operationnal management and organizational structure

operationnal management

1. Organizations & Organizational Stakeholders
Chapter 1

2. Learning Objectives
1.To understand why organizations exist and the
purposes they serve
2.Describe the relationship between organizational
theory and organizational behavior /design.
3.Understand how managers can utilize the principles
of organizational theory to design and change their
organizations to increase organizational effectiveness
4.Appreciate the way in which several factors influence
the design of organizations

3. What is an Organization?
Organization: a tool used by people to
coordinate their actions to obtain
something they desire or value
Entrepreneurship: the process by which
people recognize opportunities to satisfy
needs, and then gather and use resources
to meet those needs

4. How Does an Organization Create Value?
Value creation takes place at three stages: input,
conversion and output.
Inputs – include human resources, information
and knowledge, raw materials, money and capital
Conversion – the way the organization uses
human resources and technology to transform
inputs into outputs
Output – finished products and services

5. Why Do Organizations Exist?
To increase specialization and the division of
labor
To use large-scale technology
•Economies of scale: cost savings that result when
goods and services are produced in large volume
•Economies of scope: cost savings that result
when an organization is able to use underutilized
resources more effectively

6. Why Do Organizations Exist?
To manage the external environment
To economize on transaction costs
•Transaction costs: the costs associated with
negotiating, monitoring, and governing
exchanges between people
To exert power and control

7. Why Do Organizations Exist?

8. Definitions
Organizational theory: the study of how
organizations function and how they affect and
are affected by the environment in which they
operate
Organization behavior: the study of individuals
perceptions, values, learning capacities and
actions while working in groups and within
organizations

9. Organizational culture: the set of shared values
and norms that controls organizational members’
interactions with each other and with suppliers,
customers, and other people outside the
organization
Organizational design: the process by which
managers select and manage aspects of structure
and culture so that an organization can control
the activities necessary to achieve its goals
Definitions

10. Organizational change: the process by which
organizations redesign their structures and
cultures to move from their presents state to
some desired future state to increase their
effectiveness
Organizational structure: the formal system of
task and authority relationships that control how
people coordinate their actions and use
resources to achieve organizational goals
Definitions

11. Mental Ability
Flexibility & Speed of
Closure
Fluency
Inductive Reasoning
Associative Memory
Span Memory
Number Faculty
Perceptual Speed
Deductive Reasoning
Spatial Orientation
Verbal Comprehension
Physical Ability
Dynamic Strength
Extent Flexibility
Body Coordination
Body Equilibrium
Stamina
Individual Differences – Physical

12. Individual Differences –
Psychological
Reality in Work
Organization
Stimuli, e.g. reward
systems, style of
persuasion used by
manager
The Persons Perceptual Process, Organizing &
Translating
Outcomes
A Behavior Response
Attitudes Formed
Observations of
the Stimuli
Evaluation &
Interpretation
Factors Influencing
Perception
•Stereotyping
•Selectivity
•Self Concept
•Attribution
•Attitudes
•Personality

13. Perception – the process by which an individual gives
meaning to the environment. It involves organizing and
interpreting various stimuli into a physiological experience
Stereotype – an over generalized, oversimplified and self
perpetuating belief about peoples personal characteristics
Selectivity – selection of ques that supports their viewpoints
and ignore those that makes them uncomfortable
Selectivity effected by
managers characteristics
situational factors
needs
emotions
Individual Differences –
Psychological

14. •Attribution – the process of perceiving the causes of behaviors
and out comes
–Dispositional attribution – emphasize some aspect of the
individual, such as ability or skill, to explain behavior
–Situational attributions – attributions that emphasize the
environments effect on behavior
•Three criteria
–Consensus – what would most other people say or do in the
same situation
–Distinctiveness – is that behavior typical or a typical of that
person
–Consistency – does the person engage in the behavior
consistently
Individual Differences –
Psychological

15. Meaning of Group
Two or more employees who
interact with each other in
such a manner that the
behavior and/or performance
of a member is influenced by
the behavior and/or
performance of other
members
Types of groups
Formal groups
Command groups
Task groups
Informal groups
Interest groups
Friendship groups
Two or
or more
individuals
Collective
goals
Common
Identity
Collective
norms

16. Characteristics of Groups
Structure
Group members differentiated on factors as experience, competence,
power & status
Members evaluate each others position
Status hierarchy
Status is a consequence of certain characteristics that differentiate one
position from he other
Assigned status may have nothing to do with position in the hierarchy
Roles
Expected roles, perceived roles & enacted roles
Disagreement in expected, perceived and enacted roles can create conflict
Norms
Generally agreed upon standards of behavior
Positive & Negative norms

17. Characteristics of Groups
Leadership – assumed by generally a respected and high status member.
He
Contributes to the group in accomplishing its goals
Enables members to satisfy needs
Embodies the values of the group
Is the choice of group members to represent their viewpoint
Is a facilitator in conflict, initiator of actions and maintains the group as a
function
Cohesiveness strength of group members desires to remain in the group
and their commitment to the group. A group may be attractive because
The goals of the group and member are compatible
The group has a charismatic leader
The reputation of the group indicates that the group successfully accomplished
its tasks
Opportunities for growth and development

18. Nature & Types of Teams
Problem Solving Teams
Formed on a temporary basis to address a specific
problem that is confronting the organization
Virtual Teams
A team that relies on interactive technology to work
together when separated by physical distance
Cross Functional Teams
Teams that are composed of individuals from different
departments or work areas come together on a task or
project basis
Skunk Works
Special project teams involved in innovation

19. Why Teams are Formed
Enhanced Productivity
Technical or Functional Skills
Problem Solving / Decision Making Skills
Interpersonal Skills
Flattening Organizations
Flexibility
Workforce Diversity
Improved Quality
Customer Satisfaction

20. Organizational Reward Systems
Extrinsic Rewards
Financial Rewards , Salary & Wages
Financial Rewards , Fringe Benefits
Interpersonal Rewards, Recognition
Promotions
Intrinsic Rewards
Completion
Achievement
Autonomy
Personal Growth

21. Cafeteria Style Fringe Benefits
contributions to health savings accounts, flexible spending
accounts, retirement plans, group term life insurance, and
adoption assistance plans. The flexible nature of these plans allows
an employer's benefit plan to best fit a diverse workforce
Banking Time Off
traditional leave policies typically grant employees 30 paid days off
per year — 10 days of paid vacation, 8 sick days, 2 personal days,
plus 10 paid holidays, most PTO policies give employees between
15 and 20 days plus company-observed holidays
Skill Based Pay
Gain sharing
Organizational Reward Systems