IE 31: Module 6

• The most common reason for organizational failure is POOR MANAGEMENT
• A good system of management is the key

  to success and profitability. And the key

  to a good management system is an

  ORGANIZED MANAGEMENT STRUCTURE
• Failure to adapt the organization structure, policies, and procedures to the growth in size and complexity of the enterprise leads to stagnation or failure.
• MAIN TYPES OF MANAGEMENT STRUCTURE:

  1. Simple Management Structure

  2. Divisional & Matrix Mgt. Structure

  3. Professional Bureaucracy & adhocracy
• MANAGEMENT STRUCTURE

  It also considers environmental factors,

  technology, culture, & measure of

  effectiveness.
• Delegation is entrusting others with

  responsibility and authority in work,

  creating accountability for results.
• 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.
• 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
• FACILITATION - the process of designing

  and running a successful, productive

  meeting;
• COORDINATION - unification, integration,

  & synchronization of the efforts of group

  members to provide unity of action in the

  pursuit of common goals
• Line Organization Structure

  In this example, you can see

  the simplicity and

  straight-forwardness of the

  structure. The division of

  authority and responsibility can

  clearly be seen. Also, there is a

  clear channel of

  communication
• Line Organization Structure

  
• Line & Staff Organization

  In this example, we can see

  that 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
• Line & Staff Organization

  
• Functional (Pure) Organization

  This example shows that in a functional

  organization structure, all the different

  clerks are given authority over all three

  worker types, which means that they can

  all give responsibilities to them. 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.
• Functional (Pure) Organization

  
• Line and Functional

  Staff Organization

  -In this example, we can see that 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.
• Line and Functional Staff Organization

  
• Committees - are formed for the performance of special

  duties in the company. They may either be permanent

  (standing) or may be organized to serve a temporary

  function only (ad hoc). The image above shows the

  location of committees within the organization
• Committee

  
• The Meaning of Authority and Responsibility

  A) Authority

  B) Responsibility

  C) Accountability