chapter 5 business organisations

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Chapter 5 BUSINESS ORGANISATION, STRUCTURE AND STRATEY

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Learning ObjectivesYou should learn to:

B1--The formal and informal business organisation B2- Business organisation structure and design

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Topic list The informal organization Organizational structure Level of strategy in the organisation Centralisation and decentralisation

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It exists alongside/bypass the formal one. Consists of relationships, informal communication networks, behavioral norms and power/influence structures Loosely structured, flexible and spontaneous, with constantly fluctuating membership and relationship May be detrimental or beneficial to the organization, depending how it is managed.

The informal organization

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Aspects/mechanisms of the informal organization Social relationships , social networks and cliques Informal behavioral norms and ways of doing things, customers etc. Informal channels of communication via network (grapevine or bush telegraph)

Power/influence structures(informal leaders)

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Benefits, problems, and solutions Benefits Managerial problems Harness the power of the informal organisation

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Benefits Employee commitment Knowledge sharing Speed Responsiveness Co-operation

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Managerial problems Collectively against organizational interests Inaccurate and morale-damaging rumors Individuals can suffer acutely when excluded from cliques and networks Violating safety or quality assurance measures

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Harness the power of the informal organization Meeting employee’s needs as far as possible via formal organization Harnessing the dynamics of the informal organization Involving managers themselves in the informal structure Gathering information from it Using it to disseminate information Encouraging positive goals for networking (problem-solving or innovation )

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acceptable levels and methods of behavior, to which all members of the group are expected to conform. partly the product of role and role expectations of how people in certain positions behave, as conceived by people in related positions. Ways that individuals may react to group norms and customers: -- compliance --internalization --counter-conformity Circumstances putting strong stress on the individual Ways to reinforce norms

1.4 group norm

1.4.1 Hawthorne studies

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2.1Organisation components-- MintzbergStrategic apex

Techstructu re

Middle line

Suppor t

staff

Operating core

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组织的五分结构加拿大人Mintzberg提出的一种组织结构理论，即组织有 五个基本组成部分：战略领导层(高层)、中层、基层、计 划控制型职能部门和支持服务型职能部门。

战略领导层(高层)

计划控制 型职能部门

中层

支持服务 型职能部门

基层

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QuestionHenry Mintzberg model analysed organisation structure into five basic components. Which of the following components includes analysts and designers o

f control systems? A Strategic apex B Technostructure C Middle line D Support staff

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2.2 Methods of Departmentalizationthe basis by which jobs are grouped together functional - groups jobs by functions performed Product /brand - groups jobs by product line geographical - groups jobs on the basis of territory or geography customer - groups jobs on the basis of common customers

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2.2 Functional DepartmentalizationManaging director

Production director

Marketing director

Financial director

Engineering director

Personnel director

Mgt accountant

Financial accountant

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2.3 Geographical Departmentalization

Vice President for SalesSales Director, Western Region Sales Director, Southern Region Sales Director, Midwestern Region Sales Director, Eastern Region

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2.4 Product DepartmentalizationBombardier, Ltd. Manager, Retail Accounts Mass Transit Division Bombardier-Rotax (Vienna) Recreational and Utility Vehicles Sector Recreational Products Division Logistic Equipment Division Industrial Equipment Division Rail Products Sector

Bombadier-Rotax (Gunskirchen)

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2.5 Customer Departmentalization

Director of Sales Manager, Manager, Manager, Government Accounts Retail Accounts Wholesale Accounts

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Further structural concepts Divisionalisation Hybrid structure Simple/entrepreneurial structures Matrix and project organisation The new organisation Handy--Sharmrock organisation