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Organizational Structure

Organizing is the function of management which follows planning. It is a function in which the synchronization and combination of human, physical and financial resources takes place. All the three resources are important to get results. Therefore, organizational function helps in achievement of results which in fact is important for the functioning of a concern. According to Chester Barnard, “Organizing is a function by which the concern is able to define the role positions, the jobs related and the co-ordination between authority and responsibility. Hence, a manager always has to organize in order to get results.

A manager performs organizing function with the help of following steps

     1.   Identification of activities - All the activities which have to be performed have to be identified        first. For example,quality control, inventory control,recording information etc. All these activities have to be grouped and classified into units

2.  Organizing the activities - In this step, the manager tries to combine and group similar and related activities into units or departments. This organization of dividing the whole concern into independent units and departments is called departmentation.
3. Classifying the authority - Once the departments are made, the manager likes to classify the powers and its extent to the managers. This activity of giving a rank in order to the managerial positions is called hierarchy. The top management is into formulation of policies, the middle level management into departmental supervision and lower level management into supervision of foremen. The clarification of authority help in bringing efficiency in the running of a concern. This helps in achieving efficiency in the running of a concern. This helps in avoiding wastage of time, money, effort, in avoidance of duplication or overlapping of efforts and this helps in bringing smoothness in a concern’s working.
4. Co-ordination between authority and responsibility - Relationships are established among various groups to enable smooth interaction toward the achievment of the organizational goal. Each individual is made aware of his authority and he/she knows whom they have to take orders from and to whom they are accountable and to whom they have to report. A clear organizational structure is drawn and all the employees are made aware of it.

Organization
    It is a mechanism or structure that enables different groups of people to work together effectively.Organization establishes the pattern of relationship by giving duties and responsibilities to the individuals.It coordinates all the activities of individuals to achieve common goals of an enterprise.Proper organization facilitates the effective use of the manpower and easy administration.

Organizational Structure 
           An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment.

    An organization can be structured in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs.Organizational structure affects organizational action in two big ways. First, it provides the foundation on which standard operating procedures and routines rest. Second, it determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organization’s actions.
    The structure of one industrial organization differs from that of another organisation and it depends upon
1.Size of the organization
2.Nature of the product being manufactured
3.Complexity of the problems being faced

Few commonly known types of organizational structures are

1. Line
2. Functional
3. Line and Staff
4. Matrix

Line Organization

It is the most oldest and simplest method of administrative organization. According to this type of organization, the authority flows from top to bottom in a concern. The line of command is carried out from top to bottom. This is the reason for calling this organization as scalar organization which means scalar chain of command is a part and parcel of this type of administrative organization. In this type of organization, the line of command flows on an even basis without any gaps in communication and co- ordination taking place.

Merits

• Simplest
• Unity of Command
• Better discipline
• Fixed responsibility
• Flexibility
• Prompt decision

Demerits

• Over reliance
• Lack of specialization
• Inadequate communication.
• Lack of Co-ordination
• Authority leadership

 Functional Organization

It has been divided to put the specialists in the top position throughout the enterprise. This is an organization in which we can define as a system in which functional department are created to deal with the problems of business at various levels. Functional authority remains confined to functional guidance to different departments. This helps in maintaining quality and uniformity of performance of different functions throughout the enterprise.

Merits

• Specialization
• Effective Control
• Efficiency
• Expansion

Demerits

• Lack of co-ordination
• Conflicts
• High costs
• Difficult in fixing responsibility

Line and Staff Organization

Line and staff organization is a modification of line organization and it is more complex than line organization. According to this organization, specialized and supportive activities are attached to the line of command by appointing staff supervisors and staff specialists who are attached to the line authority. The power of command always remains with the line executives and staff supervisors guide, advice and council the line executives.

Merits

• Expert advice
• Better co-ordination
• Training
• Unity of Action
• Balanced decisions

Demerits

• Assumption of authority
• Line and Staff conflicts
• Lack of sound advice

Matrix Organization

In matrix organization  people who have similar skills will be gathered together to work on particular assignments. So for instance, all engineers may be working within one particular engineering department, and be under the same management - but these engineers will no doubt be assigned to a number of different projects, and have to report to different project managers during the process of completing the project. Hence, every engineer within the workplace will have to work under a number of different managers in order to get their own particular job done. 

Merits

• Development of skills
• Higher Efficiency
• Optimum utilization of resources
• Better decisions

Demerits

• Increase in workload
• High operational cost
• Absence of unity of command
• Complexity

Importance of Organizational Structure

 Organization structure is like the framework of an organization. Organizational structures imply formal relationships with well defined duties and responsibilities. It also implies to the hierarchical relationships between superior and subordinates within the organization. It helps in coordinating various tasks and activities that are assigned to different persons and departments. Organizational structure helps in having set of policies, procedures, standards and methods of evaluation of employee’s performance. It should be developed as per needs of the people in the organization. 

      To conclude I can say that Organizational structure plays significant role in effective and efficient functioning of organization.

Company Profile

BAYERISCHE MOTOREN WERKE (BMW)

1.Origin

Bayerische Motoren Werke AG (English: Bavarian Motor Works) is a German automobile, motorcycle and engine manufacturing company founded in 1916 by Karl Friedrich Rapp. BMW is headquartered in Munich, Bavaria, Germany. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW producesmotorcycles under BMW Motorrad and Husqvarna brands.

BMW Headquarters in Munich, Germany 

2.History

BMW was established as a business entity following a restructuring of the Rapp Motorenwerke aircraft manufacturing firm in 1916. After the end of World War I in 1918, BMW was forced to cease aircraft engine production by the terms of the Versailles Armistice Treaty. The company consequently shifted to motorcycle production in 1923, once the restrictions of the treaty started to be lifted, followed by automobiles in 1928–29.

        The circular blue and white BMW logo or roundel evolved from the circular Rapp Motorenwerke company logo, from which the BMW Company grew, combined with the blue and white colors of the flag of Bavaria. The logo has been portrayed as the movement of an aircraft propeller with the white blades cutting through a blue sky.The first car which BMW successfully produced and the car which launched BMW on the road to automobile production was the Dixi, it was based on the Austin 7 and licensed from the Austin Motor Company in Birmingham, England.

        The controlling majority shareholder of the BMW Aktiengesellschaft since 1959 is the Quandt family, which owns about 46% of the stock. The rest is in public float. BMW acquired the Hans Glas Company based in Dingolfing, Germany, in 1966. It was reputed that the acquisition was mainly to gain access to Glas' development of the timing belt with an overhead camshaft in automotive applications.Glas vehicles were briefly badged as BMW until the company was fully absorbed.In 1992, BMW acquired a large stake in California based industrial design studio DesignworksUSA, which they fully acquired in 1995.In July 2007, the production rights for Husqvarna Motorcycles were purchased by BMW.BMW Motorrad plans to continue operating Husqvarna Motorcycles as a separate enterprise.

        In June of 2012 BMW was listed as the #1 most reputable company in the world by Forbes.com. Rankings are based upon things like “people’s willingness to buy, recommend, work for, and invest in a company is driven 60% by their perceptions of the company and only 40% by their perceptions of their products.”

3.Milestones

1910-1920

1916 - Establishment of BMW.

1921-1930

1922 - Company relocation and new beginning.

1923 - BMW R 32 – the first BMW motorcycle.

1931-1940

1934 - Aero-engine manufacture becomes autonomous.

1936 - Establishment of the “Shadow Plant” Allach.

1941-1950

1941 - BMW in World War II.

1942 - Forced labour at BMW.

1945 - Reconstruction difficulties.

1945 - The Munich plant is dismantled.

1951-1960

1951 - The BMW 501. The first post-war BMW automobile.

1961-1970

1961 - The New Class makes a breakthrough.

1967 - New location: the plant group Dingolfing.

1969 - Motorcycles to Berlin.

1971-1980

1971 - BMW Kredit GmbH.

1972 - BMW starts up in South Africa.

1972 - The founding of BMW Motorsport GmbH.

1973 - The BMW headquarters and the Museum.

1973 - Worldwide creation of sales subsidiaries.

1981-1990

1985 - BMW Technik GmbH.

1987 - BMW starts up in Regensburg.

1991-2000

1994 - BMW goes to the USA.

1994 - Acquisition of the Rover Group.

1998 - Rolls-Royce comes to BMW.

2000 - The Eberhard von Kuenheim Foundation.

2000 - The BMW Group establishes a new trajectory.

2001-2010

2001 - The MINI – Premium in the small-car segment.

2003 - Rolls-Royce Plant Goodwood.

2003 - Rolls-Royce Motor Cars launches new Phantom on the market.

2004 - The BMW 1 Series – Driving pleasure for the compact class.

2005 - The Leipzig Plant starts up production.

2007 - Opening of BMW Welt.

2007 - Takeover of the Husqvarna brand.

2007 - Strategie Number ONE.

            In autumn 2007, BMW Group adopts the Strategy Number ONE with its four pillars: “Growth”, “Shaping the future”, “Profitability” and “Access to technology and customers”. It aligns the BMW Group with two targets: to be profitable and to enhance long-term value in times of change. The mission statement up to the year 2020 is clearly defined: the BMW Group is the world’s leading provider of premium products and premium services for individual mobility.

4.Vision & Mission

Vision:BMW Vision Efficient Dynamics. A vehicle that previews tomorrow’s driving pleasure using today’s technology.

Mission:To make BMW Group the world’s leading provider of premium products and premium services for individual mobility.

Slogan: Sheer Driving Pleasure.

5.Awards & Recognition

The numerous international awards won by BMW underline its success and help them to innovate further. 

International Engine of the Year 2009.

The "Grüne Lenkrad" for environmentally friendly technologies.

The "World Green Car of the Year" award for the BMW 118d. 

The "Auto 1 von Europa" from the magazine "Auto-Bild".

The "Paul-Pietsch-Preis" from the magazine "auto, motor und sport" for especially innovative developments

 in the car industry.

The "Goldene Öltropfen", The "Innovationspreis" from "AutoScout24" 

First place in "Top Auto".

The "Autorevue Award" for innovation, The "Große Österreichische Automobilpreis".

The "Green Heroes" award for six of our models from the British magazine "What Car?" 

are just some of the titles that acknowledge BMW. 

6.Products

Cars 

   Motorcycles

Bicycles

7.Financial Performance and other figures

8.Plants/Locations

9.Corporate Social Responsibility

  

10.References

• BMW group Website
• Wikipedia
• BMW Motorrad website
• Different Country websites of BMW
• Annual Report of BMW 2011

LE 03

TEAMWORK 

Team Work is probably the most important aspect of any organization. A person might be very effective when working individually but when he is working in an organization he should be able to work in a team, have mutual understanding with all the team members,work towards achieving the organizational goals rather than individual goals.

Now let us look at an example about teamwork and its importance.

VALLEY CROSSING 

Task: Three persons should cross the valley using a long stick.

Now we have two ways to do the task

1. Place the stick such that it acts like a bridge between the valleys and each member individually goes on it to reach the other side.

2. All the team members should hold and rest the stick on their shoulder and while one member is crossing the valley the other two should balance it.

If we properly analyze the two methods the first one seems to be very risky and the chance of completing the task is very less. Here we come across another important aspect of management called Planning. In any organization even if we have all the resources to complete a task but there is no proper planning we cannot do anything with our resources but drain them. So one point we should note is

               “The Beauty of Management lies in Planning”.            

  Now in the second method we can see that as a team the three members can perform the task effectively with proper understanding and effective communication among themselves.The picture below gives an idea about the process.

                      

There are totally 9 steps involved in completing the task and the step by step procedure can be seen in the picture below.

                         

Now from the steps we can see that 

All three member roles are similar but not same and are equivalent in terms of total effort and risk.

All three member roles have equal distribution of 

•   Risky (1) situations  
•   Half risky (2) situations
•   No risk (2) situations

All three member roles are designed equally strong and responsible.

All three members were equal contributors for the overall task and the communication and feedback among the members was instantaneous.Interdependence among the three member roles was made crucial.So we can see that difficult tasks can be completed effectively when there is a proper planning and teamwork which is the main reason for this task to get completed, gives us the idea about how important it is in an organization to work in teams and achieve the organizational goals.

       Structuring the Team roles and Designing the solution for completing the task is the main criteria of the management and another point we can make a note of is that in organizations 

"Managers should be solution Designers". 

          To conclude we can say that Teamwork plays a very important role in any organization and people are always the assets of the organization.But one thing we should keep in mind while creating organizations is that "Organizations should be designed as per the customers and then people should be accordingly adjusted" but not the other way around.

LE 02

Khan Academy & Management lessons to learn from it

INTRODUCTION
The Khan Academy is a not for profit educational organization started by educator Salman Khan in 2006.The website supplies a free online collection of more than 3200 lectures across 18 different subjects.

Vision & Mission 

  Khan has stated a vision of turning the academy into a charter school.
            This could be the DNA for a physical school for the students where they spend 20 percent of the day watching videos and doing self paced exercises and the rest of the day building robots or painting pictures or composing music or whatever.

  It is our mission to provide a world class education to anyone, anywhere.With this in mind, we want to share our content with whoever may find it useful.

The Khan Academy started with Khan remotely tutoring one of his cousins interactively using Yahoo Doodle images. Based on feedback from his cousin, additional cousins began to take advantage of the interactive, remote tutoring. In order to make better use of his and their time, Khan transitioned to making YouTube video tutorials.

What started as a tutoring lesson for his cousins has now evolved into a global and innovative new generation organization and anyone in the world with access to YouTube can learn from the videos.Now that's something incredible and also it is for free, when in today's world education and tuition's have become so expensive and everyone cannot afford it.

What's in it for us to learn?
Now what's there in it for us to learn as there are many people who deliver online lectures and upload videos on sites.Watch the video uploaded below and see for you.

This is where Khan has been innovative in his teaching techniques.How? Rather than going for the traditional blackboard approach he has used software's for free natural drawing,screen capture and microphones to record the videos which can effectively communicate the lectures so that anyone who watches the videos can understand them without any confusions.This simple but creative way of teaching reminds me of KISS - Keep it simple,silly!
     A good example of Theory Y manager I can say.The way he inspires the kids and motivates those minds to take the path of excellence and intelligence,which can have a greater impact on the society and the generations to come is of great significance.

Decision making : Being a graduate from MIT and HBS and working as an analyst in a Hedge fund in Boston, Khan was was in a well settled position.But after tutoring his cousins and the kind of response he was getting for his videos he was in a dilemma whether to continue in his job or take up the idea and do something for the society.This is where decision making skills matter a lot and after contemplating about his job or his idea for something better, He chose to follow his instincts and his entrepreneurial activity to start something unique, something simple but something that revolutionized teaching.


Team Work : It is one of the most important aspect of any organization and Khan Academy is a great example of it. The TEAM has people from different backgrounds and regions but all working with a single goal in mind to provide better teaching experiences to all.


So all in all I can say Khan Academy has been a global and innovative new generation organization with a mission and vision to provide quality teaching experiences to students all around the world.

LE01

POM-Principles of Organization and Management I thought was a book reading subject and classes would be boring but after attending the classes my perception changed totally and I really appreciate the way our sir Dr.Mandi has taken the classes.

Sir introduced to us something unique

SOCHO BEECHO...BEECHO SEEKO...SEEKO SOCHO

which translates to think properly about what you are selling then while selling it learn from it and then learn and think from what you have done and the importance of it can be learned through "MANDI"
the annual one day event in our college, where, we students sell different products made by an NGO on the streets of Mumbai and the real learning of a market situation can be learnt first hand through this unique program started by our own sir Dr.Mandi.

   Then sir showed us a video "Another Brick in the wall" by Pink Floyd which was a satire on the educational system and how children were coming out of school as the end products of a factory while their creativity, imagination and logical thinking was drained out during their school days.This showed us some flaws in our present educational system and how this rote learning process in schools should make way for more logical ,creatively thinking and practically approaching mindset of children in the schools.

      Then emphasis was laid on "HAMARA DHANDA" a.k.a Entrepreneurship and its importance, what can be done and what should be done to encourage it among students and how they should create opportunities rather waiting for them.

SETTING A GOAL

                    The class started off by sir mentioning how important it is to set a goal and how one should be sincere and effective in reaching the goal.In a managerial position many challenges will be there while working through the process of goal completion and how determinedly a manager utilizes his resources to the best of his use and reaches his goal within the stipulated time is of utmost importance.

          Then sir discussed about a goal setting process called S.M.A.R.T where

S  - SPECIFIC
M - MEASURABLE
A - ATTAINABLE
R - RELEVANT
T - TIMED

           And to illustrate it sir started a game wherein we have to place cubes one over the other and the person who would be doing the task would be blindfolded and using the opposite hand (like a right handed person would be using a left hand) and placing the cubes.Now the moment after sir explained us the rules of the game everyone thought that it was very difficult to achieve it and we wouldn't be able to place more cubes.Now sir asked a question to estimate how many cubes can be placed in that manner and around 45% of the class said <15 another 40% between 15-20.Now to accomplish this task three students were called in  and each student represented a different position in an organization like the top management, middle level manager and the working executive.

            The whole task was really an eye opener and the way the game started and proceeded till the task was completed gave some really good insights into how management of an organization works and how important it is to communicate properly regarding the goals and the process of accomplishing the goal.The mutual understanding of the three levels of management played the pivotal role in this task and this shows that  just by having resources and time one cannot reach his goals but how effectively we plan, how properly we organize the task and how efficiently we complete the task within the time is of important.Now within the stipulated time when the group completed the task everyone in the class was amazed as they were able to put up 18 cubes and i'm sure that if given sometime they would have put up some more.

So all in all i can say that just by looking at a daunting task one shouldn't be deterred but he should be able to properly organize his tasks break them into different smaller tasks make a goal plan use his resources and time properly and effectively such that the goal can be reached efficiently within the time.

To conclude I can say the sessions taken by our sir have been of great significance and have opened up my thinking process and they gave some really good insights about management,team work,setting up goals,making determined efforts towards achieving them and never back down from daunting tasks no matter  how impossible they look but make earnest efforts and work effectively and efficiently to make them look possible.