Structuring of the Organization what is system and decision making

 Structuring the Organization

Organization

• A group of people trying to achieve something. A cohesive body is established for a specified purpose.
• A structured process in which people, act and interact, for the achievement of objectives. Divided into logical sections with links of responsibility within and external to the sections, the whole being coordinated to …..

Resources of an Organization

• Land
• Capital
• Human
• Repute
• Information

 TYPES OF ORGANIZATIONS

•          Profit & Non-profit Organizations

•          Government, Semi Government and Private Origination

•          Private  &Public

•          Manufacturing and Services Organizations

•          Sales, Import & Export Organizations

•          Finical Organizations

      •         Sole proprietor Organizations

•          Partnership Organizations

•          Joint Stock Organizations

–         Private Limited

–         Public Limited

•          Government Departments

•          Government Companies

      •          Cooperative organization

•          State Corporation

•          Tall & Wide

•          Centralized & Decentralized

 Basis of Structuring

• Span of control
• Span of managerial responsibility
• Objectives
• Unity of purpose
• Communications
• Flexibility
• Operational efficiency
• Planning
• Coordination and control

Organizational – Structure Issues

•          The roles are clearly and flexibly defined.

•          Effective collaboration between units.

•          Effective inter-unit and interpersonal linkages/cooperation.

–            Clear lines of responsibility, authority and accountability.

•             Decision-making, is sufficiently decentralized.

•             Appropriate change management mechanism

Systems of Organization

• There are many systems of an organization. e.g.
• Purchase System
• Import and Export System
• Manufacturing System
• Shipment System
• Customer Service System
• Examination System
• Data Collection System
• Management Information System
• Accounting System

Factors Affecting Organizational Design

Product Team Structure

`

Organizational Change Internal Pressures

•       Problems

•       New Investment

•       Staff Development and promotion

•       Leavers and new joiners of the Organization

Organizational Change External Pressures

•       Government policies

•       Changing Market.

•       Changing Customer Requirement

•       Economic Consideration

•       Supplier Change

•       Competitive pressure

•       Technology Changes

 System

A system is a set of interrelated elements that collectively work together to achieve some common purpose or goal. A football game, for instance, is played according to a system that is composed of such elements as team members, stadiums, equipment, referees, and rules.

Types of System

• Natural System e.g. circulatory system, Nervous System
• Artificial Systems e.g.  Educational Systems,  Business Systems, Information Systems.

 Types of Artificial Systems

There are many systems of an organization. e.g.

• Purchase System
• Import and Export System
• Manufacturing System
• Shipment System
• Customer Service System
• Examination System
• Data Collection System
• Information Management InformationSystems System
• Accounting System

 Information System

An information system is a collection of people, data, and procedures that interact to provide timely data and information, both inter­nally and externally, to authorize people who need it.

 Managerial Tasks

Managers at all levels in all organizations perform each of the four essential managerial tasks of planning, organizing, leading, and controlling

Organizational Performance

   A measure of how efficiently and effectively managers use available resources to satisfy customers and achieve organizational goals

 Efficiency

–      A measure of how well or how productively resources are used to achieve a goal

Effectiveness

–      A measure of the appropriateness of the goals an organization is pursuing and the degree to which they are achieved.

WHAT IS DECISION-MAKING?

• A selection process, concerned with selecting the best type of alternative
• The thought process of selecting a logical choice from the available options
• The process by which managers respond to opportunities and threats
• It leads to commitment. The commitment depends upon the nature of the decision whether short term or long term.

Organizational Performance

Structured decisions are made in situations that are fully understood while in unstructured decisions the situations are uncertain and unclear. ... Structured decisions are made for specified processes like specialized manufacturing processes while unstructured decisions are made for general processes.

 

UNSTRUCTURED DECISIONS

• Unstructured decisions are non-routine and complex.
• We cannot specify some procedures to make a decision
• Ex: expanding the business, moving operations to foreign countries.
• IS must provide a wide range of information products to support these types of decisions at all levels of the organization