Lesson06Organizing - Lesson-06 ORGANIZING Organizational...

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Lesson:-06 ORGANIZING Organizational Design Chapter overview: Organizational design, six key elements of organizational design, different types of organizational design, advantages and disadvantages of different types of organizational design, organizational structure, dimensions of structure, situational influences on organization design. Students, today we will be discussing regarding organizations, their design, and structure. Organizational Design ! An organization is a pattern of relationships-many interwoven, simultaneous relationships-through which people, under the direction of managers, pursue their common goals. ! Goals are the products of the decision-making processes in planning. Members of an organization need a stable, understandable framework within which they can work together toward organizational goals. The managerial process of organizing involves making decisions about this type of framework so that organizations can last from the present well into the future. ! Managers must take into account two kinds of factors when they organize: ! They must outline their goals for the organization, their strategic plans for pursuing those goals, and the capabilities at their organizations for carrying out those strategic plans. ! Simultaneously, managers must consider what is going on now, and what is likely to happen in the future, in the organizational environment. At the intersection of these two sets of factors-plans and environments-managers make decisions that match goals, strategic plans, and capabilities with environmental factors. This crucial first step in organizing, which logically follows from planning, is the process of organizational design. The specific pattern of relationships that managers create in this process is called the organizational structure. ! Organizing is important because it follows from strategy. Strategy defines what to do; organizing defines how to do it. Organization structure is a tool that managers use to harness resources for getting things done. ! Organizational structure is a framework that managers device for dividing and coordinating the activities of members of an organization. Because strategies and environmental circumstances differ from one organization to the next, there are a variety of possible organizational structures. Six Key Elements of Organizational Design
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! Organizing is the deployment of organizational resources to achieve strategic goals. The deployment of resources is reflected in the organization’s division of labor into specific departments and jobs, formal lines of authority, and mechanisms for coordinating diverse organization tasks. ! When managers develop or change the organization’s structure, they are engaging in organization design. This process involves making decisions about: ! How specialized jobs should be allocated, ! The rules to guide employee behavior, and,! At what level decisions are to be made.
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Lesson06Organizing - Lesson-06 ORGANIZING Organizational...

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