PGE M MANAGEMENT PRINCIPLES & PRACTICES MODULE 2 - ORGANIZING
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1 PGE M MANAGEMENT PRINCIPLES & PRACTICES MODULE 2 - ORGANIZING
2 SKEMA BUSINESS SCHOOL PGE M Management Principles & Practices Module 2 - ORGANIZING
3 REMINDER
4 CONTACT Amine Ezzerouali Assistant Professor Skema Business School Maxime Haubold Knowledge Center Skema Business School
5 SCHEDULE Online elective LMS Platform Module 1: 27 th February Module 2: 6 th March Module 3: 13 th March Module 4: 20 th March Deadline for assessment submission: 27 th March
6 CONTENT Four Modules, each corresponding to one managerial function: Planning, Organizing, Leading and Controlling For each module A Lecture introducing the main concepts One compulsory text and three additional readings from the Harvard Business Review Videos illustrating the main concepts through cases (Uber, Airbnb, Toyota) and testimonials (Leadership, Givers and Takers, etc.) Two questions to be answered
7 ASSESSMENT One assignment, consisting of a compilation of answers to eight questions, two per module, grouped in a word or pdf document, to be submitted: before Monday, March 27 th To amine.ezzerouali@skema.edu Check the last slide of each lecture to find the questions. Using illustrations and examples from your professional experience is strongly recommended.
8 OBJECTIVES «Management Principles and Practices» is an online elective that introduces the four main managerial functions: Planning, Organizing, Leading and Controlling. The main objective of this elective is to help students develop their managerial skills. Key concepts and applications of "what managers really do" will be addressed in 4 modules, each connecting theory to practice through texts, case studies and videos.
9 REFERENCES Fundamentals of Management: Essential concepts and applications. 9 th Edition. Robbins, DeCenzo and Coulter (2015). Management, Global Edition. 11 th Edition. Robbins and Coulter (2016).
10 Source: Robbins & Coulter (2016) Copyright 2016 Pearson Education, Ltd.
11 ORGANIZING
12 WHERE DO MANAGERS WORK? Organization A deliberate arrangement of people assembled to accomplish some specific purpose (that individuals independently could not accomplish alone). Common Characteristics of Organizations Have a distinct purpose (goal) Are composed of people Have a deliberate structure Source: Robbins & Coulter (2016) Copyright 2016 Pearson Education, Ltd.
13 Pearson Education Limited 2015
14 ORGANIZING Organizing is the management function that creates the organization s structure.
15 ELEMENTS OF ORGANIZATIONAL STRUCTURE Work specialization Departmentalization Authority and responsibility Span of control Centralization vs. decentralization Formalization
16 ELEMENTS OF ORGANIZATIONAL STRUCTURE Work Specialization is the division of work activities into separate job tasks. Also called division of labor.
17 WORK SPECIALIZATION
18 ELEMENTS OF ORGANIZATIONAL STRUCTURE Work specialization Departmentalization Authority and responsibility Span of control Centralization vs. decentralization Formalization
19 ELEMENTS OF ORGANIZATIONAL STRUCTURE Departmentalization refers to how jobs are grouped together.
20 DEPARTMENTALIZATION
21 ELEMENTS OF ORGANIZATIONAL STRUCTURE Work specialization Departmentalization Authority and responsibility Span of control Centralization vs. decentralization Formalization
22 ELEMENTS OF ORGANIZATIONAL STRUCTURE Authority refers to the rights inherent in a managerial position to give orders and expect the orders to be obeyed. Responsibility refers to an obligation to perform assigned duties.
23 TYPES OF AUTHORITY RELATIONSHIPS
24 LINE AND STAFF AUTHORITY
25 UNITY OF COMMAND A structure in which each employee reports to only one manager.
26 HOW DO AUTHORITY AND POWER DIFFER? Authority: a right whose legitimacy is based on an authority figure s position in the organization; it goes with the job Power: an individual s ability to influence decisions
27 POWER VERSUS AUTHORITY
28 SOURCES OF POWER
29 ELEMENTS OF ORGANIZATIONAL STRUCTURE Work specialization Departmentalization Authority and responsibility Span of control Centralization vs. decentralization Formalization
30 ELEMENTS OF ORGANIZATIONAL STRUCTURE Span of control refers to the number of employees a manager can efficiently and effectively supervise.
31 SPAN OF CONTROL Most effective and efficient span depends on: Employee experience and training (more they have, larger span). Similarity of employee tasks (more similarity, larger span). Complexity of those tasks (more complex, smaller span).
32 ELEMENTS OF ORGANIZATIONAL STRUCTURE Work specialization Departmentalization Authority and responsibility Span of control Centralization vs. decentralization Formalization
33 CENTRALIZATION & DECENTRALIZATION Centralization decision making takes place at upper levels of the organization Decentralization lower-level managers provide input or actually make decisions
34 ELEMENTS OF ORGANIZATIONAL STRUCTURE Work specialization Departmentalization Authority and responsibility Span of control Centralization vs. decentralization Formalization
35 FORMALIZATION How standardized an organization s jobs are and the extent to which employee behavior is guided by rules and procedures.
36 CONTINGENCY FACTORS
37 MODELS OF ORGANIZATIONAL DESIGN
38 STRATEGY AND STRUCTURE Certain structural designs work best with different organizational strategies.
39 SIZE AND STRUCTURE Organic Less than 2,000 employees can be organic. Mechanistic More than 2,000 employees makes forces organizations to become more mechanistic.
40 TECHNOLOGY AND STRUCTURE
41 ENVIRONMENT AND STRUCTURE Stable environment: mechanistic structure Dynamic environment: organic structure
42 TRADITIONAL AND CONTEMPORARY ORGANIZATIONAL DESIGNS
43 TRADITIONAL ORGANIZATIONAL DESIGNS
44 TRADITIONAL ORGANIZATIONAL DESIGNS Simple structure an organizational design with low departmentalization, wide spans of control, centralized authority, and little formalization. Functional structure an organizational design that groups together similar or related occupational specialties. Divisional structure an organizational structure made up of separate, semiautonomous units or divisions. Source: Robbins & Coulter (2016) Copyright 2016 Pearson Education, Ltd.
45 TRADITIONAL ORGANIZATIONAL DESIGNS Source: Robbins & Coulter (2016) Copyright 2016 Pearson Education, Ltd.
46 CONTEMPORARY ORGANIZATIONAL DESIGN
47 TEAM STRUCTURE A structure in which the entire organization is made up of work teams that do the organization s work.
48 MATRIX AND PROJECT STRUCTURES
49 PROJECT STRUCTURE A structure in which employees continuously work on projects.
50 BOUNDARYLESS ORGANIZATIONS An organization whose design is not imposed by a predefined structure.
51 NETWORK AND LEARNING ORGANIZATIONS Network Organization an organization that uses its own employees to do some work activities and networks of outside suppliers to provide other needed product components or work processes. Learning Organization an organization that has developed the capacity to continuously learn, adapt, and change. Source: Robbins & Coulter (2016) Copyright 2016 Pearson Education, Ltd.
52 CONTEMPORARY ORGANIZATIONAL DESIGNS Source: Robbins & Coulter (2016) Copyright 2016 Pearson Education, Ltd.
53 CURRENT ORGANIZATIONAL DESIGN CHALLENGES
54 CURRENT ORGANIZATIONAL DESIGN CHALLENGES Keeping employees connected Managing global structural issues Building a learning organization Designing flexible work arrangements
55 A LEARNING ORGANIZATION
56 FLEXIBLE WORK ARRANGEMENTS Telecommuting Compressed workweek Flextime Job Sharing Contingent workers
57 ILLUSTRATIONS
58 TEXTS AND VIDEOS A couple of videos introducing Toyota s TPS (Toyota Production System) that emphasizes principles such as Kaizen and teamwork and Pixar s way of fostering creativity and innovation illustrated by its CEO Edwin Catmull. One compulsory Harvard Business Review article to read: Creating The Best Workplace On Earth Three additional HBR readings: Organization Design, Fashion or Fit, Evolution and Revolution as Organizations Grow, and Do You have a Well Designed Organization
59 QUESTIONS
60 QUESTIONS Question 1 According to Goffee and Jones (2013) in their article Creating The Best Workplace On Earth, what do employees require to be their most productive? Among the principles they introduce, what are the ones that are implemented by your organization? Which ones are not? Why in your opinion? Question 2 In this lecture, many organizational designs (traditional and contemporary) are identified. Could you describe the organizational design of your organization? Do you think it is effective and efficient? Could you explain how and why?
61 PGE M MANAGEMENT PRINCIPLES & PRACTICES MODULE 2 - ORGANIZING
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