Kay 235: Introduction to Management

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Kay 235 Introduction to Management

• Lecture 7
• Subject Organizing
• Reading Starling, Chapter 7

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Announcements

• The date of the 2nd Midterm is
• December 17, Friday
• 1330, D13-14 DZ09
• Chapters after the first midterm
• May include Maslows Hierarchy
• If I were a rich mansong example
• Planing, decision-making organizing
• And the 12 Angry Men Movie

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12 Angry Men Movie
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12 Angry Men Movie Question Examples

• What is the concept of groupthink?
• Was the concept groupthink effective on Jury
  members
• At the beginning of the movie?
• At the end of the movie?
• Give examples to the advantages disadvantages
  of group decision-making from the movie?

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Questions of Organizing?

• What are the main types of organizational design?
• What are the types of authority?
• Which type of organization responds best after
  emergencies?

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Organizing

• Definition
• The grouping of activities necessary to attain
  certain objectives
• Main question
• Finding the fit between the task at hand and
  organizational structure

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ORGANIZATIONAL DESIGN

• Design must follow purpose, Drucker
• Key activities
• Design Criteria Clarity, simplicity,
  adaptability and coherence
• Formal vs. Informal organizations
• Delegation of authority
• Example Shooting airplanes

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Organizing

• What kind of problem we are dealing with?
• Repetitive tasks, innovation, flexibility
• How urgent is the problem?
• How specific is the job?
• How much coordination is needed?

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1. Leader-Follower Organizations

• Sources of the leaders authority (Max Weber)
• Traditional
• Charismatic
• Legal-Rational
• The Nemesis of Creativity
• A leader rarely faces two consecutive challlenges
  sucessfully
• Lack of Followership Studies

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2. Networks

• Two or more organizations brought together for a
  particular purpose
• Associations
• Consortia
• Partnerships
• Unions
• They greatly vary according to their size,
  longevity the amount of integration.

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2. Networks

• Institutions
• A program imposed by society on the conduct of
  individuals
• A set of shared values and rituals beliefs,
  cultures
• Certain patterns of behaviors and shared meanings
• Family institution, religious institution

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Pros and Cons of Networks

• Advantages
• Adaptive, creative, conducive to innovation
• Pragmatic, goal-searching, and problem-oriented
• Detect and correct errors easily
• Self-organizing, self-regulating

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Pros and Cons of Networks

• Problems
• Limited control
• Political persuasive skills, rather than orders
  become critical
• Differences in cultures and sets of behavior
• Free riders
• Using the benefits of the network, while
  contributing as little as possible to it.

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Pyramidal Organizations

• Key features
• Division of labor
• Hierarchy
• Chain of command
• Span of control
• Efficient supervision
• Line and staff
• The notion of functional authority

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Pyramidal OrganizationsStrengths and Problems

• Strengths
• Efficiency gain from specialization
• Clear line of authority and responsibility

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Pyramidal OrganizationsStrengths and Problems

• Problems
• Difficulty in coordination and communication
  between different functions
• Rigidity (SOPs and Red Tape)
• Low capacity for innovation
• It is a performance structure, not a problem
  solving structure
• Span of control (one way, only downward
  rel.ship?)
• Span of managerial relationships
• Growth of bureaucratic size

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Adhocracies (Example Matrix)

• Experts drawn from different disciplines into
  ad-hoc (spontaneous) groups
• Characteristics
• Organic Highly flexible
• Little concern about the four defining principles
  of pyramid organizations
• Emphasis on horizontal processes
• Deployed in project teams
• Mutual adjustment members need to assume
  responsibility

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Matrix Strengths and Problems

• Strengths
• Work well for specific, narrowly defined projects
• Ease in coordination
• Capability for problem-solving

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Matrix Strengths and Problems

• Drawbacks
• Development of specialty
• Feeling isolated and rootless
• Little accumulated wisdom
• Institutional memory or capacity

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Team Approach

• The essence Common assignment
• Complementary skills, common purpose, hold
  themselves mutually accountable
• Types of teams
• Cross-functional teams
• Temporary or permanent teams

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Team ApproachAdvantages and Disadvantages

• Advantages
• Quicker decision-making
• Lowering administrative costs
• Increase in morale

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Team ApproachAdvantages and Disadvantages

• Disadvantages
• Conflicts and dual loyalties
• Coordination costs
• Danger of over-decentralization

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Question

• When does an organization need to reorganize?
• Performance deficit
• Confidence/Trust deficit

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REORGANIZATION

• Rationale
• Growth
• Greater efficiency
• Changes in public policy
• More political responsiveness
• Change in the business environment