Organizing edmngt

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La Salle University-Ozamiz CityEDMNGT 101

Acc. To Chester Barnard

function define the role positions, the jobs related

and the coordination between authority and responsibility

Acc. To Clayton State University: School of Business

process creating an organization’s framework

◦degree of complexity, formalization, and centralization

Acc. To Medina

management functionstructuring of resources and activitiesaccomplish objectives efficiently and

effectively

Acc. To Attner & Morgan

management function establishes relationships between activity

and authorityresults to an organization

◦a system acting in harmony to execute whole tasks to achieve goals effectively and efficiently

Acc. To Champ Academy

Importance of Organizing

Plan implementationAssignment of

authority, responsibility, and accountability

Division of workCoordinates diverse

organizational tasks

Establish relationship among individuals, groups and departments

Establish formal lines of authority

Allocation and deployment of organizational resources

Division of LaborProd

HUMANDISECONOMIESBoredomFatigueStressLow ProductivityPoor QualityIncreased AbsenteeismHigh Turnover

Unity of Command

Superior

Subordinate

Chain of Command

RECEIVE REPORTS

GIVE REPORTS

Chain of Command: Authority

CLINE AUTHORITY

CSTAFF AUTHORITY

CFUNCTIONAL AUTHORITY

Chain of Command: Responsibility

Responsibility

Chain of Command:A-R Models

AUTHORITY < RESPONSIBILITY

AUTHORITY > RESPONSIBILITY

AUTHORITY = RESPONSIBILITY

Centralization & Decentralization

CENTRALIZATION DECENTRALIZATION

Environment is stable Environment is complex, uncertain

Lower level managers (LLM) are not as capable or experienced at making decisions as upper level

mangers

LLM are capable and experienced a making decisions

LLM do not want to have a say in decisions LLM want a voice in decisions

Decisions are significant Decisions are relatively minor

Departmentalization

Putting specialists togetherDirection of a managerDepartmentation

◦Process◦Setting up and establishing departments

Common Elements of OrganizationHENRY MINTZBERGMcGill University

Organization

•Operating Core•Strategic Apex•Middle Line•Technostructure•Support Staff

Operating Core

Strategic Apex

Middle Line

Technostructure

Affects certain forms of standardizationExamples:

◦Time and motion engineers◦Job description designers◦Systems and procedures analysts

Support Staff

Fill staff unitsProvides indirect support

The Organizing Process

1 •Consider plans and goals

2 •Determine work activities

3• Classify and group activities

(General Nature, Work Areas, Departmentalization)

4 •Assign work and delegate authority

5 •Design a hierarchy of relationships

6 •Staffing

1. Consider Plans & Goals

Purposes

Activitie

Plans & Goals

To establish a partnership business engaged in the production of children’s

2. Determine Work Activities

Selling

Accounting

Delivery

Quality Control

Advertising

Compensating

Training

Production

Purchasing

Budgeting

Recruitment

Maintaining Personnel

3. Classify & Group Activities

>Selling>Advertising>Delivery

>Production>Purchasing>Quality control

>Accounting>Budgeting>Compensating

>Recruitment>Training>Maintaining personnel

MARKETING OPERATIONS FINANCE HUMAN RESOURCES

Functional Departmentalization

5. Design hierarchy

General Manager

Operations Manager

Production Head

Administrative Head

Finance Manager

Accounting Head

Budget Section Head

Marketing Manager

Product Division Head

Promotions Head

Human Resources Manager

Recruitment Office Head

Personnel Maintenance Office Head

6. Staffing

1 •Recruitment

2 •Selection

3 • Hiring4 •Orientation

5 •Training and Development

6 •Performance Appraisal

Organizational Structure

Formal system of tasks, reporting relationships

Controls, coordinates, motivates employees

Achieve organization’s goals

Purpose of the Structure

Defines relationships between tasks and authority

Defines formal reporting relationships, levels of hierarchy, span of control

Defines individual departmentsDefines systems that affects the

organization

Departmentalization:Simple Numbers

North50 warriors

South50 warriors

East30 warriors

West100 warriors

Departmentalization:Time

Principal

A.M. Adviser P.M. Adviser

Departmentalization: Function

President

VP Marketing

VP Human Resources

VP Manufacturing VP Finance

Departmentalization: Geography

Chairman

Power Systems Group

Electric Company (Belgium)

Industry and Defense Group

Departmentalization: Customer

Director of Sales

Manager Retail Manager Wholesale Manager Government

Departmentalization:Process

Plant SuperintendentPattern & Cutting

DepartmentSewing

DepartmentFinishing

DepartmentInspection & Packing

DepartmentShipping

Department

Departmentalization: Product

President

VP Industrial Products

Marketing

VP Home Products

Formal System

Planned structureLines of responsibility, authority, and

positionEstablish patterned relationships among

componentsCan be described through:

◦Organizational Chart◦Policy Manual◦Departments

Informal System

Based on needs, sentiments, and interests of people

Vulnerable to expediency, manipulation and opportunism

More subtle and invisible in the organizational chart

Can be classified as:◦Horizontal = same department or same level◦Vertical = different levels◦Mixed = combination of both

Formal vs Informal Organizations

FORMAL INFORMAL

Have planned structure

Deliberate attempts to create patterned relationships

Usually shown by a chart

Advocated by traditional theory

Not formally plannedArise spontaneously

as a result of interactions

Not depicted in a chart

Stressed by human relation theory

Organizing edmngt

Education