CHAPTER 3

ORGANIZING

Define orgn
Identify importance of organizing
Identify the steps in organizing process
Define organizational structure
Types of orgn structure, adv & disadv
Division of labor concept adv & disadv
Accountability and responsibility
Define delegation
Concept of delegation
Principles of delegation

Problems in delegation
Centralization & decentralization
Adv & disadv centralization &
decentralization

Definition of organizing efficient way of managing

organizational resources in order to achieve the planned
goals and objectives.
Coordination of human resources and orgn resources
whereby jobs, physical resources or financial resources
are allocated within the organization.

Organizing-is a process of
forming an organizational
structureRobbins and Coulter(1996)
Organizing
process
whereby work activities
are
arranged
and
allocated to employees in
order to achieve the
organizational goals and
objectives.-Stoner
and
Wankel (1986)

Organizing- is the effective

arrangement
of
organizational resources to
be in unity in order to
achieve the organizations
planned
goals
and
objectives.-Jaafar
Muhammad (1992).

Activities involved in designing

a
suitable
organizational
structure, allocating tasks or
job to employees and forming
a useful relationship with
employees and their job or
tasks. Gatewood, Taylor and
Farell

Organizing is to determine
each activity which is
performed by the human
resources
of
an
organization
and
how
these resources are best
coordinated or combined
to achieve organizational
goals.(Certo)

Conclusion of organizing:
The process of dividing jobs
that are in line with
organizational goals and
directions.
Organizations
must practice a structured
system to describe how
employees should perform
and coordinate their tasks
and responsibilities.

1.

2.
3.
4.
5.
6.

It shows the job division or specialization whereby a unit

or department bears a specific job burden and
responsibilities in an organization
It shows the duties and responsibilities of each
department in an organization.
It shows the reporting relationship between managers
and subordinates.
It shows the types of jobs performed in an organization.
It shows the grouping of work segments in an
organization.
It shows the departments or units at each management
level in the organizational hierarchy.

Identify the steps on organizing process.-Earnest Dalerefer books-jawab soalan

Listing the jobs
Dividing the jobs
Establishing the departments
Coordinating the jobs
Performing evaluations and adjustments

Def :Organizational structure-shows the position of a unit or

division in the organization and the relationship between each
division in the organization. Shows the types of jobs performed
in an organization and the relationship between each job.
General manager

Finance manager

employees

marketing manager

employees

production manager

employees
Organization Chart

Characteristics of orgn chart-discuss

Advantages of orgn chart-discuss

Disadvantages of organization chart-discuss

Administration manager

employees

The Functional Organization-activities or tasks are grouped

according to organizational functions such as production,
marketing and finance.

1.

President
Vice

Vice

Vice

Vice

president

president

president

president

Operation

production

marketing

finance

Discuss the advantages

Organization
2.

and

disadvantages

of

Functional

The Divisional Organization-form of departmentalization whereby

activities are grouped according to similarities in terms of
products, market, and geographical location.

A divisional organization can be divided into 3 types of

departmentalization: product departmentalization,
geographical
departmentalization
&
customer
departmentalization.
(a) Product departmentalization-involves the grouping of
activities or tasks based on the products produced by the
organization.Each division has its own functional
departments such as marketing and finance departments.
Each manager will report to the GM.
Practised by
organizations producing multiple products or when a
functional organization is not suitable due to difficulties in
controlling the organization.

General manager

Manager fresh milk

manager beef

manager butter

(b) Geographical departmentalization

Is

performed based on location. Ex: Companies operating in KL, open

branches in other location.
Every

division is responsible for the production and marketing of products in

their location.
General manager
Perak branch manager

Johor branch manager

Sarawak branch manager

(c)Customer departmentalization
Based

on customer groups who purchase the organizations products such as

industrial customers, ordinary customers and office customers.
Each

division will be managed by a manager responsible to the service

general manager. The service general manager will control all the decisions
made by the manager of each division.
Each

division is responsible for producing and marketing the products that

will be used by consumers in their market. This type of departmentalization
can fullfill customer needs and requirements promptly.

General manager
Manager industrial customer Manager ordinary customers Manager office customer

Discuss the advantages and disadvantages of Divisional Organization

3.The

matrix organization-

operates

in the horizontal and vertical orgn structure.

Whereby

an employee reports to two supervisors such as the division or line

managers and the functional or project managers.
The

matrix orgn also known as the Multi Commandes System.

Human

resources are used efficiently because the skills possessed by each

employee is combined to develop a new product and perform functional
duties. Communication, flexibility and cooperation between department is
essentials.It also suitable for organizations with limited resources.

General manager
Production manager

Finance manager

Project Vehicle A Production unit

Finance unit

Project vehicle B

Finance unit

Production unit

Marketing manager
Marketing unit
Marketing unit

Discuss the advantages and disadvantages of Matrix Organization

Explain division of labour concept, advantages and

disadvantages
Division

of labour/job/task specialization-introduced by Adam Smith.Each

employee will perform specific or specialized jobs according to their skills,
qualifications and abilities.
Also

known as job or task specialization that is conducted to increase the

production efficiency of employees.
Division

of labor involves the division of each job into smaller jobs that is
performed repeatedly. Ex:

Many organizations are enlarging jobs to provide greater challenges

or assigning teams to tasks so that employees can rotate among the
several jobs performed by the team.
2 important aspects that are related to job specialization is job
depth and job scope.
(1)Job depth
Degree

of freedom employees have in performing their jobs at the

work place
If

magmt establish stricts rules, provides detailed tasks and

supervise the work movements of an employees in detail, the job
depth of the employee is low.
If there are set rules and employees can perform their jobs better
without feeling stressed and can master all aspects of their work,
the job depth is high.
Example:

(2)Job scope

Job scope involves steps to overcome employees level of

dissatisfaction by increasing or widening the job scope of
employees. This can be done by increasing the number of jobs
that must be performed by the employee.

Increasing the job scope increases an employees skills and

provides challenges, motivates and frees employees from
control. Example:

ADVANTAGES AND DISADVANTAGES OF JOB DIVISION-REFER BOOKS

Some employees do not want to perform repetitious jobs as they

get easily bored. This will lead to dissatisfaction among
employees. Employees may want challenging jobs that provide
opportunities for them to use their creativity.

Management can overcome this problem through job design.

3 ways to design a job to overcome boredom and dissatisfaction

among employees:

(i)

Job enlargement-this concepts refers to the number of

employees, the different jobs performed by employees and the
frequency of jobs performed by the employee

As the number of jobs and the frequency of jobs performed by an

employee reduce, the job scope is narrow. As the number of job
and frequency of job increase, the job scope is enlarged.
Example:
(ii) Job enrichment- increase the level of employees job depth. This
provide employees with the opportunities to make decisions and
improve them selves. Employees who are given challenging jobs
and bigger responsibilities in an organization tend to work harder.

(iii) Job rotation-involves the transfer of employees to another

department within a similar job scope. Provides opportunities for
employees to learn various skills related to their new job. As a
result, employees would be able to perform their given job more
efficiency and skillfully.

Discuss accountability and responsibility

Define accountability & responsibility
Identify importance of accountability and
responsibility in an organization

Managers cannot perform all of the duties in

an organization. Some of the duties must be
delegated to others to be performed on their
behalf.
Managers must cooperate with their
employees to ensure that all delegated
duties are completed.
How managers delegate their duties
influence by factors such as-culture,
condition,
situation,
relationship,
personality and ability of their employees.

Definition of delegation: Process whereby

leaders or managers give the right or power and
responsibility to lower level employees to
perform certain duties on their behalf.
Principles of delegation:
1. the delegated authority from top-level
management to lower level management must
be shown clearly
2.authority must be aligned with responsibility
3.areas undr control must be established and must
be suitable with the number of employee and
duties

4.The levels of mgmt must be shown clearly

5.An effective horizontal and vertical com
6.Division of job must be practiced fully
7. Control of power is maintain by top level mgmt.

Delegation concept
1.power and authority-authority is the manager
right to make decisions or take actions in
order to complete their given duties.
Authority enables managers to give orders to
their employees and delegate some of their
power to the subordinates
3 types of authority-functional authority, line
authority and staff authority
(i) Functional authority-give the manager the
power to control other dept actvt.

(ii) line authority-is owned by managers who have

the right and direct responsibility to command
and control subordinates who perform important
actvt in order to accomplish organizational
goals.line authority flows to lower level of the
orgn through the chain of command.
(iii) staff authority-managers cannot give
commands to other employees through the chain
of commands.These mgr are given power by indv
to provide advice and suggestion,
share
knowledge. Ex mgr of HRM can advice Production
magr on selection test to be used in selecting
process.

Power is the ability to influence or change an

indvs or groups attitude or behaviour.
Discuss and explain the differences between
authority (3 charactersitics of authority)&
power (types of power)-refer books
Sticky notes-Discuss qualities of leaders &
managers
Personal characteristics of leaders

Problems faced by managers who perform

delegation

1. mgrs may feel that they can perform all the jobs better
than their employees
2.Mgrs may also feel that the employees do not have enough
ability to perform a job
3.Mgrs worry that their importance might be weakened if
they give jobs to the employees.mgr will be responsible
for the performance of their employees.
4.Mgrs do not have the skill to plan jobs that will be
performed by the subordinates.
5. Mgrs worry that subordinates do not have the skills to
perform their duties and the abuse of power may occur.

Problems faced by employees who receive

authority

1.Employees worry that their importance will be

weakened and they will be penalized if they
cannot perform their duties satisfactorily.
2. Employee do not have he motivation to
complete a certain dutyif there are no incentive
for
good
performance.Employees
need
compliments and financial incentives for every
task because a lo of time and energyis spent in
complementing the duties.

Ways to overcome problems in delegation:

1. Mgrs must give employees an appropriate
amount of freedom to complete the given duties.
2.Mgrs must communicate with their employees at
all time.understding between mgrs and sub-jobs
will effeciently and perform satisfactorily
3.Mgr can allocate jobs to their employee in stages
in order to avoid confusion and communication
problems.

Define centralization-situation whereby there is

no distribution of power to subordinates. Mgrs
have full authority towards all duties performed
by employees and the employees only follow the
given orders. All decisions will be made by top
level mgmt.
Decentralization-the distribution of power from
the mgmt to the employee. Sub have authority
to make decision.Suggest suitable decision.
Adv & disadv of centralization &decentralizationrefer book.

Dis 2013
(a)Discuss the organizing process by using
diagram and appropriate example. (15m)
Dis 2012
(a)Briefly explain THREE (3) mportance of
organizing(6m)
(b)Describe FIVE(5) steps of organizing
process(10m)
(c)Explain THREE (3) problems faced by
managers who perform delegation (9m)

Based on your opinion -Find one individual as

a good leader /your admirer leader.
Picture
why you choose that person-the quality
/characteristics