DEFINITION OF ORGANIZING

Organizing –is the process of grouping together of men & establishing relationship among them.

- the identification of the grouping of work to be done, the delegation of authority & responsibility of the employees.

NATURE OF ORGANIZING

It has been proven that a weakness in the organization is a positive sign because it induces the people to attain
teamwork, since they know that there should be cooperation to accomplish something.

ORGANIZING AS A PROCESS

Organizing as a process should consider several factors or fundamentals. First, the structure must reflect objectives and
plans because activities of the organization are based on them.

THE NATURE OF ORGANIZING & DEVELOPMENT OF ORGANIZATION

Although these are differences of interpretations as to the exact nature of organization.

TYPES OF ORGANIZATION STRUCTURES

It has been stated that organization structures may differ in terms of the specific needs of a given business enterprise.

1.) Line Organization – this is the simplest form of structure & refers to a direct straight line responsibility & control from
the top management to the middle management & to the lower level.

2.) Line & Staff Organization – this utilize the assistance of experts or specialist.

3.) Functional Organization – It utilize the pure services of experts or specialist.

ORGANIZATION CHART

An organization chart is a diagram or drawing showing the important aspects of an organizational structure

Purpose of an Organization Chart

An organization chart assist one to view the firm’s structure as a whole.

Types of Organization Chart

1.) Master Chart or Chart Authority - the master chart shows the entire organizational structure.

2.) Functional Chart – the functional charts shows at a glance the functions & activities of the positions/departments.

3.) Personal Chart – the personal chart shows the department in the same relatives manner as the functional chart.

REORGANIZATION

Reorganization is the process by which an existing organization undergoes changes in the size & shape of the
organization structure.

DEPARTMENTATION

Departmentation results from the grouping of work, the desire to obtain units of manageable size & utilize managerial
ability an organization structure & design are shaped significantly by the departmentation followed.
RESULTS OF GOOD ORGANIZATION

An good organization would result in the following:

1. establishing 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 a person’s performances against his charges & responsibility.

6. establishing closer cooperation & high morale.

THE ELEMENTS OF DELEGATION

Delegation is the process of entrusting & transferring responsibility & authority by the top management

to the lowest level.

1.) Responsibility

This is the work or duty assigned to a particular position.

2.) Authority

It refers to the power or the right to be obeyed.

It is also the sum of the powers & rights entrusted to make possible the performances of work delegated.

3.) Accountability

This is the answerability of the obligation to perform the delegated responsibility.

THE ART OF DELEGATION

Delegation is considered an art & science. It is an art because it is a skill that the manager performs

effectively if he practices it.

THE EXCEPTION PRINCIPLE

The exception principle (also known as management by exception) is closely related to the parity principle.

FORMAL & INFORMAL ORGANIZATIONS

Every organization structure has two system of operation: the formal & informal.

Formal System – is composed o the recognized formalized lines of communications, authority & control.

Informal System – is much more subtle & invisible in the organization chart.
CENTRALIZED & DECENTRALIZED ORGANIZATIONS

One of the most important questions that a company must answer as it grows is whether or not to continue management
by delegating some of its authority to subordinates.

Centralized Management Organization – major decisions are made by a few top executive subordinate exercises, little
initiate in decision making.

Decentralized Management Organization – represents a systematic effort delegate to lower levels all authority.

THE NATURE OF LINE & STAFF RELATIONSHIP

Another way to improve coordination is to distinguish clearly between line & staff positions so that organization
members clearly recognize the degree of responsibility associated with each organizational position.

“FLAT” & “TALL” STRUCTURES

In the diagram, both organizational structures have ten subordinates under a top person.

The flat structure has two levels with a span of ten.

The tall structure has four levels with a span of two.