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PULIDO, DANA KATE ESLAO, KARISSA JOYCE NISPEROS, DONNA MARIE FINEZ, RONALD

DUMPIT, NIO BAMBICO, JONAS 6CHAN, KENDRIX MACABITAS, JOCEBELLE

I. ORGANIZATIONAL DESIGN AND ORGANIZATIONAL STRUCTURE


ORGANIZATION is a pattern of relationships many interwoven, simultaneous relationships through which people, under the direction of managers, pursue their common goals. Organizational Design the determination of the organizational structure that is most appropriate for the strategy, people, technology, and tasks of the organization Organizational Structure the way in which an organizations activities are divided, organized, and coordinated

FOUR BUILDING BLOCKS OF ORGANIZATIONAL DESIGN


Organizing is an on-going managerial process. Strategies can change, organizational environments can change, and the effectiveness and efficiency of organizational activity does not always measure up to what the managers would like. Whether forming a new organization, tinkering with an organization, or radically altering the pattern of relationships at an organization, managers take four fundamental steps when they begin to make decisions about organizing. 1. DIVISION OF WORK the breakdown of a complex task into components so that individuals are responsible for a limited set of activities instead of the task as a whole. Sometimes referred to as division of labor. 2. DEPARTMENTALIZATION the grouping into departments of work activities that are similar and logically connected. 3. HIERARCHY a pattern of multiple levels of an organizational structure, at the top of which is the senior-ranking manager responsible for the operations of the entire organization; other, lower-ranking managers are located down the various levels of the organization. Span of Management Control the number of subordinates reporting directly to a given manager. Also called span of control or span of management. Chain of Command the plan that specifies who reports of whom in an organization. 4. COORDINATION the integration of the activities of the separate departments in order to pursue organizational goals effectively. Differentiation differences in attitudes and working styles, arising naturally among members of different departments, which can complicate the coordination of an organizations activities. Integration to designate the degree to which members of various departments work together in a unified manner.

APPROACHES TO ACHIEVING EFFECTIVE COORDINATION


a. USING BASIC MANAGEMENT TECHNIQUES -organizations chain of commands -set of rules and procedures - management by walking around (MBWA) used by Tom Peters & Robert Waterman b. BOUNDARY SPANNING

-boundary-spanning role a job in which an individual acts as liaison between departments or organizations that are in frequent contact. c. REDUCING THE NEED FOR COORDINATION -creating slack resources -creating independent units

ORGANIZATIONAL DESIGN
-the decision-making process by which managers chose an organizational structure appropriate to the strategy for the organization and the environment in which members of the organization carry out that strategy.

DEVELOPMENT OF ORGANIZATIONAL DESIGN


1. THE CLASSICAL APPROACH Max Weber, Frederick Taylor, and Henri Fayol were the major contributors. They believed that the most efficient and effective organizations had a hierarchical structure in which members of the organization were guided in their actions by a sense of duty to the organization and by a set of rational rule and regulations. 2. THE TASK-TECHNOLOGY APPROACH Task-Technology refers to the different kinds of production technology involved in making different kinds of products. a. Unit production refers to the production of individual items tailored to a customers specifications. b. Small-Batch production refers to the products made in small quantities in separate stages c. Large-Batch and Mass Production refers to the manufacture of large quantities of products, sometimes on an assembly line d. Process production refers to the production of materials that are sold by weight or volume, such as chemical or drugs 3. THE ENVIRONMENTAL APPROACH a. Mechanistic System the activities of the organization are broken down into separate, specialized task; One characterized by a bureaucratic organization b. Organic System individuals are more likely to work in a group setting than alone; one characterized by informality, working in groups, and open communication.

DOWNSIZING a version of organizational restricting which results in decreasing the size of the organization and often results in a
flatter organizational structure; one way organizations convert to leaner, more flexible structures that can respond more readily to the pace of change in global markets. THE EFFECT OF DOWNSIZING as an increasing number of companies seek to remain competitive by cutting costs and reducing their workforces, more and more people are finding themselves out of their old jobs and in line for new ones

TYPES OF ORGANIZATIONAL STRUCTURES


A. FUNCTIONAL ORGANIZATION A form of departmentalization in which individuals engaged in one functional activity, such as marketing or finance, is grouped into one unit.

B. PRODUCT /MARKET ORGANIZATION


The organization of a company into divisions that bring together those involved with a certain type of product

Division large organization department that resembles a separate business; may be devoted to making and selling specific products or servicing a specific market THREE PATTERNS OF PRODUCT / MARKET ORGANIZATION a. Division by product b. Division by geography generally used by service, financial, and other nonmanufacturing firms, as well as by mining and oil producing companies c. Division by customer - the organization is divided according to the different ways customers use products

C. MATRIX ORGANIZATION
Matrix Structure - an organizational structure in which employee reports to a both functional or division manager and to a project or group manager

THE FORMAL AND INFORMAL ORGANIZATIONAL STRUCTURE


FORMAL ORGANIZATIONAL STRUCTURE - a hierarchal structure that lays down each employee's position in the
organization

INFORMAL ORGANIZATIONAL STRUCTURE - the undocumented and officially unrecognized relationships between
members of an organization that inevitably emerge out of the personal and group needs of employees

II. POWER AND THE DISTRIBUTION OF AUTHORITY


POWER
-is the ability to exert influence on other people.

SOURCES OF POWER
1. Reward power power derived from the fact that one person, known as the influencer, has the ability to reward another person, known as an influence, for carrying out orders, which may be expressed or implied 2. Coercive power based on the influencers ability to punish the influencee for not meeting requirements, is the negative side of reward power. Punishment may range from a reprimand to loss of a job 3. Legitimate power power that exists when a subordinate or influencee acknowledges that that the influencer has a right or is lawfully entitled to exert influence within certain bounds; also called formal authority 4. Expert power based on the perception or belief that the influencer has some relevant expertise or special knwledge that the influencee does not 5. Referent power based on the influencees desire to identify with or imitate the influencer

KOTTERS KEY CHARACTERISTICS OF SUCCESSFULLY HANDLED POWER


1. 2. 3.

Are sensitive to the source of their power. They keep their actions consistent with peoples expectations. Recognize the different costs, risks, and benefits of the five bases of power. They draw on whichever power base is appropriate to a particular situation or person. Appreciate that each of the five power bases has merit. They try to develop their skills and credibility so they can use whichever method is best.

4. 5. 6.

Possess career goals that allow them to develop and use power. They seek jobs that will build their skills, make people feel dependent on them, and employ a type of power with which they are comfortable. Act maturely and exercise self-control. They avoid impulsive and egotistical displays of their power, and they try not to be unnecessarily harsh on others around them. Understand that power is necessary to get things done. They feel comfortable using power.

KANTERS KEY MEANS TO ORGANIZATIONAL POWER


1. Extraordinary activities. Making changes, being the first person to occupy a position, or being successful upon taking exceptional risks can lead to greater power. 2. Visibility. Being noticed, gaining exposure in the eyes of those in power, and even making certain activities appear to be riskier than they actually are can also increase power. 3. Relevance. Solving an authentic organizational problem can be a source of power and may well lend credence to the factors of extraordinary activity and visibility. 4. Sponsors. Having a sponsor or mentor someone who advises you on how to succeed in the organization can be an informal source of power, especially if the sponsor enjoys a good deal of power.

AUTHORITY
A form of power often used more broadly to refer to a peoples ability to wield power as a result of qualities such as knowledge or titles such as judge.

FORMAL AUTHORITY
The type of power that we associate with organizational structure and management. THE BASIS OF FORMAL AUTHORITY 1. CLASSICAL VIEW. A classical view of authority is that authority originates at some very high level, and then is lawfully passed down from level to level. 2. ACCEPTANCE VIEW. Finds the basis of authority in the influencee rather than in the influencer. KINDS OF AUTHORITY 1. LINE AUTHORITY. The authority of those managers directly responsible, throughout the organizations chain of command, for achieving organizational goals. 2. STAFF AUTHORITY. The authority of those groups of individuals who provide line managers with advice and services. 3. FUNCTIONAL AUTHORITY. The authority of members of staff departments to control the activities of other departments as they relate to specific staff responsibilities.

DELEGATION
The act of assigning formal authority and responsibility for completion of specific activities to a subordinate. ADVANTAGES OF DELEGATION 1. Maximizes the effectiveness of employees 2. Speeds up decision making GUIDELINES FOR EFFECTIVE DELEGATION A. PREREQUISITES

a. THE MANAGERS WILLINGNESS TO GIVE EMPLOYEES FREEDOM TO ACCOMPLISH DELEGATED TASKS. This means letting them choose methods and solutions different from the ones the manager would have chosen. b. OPEN COMMUNICATION BETWEEN MANAGERS AND EMPLOYEES c. THE MANAGERS ABILITY TO ANALYZE SUCH FACTORS AS THE ORGANIZATIONS GOALS, THE TAKSS REQUIREMENTS, THE EMPLOYEES CAPABILITIES B. TASKS OF EFFECTIVE DELEGATION a. DECIDEWHICH TASKS CAN BE DELEGATED b. DECIDE WHO SHOULD GET THE ASSIGNMENT c. PROVIDE SUFFICIENT RESOURCES FOR CARRYING OUT THE DELEGATED TASKS d. DELEGATE THE ASSIGNMENT e. BE PREPARED TO RUN INTERFERENCE, IF NECESSARY f. ESTABLISH A FEEDBACL SYSTEM

DECENTRALIZATION AND CENTRALIZATION


CENTRALIZATION. The amount of authority and autonomy given to a multinational divisional manager. DECENTRALIZATION. The delegation of power and authority from higher to lower levels of the organization, often accomplished by
the creation of small, self-contained organizational units. BENEFITS OF DECENTRALIZATION

1. Proximity to the market having the same person procure accounts, receive payments, and handle collections and renewals provides the customer with a more personalized level of Service 2. Local Knowledge an employees knowledge of the community can provide critical in the decision to grant a loan 3. Customer Acceptance and Knowledge Local employees are also possessed of a better understanding of a customers need due to local economic trends\ 4. Dealers Comfort dealers also feel more comfortable doing business with the person who will be servicing the dealers customer. FACTORS INFLUENCING DECENTRALIZATION 1. Environmental Influences markets characteristics, competitive pressures, and availability of materials 2. The Organizations Size and Growth rate 3. Other Characteristics of the Organization such as costliness of given decisions, top management preferences, the organizations culture, and abilities of lower-level managers OTHER CHARACTERISTICS OF THE ORGANIZATION a. The cost and risk associated with the decision b. An individual managers preference and confidence in employees c. The organizational culture d. The abilities of lower-level managers

JOB DESIGN
The division of an organizations work among its employees.

APPROACHES TO JOB DESIGN


1. MECHANISTIC JOB DESIGN each worker is required to do only one or two simple hings, over and over again. Most of these jobs are fairly easy to learn and to do. 2. MOTIVATIONAL JOB DESIGN 3. BIOLOGICAL JOB DESIGN a systematic attempt to make work as safe as possible

III. HUMAN RESOURCE MANAGEMENT


The management function that deals with the recruitment, placement, training, and development of organization members.

BASIC ACTIVITIES OF HRM


1. 2. 3. 4. 5. 6. 7. Human resource planning Recruitment Selection Socialization Training and development Performance appraisal Promotions, transfers, demotions, and separations

A. HUMAN RESOURCE PLANNING


Planning for the future personnel needs of an organization, taking into account both internal activities and factors in the external environment

PLANNING PROCEDURES 1. Planning for future needs by deciding how many people with what skills the organization will need 2. Planning by future balance by comparing the number of needed employees to the number of present
employees who can be expected to stay with the organization 3. Planning for recruiting or laying off employees 4. Planning for the development of the employees to be sure the organization has a steady supply of experienced and capable personnel

B. RECRUITMENT
The development of a pool of job candidates in accordance with a human resource plan.

C. SELECTION
The mutual process whereby the organization decides whether or not to make a job offer and the candidate decides whether or not to accept it.

STEPS IN THE SELECTION PROCESS


1. 2. 3. 4. 5. Completed job application indicates applicants desired position; provides information for interviews Initial screening interview provides a quick evaluation of applicants suitability Testing measures applicants job skills and the ability to learn on the job. Background Investigation Checks truthfulness of applicants resume or application form In depth selection interview finds out more about the applicant as an individual

6. Physical examination ensures effective performance by applicant; protect other employees against diseases; establishes health record on applicant; protects firm against unjust workers compensation claims. 7. Job offer fills a job vacancy or position.

D. SOCIALIZATION OR ORIENTATION
A program designed to help employees fit smoothly into an organization.

SOCIALIZATION CONVEYS THREE TYPES OF INFORMATION


1. General information about the daily work routine 2. A review of the organizations history, purpose, operations, and products or services, as well as a sense of how the employees job contributes to the organizations needs 3. A detailed presentation of the organizations policies, work rules, and employee benefits.

E. TRAINING AND DEVELOPMENT


TRAINING PROGRAM a process designed to maintain or improve current job performance DEVELOPMENTAL PROGRAM a process designed to develop skills necessary for future work activities FOUR PROCEDURES TO DETERMINE THE TRAINING NEEDS OF INDIVIDUALS IN THEIR ORGANIZATION 1. PERFORMANCE APPRAISAL each employees work is measured against the performance standards or objectives established for his or her job 2. ANALYSIS OF JOB REQUIREMENTS the skills or knowledge specified in the appropriate job description are examined, and those employees without necessary skills or knowledge become candidates for training program 3. ORGANIZATIONAL ANALYSIS the effectiveness of the organization and its success in meeting its goals are analysed to determine where differences exist 4. EMPLOYEE SURVEY managers as well as nonmanagers are asked to describe what problems they are experiencing in their work and what actions they believe are necessary to solve them ON THE JOB DEVELOPMENTAL METHODS 1. COACHING the training of employee by his or her immediate supervisor 2. JOB ROTATION involves shifting managers from position to position so they can broaden their experience and familiarize themselves with various aspects of the firms operation 3. TRAINING POSITIONS a third method of developing managers. Trainees are given staff posts immediately under a manager, often with the title of assistant to 4. PLANNED WORK ACTIVITIES involve giving trainees important work assignments to develop their experience and ability OFF THE JOB METHODS 1. CLASSROOM INSTRUCTION specialists from inside or outside the organization teach trainees a particular subject 2. MANAGEMENT DEVELOPMENT PROGRAMS

F. PERFORMANCE APPRAISAL AND COMPENSATION


KINDS OF APPRAISAL 1. INFORMAL PERFORMANCE APPRAISALS the process of continually feeding back to subordinates information regarding their work performance

2. FORMAL SYSTEMATIC APPRAISAL a formalized appraisal process for rating work performance, identifying those deserving raises or promotions, and identifying those in need of further training COMPENSATION the general idea is that the more responsibility a manager has, the more compensation he or should earn she

PROMOTIONS, TRANSFERS, DEMOTIONS, AND SEPARATIONS


PROMOTION- an increase in rank which may also be accompanied by a raise in pay, benefits, and responsibility TRANSFERS-used to give people broader job experiences as part of their development and to fill vacancies as they occur DEMOTION- reduction in rank, often accompanied with a lower pay status

THE FOUR CS MODEL FOR EVALUATING HUMAN RESOURCES


1. 2. 3. 4. COMPETENCE COMMITMENT CONGRUENCE COST EFFECTIVENESS

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