Organizational Concepts

Organizational Concepts

Table of Contents

1. Chapter 1: Organizational Planning 4

1.2. Introduction: 4

1.3. Defining Planning 4

1.4. Recognizing the Advantages of Planning 5

1.5. Using Plans to Achieve Goals 5

1.6. Criteria for effective goals 6

1.7. Coordination of goals 6

1.8. Detailing Types of Plans 7

1.9. Operational plans 7

1.9.1. Tactical plans 8

1.9.2. Strategic plans 8

1.9.3. Contingency plans 9

1.10. Identifying Barriers to Planning 9

2. Chapter 2 - Creating Organizational Structure 11

2.1. Introduction: 11

2.2. The Relationship between Planning and Organizing 11

2.3. The Organizational Process 12

2.4. Concepts of Organizing 13

2.5. Work specialization 13

2.6. Chain of Command 13

2.7. Authority 14

2.8. Delegation 15

2.9. Span of control 17

2.10. Centralization versus decentralization 18

2.11. The Informal Organization 19

3. Chapter 3 - Organizational Design and Structure 21

3.1. Introduction: 21

3.2. Organizational Design Defined 21

3.3. Bureaucracy Basics 21

3.4. The mechanistic structure 22

3.5. The organic structure 23

3.6. Factors Affecting Organizational Design 23

3.7. Organizational size 23

3.8. Organization Life Cycle 24

3.9. Strategy 24

3.10. Environment 25

3.11. Technology 25

3.12. Five Approaches to Organizational Design 26

3.12.1. Functional Structure 26

3.12.2. Divisional Structure 27

3.12.3. .Matrix structure 28

3.12.4. Team structure 30

3.12.5. Network Structure 31

4. References: 32

1. Chapter 1: Organizational Planning

1.2. Introduction:

This chapter will discuss the following topics:

* Recognizing planning as an essential management function

* Identifying different types of plans designed to meet organizational goals

* Determining and overcoming barriers to planning

Of the five management functions -- planning, organizing, staffing, leading and controlling -- planning is the most fundamental. All other functions stem from planning. However, planning doesn't always get the attention that it deserves; when it does, many managers discover that the planning process isn't as easy as they thought it would be -- or that even the best-laid plans can go awry. In this chapter, the process of planning and the strategies behind different types of plans are discussed. Topics also include the importance of employee involvement and the significance of goal setting.

1.3. Defining Planning

Before a manager can tackle any of the other functions, he or she must first devise a plan. A plan is a blueprint for goal achievement that specifies the necessary resource allocations, schedules, tasks, and other actions. A goal is a desired future state that the organization attempts to realize. Goals are important because an organization exists for a purpose, and goals define and state that purpose. Goals specify future ends; plans specify today's means. The word planning incorporates both ideas: It means determining the organization's goals and defining the means for achieving them. Planning allows managers the opportunity to adjust to the environment instead of merely reacting to it. Planning increases the possibility of survival in business by actively anticipating and managing the risks that may occur in the future.

In short, planning is preparing for tomorrow, today. It's the activity that allows managers to determine what they want and how they will achieve it. Not only does planning provide direction and a unity of purpose for organizations, it also answers six basic questions in regard to any activity:

* What needs to be accomplished?

* When is the deadline?

* Where will this be done?

* Who will be responsible for it?

* How will it get done?

* How much time, energy, and resources are required to accomplish this goal?

1.4. Recognizing the Advantages of Planning

The military saying, "If you fail to plan, you plan to fail," is very true. Without a plan, managers are set up to encounter errors, waste, and delays. A plan, on the other hand, helps a manager organize resources and activities efficiently and effectively to achieve goals. The advantages of planning are numerous. Planning fulfills the following objectives:

* Gives an organization a sense of direction. Without plans and goals, organizations merely react to daily occurrences without considering what will happen in the long run. For example, the solution that makes sense in the short term doesn't always make sense in the long-term. Plans avoid this drift situation and ensure that short-range efforts will support and harmonize with future goals.

* Focuses attention on objectives and results. Plans keep the people