Module 6

• The most common result for organizational failure is poor management
• Good system of management


  Key to success and profitability
• Good management system


  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
• Management Structure


  • Facilitates the coordination and control within a company
  • Depends on the organization's classification or type, size, objectives, and strategies
  • Considers environmental factors, technology, culture, & measure of effectiveness
• Environmental factors


  • External
  • Internal
• 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
• Main Types of Management Structure

  • Simple Management Structure
  • Divisional and Matrix Management Structure
  • Professional Bureaucracy and Adhocracy
• Delegation


  Entrusting others with responsibility and authority in work, creating accountability for results; it is what makes management possible
• In any size of organization, there must be delegation of responsibility
• Advantages of Delegation


  • Relieves manager for more challenging jobs
  • It leads to motivation of subordinates
  • Facilitates efficiency and quick actions
  • Improves employee morale
  • Develops team spirit
  • Maintains cordial relationships
  • Facilitates 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 (i.e. clear & direct lines of authority)
  • Clarity of delegation
  • Effective communication support system
• 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.
• Degree of control within an organization

  Helps 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
• Coordination


  Unification, integration, and synchronization of the efforts of group members to provide unity of action in the pursuit of common goals
• Facilitation


  The process of designing and running a successful, productive meeting
• Types of Organizational Structures

  • Line Organization Structure
  • Line and Staff Organization
  • Functional (Pure) Organization
  • Line and Functional Staff Organization
  • Committees
• Basic Principles of Committee Organization

  • The organization of the committee should grow out of a need that is recognized by representatives 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 and wastes time
  • Tends to hang on after its usefulness is over
• Right to Final Authority

  There may be instances when the president or chief executive officer disagrees with the majority judgment of the group. This sparks the need for the top executive to exercise their right to final authority.
• Alternatives for handling disagreements in organizations

  • Exercise the right of final authority and reverse the majority recommendation
  • Carry the issue at hand to higher authority for further recommendation
• Utilization of these alternatives should be necessary only at rare occasions. Do not frequently use the right to final authority for it will lead to "one-person company".
• If such reversals prove to be always necessary, you don't have the right quality of counsel.
• Change members of the committee and put more competent personnel.
• 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 - 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 and 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.
• 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. 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 - 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.
• 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).