ORGANIZING TECHNICAL ACTIVITIES

CHAPTER CONTENT
 REASON OF ORGANIZING
 ORGANIZING DEFINED
 THE PURPOSE OF STRUCTURE
 THE FORMAL ORGANIZATION
 INFORMAL GROUP
 TYPES OF ORGANIZATIONAL STRUCTURE
 TYPES OF AUTHORITY
 THE PURPOSE OF COMMITEES

 INTODUCTION
 THE ENGINEER MANAGER NEEDS TO ACQUIRE VARIOUS SKILLS IN MANAGEMENT,
INCLUDING ORGANIZING TECHNICAL ACTIVITIES. IN THIS HIGHLY COMPETITIVE
ENVIRONMENT, THE UNSKILLED MANAGER WILL NOT BE ABLE TO BRING HIS UNIT
OR HIS COMPANY, AS THE CASE MAY BE, TO SUCESS
 EVEN TODAY, SKILLS IN ORGANIZING CONTRIBUTE LARGERLY TO THE
ACCOMPLISHMENT OF THE OBJECTIVES OF MANY ORGANIZATION, WHETHER
THEY WERE PRIVATE BUSINESS OR OTHERWISE.
 THE OPPORTUNITIES OFFERED BE SKILLFULL ORGANIZING ARE TOO IMPORTANT
FOR THE ENGINEER MANAGER TO IGNORE. THIS CHAPTER IS INTENDED TO
 REASON OF ORGANIZING


FUNCTIONAL ORGANIZATION
FUNCTIONAL ORGANIZATION IS WHERE EVERYONE IS ENGAGED INTO ONE FUNCTIONAL
ACTIVITY. FUNCTIONAL ORGANIZATION STRUCTURES ARE VERY EFFECTIVE IN SMALLER FIRMS,
ESPECIALLY “SINGLE-BUSINESS FIRMS WHERE KEY ACTIVITIES REVOLVE AROUND WELL-
DEFINED SKILLS AND AREAS OF SPECIFICIALIZATIONS.”

 ADVANTAGES
 THE GROUPING OF EMPLOYEES WHO PERFORM A COMMON TASK PERMIT
ECONOMIES OF SCALE AND EFFICIENT RESOURCE USE.
 THE STRUCTURE PROMOTES HIGH-QUALITY TECHNICAL PROBLEM-SOLVING.
 SINCE THE CHAIN OF COMMAND CONVERGES AT THE TOP OF THE ORGANIZATION,
DECISION-MAKING IS CENTRALIZED, PROVIDING A UNIFIED DIRECTION FROM THE
TOP.
  COMMUNICATION AND COORDINATION AMONG EMPLOYEES WITHING EACH
DEPARTMENT ARE EXCELLENT.
 THE ORGANIZATION IS PROVIDED WITH IN DEPTH SKILL SPECIALIZATION AND
DEVELOPMENT.
 EMPLOYEES ARE PROVIDED WITH CAREER PROGRESS WITHIN FUNCTIONAL
DEPARTMENTS

 DISADVANTAGES
 COMMUNICATION AND COORDINATION BETWEEN THE DEPARTMENTS ARE OFTEN
POOR
 DECISIONS INVOLVING MORE THAN ONE DEPARTMENT PILE UP AT THE TOP
MANAGEMENT LEVEL AND ARE OFTEN DELAYED.
 WORK SPECIALIZATION AND DIVISION OF LABOR, WHICH ARE STRESSED IN A
FUNCTIONAL ORGANIZATION, PRODUCE ROUTINE, NON MOTIVATING EMPLOYEE
TASKS.
 ITS IS DIFFICULT TI IDENTIFY WHICH SECTION OR GROUP IS RESPONSIBLE FOR
CERTAIN PROBLEMS.
 THERE IS LIMITED VIEW OF ORGANIZATIONAL GOALS BY EMPLOYEES.
 THERE IS LIMITED GENERAL MANAGEMENT TRAINING FOR EMPLOYEES.

PRODUCT OR MARKET ORGANIZATION

PRODUCT OR MARKET ORGANIZATION REFERS TO THE ORGANIZATION OF THE COMPANY
BY DIVISION THAT BRINGS TOGETHER ALL THOSE INVOLVED IN ONE PARTICULAR TYPE OF
FUNCTION, PRODUCT OR CUSTOMER. THE PRODUCT OR MARKET ORGANIZATION, WITH ITS
FEATURE OF OPERATING BY DIVISIONS IS “APPROPRIATE FOR A LARGE CORPORATION WITH
MANY PRODUCT LINES I SEVERAL RELATED INDUSTRIES”.
 ADVANTAGES
 THE ORGANIZATION IS FLEXIBLE AND RESPONSIVE TO CHANGE.
 THE ORGANIZATION PROVIDES A HIGH CONCERN FOR COSTUMER’S NEEDS.
 THE ORGANIZATION PROVIDES EXCELLENT COORDINATION ACROSS
FUNCTIONAL DEPARTMENTS.
 EASY PINPOINTING OF RESPONSIBILITY FOR PRODUCT PROBLEMS.
 EMPHASIS ON OVERALL PRODUCT AND DIVISION GOALS.
  THE OPPORTUNITY FOR THE DEVELOPMENT OF GENERAL MANAGEMENT SKILLS
IS PROVIDED.

 DISADVANTAGES
 HIGH POSSIBILITY OF DUPLICATION OF RESOURCES ACROSS DIVISIONS
 LESS TECHNICAL DEPTH AND SPECIALIZATION IN DIVISIONS
 POOR COORDINATION ACROSS DIVISIONS.
 LESS TOP MANAGEMENT CONTROL
 COMPETITION FOR CORPORATE RESOURCES.

MARKET ORGANIZATION
MATRIX ORGANIZATION IS WHERE AN EMPLOYEE REPORTS TO BOTH DIVISION MANAGER
AND PROJECT OR GROUP MANAGER. A MATRIX ORGANIZATION, ACCORDING TO THOMPSON AND
STRICKLAND, “IS A STRUCTURE WITH TWO (OR MORE) CHANNELS OF COMMAND, TWO LINES OF
BUDGET AUTHORITY, AND TWO SOURCES OF PERFORMANCE AND REWARD.” HIGGINGS
DECLARED, “THE MATRIC STRUCTURE WAS DESIGNED TO KEEP EMPLOYEES IN A CENTRAL POOL
AND TO ALLOCATE THEM TO VARIOUS PROJECTS IN THE FIRM ACCORDING TO THE LENGTH OF
TIME THEY WERE NEEDED.”
 ADVANTAGES
 MORE EFFICIENT USE OF RESOURCES THAT THE DIVISIONAL STRUCTURE.
 FLEXIBILITY AND ADAPTABILITY TO CHANGING ENVIRONMENT.
 THE DEVELOPMENT OF BOTH GENERAL AND FUNCTIONAL MANAGEMENT SKILLS
ARE PRESENT.
 INTERDISCIPLINARY COOPERATION AND ANY EXPERTISE IS AVAILABLE TO ALL
DIVISIONS.
 ENLARGED TASKS FOR EMPLOYEES WHICH MOTIVATE THEM BETTER

 DISADVANTAGES
 FRUSTRATION AND CONFUSION FROM DUAL CHAIN OF COMMAND.
 HIGH CONFLICT BETWEEN DIVISIONAL AND FUNCTIONAL INTERESTS.
 MANY MEETINGS AND MORE DISCUSSION THAT ACTION.
 A NEED FOR HUMAN RELATIONS TRAINING FOR KEY EMPLOYEES AND MANAGERS.
 TENDENCY FOR POWER DOMINANCE BY ONE SIDE OF THE MATRIX.