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Lecture management a pacific rim focus chapter 9 basic elements of organisational structure

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PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition.. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition.. PowerPoint Slides t/a Management: A Paci

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

1

CHAPTER 9

BASIC ELEMENTS OF

ORGANISATIONAL STRUCTURE

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

3

Nature of organisational

structure

Formal pattern of interactions and

co-ordination designed by management to link the tasks of individuals and groups in achieving organisational goals.

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

4

Nature of organisational

structure

Four elements:

1 Assignment of tasks and responsibilities

to individuals and units.

2 Clustering these to form a hierarchy.

3 Mechanisms for vertical co-ordination.

4 Mechanisms for horizontal co-ordination.

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

5

Nature of organisational

structure

• The organisation chart

– Line diagram depicting broad outlines of an

organisation’s structure.

• Principles chart design

– As few hierarchical levels as possible.

– Charts should show who has authority over who. – Charts should show official lines responsibility &

communication.

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

• Design jobs to enhance motivation

Job simplification: breaking jobs into small elements Job rotation: moving through sets of tasks in sequence Job enlargement: wider range of similar tasks.

• Alternative work schedules

Managing work diversity

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

8

Managing diversity & work

schedules

‘… balancing work and personal life’.

‘… balancing work and personal life’.

Flexitime: core hours

hours worked per day, shorter working week

Compressed work week: longer

hours worked per day, shorter working week

Job sharing: two or

more people sharing

a full-time job

Job sharing: two or

more people sharing

a full-time job

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

• Functional

• Divisional

• Hybrid

• Matrix.

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

Matrix: Superimpose

horizontal divisional over hierarchical functional structure

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

12

Methods of vertical

co-ordination

Formalisation:

• Degree to which written policies, rules,

procedures, job descriptions and other

documents specify what actions are(not) to

be taken under a given set of circumstances.

• Extent of formalisation tends to grow with

age & size.

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

13

Methods of vertical

co-ordination

Factors influencing span of management:

– High competence levels.

– Low interaction requirements.

– Work similarity (between organisational peers)

– Low problem frequency and seriousness.

– Physical proximity.

– Few non-supervisory duties of managers

– Considerable available assistance.

– High motivational possibilities of work.

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

Factors favouring centralisation

• Large organisational size

• Geographic dispersion

• Technological complexity

• Environmental uncertainty

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

15

Methods of vertical

co-ordination

‘… extent to which power and authority will be retained at

upper levels’ Influenced by:

‘… extent to which power and authority will be retained at

upper levels’ Influenced by:

Large size: larger

Geographic dispersion:

more dispersed likely to be decentralised, to enable control at a number of sites.

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

Factors restraining delegation

• Fear subordinate failure.

• Time to train subordinates

• Enjoy doing tasks.

• Release of authority.

• Concern for task performance

• Fear subordinate competence.

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

Authority following the chain of command

established by the formal hierarchy.

• Functional authority

Authority of staff over others in the organisation in matters related directly to their respective functions e.g HRM dept.

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

• Promotes innovation through dissemination of

ideas & information.

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

– Designing for motivation:

• Job enlargement, rotation, enrichment, simplification

• Types of departmentalisation

– Functional, divisional, hybrid, matrix.

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© 2003 McGraw-Hill Australia Pty Ltd PowerPoint

Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

– Line & staff authority.

• Methods of horizontal co-ordination

– Slack resources

– Information systems

– Lateral relations.

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