYEES RESPOND NEGATIVELY TO SHODDY TREATMENT
  • EMPLOYEES ADAPT TO MANAGEMENTS INACCURATE ASSUMPTIONS