055 Chetan Metkar IM20 NITIE POM Course
Thursday 22 August 2013
Thursday 15 August 2013
Organisational Structures
Organisational Structure
A
sole trader with no employees needs no organisational structure. Even
if this sole owner were to take on just one worker or partner, a sense
of formal organisation structure would become necessary. Who is to do
what job? Who is responsible to whom and for which decisions? If a
business expanded further with more workers, including supervisory
staff, different departments or divisions, then the need for a structure
would be even greater. This would allow the division of tasks and
responsibilities to be made clear to all.
Chain of command: This is the route through which authority is passed down an organization - from the chief executive and the board of directors.
Span of control: The number of subordinates reporting directly to a manager.
Level of hierarchy: A stage of the organisational structure at which the personnel on it have equal status and authority.
Hierarchical organisational structure
A hierarchical (bureaucratic) organisational
structure is an organisational structure where there are fewer and fewer people
on each higher level.
Tall structure - narrow span of control
Flat structure - wide span of control
Factors influencing organizational structure:
- The size of the business and the number of employees
- The style of leadership and the culture of management
- Overhead costs - delayering will reduce management overheads
- Corporate objectives; e.g., overseas expansion will necessarily mean some decentralization as management control is delegated to other locations
- New technologies, especially IT can facilitate the flow of information making some roles of middle management less important
How different Two Monks carrying water and blind folded person building tower are?
As per the activity done in the class I could differentiate between Two Monks carrying water and blind folded person building tower on parameters. I am glad that, I also got help to add points.
Job Dimension
|
Two monks carrying the water
|
Blind folded person building the
tower
|
Skill Variety
|
Comparatively High.
· In this activity different skills such as
Team Work, Physical strength, Conflict resolution, etc. are required. Hence
skill variety is more.
|
Comparatively Low.
·
In this
activity only blocks need to be placed one above another depending on
instructions.
·
Hence
skills required for this tasks are comparatively less.
|
Task Identity
|
Comparatively Low.
·
This is
because at end of task nothing new is created. Only water is transported from
one place to another.
·
Also
there are two persons doing a single task. Hence Task identity will be low.
|
Comparatively High.
·
It is
high because at the end of task the person can see the whole tower that he
has built.
·
Another
point is that even though other persons are there to guide him, blind folded
person would himself single handedly physically build the tower. Hence a
complete new thing is created. Hence Task identity will be high
|
Autonomy factors
|
Comparatively High.
·
The two
monks can decide whichever way they want to bring water.
·
They can
use method of bringing single bucket by two persons or two bucket each by two
person.
|
Comparatively Low.
· The blind folded person does not have any
autonomy in deciding the methodology. He has to listen and obey whatever
middle management i.e. his instructors say
|
Pyramid: Isn’t it similar to corporate strategies?
Pyramid: Isn’t it similar
to corporate strategies?
We can correlate the
activity of Pyramid can be considered in the long term perspective for the
organisation as a Vision and Mission.
So we can divide
various layers of the pyramid in terms of the corporate objectives contributing
to the various goals. This in turn will cater to the long term perspective of
Vision and Mission of the Organisation.
An example for a
company can elaborate more in this aspect.
Importance of objectives
A business aim helps to direct, control and review the
success of a business activity. In addition, for any aim to be successfully
achieved, there has to be an appropriate strategy or plan of action to ensure
that resources are correctly directed towards the final goal. This gives the Unity of Direction.
This strategy should be
constantly reviewed to check whether the business is on target to achieve its
objectives. The aims of an organisation and the strategies it adopts
will often change over time. The most effective business objectives
usually meet S.M.A.R.T. criteria.
Aims, Objectives, Plans and Strategies
Corporate aims are the long-term goals which a
business hopes to achieve. The core of a business’s activity is
expressed in its corporate aims and plans.
A typical corporate aim is: "To increase shareholder returns each year through business expansion".
A typical corporate aim is: "To increase shareholder returns each year through business expansion".
Mission statement: A statement of the business's
core aims, phrased in a way to motivate employees and to stimulate interest by
outside groups.
Vision statement: A statement
of what the organisation would like to achieve or accomplish in the
long term.
The mission statements of some well-known companies
Vision and Mission of NITIE:
Vision
“To be a leader in the knowledge led productivity
movement.”
Mission
“To nourish a learning environment conducive to foster
innovations in productivity and business development.”
So, the vision and
the mission gives a sense of purpose to the organisation to work towards a
common goal and achieve them. By doing this the whole organisation is motivated
to contribute for the greater good.
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