IE 31 - Module 6

• Poor Management

  • the most common reason for organization failure
• Symptoms of an Ineffective Organization

  • Lack of Coordination
  • Endless Conflicts
  • Unclear Roles
  • Gap in Skills / Misuse of Resources
  • Poor Work Flow
  • Reduce Responsiveness
  • Conflict Communication
  • Low Staff Morale
• Due to Lack of:

  • Leadership
  • Decision Making & Staff
  • People
  • Work Process and System
  • Culture
• Good System Management

  • key to success and profitability
• Organized Management Structure

  • key to a good management system
• Failure to adapt the organization structure, policies, and procedures to the growth in size and complexity of the enterprise leads to stagnation or failure.
• Effect of Absence of Coordination within an Enterprise

  • Delayed Raw Materials Order
  • Idle Personnel
  • Idle Machine
  • Shortage of Output
  • Excessive Inventory
  • Grumbling of Personnel
  • Top Management Problems
  • Financial Difficulty
• Management Structure

  Facilitates the coordination and control within a company, which depends on the organization's classification or type, size, objectives, and strategies.
• 3 Types of Organization Structure

  • Simple Management Structure
  • Divisional & Matrix management Structure
  • Professional Bureaucracy and Adhocracy
• Management structure

  • also considers environmental factors, technology, culture, & measure of effectiveness.
• Environment

  • both external & internal to the organization
• Technology – range of technical structure to support daily operations
• Culture – desired culture; may develop sub-cultures
• Measure of effectiveness – resources used to implement strategies & report results.
• In any size of organization, there must be delegation of responsibility
• Delegation

  • is entrusting others with responsibility and authority in work, creating accountability for results.
• Advantages of Delegation

  • relieves managers for more challenging jobs
  • it leads to motivation of subordinates
  • facilitates efficiency and quick action
  • improves employee morale
  • develop team spirit
  • maintain cordial relationships
  • facilitate management development
• Guidelines for Effective delegation

  • be clear in the objectives of the task
  • determine and monitor what each worker can most effectively accomplish
  • determine if the person has the appropriate resources
• How to attain effective delegation

  • Knowledge of objectives
  • the scalar principle of delegation (clear & direct line of authority)
  • clarity of delegation
  • effective communication support system
• Process of Delegation

  • Assignment of Duties to Subordinate
  • Transfer/Granting of Authority
  • Acceptance of Assignment
  • Creating Responsibility and Accountability
• Meaning of Authority and Responsibility

  • Manager authority to subordinate
  • manager relationship to subordinate and vice versa
  • subordinate accountability to manager
• Lines of Authority

  • represents the chain of command. This determines “Who is in-charge of making decisions
• Lines of Responsibility

  • determines “who is responsible for whom” and “who is responsible to whom”. It must be FIXED and CLEAR.
• Levels of Authority and Responsibility

  • The degree of control within an organization help determine the levels of which higher authorities, as well as subordinates, in an organization assume responsibility and authority.
• Drivers of Effective Management

  • Available Personnel
  • Span of Control
  • Leadership Potential in Subordinates
• Available Personnel

  • Effective management also depends on the
  • ability & skills of personnel to perform work.
• Span of Control

  • There is a limit to the number of employees a
  • manager can effectively attend to.
• Leadership Potential in Subordinates

  • This pertains to the capability of employees to assume leadership roles in the firm.
• Line Organization Structure

  • you can see the simplicity and straight-forwardness of the structure. The division of authority and responsibility can clearly be seen. Also, there is aclear channel of communication
• Line & Staff Organization

  • the initial line structure was enhanced by providing specialized staff positions like the employment manager and the process engineer which can aid and give counsel to the superintendent and foreman
• Functional (Pure) Organization

  • all the different clerks are given authority over all three worker types, which means that they can all give responsibilities to them.
• Functional (Pure) Organization

  • In this, the dilemma of the multiplicity of bosses and blurred lines of authority and responsibility can cause more harm than good within the organization.
• Line and Functional Staff Organization

  • the structure of the organization gives importance on setting limits and boundaries to each role, allowing managerial roles to prioritize executive training and responsibilities, and staff roles to further their specialized knowledge.
• Committees

  • formed for the performance of special duties in the company.
• Committees

  • They may either be permanent (standing) or may be organized to serve a temporary function only (ad hoc).
• Basic Principles of Committee Organization

  • The organization of the committee should grow out of a need that is recognized by representative of a department and the personnel affected.
  • The members of a committee should be representative of the function and the personnel concerned and these members should represent variations in opinion among personnel.
  • Duties, authorities, and responsibilities must be clearly defined.
  • The organization and operation of a committee should be a cooperative development.
• Weaknesses of Committees

  • Slow
  • Wastes Time
  • Tends to hang on after its usefulness is over
• Slow action and wasted time

  • are characteristics of the democratic process wherever applied, but such weaknesses are a small price to pay for the values of pooled judgment, eventual understanding, and agreement.
• dissolution of inactive committees

  • this can be overcome by clarifying their purposes and fixing a definite time for their termination.
• Right To Final Authority

  • There may be instances when the president or chief executive officer disagrees with the majority judgment of the group.