WEEK 4 CREATING FLEXIBLE ORGANISATION

WEEK 4

A group of two or more people
working together to achieve
common goal

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1. JOB DESIGN 3
2. DEPARTMENTALISATION
3. DELEGATION
4. SPAN OF MANAGEMENT
5. CHAIN OF COMMAND

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PRESIDENT CHAIN OF COMMAND
VICE PRESIDENT Line of authority from higher
level to the lower level

VICE PRESIDENT

VICE PRESIDENT VICE PRESIDENT

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JOB SPECIALISATION PATCHING CUTTING POCKET
 Separate the organization
SHIRT
activities COMPANY
 Make it into distinct task
 Different tasks, different THREADING BUTTON

people
 Small part of larger process

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JOB TOO LARGE SAVE TIME INNOVATION
For a person to Not lose time When specializes
changing from one east to innovate
handle task to another task
EASY TRAINING
SPECIALIZED Easy job traininh
Highly specialized,
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efficiently

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Job Rotation • Systematic rotation
• Temporary assign new task to new people

Job • Increase number of task
Enlargement • Within one job

Job • Increase number of task
Enrichment • Within one job
• With authority

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GROUPING JOBS INTO
MANAGEABLE UNIT

Different unit doing different task

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FUNCTION

COMBINATION PRODUCT

CUSTOMER LOCATION

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 Group the jobs based on specialized activities 10
 Example:
 Finance, marketing, operation, human resource, and

administration
 Normally for new business, or small business
 Disadvantage: slow decision making

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 Group the jobs based on goods or services 11
 Different unit = different product/services

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 Group the jobs based on geographic area 12

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 Group the jobs based on the needs of various customer
population

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Organisation structure have two or more forms of departmentalization
= combined together

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Assign part of STEPS OF
manager’s work and DELEGATION
power to other workers
RESPONSIBILITY
HASNAH ABDUL KADIR Assign task

AUTHORITY
Assign power

ACOUNTABILITY
Create obligation to do

task

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 Manager reluctant to delegate job because do not trust the
staff’s capability in doing the job

 Manager fear the staff will do better: the staff becomes
threat to the manager

 Manager disorganized – unable to plan for the delegation

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DECENTRALISATION CENTRALISATION

Spread authority widely Authority/power
to the lower orgz level concentrate to the

Give the upper level
power/authority to the
Centralised organization
lower level to make
decision 17

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 Depends on external environment
 Nature of decision. High risk, more important decision

making = CENTRALISATION
 Ability of lower level manager to make decision
 Firm’s traditional practice

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OR SPAN OF CONTROL

DEFINITION:
NUMBER OR WORKERS WHO REPORT DIRECTLY TO ONE
MANAGER

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HASNAH ABDUL KADIR WIDE VS NARROW
 # of subordinates
ORGANISATION HEIGHT
 # of layers
 # of staff
 Cost

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