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Organizing Technical Activities

Reasons for organizing Functional organization


-It is undertaken to facilitate the implementation of plans. It – this is a form of departmentalization in which everyone
helps facilitate the assignment of authority, responsibility, engaged in one functional activity is grouped into one unit.
and accountability. It is very effective in smaller firms where key activities
A job is break down into manageable man-sized jobs to easily revolve around well-defined skills and areas of specialization.
assign tasks to assigned persons. Advantage:
Groups performing a common task permit economies of
Organizing defined scale and efficient resource use.
-Organizing refers to “the structuring of resources and Decision-making is centralized.
activities to accomplish objectives in an efficient and Excellent communication and coordination among
effective manner.” employees.
The “arrangement or relationship of positions within an Promotes high-quality technical problem-solving.
organization” is called a structure. Provided with in depth skill specialization and development.
Provided with career progress.
Purpose of structure Disadvantage:
It defines: Poor communication and coordination between
The relationships between tasks and authority. departments.
Formal reporting relationships, the number of levels in the Decisions involving more than one department pile up at the
hierarchy of an organization, and the span of control. top management level.
The groupings of individuals into departments and Work specialization produce nonmotivating employee tasks.
departments into organization. Difficult to identify which section is responsible for certain
The system to effect coordination of effort in both vertical problems.
(authority) and horizontal (tasks) directions. Limited view of organizational goals.
Limited general management training.
Concerns of Structure
 Division of labor-determining the scope of work and Product or market organization
how it is combined in a job – this refers to the organization of a company by divisions
 Delegation of authority-the process of assigning various that brings together all those involved with a certain types of
degrees of decision-making authority to subordinates product or customer.
 Departmentation-the grouping of related jobs, It is appropriate for a large corporation with many product
activities, or processes into major organizational lines in several related industries.
subunits Advantages:
 Span of control- the number of people who report Flexible and responsive to change.
directly to a given manager Provides high concern for customer’s needs.
 Coordination-the linking of activities in the organization Provides excellent coordination across functional
that serves to achieve a common goal or objective departments.
Easy pinpointing of responsibility for product problems.
The formal Organization Emphasis on overall product and division goals.
Formal organization is “the structure that details lines of Opportunity for the development of general management
responsibilities, authority, and positions.” skills is provided.
It is described by management through: Disadvantages:
 Organizational chart - A diagram of the organization’s High possibility of duplication of resources across divisions.
official positions. Less technical depth and specialization in divisions.
 Organizational manual - It provides written descriptions Poor coordination across divisions.
of authority relationships, details the functions of major Less top management control.
organizational units, and describes job procedures. Competition for corporate resources.
 Policy manuals - It describes personnel activities and
company policies. Matrix organization
– an organizational structure in which each employee reports
Informal groups to both a functional or division manager and to a project or
When members of an organization spontaneously form a group manager.
group with friendship as a principal reason for belonging, this It is a structure with two (or more) channels of command,
group is called informal group. two lines of budget authority, and two sources of
It is useful in the accomplishments of major tasks, but performance and reward.
vulnerable to expediency, manipulation, and opportunism. Advantage:
Efficient use of resources.
Types of organizational structures Flexibility and adaptability to changing environment.
 Functional organization Development of both general and functional management
 Product or market organization skills are present.
 Matrix organization Cooperation and expertise is available to all divisions.
Enlarged tasks for employees which motivate them better
Disadvantage:
Frustration and confusion from dual chain of command.
High conflict between divisional and functional interests.
Many meetings and more discussion than action.
Need for human relations training for key employees and
managers.
Tendency for power dominance by one side of the matrix.

Types of authority
 Line authority
 Staff authority
 Functional authority
Line departments
Line department perform tasks that reflect the organization’s
primary goal and mission.
A department that negotiates and secures contracts for the
firm is a line department.
A construction division is a line function.
STAFF departments
Staff departments include all those that provide specialized
skills in support of line departments, like perform strategic
planning, labor relations, research, accounting, and
personnel.
Classified into:
Personal staff
Specialized staff
Functional authority
Functional authority is one given to a person or a work group
to make decisions related to their expertise even if these
decisions concern other departments.

Purpose of committees
Committee is a formal group of persons formed for a specific
purpose.
When certain formal groups are deemed inappropriate to
meet expectations, committees are harnessed to achieve
organizational goals.
Committees are very useful most especially to engineering
and manufacturing firms.

Classification of committees
 Ad hoc committee – one created for a short term
purpose and have a limited life. Ex. The committee
created to manage the anniversary festivities of a
certain firm.
 Standing committee – it is a relatively permanent
committee that deals with issues on an ongoing basis.
Ex. Grievance committee set up to handle initially
complains from employees of the organization.

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