Revision for organizing

By Ana Hamilton,2014-10-21 22:38
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Revision for organizing

    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

    geographically dispersed

     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

Job analysis:

    defining the tasks, knowledge, skills and abilities required to perform the job”

Job description:

    a list of duties and capabilities required for the job

Job specification:

    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

    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

Divisional structure

    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

    Degrees etc

    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

     3 / 9

     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.


    global competitiveness

    workforce flexibility/challenge

    reduced administrative overhead


    no hands-on control

    can lose organisational part

    employee loyalty weakened

Mechanistic v organic

    Mechanistic design

    1. High specialisation

    2. Rigid departmentalisation

    3. High chain of command

    4. Narrow spans of control

    5. High formalisation

    6. Centralised

    Organic design

    1. Cross functional teams

    2. Cross hierarchical teams

    3. Free flow of information

    4. Wide spans of control

    5. Low formalisation

    6. Decentralised

Contingency variables

    Structure~;fit~strategy/size/environment/ technology

Team approach

     4 / 9

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

     5 / 9

     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

     6 / 9

     The more chance for social loafing tendency for individuals to expend

    less effort when working collectively than when working individually.

Differentiated Roles

     Role: Behaviour patterns expected of someone occupying a given position in a

    social unit.

     Task-related roles: roles (or behaviours) that help the group to focus on the task

    at hand.

     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

    Observable Attributes





    Underlying Attributes



     Knowledge and information


Potential Consequences for Groups

    Affective Consequences


     Identification with the group

     Conflict with the group

    Cognitive Consequences


     Amount and quality of new ideas

    Communication-Related Consequences

     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


     7 / 9

     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

    individual members.

     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.

Group cohesion

     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

    Positive effects:

     Increased quality and quantity of group interactions

     Strengthened adherence to group norms

     Increased effectiveness in achieving group goals

     Augmented individual satisfaction with group membership

    Negative effects:

     Useful or creative ideas may be ignored if they deviate from established norms

    or values

     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

     8 / 9

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

    group members)

     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

    group members

     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

     9 / 9

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