ORGANIZING

PowerPoint Presentation Created by: RC T. BIGNOTIA, Ph.D. La Consolacion College, Manila

Chapter 5

Learning Objectives
After completing the chapter, you should be able to: 1. Understand what organizing function involve? 2. Explain what is an organizational chart and its purpose 3. Identify the different types of organizational structure 3. Enumerate the common forms of departmental specialization 4. Explain what are authority, power, accountability and responsibility? How do they relate to an organization hierarchy?

Organizing
Process of grouping together of men and establishing relationships
This answers:

WhoIs the boss? & Who are the subordinates

Defining the
Authority & Responsibility

PLANNING
O R G A N I Z I N G STRUCTURE Of the organization

In the organization
Organizing is like a bridge connecting the PLANNING function to the accomplishment of reality

PEOPLE

RESULTS

Organizing is concerned with:

Determining the specific activities that are necessary to accomplish the planned goals ex. Basketball game

and the establishment of relationship among the personnel

The Organizational Structure

A framework by which job task are divided, grouped, and coordinated

It also provides the framework for the formal distribution-or delegation of AUTHORITY AND RESPONSIBILITY

Which Structure ?
Choosing how to structure an organisation is informed by questions such as these: Which possible structures are suitable means to facilitate the achievement of the organisations purpose and strategy? Which structures can respond to the need for organisational change in the organisations environment? What technologies (e.g. IT) does/will the organisation use, what organisational forms does this go with?

HOW ARE JOBS BEING GROUPED AND DIVIDED in an ORGANIZATION?

- SPECIALIZATION Refers to the degree
to which task in an organization are divided into separate jobs. Also known as division of labor DEPARTMENTALIZATION Grouping of jobs into a common tasks

FORMS OF DEPARTMENTALIZATION
FUNCTIONAL DEPARTMENTALIZATION
PRODUCT DEPARTMENTALIZATION

GEOGRAPHICAL DEPARTMENTALIZATION
CUSTOMER DEPARTMENTALIZATION PROCESS DEPARTMENTALIZATION

FORMS OF DEPARTMENTALIZATION
Functional: Groups Jobs by functions performed Product: Groups jobs by Product line

Geographical: Groups jobs on the basis of territory

Customer: Groups jobs on the basis of common customers

Process: Groups jobs on the Basis of product or Customer flow

FUNCTIONAL DEPARTMENTALIZATION

PRODUCTION DEPT.

MARKETING DEPT

FINANCE DEPT

HUMAN RESOURCE DEPT.

+ Efficiencies from putting together similar specialties and people with common skills, knowledge, and orientation
- Poor communication across functional areas

PRODUCT DEPARTMENTALIZATION

REF. DIVISION

FANS DIVISION

LAMPS DIVISION

STOVES DIVISION

+ Allows specialization in particular products and services - Limited view of organizational goals

GEOGRAPHICAL DEPARTMENTALIZATION

REGION 4

REGION 5

REGION 6

REGION 7

+ More effective and efficient in handling specific regional issues that arises - From feel isolated from other organizational areas

PROCESS DEPARTMENTALIZATION

RECEIVING

SPINNING

WEAVING

BLEACHING

+ More efficient flow of work activities - Can only be used with certain types of products

ORGANIZATIONAL CHART -is a schematic model a static

chart that can assists in describing or designing organizational relationships -the traditional way of depicting the structure of an organization is to draw an organizational chart.

Organizational chart can assists in structuring authority and accountability relationships, activities, and communications channels.

Advantages of Organizational Chart: 1. OC helps to decides organizational relationships 2. OC provides us with a picture of the structure.

The Organization Chart helps to provide answers questions such as:

1. Who am I ?( What is my position in the 2. 3. 4. 5. 6. 7. organization) What do I do? ( What are my organizational tasks or functions) To whom am I accountable? Who is accountable to me? What do they do? To whom are they accountable? Who is accountable to them?

TYPES OF ORGANIZATION STRUCTURES

1. LINE ORGANIZATION- This is the simplest form of structure and refers to a direct straight-line responsibility and control from top management to the middle management and to the lower level.

MANAGER

SUPERVISOR
WORKER

SUPERVISOR
WORKER WORKER WORKER

WORKER

WORKER

It acquired its name because there are direct single lines of authority and responsibility over their activities involving their functions. It is the oldest type based on the classical principle of Scalar Chain wherein the authority passes responsibility directly to his immediate supervisor.

LINE ORGANIZATION

worker

worker

worker

worker

worker

worker

worker

worker

worker

LINE ORGANIZATION
Characteristics: 1. Common to small & medium size companies 2. The manager of the department are given complete authority and responsibility over the activities involving their functional areas

Advantage:
1. Authority and responsibility are clear in this type in this type of organization & that clarity helps to avoid organizational problem Disadvantage: 1. The manager must be familiar with diverse activities related to the operation of the dept.

2. Line & Staff Organization-This is basically a line organization with the addition of Staff. A staff is a specialist that performs, assist, support or advisory functions.
MANAGER
STAFF STAFF

SUPERVISOR

SUPERVISOR

WORKER

WORKER

WORKER

WORKER

WORKER

WORKER

LINE & STAFF

WORKER

WORKER

WORKER

WORKER

WORKER

WORKER

WORKER

WORKER

WORKER

TYPE OF STAFF:
1. PERSONAL STAFF Assists the manager in managing the organization (ex. Staff assistant, executive assistant, administrative assistant)

2. SPECIALIZED STAFF Provides assistance in area of specialization. The specialized staff knows more about the area than anyone in the organization( ex. Automation of Enrollment)
3. GENERAL STAFF- Responsible for accomplishing a function of the organization ( ex. The army has employed the general staff concept by having general officers in-charge of separate functions of supply, personnel, intelligence, operations, etc.)

3. FUNCTIONAL ORGANIZATION- Utilizes the pure services of experts or specialists. This removed the staff specialists from his assisting capacity and gave him the pure authority and responsibility for supervision and administration of the function, replacing the foreman or supervisor. MANAGER

Gang Boss

Inspector

Work Boss

Shop Boss

Instruction Boss

Speed Boss

Repair Boss

Time Boss

WORKERS

 To ensure that activities in the organization are dealt with uniformity throughout the organization the specialist is given functional authority over limited are of activity FUNCTIONAL ORGANIZATION violates the Principles of Unity of Command. No one subordinate can have more than one supervisor.

CHAIN OF COMMAND is the continuous line of authority that extends from upper organizational levels to the lowest levels and clarifies who reports to who.

contemporary managers considers the

implications of chain of command in when deciding how best to structure their organization

How many employees can a manager efficiently and effectively manage? SPAN OF CONTROL
The number of employees a manager can efficiently and effectively manager
When the span becomes to large, employees performance suffers because manager can no longer have the time to provide the necessary leadership and support.

PRESIDENT

Accountability Authority & Power

VP-Production
VP- Marketing

VP-Admin.

WORKER

WORKER

WORKER

WORKER

WORKER

WORKER

WORKER

WORKER

WORKER

Structuring Authority, Power, Accountability and Responsibility Relationships:

Chain of Command consists of four concepts:

1. 2. 3. 4. AUTHORITY POWER ACCOUNTABILITY RESPONSIBILITY

AUTHORITY/IES The power a manager needs to

carryout responsibilities The right inherent in managerial position to tell people what to do and to expect them to do it.

AUTHORITY
In an organization the managers authority consists of the right to do such things as: 1. make decisions within the scope of his or her own authority 2. assign tasks to subordinates, and 3. expect and require satisfactory performance from subordinates

DELEGATION to the process by which supervisors gives a subordinates the authorities and responsibilities to do the supervisors job.

DELEGATION OF AUTHORITY:

CAN AUTHORITY BE DELEGATED?

WHAT CAN BE DELEGATED?

Activities where staff are better qualified Responsibilities that would develop subordinates Functions/tasks that someone else could complete faster General routine tasks such as:
Proper use and control of materials Record maintenance Reports preparation

Responsibility is the obligation to do something

Can Responsibility be delegated?

Accountability an obligation of member of an organization to report to his superior how well he has exercised his responsibility and the use of of the authority delegated to him.

Can Accountability be Delegated?

POWER

the ability to do something - a means to enforce the right of mgrs. - A manager power may be seen as the ability to cause subordinate to do what the manager wishes them to do

A manager power may be measured in terms of the ability to: 1. give reward 2. promise reward 3. threaten to withdraw current reward 4. threaten punishment 5. punish Is it possible that a manager may have the authority (right) to do something, but lack the power (ability) to do it?

CENTRALIZATION VS. DECENTRALIZATION

CENTRALIZATION - The degree to which decision is concentrated at a single point in the org. DECENTRALIZATION The degree to which lower level employees provide input or actually make decision

Review Questions:
1. Why is organizing important? 2. Identify the ways that managers can departmentalize work activities 3. How is the chain of command concept used in an organization 4. Contrast the strengths and weaknesses of the traditional organizational structures 5. What is the importance of authority and power to a managers job? Task assignment: Study the schools different organizational chart, how do they differ from each other, what does this organizational chart tells you?

Research Work: Organizational Design Decisions: Mechanistic vs. Organic Organization Contemporary Organizational Designs: Team-based Structure, Matrix and Project Structure, Autonomous Internal Unit, The Boundaryless Organization