Chapter

6_Organizing
By: Mohammed Hussien
(MPH/HSM)
Wollo University
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Chapter objectives

After completion of this chapter, students will be

able to:

Discuss the functional elements of organizing

Analyze different organizational structures in the

health care systems

Sketch organizational chart

Identify the principles of delegation

Introduction

Organizing is the process of making sure the

necessary human and physical resources are
available to carry out a plan and achieve
organizational goals

Organizing also involves assigning activities,

dividing work into specific jobs and tasks, and
specifying who has the authority to accomplish
certain tasks

Another major aspect of organizing is grouping

activities into departments or some other logical
subdivision
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Organizational structure and design

Organizational structure refers to the lines of

authority, communication, and delegation

An organizational structure is the formal

framework by which job tasks are divided,
grouped, and coordinated

An organization's formal structure is depicted in

its organizational chart

organization chart: visual display of an

organizations positions and lines of authority

Organization chart clarify chain of command,

span of control, official communication channels,
and linkage for all departments
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Organizational structure and design...

When managers develop or change an

organization's structure, they are engaged in
organizational design,
Organization design is the creation of an
organization's structure - the overall layout of
departments, positions and interrelationships
Objectives of the design include responding to
change, integrating new elements as needed,
coordinating the components, and encouraging
flexibility
It involves decisions about four key elements:
1) work specialization,
2) departmentalization,
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3) span of control,

Work Specialization

Work specialization is the degree to which tasks in

an organization are divided into separate jobs.
The essence of work specialization is that an
entire job is not done by one individual but
instead is broken down into steps, and each step
is completed by a different person
Individual employees specialize in doing part of an
activity rather than the entire activity
Division of work/ Job specialization creates
simplified tasks, fosters specialization and is an
opportunity for utilizing talents and interests.
In contrary it may create: unfriendliness, isolation,
distancing and division
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Departmentalization

Once jobs have been divided up through work

specialization, they have to be grouped back
together so that common tasks can be
coordinated

The basis by which jobs are grouped together

is called departmentalization

Every organization will have its own specific

way of classifying and grouping work activities

It overcomes some of the effect of

fragmentation caused by differentiation (job
specialization) and permits coordination
(integration) to be handled in the least
costly
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Departmentalization

Five common forms of departmentalization

Functional departmentalization groups

jobs by functions performed

Product departmentalization groups jobs

by product line

Geographical departmentalization
groups jobs on the basis of territory or
geography
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Departmentalization

Process departmentalization groups jobs

on the basis of product or customer flow

In this approach, work activities follow a

natural processing flow of products or
even of customers

customer departmentalization groups jobs

on the basis of common customers who
have common needs or problems that can
best be met by having specialists for each
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Span of Control

The number of people who report directly to a

manager represents that managers span of control
Some prefer the term span of management
Managers with a narrow span of control oversee the
work of a few people,
whereas those with a wide span of control have many
people reporting to them

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Span of Control

When span of control is too broad,

the manager has insufficient time to observe,

evaluate performance or give feedback

make the managers overburdened, little guidance

or control of employee and overlooking serious
errors

a feature of flat organizations (fewer

management levels between the top and the
bottom)

Emphasize a decentralized approach to

management that encourage high employee
involvement in decisions.

It results in quick communications, speed up

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decision making, and increase flexibility and

Span of Control

when span of control is too narrow,

the manager has time to supervise each one

closely
too close supervision discourages subordinates
problem solving, independent judgment and
creative thinking
It is a feature of tall organizations (consisting of
hierarchies with many levels of management
relative to the organizations size)
Affects the speeds of decisions (delay),
managers are underutilized and in-efficient,
communication gets difficult
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Span of Control

many factors influence the appropriate number of

employees that a manager can efficiently and
effectively manage

These factors encompass the skills and abilities of

the manager and the employees and
characteristics of the work being done

For instance, the more training and experience

employees have, the less direct supervision
they'll need - can function quite well with a wider
span

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Span of Control

Other contingency variables that will determine

the appropriate span include
similarity of employee tasks,
the complexity of those tasks,
the physical proximity of subordinates,
the degree to which standardized procedures
are in place,
the sophistication of the organization's
information system,
the strength of the organization's culture, and
the preferred style of the manager
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Chain of command

the vertical line of authority that clarifies who

reports to whom throughout the organization

It helps employees answer questions such as "Who

do I go to if I have a problem? or To whom am I
responsible?

People higher in the chain of command have the

right to give commands, take action, and make
decisions concerning activities occurring anywhere
below them in the chain

You can't discuss the chain of command without

discussing three other concepts: authority,
responsibility & unity of command.
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Chain of command

Authority refers to the right to give commands, take

action, and make decisions to achieve organizational
objectives

Line authority - the right to command immediate

subordinates in the chain of command

Staff authority - the right to advise, but not

command, others who are not subordinates in the
chain of command

employees assume an obligation to perform any

assigned duties - is known as responsibility

Unity of command - a management principle that

workers should report to just one boss

Without unity of command, conflicting demands and

priorities from multiple bosses can create16problems

Centralization and
Decentralization

In some organizations, top managers make all the

decisions and lower-level managers and
employees simply carry out their directives

At the other extreme are organizations in which

decision making is pushed down to the managers
who are closest to the action

The former organizations are highly centralized,

and the latter are decentralized

If top managers make the organization's key

decisions with little or no input from below, then
the organization is centralized.
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Centralization and
Decentralization

the more that lower-level employees provide

input or actually make decisions, the more
decentralization there is

the concept of centralization - decentralization is

a relative, not an absolute one

an organization is never completely centralized or

decentralized

Few organizations could function effectively if all

decisions were made by only a selected group of
top managers; nor could they function if all
decisions were delegated to employees at the
lowest levels
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Formalization

Formalization refers to the degree to which jobs

within the organization are standardized and the
extent to which employee behavior is guided by
rules and procedures

If a job is highly formalized, then the person doing

that job has a minimum amount of discretion
(freedom) over what is to be done, when it's to be
done, and how he or she could do it

In organizations with high formalization, there are

explicit job descriptions, numerous organizational
rules, and clearly defined procedures covering
work processes
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Formalization

Where formalization is low, job behaviors

are relatively unstructured and employees
have a great deal of freedom in how they
do their work

The greater the standardization, the less

input the employee has into how work is
done

Standardization not only eliminates the

possibility that employees will engage in
alternative behaviors, it even removes the
need for employees to consider
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alternatives

Delegation of Authority

Managers can exercise their authority directly by

completing the tasks themselves, or they can
choose to pass on some of their authority to
subordinates

Delegation of authority is the assignment of

direct authority and responsibility to a
subordinate to complete tasks for which the
manager is normally responsible

When a manager delegates work, three transfers

occur

First, the manager transfers full responsibility

for the assignment to the subordinate
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Delegation

The second transfer - the manager gives the

subordinate full authority over the budget,
resources, and personnel needed to do the job

To do the job effectively, subordinates must have

the same tools and information at their disposal
that managers had when they were responsible
for the same task

for delegation to work, delegated authority must

be commensurate with delegated responsibility

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Delegation

The third transfer that occurs with delegation is

the transfer of accountability

The subordinate now has the authority and

responsibility to do the job and in return is
accountable for getting the job done

In other words, managers delegate their

managerial authority and responsibility to
subordinates in exchange for results

What you cannot do is delegate accountability

You are still accountable for the results obtained by

the members of your team collectively and
individually
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How to be a more effective

delegator
trust your staff to do a good job

avoid seeking perfection

give effective job instructions

follow up on progress

praise the efforts of your staff

dont wait to the last minute to delegate

ask questions, expect answers, and assist

employees to help them complete the work
assignments as expected.

provide the resources you would expect if you were

doing an assignment yourself.

delegate to the lowest possible level to make the

best possible use of organizational resources,
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energy, and knowledge

The advantages of delegation

enables you to focus on those aspects that require

your personal experience, skill and knowledge

relieves you of routine and less critical tasks

frees you from being immersed in detail

extends your capacity to manage

reduces delay in decision-making

empowers and motivates your staff by extending

their responsibilities and authority and providing
them with greater autonomy

develops the knowledge and skills of your staff

and increases their capacity to exercise judgment
and make decisions
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The process of delegation

Figure : The sequence of delegation

Delegation is a process that starts from the point when no

freedom of action for the individual to whom work has been
allocated and ends with full devolution (the individual is
completely empowered to carry out the work)

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When to delegate

You should delegate when you:

have more work than you can carry out

yourself;

cannot allow sufficient time to your priority

tasks;

want to develop a member of your team;

believe that it will increase someones

engagement with their job;

think that the job can be done adequately by

the individual or the team to whom you are
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delegating.

Types of organizational
structures

There are different types of organizational

structures

It is important to find an organizational structure

that works best for the organization, as the wrong
set up could hamper proper functioning

Organizational structures are depicted using

different types of organizational charts

Below are the three most commonly used types

of organizational structures
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Functional organizational
structure

classifies people according to the

function they perform in their professional
life

the functions of a hospital include surgery,

psychiatry, nursing, pharmacy, laboratory,
housekeeping, and etc.

grouping jobs that require the same

knowledge, skills, and resources allows
them to be done efficiently and
promotes the development of greater
expertise
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Functional organizational
structure

A disadvantage of functional groupings is

that people with the same skills and
knowledge may develop a narrow
departmental focus and have difficulty
appreciating any other view of what is
important to the organization

In addition, coordination of work across

functional boundaries can become a
difficult management challenge
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divisional organizational
structures
is based on the different divisions in the
organization
further divided into:

a.

Product structure:
All the activities necessary to produce and
market a product or group of similar
products are grouped together
the personnel in the group can focus on the
particular needs of their product line and
become experts in its development, production
& distribution
If the company produces three different types of
products, they will have three different divisions
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Divisional structures
b.

Customer/market structure:

an organization may find it

advantageous to organize according to
the types of customers it serves
a distribution company that sells to
consumers, government clients, large
businesses, and small businesses may
decide to base its primary divisions on
these different markets
its personnel can then become proficient in
meeting the needs of these different
customers
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Divisional structures
c.

Geographic structure

organizations that are spread over a

wide area may find advantages in
organizing along geographic lines so that
all the activities performed in a region are
managed together

in a large organization, simple physical

separation makes centralized coordination
more difficult

also, important characteristics of a region

may make it advantageous to promote a
local focus
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Matrix organizational
structures

In a matrix organization, teams are formed and

team members report to two or more managers

Matrix structures utilize functional and divisional

chains of command simultaneously in the same
part of the organization.

Functional departmentalization commonly is

combined with product groups on a project basis

matrix structure facilitates the use of highly

specialized staff and equipment

resources are shared as needed

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Matrix structures

in some cases, highly specialized staff may

divide their time among more than one
project

maintaining functional departments

promotes functional expertise,

working in project groups with experts from

other functions fosters cross-fertilization of
ideas

the matrix organization may not allow longterm working relationships to develop, as
using multiple managers for one employee
may result in confusion

power struggles between the functional

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Matrix structures

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