Organizing

Process of grouping together of men and establishing relationships among them , defining the authority and responsibility of personnel by using the company’s other basic resources to attain predetermined goals or objectives.

ORGANIZATION the framework or backbone by which the of a

business is performed, that it provides the required channels, points of origin and flow of management direction and control.

The value of formal organization structures

1. Efficiency gains from specialization

2. Order arising from the clarity of job definitions

3. Reduction of unintended gaps or overlaps in the conduct of the activities of the institutions

Characteristics of an organization structure

1. HIERARCHICAL Organizations are usually multilayered

because of the limitations of a single person to supervise others.

2. SPAN OF CONTROL The number of persons that a manager

supervises.

Grouping activities in an organization

1.GROUPING BY FUNCTION It hopes to gain efficiencies through

specialization and to facilitate coordination of similar or related activities.

2. GROUPING BY PRODUCT This method is common in large business

organization. It facilitates the treatment by top management of these divisions as profit centers by treating each division as separate business enterprise.

3. GROUPING BY AREA OR TERRITORY This applicable when the geographic scope of a

firm’s operation becomes large and when the different areas in which a firm operates become very differentiated in terms of their requirements.

4. GROUPING BY CLIENT This is very important when a company serves

well- defined client groups with different characteristics and requirements in term of products.

5. OTHER CRITERIA FOR GROUPING ACTIVITIESa. Simple Numbers – constituted by dividing large numbers into identical sub-units.b. Time Group – grouping by time ships such as morning shift, afternoon and night shift.

6. ORGANIZATION THROUGH A COMBINATION OF THE VARIOUS CRITERIA

Results of Good Organization

1. Establishing the responsibility and preventing “buck passing.”

2. Providing for easier communication;3. Eliminating jurisdictional disputes between

individuals;4.Helping develop executive ability;5. Aiding in measuring the person’s performance

against his charges and responsibilities.6. Aiding equitable distribution of work, functions and/or

personnel supervision.7. Permitting expansion and contraction without

seriously disrupting the structure;

8. Pointing out “dead-end” jobs;9. Affording movement in the direction of the “ideal”

organization, in times of change;10. Establishing closer cooperation and higher morale;11. Delineating avenues of promotion;12. Preventing of duplication of work;13. Making growth possible with adequate control and

without literally killing top executives through overwork; and

14. Aiding in wage and salary administration through forced job analysis and description.

Formal Relationship s in Organization

1. LINE ORGANIZATION It exist when two organizational units are related to

each other by a relationship of direct command. Line authority is the power of command that is

exercised by a person over his direct subordinates in the formal structure, such as power to supervise, direct and evaluate the work of his subordinates.

2. STAFF ORGANIZATION The units in an organization which are

considered staff are those which provide advice or services to other units of the organization.

3. FUNCTIONAL AUTHORITY This is a limited authority exercised usually by a

staff unit in the organization over another unit.

Classical Principles of Organization

1. PRINCIPLE OF UNITY OF COMMAND A person in an organization should have only one

direct supervisor in order to avoid confusion, inaction in the organization.

2. PARITY OF AUTHORITY AND RESPONSIBILITY If a person is responsible for accomplishing a

certain task in the organization, he should be given sufficient authority to accomplish the task.

3. ABSOLUTENESS OF RESPONSIBILTY A superior may delegate a portion of his authority to

his subordinates but he does not reduce his responsibility or accountability for the performance of the task under his jurisdiction.

4. CHECKS AND BALANCE To check or evaluate the activities of another

organizational unit must not be placed under the control or supervision of the unit to be evaluated.

5. PRINCIPLE OF SPECIALIZATION An organizational becomes more efficient if it

specializes in the performance of a set of similar or related activities.

6. SPAN OF CONTROL Refers to the number of subordinates who report

directly to a higher executive. There are three factors that affect this principle; the number of the persons to be supervised; the attention as affected by distance and the limitation of attention due to time.

Jane Alyssa CatallaAubrey Anne Verastigue

PRESENTED TO:Dr. Augusta Rose A. Villamater