Organization Designs and the basics of Staffing and HR Management

Transcription

1 Organization Designs and the basics of Staffing and HR Management dr Adrianna Jaskanis Chair of Organization Theory and Methods

2 Organizing Function of management, defined as creating the organization s structure Organizing =? Three major questions that organizing answers to The process of organizing involves making decisions about how specialized jobs should be allocated, the rules to guide employees behaviors and at what level decisions are to be made Organization design a process in which managers develop or change their organization s structure

3 The elements of structure A set of principles to follow by managers that was formed in the early 1900s by management writers these principles still provide valuable insights into designing effective and efficient organizations

4 6 basic elements of structure Work specialization Unity of command Span of control Authority and responsibility Centralization vs decentralization Departmentalization

5 Book manufacturing game

6 Book manufacturing game How did the work specialization introduced in round 2 influenced work productivity? What job was more satisfying to you creating a book by yourself or a part of it in a group of people?

7 Work specialization A component of organization structure that involves having each discrete step of a job done by different individual rather than having one individual do the whole job Economies and diseconomies of work specialization

8 Work specialization P r o d u c ti vi t y High Impact from economies of specialization Impact from human diseconomies Low Low Work specialization High

9 Unity of command Chain of command the continuous line of authority that extends from the highest levels in an organization to the lowers levels and clarifies who reports to whom Unity of command the management principles that no person should report to more than one boss Span of control The number of subordinates a manager can direct efficiently and effectively Determinants: training and experiences of employees, similarity of employee tasks, the complexity of tasks

10 Span of control The number of subordinates a manager can direct efficiently and effectively Determinants: training and experience of employees similarity of employee tasks complexity of tasks Physical proximity of employees Degree to which standardized procedures are in place Sophistication of the organization s management information system Strength of the organization s value system Preferred managing style of the manager

11 Authority and responsibility Authority the rights inherent in a managerial position to give orders and expect them to be obeyed Responsibility an obligation to perform assigned activities Line authority the authority that entitles a manager to direct the work of an employee Staff authority positions that have some authority but a re created to support, assist and advise the holders of line authority Authority vs power; power all means by which an individual can influence decisions, including formal authority

12 Centralization Centralization and decentralization A function of how much decision-making authority is pushed down to lower levels in an organization; the more centralized an organization, the higher the level at which decisions are made Decentralization The pushing down of decision-making authority to the lowest levels of the organization

13 Types of departmentalization Functional Based on work performer, e.g. engineering, accounting information systems, HR Product Based on major product areas in the Corporation, e.g. women s footwear, men s footwear, and apparel and accessories Customer Based on customer s problem and needs, e.g. wholesale, retail, government Geographic Based on location served, e.g. North, South, Midwest, East Process Based on the basis of work or customer flow, e.g. testing, payment

14 How does environment affect structure? How does strategy affect structure?

15 Environment Authority and power History and culture of the organization Strategy Structure Technology Size and age of the organization

16 Book manufacturing game Did the job specialization bring a more standardized, homogenous product or more diversified, customized product? How did the additional resources in round 3 influenced the productivity? In what other ways can you increase the productivity and effectiveness?

17 Book manufacturing game Technology helps to convert organizational inputs into outputs The organization uses equipment, materials, knowledge and experienced individuals and puts it all together into certain types and patters of activities Unit production production in terms of units or small batches Mass production production in terms of large-batch manufacturing Process production production in terms of continuous processing

18 Functional structure An organization that structures work by grouping similar and related occupational activities Plant Manager Engineering Accounting HR Operatives

19 Divisional structure An organization made up of self-contained units or divisions President Vice President Fruit&Vegentable Chips Vice President Juices Vice President Mineral Water Marketing Marketing Marketing Planning Supply and Distribution Planning Supply and Distribution Planning Supply and Distribution Manufacturing Manufacturing Manufacturing

20 Matrix structure An organization in which specialists from functional departments are assigned to work on one or more projects led by a project manager President Marketing Manufacturing Sales Regional president Asia MA MA SA Regional president Europe ME ME SE

21 Management by objectives MBO relies on defining of objectives for each employee and then comparing and directing their performance against these objectives Employees get strong input to identifying their objectives, time lines for completion, etc. First outlined by Peter Drucker in 1954 The practice of Management Main idea: goals control but motivation MBO replaces imposed goals with participatively determined goals Subordinates and their superiors jointly determine specific performance objectives, periodically review progress toward objectives and allocate rewards on the basis of that progress

22 MBO principles Cascading or organizational goals and objectives, translating the goals into specific objectives for each succeeding level Specific objectives for each member Participative decision making Explicit time period Performance evaluation and feedback (monitoring and correcting actions by an individual) Validity of the objectives is checked with SMART method

23 MBO Process cycle Reward Employee Set Corporate objectives Evaluate performance Set and align employees objectives Monitor performance

24 Cascading objectives Overall organizational objectives Divisional objectives Departmental objectives Individual objectives

25 Case study: organizing in Startup consultancy business

26 Case study: organizing in Start-up consultancy business What type of organizational structure does the consultancy business has? What are the pros and cons of this organizational design? According to the information about the challenges and growth of the company would you and if yes how would you change the organizational structure? How the new structure would help the business to grow? Please draw-up the new organizational scheme Where the authority, responsibility and power is now located and where it would be located according to the new organizational structure? Who do you think and why should be the company s leader?

27 Case study: organizing in Startup consultancy business Do you think that the start-up should recruit any additional employees? What kind of a recruitment process would you suggest for the company? What would be new employee(s) responsibilities and what would be the requirements for a post? Based on the new organizational structure for this business consultancy start-up (prepared as an answer to the previous question) please prepare job description for the new opening position (s) in the start-up. If you think of many positions open please choose one and prepare a job description for the one selected.

28 Case study: organizing in Startup consultancy business (QUESTION 5) Set a strategic goal for the company. According to the new structure please set the goals cascading (implementing management by objectives) to recent and new employees of the small start-up. How do you think that MBO affects job performance? (Robbins, DeCenzo, Does MBO work?, p )

29 Homework & important information Please answer the question 5 (INDIVIDUALLY) and send your answer to jaskanis.studia@gmail.com by 13th of November 2016 Next course we ll continue with HRM, Leading and Motivating On the 15th of November the course is held from to On the 22nd of November EXAM, test questions plus case study to solve