Fundamentals of Planning

Fundamentals of Planning

1. Organizing as a management function. Organizing- arranges people and resources to work toward a goal

   • Organisational structure is the system of tasks, reporting relationships & communication linkages
     • Organisational chart
       • Formal structure
     • Informal structure
       • Social network analysis
       • shadow organisation

2. Traditional organisational structure. DEPARTMENTALIZATION: is the process of grouping people and jobs into work units

   • FUNTIONAL STRUCTURES
     • ADV:1) Economies of scale with efficient use of resources, 2) task assignments consistent with expertise and training 3) high quality technical problem solving 4) In depth training & skill development with functions 5) clear career paths within functions
     • DIS- functional chimney problems
   • DIVISIONAL STRUCTURES
     • Product structure
     • Geographical structure
     • Customer structure
     • Process structure
     • ADV: 1) more flexibility in responding to environmental changes 2)improved coordination across functional departments 3)clear points of responsibility for product /service industry 4)expertise focused on specific customers, product & regions 5) greater ease in changing size by adding/ deleting divisions
     • reduce economies of scale and increase costs via duplication of resources and efforts across divisions. 2) create unhealthy rivals as division compete for resources & top management attention and as they emphasize division needs over the goals of the organization as a whole
   • MATRIX STRUCTURES
     • Adv
     • Disav

3. Horizontal organization structures

   • team structures
     • adv & disad
   • network structuresw
     • strategic alliance
     • Adv & disadv
   • boundaryless structures
     • virtual organisation