ORGANIZATION IS

DEFINED AS:
A group of persons organized for a particular purpose;
an association: a benevolent organization.
A structure through which individuals cooperate systematically to
conduct business.
The administrative personnel of such a structure.

ORGANIZATION IS
DEFINED AS:
An established social system designed to carry out
specific objectives
It also includes people working together for a common
purpose while working in different areas

ORGANIZING IS DEFINED
AS:
The deployment of organizational resources to achieve
strategic goals.
Organizing is arranging and grouping jobs, allocating
resources, and assigning work so that activities can be
accomplished as planned.

PRINCIPLES OF ORGANIZING
1. Work
Specialization
2. Chain of
Command
3. Chain of
Command
4. Authority
5. Responsibility
6. Accountability

7.Delegation
8.Centralization
9. Decentralization
10.Departmentaliz
ation
11.Formalization

WORK SPECIALIZATION
Degree to which organizational tasks are subdivided
into separate jobs
Production is efficient because employees perform
small, well-defined tasks
Employees can acquire expertise in their tasks
Employees can be selected by ability and attitude.

WORK SPECIALIZATION
Organization achieves standardization across tasks
When specialization is carried to an extreme, workers
tend to become bored and alienated
Many companies are moving away from this principle.

CHAIN OF COMMAND

An unbroken line of authority that links all persons in an

organization and shows who reports to whom.

President

VP for Academic Affairs

VP for
Research and Extension

VP for Administrative
And Support Services

AUTHORITY
Formal and legitimate right of a manager to make
decisions, issue orders, and allocate resources
Vested in organizational positions, not people
Managers have authority because of the positions they
hold
Accepted by subordinates.

AUTHORITY
Flows top down through the hierarchy
Subordinates comply because they accept the
managers' orders
Positions at the top have more formal authority than
those at the bottom.

LINE
Line authority means that managers have formal
authority to direct and control immediate subordinates.

STAFF
Staff departments include all those who provide
specialized skills in support of line departments
Staff authority is generally more narrow than line
authority
Staff authority includes the right to advise,
recommend, and counsel in the staff specialists' area
of expertise.

FUNCTIONAL AUTHORITY
Functional authority is control with individuals outside
ones own direct areas of responsibility.

RESPONSIBILITY
Duty to perform the task an employee has been
assigned
Authority commensurate with responsibility.

ACCOUNTABILITY
Justify outcomes to those above in the chain of
command.

DELEGATION
Process to transfer authority and responsibility to
positions below
Delegate authority to the lowest possible level.

CENTRALIZATION
All facilities at one location
Decision authority is located near the top of the
organization.

DECENTRALIZATION
Facilities at different locations
Decision authority is pushed down the chain of
command to lower levels.

FORMALIZATION
Written documentation used to direct and control
employees.

DEPARTMENTALIZATION
Basis for grouping positions into departments and
departments into the total organization.

TYPES OF
ORGANIZATIONAL
Organization Structure- Who reports to whom?
STRUCTURE

TYPES OF
ORGANIZATIONAL
STRUCTURE
1. Hierarchical (Tall/Centralized,
Bureaucratic) Structure
2. Decentralization( Flat,
Decentralized) Structure
3. Matrix
4. Network

Organization Structure

HIERARCHICAL
(TALL/CENTRALIZED,
BUREAUCRATIC)
STRUCTURE
It has a centralized chain of command.
The line-and-staff managers have direct authority over
their subordinates, but staff managers have no
authority over line managers and their subordinates.

HIERARCHICAL
(TALL/CENTRALIZED,
BUREAUCRATIC) STRUCTURE
It has an overall narrow span of management and
more levels in the hierarchy.
There are more layers and presumably more guidelines
to follow
The decision-making process is slower than other
organization.

DIAGRAM OF A TALL STRUCTURE

HIERARCHICAL
(TALL/CENTRALIZED,
BUREAUCRATIC)Disadvantages
STRUCTURE
Advantages
1.There is a narrow span
of control
i.e. each manager has a
small number of
employees under their
control. This means that
employees can be closely
supervised.

1.The freedom and

responsibility of
employees
(subordinates) is
restricted.

HIERARCHICAL
(TALL/CENTRALIZED,
BUREAUCRATIC) STRUCTURE
2. There is a clear
2.Decision making
management structure. could be slowed down
as approval may be
3. The function of each needed by each of the
layers of authority.
layer will be clear and
3. Communication has
distinct. There will be
to take place through
clear lines of
many layers of
responsibility and
management.
control.

HIERARCHICAL
(TALL/CENTRALIZED,
BUREAUCRATIC) STRUCTURE
4.Clear progression and 4. High management
promotion ladder.
costs because
managers are generally
paid more than
subordinates. Each
layer will tend to pay
its managers more
money than the layer
below it.

DECENTRALIZATION
( FLAT/DECENTRALIZED )
The degree to which authority is
shifted downward within an
organization to its divisions, services,
and units.
Delegating decision-making to ones
doing the work-participatory
management
Chain of Command from top to
bottom is short and the span of
control is wide.

DECENTRALIZATION
( FLAT/DECENTRALIZED )

DECENTRALIZATION
( FLAT/DECENTRALIZED )
Advantages
Disadvantages
1.More/ greater
1. Workers may have
communication
more than one
between management
manager/boss
and workers
2. May limit/hinder
the growth of the
2. Better team sprit
organisation

DECENTRALIZATION
( FLAT/DECENTRALIZED )
Advantages

Disadvantages

1. Less bureaucracy
and easier decision
making

1. Structure limited to
small organisations
such as partnerships,
co-operatives and some
private limited
companies.
2. Function of each
department/person
could be blurred and
merge into the job roles
of others.

2. Fewer levels of
management which
includes benefits such
as lower costs as
managers are
generally paid more
than workers

MATRIX STRUCTURE
Focus on both products and functions.
It has a formal vertical and horizontal
chain of command.
Functional and divisional chains of
command simultaneously
Dual lines of authority
Functional hierarchy of authority runs
vertically
Divisional hierarchy runs laterally
Violates the unity of command concept.

MATRIX STRUCTURE
Advantages
1. More efficient use
of resources than
single hierarchy
2. Adaptable to
changing
environment

Disadvantages
1.Dual chain of
command
2. High conflict
between two sides
of matrix

MATRIX STRUCTURE
Advantages

Disadvantages

3. Development of
both general and
specialists
management skills
4. Expertise available
to all divisions
5. Enlarged tasks for
employees.

3. Many meetings to
coordinate activities
4. Need for human
relations training
5. Power domination
by one side of matrix.

NETWORKED, VIRTUAL
STRUCTURE
Organization divides major functions into separate
companies brokered by a small headquarters
organization

NETWORKED, VIRTUAL
STRUCTURE
Especially appropriate for international operations
Held together with phones, faxes, and other electronic
technology.
disaggregating of organizations (use of independent
contractors, joint ventures, etc.)

NETWORKED, VIRTUAL
STRUCTURE
Ikea, the world's largest furniture manufacture,
has been successful in implementing the boundary
less structure.
The company works closely with suppliers by
providing technical assistance, leasing them
equipment, and giving advice.
It also refined the role of the customer, putting
responsibility on them to cart the furniture home
and assemble it themselves.
As a result, the company can offer lower prices
(Pang, 2002), which supports its low-cost focused
strategy.

NETWORKED, VIRTUAL
STRUCTURE
Advantages
1.Global
competitiveness
2. Work force
flexibility
3. Reduced
administrative
overhead.

DISADVANTAGES

1. No hands-on
control
2. Loss of part of the
organization severely
impacts remainder of
organization
3. Employee loyalty
weakened.

ORGANIZATIONAL CHART IS
DEFINED AS:
A series of boxes connected with one or more lines to
graphically represent the organizations structure.
It provides an overall picture of how the entire
organization fits together

LINE
VERSUS
STAFF
Line authority
AUTHORITY
based
on the supervisor-subordinate relationship; creating a
direct line of authority from the top to the bottom of the
organization structure

Staff authority
specialists in a particular field used to support and advise line
personnel
The largest number of supervisors are usually line managers

Line and staff conflict

staff specialists resent that they are only advisors to line
managers, whereas line managers feel that staff always tries
to interfere

TALL OR THE VERTICAL

CHART
Depicts the chief executive at the top
with lines of authority flowing down the
hierarchy.
Clearly defines the relationships
between and among the different
levels in the organization.
Members have more opportunities to
participate in decision making activities
due to limited span of control

FLAT OR HORIZONTAL
CHART
Depicts the manager at the top with wide span of
control.
Levels of the management are not shown in the chart.
Employees report to one manager.
They have more freedom
Communication is simple, fast with minimal distortions
(distance to top and lower levels is shorter.)