Revision for Organizing
What is organising?
What are tasks/who is to do the tasks/how tasks will be grouped/ who reports to whom/ who
makes decisions and how and where the decisions will be made
Organising is influenced by following factors:
Nature of the organisations’ operations/organising structure/resources
The main part of the purposes of organising is to allocate and deploy organizational resources. /because we have to utilize the limited resources to accomplish the organizational goals.
Organizational design guarantees organizational goals to be achieved in a manner of effectiveness and efficiency. .
In brief, Organisational design is to determine the best ways of structuring the organisation to address environmental demands and achieve strategic goals, i.e. structure follows strategy or
structure fits strategy
What is organisation structure?
• the arrangements used to divide work among people and co-ordinate it effectively
• the formal arrangement of jobs within an organisation
Organizational structure elements include
• the set of formal tasks (what people will do)
• assigned to individuals and departments (who will do it)
• Formal reporting relationships (who will direct and supervise whom)
• the design of systems to ensure the effective coordination of employees (how we will
ensure our organizational task is effectively implemented.)
Six key elements of organisational design
• Formalisation: The degree to which an organization relies on rules and procedures
• De/Centralisation: (De)Concentration of decision-making in (lower)upper management
• Chain of Command: Line of authority and clarifies who reports to whom • Span of Control: The number of subordinates a manager can direct efficiently and effectively
• Work specialisation: Tasks are divided into separate jobs(for each individual)
• Departmentalisation: Jobs are grouped to accomplish organizational goals(for an
organization as a whole)
Centralisation VS decentralisation
More centralization /more decentralization
– environment is stable/ environment is complex and uncertain
– lower-level managers not as capable/experienced/ lower-level managers are
capable and experienced
– decisions are significant/ decisions are relatively minor
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– organization is facing a crisis/ corporate culture is open to allowing managers to
have a say in what happens
– company is geographically concentrated around one place/company is
– effective implementation of company strategies depends on managers retaining
a say over what happens./ effective implementation of company strategies
depends on managers having involvement and flexibility
Work specialisation also known as “division of labour”
Its main focus is that an entire job is broken down into steps and each is completed by a different person. Individuals specialize in doing part of rather than the whole activity.
Is the basis on which jobs are grouped in order to accomplish organizational goals (whole activity). Every organization will have its own unique way of classifying and grouping work activities.
• Functional: Jobs by functions performed
• Geographic: Jobs by geographic location
• Product: Jobs by product line
• Process: Jobs by product or customer flow
• Customer: Jobs by unique/specific customer
• The divisional approach is used when departments are grouped together based on
organizational outputs. Example: the University has a divisional structure: Teaching &
Learning; Research; Ethics; Higher Degrees etc
defining the tasks, knowledge, skills and abilities required to perform the job”
a list of duties and capabilities required for the job
a statement of the skills, experience and education a person should have in order to perform the job
For example, see lecture PPT Manager Accounts
Functional Structure - this is the traditional structure where the organisation is divided into functional areas, divisions or departments
E.g. finance, HR, marketing, operations.
• in-depth skill specialisation and development
• excellent coordination within functions
• efficient use of resources, able to take advantage of economies of scale
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• career progress within the department
• top manager direction and control
• high-quality technical problem solving
• simplifies training
• poor communication among functional departments can occur quite easily
• slow response to external changes
• decisions concentrated at top of hierarchy, creating delays
• responsibility for problems is difficult to pinpoint
• employees have limited view of organisational goals
• limited general management training for employees
The divisional approach is used when departments are grouped together based on organisational
Example: the University has a divisional structure: Teaching & Learning; Research; Ethics; Higher
Diverse departments are brought together to produce a single (with a clear organizational
purpose) organizational output.
– fast response, flexibility in an unstable environment
– Allows greater coordination across functional departments
– easy pinpointing(finding or describing) of responsibility
– emphasis on overall product and division goals
– development of general management skills
– Increased costs incurred (as a result) through duplication of personnel,
operations, and investment
– Dysfunctional competition among divisions may detract from corporate
– Difficulty in maintaining uniform corporate image
– Overemphasis on short-term performance
The matrix approach
combines aspects of both functional and divisional structures simultaneously.
– The matrix has dual lines of authority.
– The functional hierarchy of authority runs vertically.
– The divisional hierarchy runs laterally.
• more efficient use of resources than single hierarchy
• flexibility, adaptability to changing environment
• development of both general and specialist management skills
• interdisciplinary expertise available to all divisions
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• enlarged tasks for employees
• frustration and confusion from dual chain of command
• high conflict between two sides of matrix
• many meetings, more discussion than action
• human relations training needed
• power domination by one side of matrix
The network approach
divides major functions into separate companies brokered (partly controlled, in a manner a
broker does business) by a small headquarters organisation.
It makes it difficult to answer the question ‘Where is the organisation?’
The network approach is especially appropriate for international operations.
It is held together with phones, faxes and other electronic technology.
reduced administrative overhead
no hands-on control
can lose organisational part
employee loyalty weakened
Mechanistic v organic
1. High specialisation
2. Rigid departmentalisation
3. High chain of command
4. Narrow spans of control
5. High formalisation
1. Cross functional teams
2. Cross hierarchical teams
3. Free flow of information
4. Wide spans of control
5. Low formalisation
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Team: organisation is made up of work groups or teams that perform the organisation’s work
Work teams: groups whose members work intensely on a specific, common goal, using their positive synergy, individual and mutual accountability, and complementary skills. Cross-functional teams consist of employees from various functional departments. Permanent teams solve ongoing problems.
Work groups and teams
Group: two or more interacting and interdependent individuals who come together to achieve specific goals.
• A type or form of group
• Higher degree of coordinated interaction
• Stronger sense of members’ personal responsibility for achieving specified group
• High level of members’ identification with the group
TEAMS demonstrate enhanced:
– Coordinated interaction
– Personal responsibility for group outcomes
– Individual identification with group
Characteristics of Highly Effective Groups
• Any product or service they develop is highly desired and valued by customers.
• Increased cooperation among members is encouraged and achieved.
• Group membership increases individual members’ feelings of satisfaction, personal
growth, and overall well-being.
Ingredients Necessary for Group Effectiveness
• Exert enough effort to accomplish its tasks at acceptable levels of quantity and quality.
• Obtain sufficient knowledge and skills to carry out its work.
• Use appropriate strategies to apply its effort, knowledge, and skills effectively.
Leaders’ Responsibilities for Encouraging Group Effectiveness
• Develop appropriate group structures.
• Develop appropriate support from the organization.
• Obtain appropriate coaching and consultation assistance.
Working in groups
Work-group behaviour is influenced by:
– Stage of group development
– the size of the group
– the internal pressures on members to conform to the group’s norms
– the abilities of the group’s members
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– the level of group cohesion
– the level of conflict
Influences on Groups Formation
• Organisational goals
• Opportunities for interaction and sharing mutual knowledge
• Psychological factors:
– Security needs
– Social support
– Self-esteem needs
– Status needs
Stage of group development
Structural Characteristics of Groups
• Differentiated roles:
– Heterogeneous or diverse Group size
– Ideal group size is 5-7 members
– The larger the group,
• the more heterogeneity
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• The more chance for social loafing tendency for individuals to expend
less effort when working collectively than when working individually.
– Role: Behaviour patterns expected of someone occupying a given position in a
– Task-related roles: roles (or behaviours) that help the group to focus on the task
– Maintenance-related roles: roles (or behaviours) that help to maintain good
relationships within the group.
– Self-oriented roles: roles or (dysfunctional behaviours) that may
hinder/undermine the team’s progress.
Diversity of Group composition
Type of Diversity
– Knowledge and information
Potential Consequences for Groups
– Identification with the group
– Conflict with the group
– Amount and quality of new ideas
– Decreased frequency within group
– Increased frequency outside of group
Pressure for conformity to group norms
• Norms: a group’s shared standards that guide the behaviour of its individual members.
– Characteristics of group norms:
• Usually established for the more important issues of concern to the
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• Some apply only to certain members (like the leader), usually based on
the status or particular role of those members.
• Develop from early behaviours, imported and behaviours, critical events
• Vary in the degree of their acceptance by group members and how
much deviation members are permitted in following them.
• Group norms create pressure for conformity: close adherence to the group’s norms by the
– individuals want to be accepted by groups to which they belong, so they are
susceptible to conformity pressures.
– Can cause group-think, where group members feel extensive pressure to align
their opinions with others’ opinions.
• Cohesion: the degree to which members are motivated to remain in the group.
– Development of group cohesion:
• Strengthening interpersonal attraction among group members.
• Generating a record of high performance and past success of the group.
• Fostering competition with other groups.
Effects of Group Cohesion
• Increased quality and quantity of group interactions
• Strengthened adherence to group norms
• Increased effectiveness in achieving group goals
• Augmented individual satisfaction with group membership
• Useful or creative ideas may be ignored if they deviate from established norms
• Increased probability of developing groupthink
• Potential decrease in intergroup cooperation
• Counterproductive norms may be emphasised
Level of conflict
Conflict - perceived incompatible differences that result in interference or opposition.
Views of conflict:
1. Traditional view: all conflict is bad and must be avoided.
2. Human relations view: conflict is a natural and inevitable outcome in any group. 3. Inter-actionist view: some conflict is necessary for a group to perform effectively.
Level of conflict
• Conflict management
– Functional conflict – conflict that supports a group’s goals
– Dysfunctional conflict – conflict that prevents a group from achieving its goal
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• Conflict management options:
Conflict management options
– Resolving conflicts by withdrawing from or suppressing them • Accommodating
– Resolving conflicts by placing another’s needs above your own
– Resolving conflicts by satisfying own needs at expense of others • Collaborating
– Resolving conflicts by seeking advantageous solution for all parties • Compromising
– Resolving conflicts by each party giving up something of value
Dealing with Team Conflict
• Task (substantive) conflict: conflict that focuses on differences in ideas and courses of
action in addressing the issues facing a group.
• Possible causes of task conflict:
• Ambiguities regarding the task
• Differences in goals, objectives and perspectives among group members
• Scarcity (actual or perceived) of resources
• Possible causes of relationship (affective) conflict(interpersonal differences among
• Dissimilarities in the composition of the membership of the group
• Differences in interpersonal styles of individual members
• Differences in values
Managing intra-group conflict:
• Increase the ratio of substantive to relationship conflict
• Clarify and reduce task ambiguities
• Get the group to focus on goals that emphasize the common interests of all
• Avoid relationship conflicts
Managing inter-group conflict:
• Reduce unnecessary relational conflicts in intergroup interaction situations
• Increase the focus on substantive differences
• Emphasize organization-wide goals to increase cooperation and performance
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