MGC1010 Lecture Notes - Lecture 5: Job Services Australia, Centralisation, Kfc
6 Jun 2018
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Department
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1
Week 5: Organising Tuesday 5th April
What is Organising?
• Organising is the process of arranging people and other resources to work together
to accomplish a goal.
• It involves creating a division of labour for task performance and coordinating
results to achieve a common purpose.
• Given a clear mission, core values, objectives and strategy, organising begins the
process of implementation by clarifying jobs and working relationships.
How managers organise: Organisational Structure
• The way in which various parts of an organisation are formally arranged
• It is a system of tasks, workflows, reporting relationships and communication links
• Good structures: Have allocation of task assignments through a dvision of labour and
provide for the coordination of performance results
• Organisation structure designates formal reporting relationships:
o The number of levels in the hierarchy
o The span of control of managers and supervisors
Organisation structure identifies:
• The grouping together of individuals into departments
• Departments into the total organisation
Organisation structure includes:
• The design systems to ensure effective communication, coordination and integration
of effort across departments
Formal organisational structures:
• Describes the arrangement of work positions within an organisation
• Identifies various positions and job titles, as well as the lines of authority and
communication between them.
• For example: An organisation chart
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2
What can you learn from an organisation chart?
• Division of work: Positions and titles show work responsibilities
• Major subunits: Positions reporting to a common manager are shown
• Supervisory relationships: Lines show who reports to whom
• Communication channels: Lines show formal communication flows
• Levels of management: Vertical layers of management are shown
Informal organisational structures:
• The set of unofficial relationships among an organisations members
• If the informal structure could be drawn, it would show who talks to and interacts with
who, regardless of their formal titles and relationships
• It is increasingly recognised as an important resource for organisational development
Traditional organisational structures:
The process of grouping together people and jobs into work units which has resulted in three
major types:
Functional structure
• Group together people with similar skills who perform similar tasks
• Strategy, marketing, etc
Strengths
Weaknesses
• Small to medium-sized firms with limited
product diversification
• Specialisation of functional knowledge
• Less duplication of functional resources
• Facilitates coordination within functional
areas
• Weak coordination across functional
groups
• Restricted view of overall organisational
goals
• Limits customer attention
• Slower response to market changes
• Burdens chief executives with decisions
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3
Divisional structure
• Groups together people who work on the same product or process, serve similar
customers or are located in the same area
Product: Group together jobs and people working on a single product or service. They help
identify costs, profits, problems and successes in a market area
Geographical: Group together people and jobs performed in the same location. They are
typically used when there is no need to differentiate products or services in various locations,
such as in different regions of a country
Customer: Group together people and jobs that serve the same customers or clients. The
main ability is to serve the special needs of the different customer groups.
Process: Group together jobs and activities that are part of the same processes. Eg; When
you email a catalogue retailer and request a particular item.
Strengths
Weaknesses
• Reduced functional duplication
• Customer focus can increase
• Cross-product coordination is eased
• Cross-regional coordination is often
ease
• Most appropriate only for diversified,
large companies with many products
and product families
• May inhibit cross-division coordination
• Coordination difficulties between
division and corporate objectives
Example: Coca-Cola
• A divisional structure
• A multi-national company: its domestic operations are similar to its international
• Marketing campaigns market the specific target audience: different in different
countries
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
What is organising: organising is the process of arranging people and other resources to work together to accomplish a goal. How managers organise: organisational structure: the way in which various parts of an organisation are formally arranged, good structures: have allocation of task assignments through a dvision of labour and. Organisation structure identifies: the grouping together of individuals into departments, departments into the total organisation. Organisation structure includes: the design systems to ensure effective communication, coordination and integration of effort across departments. Formal organisational structures: describes the arrangement of work positions within an organisation. Identifies various positions and job titles, as well as the lines of authority and communication between them: for example: an organisation chart. Informal organisational structures: the set of unofficial relationships among an organisation(cid:1685)s members. If the informal structure could be drawn, it would show who talks to and interacts with who, regardless of their formal titles and relationships.
