ITM Bridging Topic 04 – Organising : Introduction To Management, Assignment, KU, Singapore

Learning Objectives

LO1 Define the characteristics of organization structure: organic or mechanistic, differentiation, and integration.

LO2 Summarize how authority operates based on vertical dimension.

LO3 Define basic types of organization structures, and summarize their strengths.

LO4 Describe important mechanisms used to coordinate work.

LO5 Discuss how organizations can improve their agility through their strategy, commitment to customers, and use of technology through organisation design.

Fundamentals of Organizing

• Organization chart

-The reporting structure and division of labor in an organization

• All organisations must have some kind of structure
• Even sports team needs to be organised, if not they will fail
• Organising is important because it follows strategy
• Planning defines what to do
• Organising defines the way to do it.

Step 1 – Differentiation

Division of labor

• The assignment of different tasks to different people or groups.

• This is done because one person cannot carry out all the work that needs to be done.

• Creation of hierarchy

Specialization

• A process in which different individuals and units perform different tasks

• This is done because some labor are expert in their respective field of work.

Step 2 – Integration

• Coordination

-The procedures that link the various parts of an organization for the purpose of achieving the organization’s overall mission

-Here a structural mechanism is required to enhance collaboration, cooperation and coordination.

–Each specialisation cannot achieve overall  organisational strategies…thus the need for  coordination.

Organizational Structure

Vertical dimension

• who has the authority to make decisions and who is expected to make decisions and supervise others

Horizontal dimension

• basis for dividing work into specific jobs and tasks and assigning those jobs to units such as departments or teams

Vertical Dimension

• Unity of command

-Who has authority over what & who

• Span of control

-How many subordinates report to a supervisor

• Centralisation vs. decentralisation

-Is decision making at the top or spread out?

• Formalisation

-Degree to extend of regulation in the organisation

Vertical Dimension

Vertical Dimension (Cont’d)

Horizontal Dimension

• Functional structure

-Organised according to function

• Divisional approach

-Organised by group or geography

• Matrix

-Fusion of the above

• Network structure

-Organised on the dependence of out-sources

Functional Structure

Divisional Structure

Divisional Structure – Variations

Matrix Structure

Network Structure

• Network organization

-A collection of independent, mostly single

function firms that collaborate on a good or service

-Can subcontract major functions to separate organisations and control from a central hub.

-Focus on what they do best, outsource the rest

Organisation Design

Tutorial: Group Discussion Questions Choose any company and answer the following:

1. Explain & draw its current organisation structure based on horizontal dimension.

2. Do you think its organisation structure should be the same for the next 5-10 years and beyond. If yes, explain why. If no, suggest a new structure and explain why.

3. Is a centralised or decentralised organisation more suitable for the chosen company?