Dr Zain Yusafzai

The Nature of Organizing, Entrepreneur and Reengineering Chapter 7 (page 164 1!4"

The Nature of Organizing, Entrepreneur and Reengineering Organizing: Establishing an intentional structure of roles for people to fill in an organization Organization: Planned coordination of the activities of a number of people for the achievement of a common explicit purpose or goal through division of labor and function and through a hierarchy of authority and responsibility For an organizational role to exist and be meaningful to people it must incorporate verifiable objectives, clear idea of major duties or activities involved, and an understood area of discretion or authority. To make a role ork out effectively, provision of re!uisite information " other performance tools are essential. Therefore #rganizing means $dentification % classification of re!uired activities &rouping of activities to achieve goals 'ssignment of groups to a manager along ith authority Provision of coordination vertically and horizontally #rganization implies formalized intentional structure of roles or positions Intentional Structure of Roles People orking together must fill certain roles (oles should be intentionally designed to ensure that (e!uired activities are done and The activities fit together so that People can ork smoothly effectively and efficiently Formal / Informal Organization )tructure must provide an environment to people to give optimum out put for achieving organizational goals

Formal / Informal Organization

#resident

+i$e #residents

Di-is ion &anager

Depart' ent &anages

Morning Tea Regular

Card Players

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Che ss Team

Dr Zain Yusafzai

The Nature of Organizing, Entrepreneur and Reengineering Chapter 7 (page 164 1!4"

Formal Organization: $ntentional structure of roles in a formally organized enterprise. #rganization must be flexible, *ave room for discretion for +,reative utilization of talents, (ecognition of individual likes and capacities$ndividual efforts be channeled to ards #rganizational goals Informal Organization: ' net ork of interpersonal relationships. that arise hen people associate ith each other. (elationships not appearing on #rg chart i.e. #rg ,ricket team, Tea club members Organizational Di isions Department: /istinct area, division, or branch of an organization over hich a manager has authority for the performance of specified duties For example: ,ollege0 English department, 1rdu department, )cience department !roduction Di ision: )ales, /esign and Procurement department Organizational "e els and Span of #anagement #rganizing makes human cooperation effective. #rganizational levels are limitations of span of management !ro$lems %ith organizational le els are &' They are expensive 2. ,omplicate communication 3. ,omplicate planning and control Organization %ith Narro% Span (d antages: 4. ,lose supervision 2. ,lose control 3. Fast 51p " /o n6 communication Disad antages: 4. over involvement in subordinates ork 2. 7ore levels of management 3. *igh cost, 8. 7ore vertical distance Organization %ith )ide Span (d antages: 2

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Dr Zain Yusafzai

The Nature of Organizing, Entrepreneur and Reengineering Chapter 7 (page 164 1!4"

4. Forced delegation 2. ,lear policy9s essential 3. Entails careful selection of subordinates Disad antages: &' #verloaded superiors *' /ecision bottlenecks 3. /anger of superior9s loss of control, 8. (e!uires exceptional !uality of managers Operational #anagement !osition !rinciple of Span of #anagement There is a limit to the number of subordinates a manager can effectively supervise, but the exact number ill depend on the impact of underlying factors Dominant +urrent ,uideline :ook for causes of limited span in individual situations Factors determining effecti e span Personal ,apacities 0 ,omprehending !uickly &etting along ith people ,ommanding loyalty and respect 'bility to reduce time ith subordinates ;alancing the needs Narro% Spans -( great deal of time spent %ith su$ordinates . :ittle or not training of subordinates $nade!uate or unclear authority delegation 1nclear plans for non<repetitive operations =on<verifiable objectives and standards Fast changes in external and internal environments 1se of poor or inappropriate communication techni!ues, Including ague instructions +omple/ tas0 $neffective meetings $mmature subordinates $ncompetent and untrained manager $neffective interaction of superior and subordinate &reater number of specialties at lo er and middle levels )ubordinates9 un illingness to assume responsibility and
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Dr Zain Yusafzai

The Nature of Organizing, Entrepreneur and Reengineering Chapter 7 (page 164 1!4"

Reasona$le ris0s Wide Spans (Very little time spent with subordinates) Through training of subordinates ,lear delegation " ell<defined tasks >ell<defined plans for repetitive operations ?erifiable objectives used as standards )lo changes in external and internal environments 1se of appropriate techni!ues, i.e. proper organization

Structure and %ritten and oral communication )imple task Effective meetings 7ature subordinates ,ompetent and trained manger Effective interaction bet een superior " subordinate &reater number of specialties at upper levels +top mangers ,oncerned ith external environment )ubordinates9 illingness to assume responsibility and (easonable risks Organizational En ironment Entrepreneur and Intrapreneuring

Intrapreneur ' person ho focuses on innovation and creativity " ho transforms a dream or an idea into a profitable venture by operating ithin the organizational environment Entrepreneur: ' person ho does similar things as the intrapreneur, but outside the organizational setting They have the ability to see an opportunity, #btain necessary capital, labor, other inputs, Put together an operation, Take personal risk of success % failure +reating En ironment of Entrepreneurship 7anagers are responsible for creating environment for effective and efficient achievement They must promote opportunities for entrepreneurs Entrepreneurs take personal risks in initiating change
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The Nature of Organizing, Entrepreneur and Reengineering Chapter 7 (page 164 1!4"

They ant to be re arded@ re ard them (isk may result in failure@ tolerate them &ive them freedom of ork @ /elegate responsibility and give authority $nnovation and Entrepreneurship Entrepreneurs have creative ideas. They use their management skills " resources to meet identifiable needs in marketplace

Inno ation: 'pplies to all kinds of companies " re!uires systematic, rational, ell organized and ell managed ork, for results. Entrepreneurship suggests dissatisfaction ith ho things are and a areness of a need to do things differently.

Inno ation +omes 1ecause of 'n unexpected event, failure, or success 'n incongruity bet een assumption reality ' process or task that needs improvement ,hanges in the market or industry structure ,hanges in demographics ,hanges in meaning or the ay things are perceived =e ly ac!uired kno ledge Reengineering Fundamental rethin0ing and radical redesign of $usiness process to achie e dramatic improvement in critical contemporary measures of performance0 ,ost, Auality, )ervice " )peed Bey 'spects are Fundamental rethinking, (adical (edesign, /ramatic improvement, Process

#anagement $2 !rocess

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Dr Zain Yusafzai

The Nature of Organizing, Entrepreneur and Reengineering Chapter 7 (page 164 1!4"

Reenergizing the S2stem Inputs 3uman +apital Technological Others ,oal inputs of Sta0eholders Or claimant Transformation !rocess 1usiness !rocess S2stem 3uman S2stem Technolog2 S2stem Emphasizing IT

Outputs !roducts Ser ices !rofits Satisfaction ,oal integration Others

#anagement S2stem

Information 3andling S2stem

Sta0eholders or +laimants Emplo2ees ,o ernments +ustomers Shareholders Suppliers Others

E/ternal 4aria$les Opportunities +onstraints Others

Enterprise Boundary

Structure and !rocess of Organizing #rganizing as process re!uires that structure must reflect objectives & plans as activities derive from them, authority available to management, Environment +Political, Economic, )ocial, Technological, and Ethical Etc )tructure must be designed to ork " permit contributions by members. ' orkable structure can never be static. =o single structure orks best in all situations. #rganizations are staffed ith people, therefore grouping of activities, and authority relationship must account for people9s limitations and customs )tructure be built around goals " accompanying activities *o ever, important consideration is kind of people ho ill staff it The "ogic of Organizing Organizing process consists of: Establishing enterprise objectives
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Dr Zain Yusafzai

The Nature of Organizing, Entrepreneur and Reengineering Chapter 7 (page 164 1!4"

Formulating supporting objectives, policies, and plans $dentifying, analyzing, and classifying the activities necessary to accomplish these objective &rouping these activities in light of the human and material resources available and the best ay, under the circumstances, of using them /elegating to the head of each group the authority necessary to perform the activities. Tying the groups together horizontally and vertically, through authority relationships and information flo s

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