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ORGANIZING TECHNICAL ACTIVITIESGROUP IVBSME-3D1WHAT ARE THE REASONS FOR ORGANIZING? WHAT IS ORGANIZING?WHAT IS THIS SO CALLED STRUCTURE?2WHAT ARE THE PURPOSES OF THE STRUCTURE?It defines the relationships between tasks and authority for individuals and departments.It defines formal reporting relationships, the number of levels in the hierarchy of the organization, and the span of control.It defines the groupings of individuals into departments and departments into organization.It defines the system to effect coordination of effort in both vertical and horizontal directions.3When structuring an organization, the engineer manager must be concerned with the following:DIVISION OF LABORDELEGATION OF AUTHORITYDEPARTMENTATIONSPAN OF CONTROLCOORDINATION"THE FORMAL ORGANIZATION"The structure that details lines of responsibilities, authority, and position.Formal structure is describe by management through:ORGANIZATION CHARTORGANIZATIONAL MANUALPOLICY MANUALS"INFORMAL GROUPS"It is not a part of the formal organization and it does not have a formal performance purpose.

4"TYPES OF ORGANIZATIONAL STRUCTURES " 1. FUNCTIONAL ORGANIZATION- a form of departmentalization in which everyone engaged in one functional activity, such as engineering or marketing, is grouped into one unit.- it is very effective in smaller firms, especially "single-business firms where key activities revolve around well-defined skills and areas of specialization.5ADVANTAGES:1. The grouping of employees who perform a common task permit economies of scale and efficient resource use.2. Since the chain of command converges at the top of the organization, decision-making is centralized, providing a unified direction from the top.3. Communication and coordination among employees within each department are excellent.4. The structure promotes high-quality technical problem-solving.5. The organization is provided with in depth skill specialization and development.6. Employees are provided with career progress within functional departments.6DISADVANTAGES1. Communication and coordination between the departments are often poor.2. Decisions involving more than one department pile up at the top management level and are often delayed. 3. Work specialization and division of labor, which are stressed in a functional organization, produce routine, non-motivating employee tasks.4. It is difficult to identify which section or group is responsible for certain problems.5. There is limited view of organizational goals by employees.6. There is limited general management training for employees.72. PRODUCT OR MARKET ORGANIZATION- this refers to the organization of a company by divisions that brings together all those involved with a certain type of product or customer- appropriate for a large corporation with many product lines in several related industries8ADVANTAGES:1. The organization is flexible and responsive to change.2. The organization provides a high concern for customer's needs.3. The organization provides excellent coordination across functional departments.4. There is easy pinpointing of responsibility for product problems.5. There is emphasis on overall product and division goals.6. The opportunity for the development of general management skills is provided.#DISADVANTAGES:1. There is a high possibility of duplication of resources across divisions.2. There is less technical depth and specialization in divisions.3. There is poor coordination across divisions.4. There is less top management control.5. There is competition for corporate resources.#3. MATRIX ORGANIZATION- an organizational structure in which each employee reports to both a functional or division manager and to a project or group manager.- according to Thompson and Strickland, "is a structure with two (or more) channels of command, two lines of budget authority, and two sources of performance and reward."# ADVANTAGES:1. There is more efficient use of resources than the divisional structure.2. There is flexibility and adaptability to changing environment.3. The development of both general and functional management skills are present.4. There is interdisciplinary cooperation and any expertise is available to all divisions.5. There are enlarged tasks for employees which motivate them better.#DISADVANTAGES:1. There is frustration and confusion from dual chain of command.2. There is high conflict between divisional and functional interests.3. There are many meetings and more discussion than action.4. There is a need for human relations training for key employees and managers.5. There is a tendency for power dominance by one side of the matrix.#