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Organization planning, design and development

This presentation explains the Organization planning, design and development components of Principles of Management course for UG students

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Organization planning, design and development

  1. 1. Organization Planning, Design and Development K N Tayade Assistant Professor IT Department Government College of Engineering, Amravati Principles of Management
  2. 2. Organization Planning Organization planning defines or reshapes the organization structure of a firm as a basis for 1. Clarifying objectives, roles and relationships. 2. Determining the management resources required now and in the future. 3. Providing information on job requirements so that the right people can be appointed, adequate training can be given, and payments to staff are commensurate with their relative levels of responsibility and value to the company. The organization structure of a firm is the framework for carrying out the task of management.
  3. 3. Organization Planning Techniques 1. Organization Analysis: Process of defining the objectives and activities of a firm in the light of an examination of its external environment and internal circumstances. 2. Organization Design: The information provided by the organization analysis is used to define the structure of the organization, the function of each major activity and the role and responsibilities of each management position in the structure.
  4. 4. Organization Planning Techniques 1. Organization Analysis: Process of defining the objectives and activities of a firm in the light of an examination of its external environment and internal circumstances. 2. Organization Design: The information provided by the organization analysis is used to define the structure of the organization, the function of each major activity and the role and responsibilities of each management position in the structure.
  5. 5. Principal Components of an Organization Management Systems: Structure and Processes 1. Planning System 2. Management Control System 3. Communication and Information System 4. Evaluation and Reward System
  6. 6. Organization Design The organization design is a dynamic process, yet most of the models and concepts are static. Five Basic parts of an Organization 1. Operating core 2. Strategic Apex 3. Middle Line 4. Technostructure 5. Support Staff
  7. 7. Basic Parts of an Organization 1. Operating Core This part consists of those who perform the basic work relating to production or services. They secure inputs for production, transform inputs into outputs, Distribute the outputs or provide direct services. 2. Strategic Apex The strategic apex comprises people having overall responsibility of the organization, namely the chief executive and other top-level managers. They have the responsibility to set goals, prepare plans and develop strategies to implement plans and accomplish goals. 3. Middle Line: It is the linking pin between the strategic apex and the operating core. The chain runs from senior managers down to the first-line supervisors. The chain of authority could be scalar or matrix.
  8. 8. Basic Parts of an Organization 4. Technostructure Technostructure is made up of analyst whose job is to control, stabilize and standardize patterns of activity in the organization. In fully developed organization, the technostructure is at work at all levels of the hierarchy. 5. Support Staff Support staff are engaged in large organizations to encompass more and more boundary activities, such as running an industrial canteen or hospital, in order to reduce uncertainty, and control their own affairs.
  9. 9. Production Resources Resources are inputs to the production system. Their use should be determined depending on their effects on output from the system. The range of resources include: 1. Personnel (Manufacturing) a. Direct labour b. Indirect labour (Store keeper, shop floor personnel) c. Supervision and Management d. Production Administrative Services e. Quality Control Personnel 2. Machines and Equipment These comprise production machines and spares. 3. Materials: a. Direct material b. indirect Material 4. Power: Electrical Power 5. Packaging : 6. Direct Support Services: a. Maintenance b. Tool Room
  10. 10. Production Planning The Objective of production planning is to meet customer delivery dates at a minimum overall cost by planning the sequence of production activities. Production planning takes the given product or line of products and organizes in advance the manpower, material, machines and money required for a predetermined output in a given period of time. This may be broken down into eight constituent objectives. Refer Page No. 110
  11. 11. The Management Process The management process can be considered as a process of a. Planning b. Organizing c. Coordinating d. Control Functional classification of production management decisions (Refer Page 111)
  12. 12. Types of Production Systems On the basis of material flow characteristics, production systems can be grouped into the following four categories: 1. Mass production or flow line production system. 2. Batch production system. 3. Job shop production system 4. Unit manufacture of projects.
  13. 13. Production Control Production control covers all the functions and activities which process orders and, at the same time, has a fundamental effect on production resource utilization and efficiency. Production control is concerned with both marketing and production, linking the two together, so that while there is effective production planning, marketing people respond to production situations.
  14. 14. Objectives of Production Control The objectives of production control system will help to determine: 1. The types of system required 2. The data needed 3. How the system is operated 4. The degree of interrelationship needed within the production control system.
  15. 15. Production Scheduling and Sequencing Both capacity planning and production requirements planning make use of simple scheduling rules when production capacities are related to order input. Priorities are established which determine the use of production equipment and the sequence in which orders will be met. According to Paul Mali’s definition “ A schedule is a time-negotiated agreement on how allocated resources will be committed to achieving an objective.” OR A schedule is a blueprint or a detailed guideline. It is important that the scheduling and sequencing rules agreed at capacity and production requirements planning levels are made explicit and expanded to ensure that scheduling remains as effective as current constraints would allow. Refer Fig 4.8 on page no. 125.
  16. 16. Scheduling Methods Three major scheduling methods are commonly used: 1. Priority Scheduling 2. Serial Scheduling 3. Parallel Scheduling
  17. 17. Thank You

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