ENGINEERING MANAGEMENT:

ORGANIZING

GRAVADOR, JOY
GUBALLA, BRIANNA
HERRADURA, ZEEJHEI
JAYME, JOMARIE
LAGARDE, EJ II
LOPEZ, HAYLIE
MALINAO, KRISHA
MANGUNE, RAFAEL
MOSTOLES, GODWIN
ORGANIZING

 is the management function of arranging and structuring work to accomplish organizational

goals.
 it is the process of creating an organization’s structure.

PURPOSES OF ORGANIZING

Divides work to be done into specific jobs and departments


Coordinates diverse organizational tasks

Clusters jobs into units

Establishes relationships among individuals, groups, and departments

Establishes formal lines of authority

Allocates and deploys organizational resources
 Organizational Structure
 the formal
arrangement of
jobs within an
organization.
ORGANIZATIONAL DESIGN Organizational Chart
 is the visual
 is the process of developing or changing an organization’s representation of
structure. an organization’s
 it involves decisions about six (6) key elements: structure.

ELEMENT DESCRIPTION ADDITIONAL CONCEPT

Overspecialization can result in

the degree to which tasks in the
human diseconomies from
organization are divided into
boredom, fatigue, stress, poor
WORK SPECIALIZATION separate jobs with each step
quality, increased absenteeism, and
completed by a different person.
higher turnover.

Five (5) major ways to

is the basis on which jobs are
grouped in order to accomplish
DEPARTMENTALIZATION
organizational goals.
departmentalize:
 Functional– grouping jobs by
functions performed
 Product – grouping jobs by
product line
 Geographical - grouping jobs on
the basis of territory or geography
 Process - grouping jobs on the
basis of product or customer flow
 Customer - grouping jobs by type
of customer and needs

is the continuous line of authority
CHAIN OF COMMAND that extends from upper levels of an
organization to the lowest levels of
the organization and clarifies who
reports to whom.
is the number of employees who can
be effectively & efficiently
SPAN OF CONTROL
supervised by a manager
Centralization - is the degree to
which decision making is
concentrated at a single point in the
organization
CENTRALIZATION &
DECENTRALIZATION Decentralization - is the degree to
which lower- level employees
provide input or actually make
decisions.
is the degree to which jobs within
the organization are standardized
FORMALIZATION and the extent to which employee
behavior is guided by rules and
procedures
Three (3) related concepts to chain
of command:
 Authority - the rights inherent in
a managerial position to tell people
what to do and to expect them to do
it.
 Responsibility - the obligation or
expectation to perform.
Responsibility brings with it
accountability (the need to report
and justify work to manager’s
superiors).
 Unity of Command - the concept
that a person should have one boss
and should report only to that
person
Width of span is affected by:
 Skills and abilities of the manager
and the employees
 Characteristics of the work being
done
 Similarity of tasks
 Complexity of tasks
 Physical proximity of
subordinates
 Standardization of tasks
 Sophistication of the
organization’s information system
 Strength of the organization’s
culture
 Preferred style of the manager
Employee Empowerment – is
increasing the decision-making
discretion of employees.
Highly formalized jobs offer little
discretion over what is to be done
Low formalization means fewer
constraints on how employees do
their work
MECHANISTIC ORGANIZATION
 or bureaucracy, was the natural result of combining the six elements of structure.
it is a rigid and tightly controlled structure.

ORGANIC ORGANIZATION

 is a highly adaptive form that is as loose and flexible.

CONTINGENCY FACTORS AFFECTING

STRUCTURAL CHOICE

FACTORS DESCRIPTION ADDITIONAL CONCEPT

Strategy Frameworks:
 Innovation - pursuing competitive
advantage through meaningful and unique
Achievement of strategic goals is innovations favors an organic structuring
facilitated by changes in  Cost minimization - focusing on tightly
STRATEGY &
organizational structure that controlling costs requires a mechanistic
STRUCTURE
accommodate and support structure for the organization
change  Imitation – minimizing risks and
maximizing profitability by copying market
leaders requires both organic and
mechanistic elements in the organization’s
structure
As an organization grows larger,
its structure tends to change from
organic to mechanistic with
SIZE & STRUCTURE increased specialization,
departmentalization,
centralization, and rules, and
regulations

Woodward’s classification of firms based on

Organizations adapt their
the complexity of the technology employed:
structures to their technology
 Unit production of single units or small
TECHNOLOGY & Routine technology = mechanistic
batches
STRUCTURE org.
 Mass production of large batches of output
Non–routine technology =
organic org.  Process production in continuous process
of outputs
 Mechanistic organizational
structures tend to be most
ENVIRONMENTAL effective in stable and simple
UNCERTAINTY & environments. The flexibility of
STRUCTURE organic organizational structures
is better suited for dynamic and
complex environments

TRADITIONAL ORGANIZATIONAL
DESIGNS

1. Simple Structure
- Low departmentalization, wide
spans of control, centralized authority,
little formalization
2. Functional Structure
- Departmentalization by function
- Operations, finance, human
resources, and product research and
development
3. Divisional Structure
- Composed of separate business
units or divisions with limited
autonomy under the coordination and
control of the parent corporation
 Virtual Organization
 Network Organization
 Modular Organization
 An open team-based
organization
 Extensive and open
information sharing
 Leadership that provides a
shared vision of the
organization’s future;
support; and
encouragement
 A strong culture of shared
values, trust, openness, and
a sense of community
CONTEMPORARY ORGANIZATIONAL
DESIGNS
1. Team Structures
-The entire organization is made up of work
groups or self-managed teams of empowered
employees
2. Matrix Structures
- Specialists for different functional
departments are assigned to work on projects
led by project managers
- Matrix participants have two managers
3. Project Structures
- Employees work continuously on projects,
moving on to another project as each project is
completed
4. Boundaryless Organization
- A flexible and an unstructured
organizational design that is intended to break
down external barriers between the
organization and its customers and suppliers
5. Learning Organization
- An organization that has developed the
capacity to continuously learn, adapt, and
change through the practice of knowledge
management by employees
ACTIVITY MECHANICS: TEAM QUACK QUACK!
Part I. (Challenge).
 Each team should choose 1 representatives who will be called “The challenger” and another
1 representative to be called as “Manager”.
 The Challenger will be the one to tangle or twist the opponent team’s body and positions
while their hands are kept holding each other. The time allotted to do this is 2 minutes. The
opponent of Group 1 will be group 4, while group 2 has group 5. While doing this, make sure
that Managers did not see the whole process.
Part II. (Organizing)
 After their job in opponent’s team, The Challenger will go back to their seats. This time the
Manager will do his/her job after he/she heard “Manager quack quack tulungan mo kami”
from the group. He/She will try to untangle his/her group members’ bodies and positions
alone or without any help from others for 3 minutes. Members are not allowed to give
instructions to the Manager.
Part III. (Organization)
 Another 3 minutes will be given to each group. The Manager will say, “Team quack quack
magtulungan tayo”. This time the Manager will not be alone to do the job. Each member can
now move, or fix themselves. The group will now work as a team.
 The group which will be finished early is the winner.
NOTE:
 The activity will be done by group
simultaneously.
 Each group will be guided and looked by
EXPLANATION: one of the reporters
In this activity, the students will learn how  Silence must be observed when the
organizing works within a group of people. The manager will the one to untangle
challenger represents the problem that may occur
unexpectedly which will lead to unorganized
group. As the head of the group, the manager will
then carefully untangle his/her members. The
members are the representation of people or
maybe the departments within the organization.
There will be time when the Manager is the only
one to decide and there will be time when all of
them should work together. After this activity, it is
expected that the students will have their insights
regarding which is more effective and also would
be able to point out the elements of organizational
design.
QUIZ

1. It is the process of creating an organization’s structure.

2. The formal arrangement of jobs within an organization.
3. It is the process of developing or changing an organization’s structure
4-7. Give 4 key elements of Organizational Design
7-10. Give 4 Contingency factors affecting structural choice

ANSWERS

1. Organizing
2. Organizational Structure
3. Organizational Design
4-7. 4 of these:
Work specialization
Departmentalization
Chain of command
Span of control
Centralization and decentralization
Formalization
7-10. Strategy & structure
Size & structure
Technology & structure
Environmental uncertainty & structure