BUILDING BLOCKS OF ORGANIZING
1. DESIGNING JOBS
2.GROUPING JOBS
3. ESTABLISHING REPORTING RELATIONSHIPS BETWEEN JOBS
4. DISTRIBUTING AUTHORITY AMONG JOBS
5. COORDINATING ACTIVITIES BETWEEN JOBS
6. DIFFERENTIATING BETWEEN JOBS
Presented by: Jehanwash kareem
Noman Saleem
GROUPING TASKS INTO JOBS: JOB DESIGN
JOB SPECIALIZATION/DIVISION OF LABOR
BENEFITS OF SPECIALIZATION
1. WORKERS PERFORMING SMALL, SIMPLE TASKS WILL B ECOME VERY PROFICIENT
AT THAT TASK.
2. TRANSFER TIME BETWEEN TASKS DECREASES.
THE MORE NARROWLY DEFINED A JOB IS, THE EASIER IT IS TO DEVELOP SPECIALIZED
3. EQUIPMENT TO ASSIST WITH THE JOBS.
IN THE CASE OF ABSENCE THE MANAGER IS ABLE TO TRAIN SOMEONE NEW AT
4. RELATIVELY LOW COST
LIMITATIONS OF SPECIALIZATION
1. WORKERS WHO PERFORM HIGHLY SPECIALIZED JOBS MAY BECOME BORED AND
DISSATISFIED THAT IT OFFERS NO CHALLENGE OR STIMULATION.
2. THE ANTICIPATED BENEFITS OF SPECIALIZATION DO NOT ALWAYS OCCUR.
ALTERNATIVES TO SPECIALIZATION
•JOB ROTATIONS
•JOB ENLARGEMENT
•JOB ENRICHMENT
•WORK TEAMS
Presented by: Jehanwash kareem
Noman Saleem
DIVISION OF LABOR: A SUMMARY
DIVISION OF LABOR
HIGH
LOW
HIGHLY
GENERAL TASK
DEGREE OF SPECIALIZATION
HIGHLY
SPECIALIZED TASK
USUALLY
SMALL ORGANIZATION
TYPICAL ORGZIZATION SIZE
USUALLY
LARGE ORGANIZATION
TENDS TO BE
INEFFICIENT
ECONOMIC EFFICIENCY
TENDS TO BE
HIGHLY EFFICIENT
Presented by: Jehanwash kareem
Noman Saleem
ESTABLISHING REPORTING RELATIONSHIPS
•CHAIN OF COMMAND
•UNITY OF COMMAND
•SPAN OF MANAGEMENT
CHOOSING THE SPAN.
•A.V.GRAICUNAS
•RALPH C.DAVIS.
•LYNDALL F.URWICK.
PROBLEMS WITH ORGANIZATIONAL LEVELS.
•LEVELS ARE EXPENSIVE
•LEVELS COMPLICATE COMMUNICATION
•LEVELS COMPLICATE PLANNING AND CONTROL.
FACTORS DETERMINING AN EFFECTIVE SPAN.
DETERMINING THE APPROPRIATE SPAN.
Presented by: Jehanwash kareem
Noman Saleem
FLAT ORGANIZATION
CEO
FLAT
HIERARCHY
RELATIVELY WIDE SPAN OF CONTROL
Presented by: Jehanwash kareem
Noman Saleem
TALL ORGANIZATION
CEO
TALL
HIERARCHY
RELATIVELY NARROW SPAN OF CONTROL
Presented by: Jehanwash kareem
Noman Saleem
FACTORS DETERMINING AN EFFECTIVE SPAN
1. TRAINING OF SUBORDINATES
2. CLARITY OF DELEGATION OF AUTHORITY
3. CLARITY OF PLANS
4. USE OF OBJECTIVE STANDARDS
5. RATE OF CHANGE
6. COMMUNICATION TECHNIQUES
7. AMOUNT OF PERSONAL CONTACT NEEDED
8. VARIATION BY ORGANIZATIONAL LEVEL
Presented by: Jehanwash kareem
Noman Saleem
DETERMINING THE APPROPRIATE SPAN
1. COMPETENCE OF SUPERVISOR AND SUBORDINATES
2. PHYSICAL DISPERSION OF SUBORDIANTES.
3. EXTENT OF NON-SUPERVISORY WORK IN MANAGER’S JOB
4. DEGREE OF REQUIRED INTERACTION
5. EXTENT OF STANADERIZED PROCEDURES.
6. SIMILARITY OF TASKS BEING SUPERVISED.
7. FREQUENCY OF NEW PROBLEMS
8. PREFERENCES OF SUPERVISORS AND SUBORDINATES
Presented by: Jehanwash kareem
Noman Saleem
FACTORS INFLUENCING THE SPAN OF MANAGEMENT
NARROW SPAN
(A GREAT DEAL OF TIME SPENT
WITH SUBORDIANTES)
RELATED TO:
WIDE SPAN
(VERY LITTLE TIME SPENT
WITH SUBORDIANTES)
RELATED TO:
LITTLE OR NO TRAINING
THOROUGH SUBORDINATE TRAINING
INADEQUATE OR UNCLEAR AUTHORITY
DELEGATION
CLEAR DELEGATION TO UNDERTAKE
WELL-DEFINED TASKS
UNCLEAR PLANS FOR NONREPETITIVE
OPERATIONS
NONVERIFIABLE OBJECTIVES AND
STANDARDS
FAST CHANGES IN EXTERNAL AND INTERNAL
ENVIRONMENTS
WELL DEFINED PLANS FOR REPETITIVE
OPERATIONS
VERIFIABLE OBJECTIVES USED AS
STANDARDS
SLOW CHANGES IN EXTERNAL AND INTERNAL
ENVIRONMENTS
Presented by: Jehanwash kareem
Noman Saleem
GROUPING JOBS: DEPARTMENTALAIZATION
“THE PRACTICE OF GROUPING JOBS ACCORDING TO
SOME LOGICAL ARRANGEMENTS”
1. DEPARTMENTATION BY SIMPLE NUMBERS
2. DEPARTMENTATION BY TIME
3. FUNCTIONAL DEPARTMENTATION
4. DEPARTMENTATION BY TERRITORY
5. CUSTOMER DEPARTMENTATION
6. PROCESS DEPARTMENTATION
8. DEPARTMENTATION BY PRODUCT
Presented by: Jehanwash kareem
Noman Saleem
A FUNCTIONAL ORGANIZATION GROUPING
PRESIDENT
MARKETING
ENGINEERING
PRODUCTION
FINANCE
MARKET
RESEARCH
ENGINEERING
ADMIN:
PRODUCTION
PLANNING
FINANCIAL
PLANNING
MARKETING
PLANNING
PRELIMINARY
DESIGN
INDUSTRIAL
ENGINEERING
BUDGETS
ADVERTISING
ELECTRICAL
ENGINNERING
PRODUCTION
ENGINEERING
GENERAL
ACCOUNTING
SALES
ADMIN:
MECHANICAL
ENGINEERING
PURCHASING
COST
ACCOUNTING
SALES
HYDRAULIC
ENGINEERING
TOOLING
STATISTICAL
PROCESSING
PACKAGING
GENERAL
PRODUCTION
QUALITY
CONTROL
Presented by: Jehanwash kareem
Noman Saleem
ADVANTAGES AND DISADVANTAGES OF FUNCTIONAL
DEPARTMENTALIZATION
ADVANTAGES
IS A LOGICAL REFLECTION OF FUNCTIONS
MAINTAINS POWER AND PRESTIGE OF MAJOR FUNCTIONS
FOLLOWS PRINCIPLE OF OCCUPATIONAL SPECIALIZATION
SIMPLIFIES TRAINING
FURNISHES MEANS OF TIGHT CONTROL AT TOP
DISADVANTAGES
DEEMPHASIS OF OVERALL COMPANY OBJECTIVES.
OVERSPECIALIZED AND NARROWS VIEWPOINTS OF KEY PERSONNEL.
REDUCES COORDINATION BETWEEN FUNCTIONS
RESPONSIBILITY FOR PROFITS IS AT THE TOP ONLY
SLOW ADAPTATION TO CHANGES IN ENVIRONMENT.
LIMITS DEVELOPMENT OF GENERAL MANAGERS
Presented by: Jehanwash kareem
Noman Saleem
DEPARTMENTATION BY TERRITORY OR GEOGRAPHY
PRESIDENT
MARKETING
WESTERN
REGION
PERSONNEL
SOUTHWEST
REGION
PURCHASING
CENTRAL
REGION
SOUTHEAST
REGION
FINANCE
EASTERN
REGION
PERSONNEL
ENGINEERING
PRODUCTION
ACCOUNTING
SALES
Presented by: Jehanwash kareem
Noman Saleem
ADVANTAGES AND DISADVANTAGES OF GEOGRAPHICAL
DEPARTMENTALIZATION
ADVANTAGES
PLACES RESPONSIBILITY AT A LOWER LEVEL
PLACES EMPHASIS ON LOCAL MARKETS AND PROBLEMS
IMPROVES COORDINATION IN A REGION
TAKES ADVANTAGES OF ECONOMIES OF LOCAL OPERATIONS
BETTER FACE-TO-FACE COMMUNICATION WITH LOCAL INTERESTS
FURNISHES MEASURABLE TRAINING GROUND FOR GENERAL MANAGERS
DISADVANTAGES
REQUIRES MORE PERSONS WITH GENERAL MANAGER ABILITIES
TENDS OF MAKE MAINTENANCE OF ECONOMICAL CENTRL SERVICES DIFFICULT AND
MAY REQUIRE SERVICES SUCH AS PERSONNEL OR PURCHASING AT
THE REGIONAL LEVEL
INCREASES PROBLEM OF TOP MANAGEMENT CONTROL
Presented by: Jehanwash kareem
Noman Saleem
CUSTOMER DEPARTMENTATION
PRESIDENT
COMMUNITY-CITY
BANKING
CORPORATE
BANKING
REAL ESTATES &
MORTGAGE LOANS
INSTITUTIONAL
BANKING
AGRICULTURAL
BANKING
Presented by: Jehanwash kareem
Noman Saleem
ADVANTAGES AND DISADVANTAGES OF CUSTOMER
DEPARTMENTATION
ADVANTAGES
ENCOURAGES CONCENTRATION ON CUSTOMER NEEDS
GIVES CUSTOMERS FEELING THAT THEY HAVE AN UNDERSTANDING SUPPLIER(BANKER)
DEVELOPS EXPERTENESS IN CUSTOMER AREA
DISADVANTAGES
MAY BE DIFFICULT TO COORDINATE OPERATIONS BETWEEN COMPETING CUSTOMER
DEMANDS
REQUIRES MANAGERS AND STAFF EXPERT IN CUSTOMERS’ PROBLEMS
CUSTOMER GROUPS MAY NOT ALWAYS BE CLEARLY DEFINED(FOR EXAMPLE, LARGE
CORPORATE FIMS VS OTHER CORPORATE BUSINESSES)
Presented by: Jehanwash kareem
Noman Saleem
PROCESS OR EQUIPMENT DEPARTMENTATION
PRESIDENT
ENGINEERING
ENGINEERING
PUNCH PRESSES
ENGINEERING
ENGINEERING
WELDING
ENGINEERING
ELECTROPLATING
Presented by: Jehanwash kareem
Noman Saleem
ADVANTAGES AND DISADVANTAGES OF PROCESS
DEPARTMENTATION
ADVANTAGES
ACHIEVES ECONOMIC ADVANTAGE
USES SPECIALIZED TECHNOLOGY
UTILIZES SPECIAL SKILLS
SIMPLIFIES TRAINING
DISADVANTAGES
COORDINATION OF DEPARTMENTS IS DIFFICULT
RESPONSIBILITY FOR PROFIT IS AT THE TOP
IS UNSTUITABLE FOR DEVELOPING GENERAL MANAGERS
Presented by: Jehanwash kareem
Noman Saleem
PRODUCT ORGANIZATION
PRESIDENT
GENERAL MANAGER
ASSISTANT MANAGER
ASSISTANT MANAGER
ASSISTANT MANAGER
PRODUCT
GROUP 1
PRODUCT
GROUP 2
PRODUCT
GROUP 3
PRODUCTION
SALES
RESEARCH
ACCOUNTING
PRODUCTION
SALES
RESEARCH
ACCOUNTING
PRODUCTION
SALES
RESEARCH
ACCOUNTING
Presented by: Jehanwash kareem
Noman Saleem
DEPARTMENTATION BY PRODUCT
PRESIDENT
MARKETING
PERSONNEL
PURCHASING
FINANCE
INSTRUMENT
DIVISION
INDICATOR
LIGHTS
DIVISION
INDUSTRIAL
TOOLS
DIVISION
ENGINEERING
ACCOUNTING
ENGINEERING
ACCOUNTING
PRODUCTION
SALES
PRODUCTION
SALES
ELECTRONIC
METER
DIVISION
Presented by: Jehanwash kareem
Noman Saleem
ADVANTAGES AND DISADVANTAGES OF CUSTOMER
DEPARTMENTATION
ADVANTAGES
PLACES ATTENTION AND EFFORT ON PRODUCT LINE
FACILITATES USE OF SPECIALIZED CAPITAL, FACILITIES, SKILLS AND KNOWLEDGE
PERMITS GROWTH AND DIVERSITY OF PRODUCTS AND SERVICES
IMPROVES COORDINATION OF FUNCTIONAL ACTIVITIES
PLACES RESPONSIBILITY FOR PROFITS AT THE DIVISION LEVEL
FURNISHES MEASURABLE TRAINING GROUND FOR GENERAL MANAGERS
DISADVANTAGES
REQUIRES MORE PERSONS WITH GENERAL MANAGER ABILITIES
TENDS TO MAKE MAINTENANCE OF ECONOMICAL CENTRAL SERVICES DIFFICULT
PRESENTS INCREASED PROBLEM OF TOP MANAGEMENT CONTROL
Presented by: Jehanwash kareem
Noman Saleem
MATRIX ORGANIZATION IN ENGINEERING
DIRECTOR
OF
ENGINEERING
CHIEF OF
PRELIMINARY
DESIGN
CHIEF OF
PRELIMINARY
DESIGN
CHIEF OF
PRELIMINARY
DESIGN
CHIEF OF
PRELIMINARY
DESIGN
PROJECT A
MANAGER
PROJECT B
MANAGER
PROJECT C
MANAGER
PROJECT D
MANAGER
Presented by: Jehanwash kareem
Noman Saleem
ADVANTAGES AND DISADVANTAGES OF MATRIX
ORGANIZATION
ADVANTAGES
IS ORIENTED TOWARD END RESULTS
PROFESSIONAL IDENTIFICATION IS MAINTAINED
PINPOINTS PRODUCT-PROFIT RESPONSIBILITY
DISADVANTAGES
CONFLICT IN ORGANIZATION AUTHORITY EXISTS
POSSIBILITY OF DISUNITY OF COMMAND EXISTS
REQUIRES MANAGER EFFECTIVE IN HUMAN RELATIONS
Presented by: Jehanwash kareem
Noman Saleem
PROJECT ORGANIZATION IN ENGINEERING
DIRECTOR
OF
ENGINEERING
PROJECT A
MANAGER
PROJECT B
MANAGER
PROJECT C
MANAGER
PROJECT D
MANAGER
PRELIMINARY
DESIGN
ELECTRICAL
ENGINEER
PRELIMINARY
DESIGN
ELECTRICAL
ENGINEER
MECHANICAL
ENGINEER
HYDRAULIC
ENGINEER
MECHANICAL
ENGINEER
HYDRAULIC
ENGINEER
METALLURGICAL
ENGINEER
METALLURGICAL
ENGINEER
Presented by: Jehanwash kareem
Noman Saleem
DISTRIBUTING AUTHORITY AMONG JOBS
POWER
AUTHORITY
RESPONSIBILITY
•AUTHORITY & RESPONSIBILITY PARITY PRINCIPLE.
DELEGATION OF AUTHORITY.
DELEGATION HAS DUAL CHARACTERISTICS
KINDS OF DELEGATION
REASONS FOR DELEGATION
PROCESS OF DELEGATION
THE ART OF DELEGATION
PERSONAL ATTITUDES TOWARD DELEGATION
WHY MANGERS DO’T DELEGATE
GETTING MANAGERS TO DELEGATE
CENTRALIZATION VS DECENTRALIZATION
FACTORS DETERMINING THE DEGREE OF DECENTRALIZATION OF AUTHORITY
ADVANTAGES AND DISADVANTAGES OF DECENTRALIZATION.
Presented by: Jehanwash kareem
Noman Saleem
REASONS FOR DELEGATION
1. TO ENABLE THE MANGERS TO GET MORE WORK DONE
2. SUBORDINATES HELP EASE THE MANAGER’S BURDEN
BY DOING MAJOR PORTIONS OF THE ORGANIZATION’S
WORK.
4. A SUBORDINATE MAY HAVE MORE EXPERTISE IN ADDRESSING
A PARTICULAR PROBLEM THAN THE MANAGER DOES
5. DELEGATIN ALSO HELPS DEVELOP SUBORDINATES
Presented by: Jehanwash kareem
Noman Saleem
PROCESS OF DELEGATION
STEP 1
STEP 2
STEP 3
STEP 4
DETERMINING
THE RESULTS
EXPECTED
FROM A
POSITION
ASSIGNING
RESPONSIBILITY
GRANTING
AUTHORITY
CREATING
ACCOUNTABILITY
MANAGER
MANAGER
MANAGER
MANAGER
SUBORDINATE
SUBORDINATE
SUBORDINATE
SUBORDINATE
Presented by: Jehanwash kareem
Noman Saleem
PERSONAL ATTITUDES TOWARD DELEGATION
1. RECEPTIVENESS
2. WILLINGNESS TO LET GO
3. WILLINGNESS TO LET OTHERS MAKE MISTAKES.
4. WILLINGNESS TO TRUST SUBORDINATES.
5. WILLINGNESS TO ESTABLISH AND USE BROAD CONTROLS.
WHY MANAGER’S DON’T DELEGATE
1. TENDENCY OF HUMAN BEING TO WANT TO DO THINGS PERSONALLY
2. LACK OF ASSUMING THE MANAGERIAL ROLE WHEN PROMOTED TO THE
MANAGERIAL RANKS
3. FEAR OF BEING EXPOSED
4. UNCONSIOUS ACCEPTANCE OF THE INDISPENSIBLE PERSON THEORY
5. DESIRE TO DOMINATE
6.UNWILLINGNESS TO ACCEPT RISKS
7. ATTITUDE THAT SUBORDINATES IS INCAPABLE OF USING AUTHORITY
PROPERLY
Presented by: Jehanwash kareem
Noman Saleem
GETTING MANAGERS OT DELEGATE
1. MAKE THE POTENTIAL DELEGATOR FEEL SECURE
2. REALIZE THE NEED FOR AND BELIEVE DEEPLY IN DELEGATION
3. ESTABLISHING A WORK CLIMATE FREE FROM FEAR AND FRUSTRATION.
4. TIE IN WITH INTELLIGENT PLANNING.
5. DETERMINE HOW THE DELEGATOR KEEPS A HAND IN DUTIES
6. DETERMINE WHAT TO DELEGATE AND PROVIDE ADEQUATE AUTHORITY.
7. CHOOSE THE DELEGATEE WISELY.
8. GIVE ASSISTANCE TO DELEGATOR
Presented by: Jehanwash kareem
Noman Saleem
CENTRALIZED ORGANIZATION
PRESIDENT
VP
SALES
MANAGER
PLANT 1
DEPARTMENTS
VP
PRODUCTIION
VP
FINANCE
PURCHASING
COST
RESEARCH
STANDARD
ENGINEERING
PUBLIC RELATIONS
MANAGER
PLANT 2
MANAGER
PLANT 3
DEPARTMENTS
DEPARTMENTS
MANAGER
PLANT 4
DEPARTMENTS
Presented by: Jehanwash kareem
Noman Saleem
DECENTRALIZED ORGANIZATION
PRESIDENT
VP
SALES
MANAGER
PLANT 1
VP
PRODUCTION
MANAGER
PLANT 2
VP
FINANCE
MANAGER
PLANT 3
MANAGER
PLANT 4
PURCHASING
PURCHASING
PURCHASING
PURCHASING
ENGINEERING
RESEARCH
RESEARCH
RESEARCH
COST
ENGINEERING
COST
COST
STANDARDS
COST
STANDARDS
ENGINEERING
STANDARDS
PUBLIC RELA
DEPARTMENTS
DEPARTMENTS
DEPARTMENTS
Presented by: Jehanwash kareem
Noman Saleem
FACTORS DETERMINING THE DEGREE OF
DECENTRALIZATION OF AUTHORITY
1. COSTLINESS OF DECISION
2. DESIRE FOR UNIFORMITY OF POLICY
3. SIZE AND CHARACTER OF THE ORGANIZATION.
4. MANAGEMENT PHILOSOPHY
5. DESIRE FOR INDEPENDENCE
6. AVAILABILITY OF MANAGERS
7. CONTROL TECHNIQUES
8. BUSINESS DYNAMICS: THE PACE OF CHANGE
Presented by: Jehanwash kareem
Noman Saleem
ADVANTAGES OF DECENTRALIZATION
1. RELIEVES TOP MANGEMENT OF SOME BURDEN OF DECISION MAKING AND FORCES UPPER
LEVEL MANAGERS TO LET GO.
2. ENCOURAGES DECISION MAKING AND ASSUMPTION OF AUTHORITY AND RESPONSIBILITY.
3. GIVES MANAGERS MORE FREEDOM AND INDEPENDENCE IN DECISION MAKING.
4. PROMOTES ESTABLISHMENT AND USE OF BROAD CONTROLS WHICM MAY INCREASE
MOTIVATION
5. MAKES COMPARISON OF PERFORMANCE OF DIFFERENT ORGANIZATIONAL UNITS POSSIBLE.
6. FACILITATES SETTING UP OF PROFIT CENTERS
7. FACILITATES PRODUCT DIVERSIFICATION
8. PROMOTES DEVELOPMENT OF GENRAL MANAGERS
9. AIDS IN ADAPTATION TO FAST-CHANGING ENVIRONMENT
Presented by: Jehanwash kareem
Noman Saleem
LIMITATIONS OF DECENTRALIZATION
1. MAKES IT MORE DIFFICULT TO HJAVE A UNIFORM POLICY
2. INCREASE COMPLEXITY OF COORDINATION OF DECENTRALIZED ORGANIZATIONAL UNITS
3. MAY RESULT IN LOSS OF SOME CONTROL BY UPPER-LEVEL MANAGERS.
4. MAY BE LIMITED BY INADEQUATE CONTROL TECHNIQUES.
5.MAY BE CONSTRAINED BY INADEQUATE PLANNING AND CONTROL SYSTEMS.
6. CAN BE LIMITED BY THE AVAILABILITY OF QUALIFIED MANAGERS.
7. INVOLVES CONSIDERABLE EXPENSES FOR TARINING MANAGERS
8. MAY BE LIMITED BY EXTERNAL FORCES (NATIONAL LABOR UNIONS, GOVT CONTROLS,
TAX POLICIES)
9. MAY NOT BE FAVORED BY ECONOMIES OF SCALE OF SOME OPERATIONS
Presented by: Jehanwash kareem
Noman Saleem