Organizing and designing adaptive

organizations- The Nature of

Organizing, Entrepreneuring, and
Reengineering

Chapter 7
 • LO 1 Realize that the purpose of an
organization structure is to establish a formal
system of roles
• LO 2 Understand the meaning of organizing
Learning and organization

Objectives • LO 3 Draw a distinction between formal and

informal organization
• LO 4 Show how organization structures and
their levels are due to the limitation of the
span of management
• LO 5 Recognize that the exact number of
people a manager can effectively
• LO 6 Describe the nature of entrepreneuring
and intrapreneuring
• LO 7 Understand the key aspects and
limitations of reengineering
• LO 8 Demonstrate the logic of organizing and
its relationship to other managerial functions
• LO 9 Appreciate that organizing requires
taking situations into account
 Formal and Informal Organization

• Formal Organization means the intentional structure of roles in a formally

organized enterprise.

• Informal Organization is a network of interpersonal relationships that arise

when people associate with each other.
Formal and informal organizations
 Organizational Division: The
Department

• Department is a distinct area, division, or branch of an

organization over which a manager has authority for the
performance of specified activities.
Organizational
Levels and the
Span of
Management
 Problems with The Operational Factors Determining an Need for Balance
Organizational Levels Management Position: A Effective Span
Situational Approach
Overhead cost Principle of the span of Type of work Span vs. Level
Chances of management (There is a Geographical distribution
miscommunication limit to the number of
subordinates a manager Administrative duties vs.
can effectively supervise, other tasks like training
but the exact number will Employee/ manager
depend on the impact of capability
underlying factors)
 Factors
influencing the
span of
management
 An Organizational Environment for
Entrepreneuring and Intrapreneuring
• The Intrapreneur and the Entrepreneur
• Intrapreneur is a person who focuses on innovation and creativity and who
transforms an idea into a profitable venture while operating within an
established organizational environment.
• Entrepreneur is a person who creates an organization to take advantage of
market opportunities.

• Creating an Environment for Entrepreneurship and intrapreneurship

• Innovation and Entrepreneurship

Reengineering
the
Organization

• Key Aspects of
Reengineering

Management
by processes
The Structure
and Process of
Organizing

• The Logic of Organizing

• Some Misconceptions
 What determines the span of management and hence the
levels of organization?

Food for What determines the basic framework of departmentation, and

thought- what are the strengths and weaknesses of the basic forms?

Questions What kinds of authority relationships exist in organizations?

for
Effective How should authority be dispersed throughout the organization
structure, and what determines the extent of this dispersion?

Organizing
How should the manager make organization theory work in
practice?