Fundamentals of ORGANIZING
Group 6 Bernardo, Jannyne Beltran, Mia De Villa, Sherylen Simpao, Angela Soria, Racquel

STUDY QUESTIONS One • What is organizing as management function? • What are the traditional organizing structures? Two • What are the newer types of organization structures? Three • How are organizing designs changing the workplace Four .

to as improve management To explain subsystem the function concept deigns ToTo discuss know the the Matrix Functional and To boundary be and able integration to less explain structure the and Team Divisional structure structures difference To To know describe between the trends concept formal in of mechanistic and organizational informal an organic structures designs designs .OBJECTIVES DE VILLA BERNARDO BELTRAN SIMPAO SORIA To To define define discuss network organizing each way structures.

To set the direction Planning Organizing Divide up the work Arrange resources Coordinate Activites Leading Controlling To inspire effort To ensure results MANAGEMENT FUNCTIONS .

a collection of people working together for a common puropose .Is the process of arranging people and other resources to work together to accomplish a goal ORGANIZATION.

ORGANIZATION STRUCTURE • Is a system of tasks reporting relationships. and communication linkages ORGANIZATION CHART • Describes the arrangement of work positions within an organization .

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Director Assistant Director Manager 1 Manager 2 Manager 3 Employee Employee Employee Employee Employee .

.Formal Structure Is the official structure of the organization DIVISION OF WORK – Positions and titles show work responsibilities UPERVISORY RELATIONSHIPS – Lines who reports to whom COMMUNICATION CHANNELS – Lines show formal communication flows MAJOR SUBUNITS – Positions reporting to a common manager are shown. LEVELS OF MANAGEMENT – Vertical layers of management are shown.

identifies the informal structures and the embodied social relationships that are active in an organization .Informal Structure Is the set of unofficial relationships among an organization’s members • SOCIAL NETWORK ANALYSIS .

Overcoming limits of formal structure.Helping people accomplish their work. 1 2 Connecting with people who can assist in task performance 3 4 . Gaining access to interpersonal networks.

1 Resistance to change. Feeling of alienation by outsiders. 2 3 Diversion of work efforts from important objectives. May carry inaccurate information.May work against best interests of entire organization. Susceptibility to rumor. 4 5 .

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President

Business Form Vice President Marketing Vice President Finance Vice President Production Vice President Resource

Bench Manager

Branch Bank Manager loans Manger Investment Manager Operations Manager Trusts

Administrator

Community Hospital Director Medical Staff Director Nursing Director Clinics Director Patient Services

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Increased flexibility in adding. product or project managers.Better cooperation across functions. Better performance accountability through the program. Better customer service & Improved strategic management. Improved decision making. removing or changing operations to meet changing demands. .

.Uncertain about reporting relationship. More time may be required for coordinating task-related activities. May create anarchy in which they have unlimited freedom Group decision-making may take long time.

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Information Technology BUSINESS CORE Outsourcing Contracts Strategic Alliance .

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Information Technology BUSINESS CORE Outsourcing Contracts Strategic Alliance .

Team Structure Network Structure “Temporariness” .

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A virtual organization uses IT and the Internet to engage a shifting network of strategic alliances. .

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PRESIDENT R& D Division Manufacturing Division Sales Division Deals with Marketing subenvironment Deals with Scientific subenvironment • Product quality •Long time horizons •Organic structures Deals with Manufacturing subenvironment •Cost Efficiency •Short time horizons •Mechanistic structures •Customer Satisfaction •Short time horizons •Mechanistic structures Source: Fig.9. 9. page 252 .

is the level of coordination achieved between subsystems in an organization.the degree of difference between subsystems in an organizations Integration .Differentiation . .

 Teams: Form permanent teams with the authority to coordinate and solve problems over time. . HOW TO IMPROVE SUBSYSTEMS INTEGRATION  Rules and procedures : Clearly specify required activities  Hierarchical referral: Refer problems upward to a common superior  Planning : Set targets that keep everyone headed in the same direction  Direct contact: Have subunit managers coordinate directly.  Matrix organizations: create a matrix structure to improve coordinator on specific programs. Liason roles: Assign formal coordinators to link subunits together  Task forces: Form temporary task forces to coordinate activities and solve problems on a timetable.

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 Chain of Command -line of authority that vertically links each position with successively higher levels of management. .

 Span of control .sensitive  wider spans  fewer levels of production  reduces overhead costs .is the number of subordinates directly reporting to a manager. Tall Structure (narrow span of control) Flat Structure (wide span of control)  less efficient  less flexible  less customer.

is the process of distributing and entrusting work to to other persons. . Managers are taking responsibility for larger numbers of subornates who operate with less direct supervision.Trend : Organizations are cutting unnecessary levels of management and shifting to wider spans of control. MORE DELEGATION AND EMPOWERMENT Delagation .

letting others to make decisions and exercise discretion in their work .when delegation is well done it leads to empowerment . • Empowerment . Three Steps in Delegation  Assign responsibility – explain task and expectations  Grant authority – allow others to make decisions and act  Create accountability – require others to report back on results Authority-and-responsibility principle – states that authority should equal responsibility when work is delegated from superior to subordinate.

Trend : Managers are delegating more. . DECENTRALITION WITH CENTRALIZATION “ Should most decisions be made all the top levels of an organization or should they be dispersed by extensive delegation throughout all levels of management?” Centralization.concentration of authority for most decisions at the top level of organization. They are finding ways to empower people at all levels to make more decisions that affect themselves and their work. Decentralization – is the dispersion of authority to make decisions throughout all organization levels.

.empowerment. advances in information technology are allowing adequate centralized control.Trend : Delegation. and horizontal structures are contributing tpo more decentralization in organizations: at the same time .

but doesn’t overreact to needs for specialized technical operations. .REDUCED USE OF STAFF Staff positions . They are lowering costs and increasing efficiency by employing fewer staff personnel and using smaller staff units.provide technical expertise for other parts of the organization Trend : Organizations are reducing the size of staff.  A cost effective staff component that satisfies.

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