Unicaf University Zambia

Organizing Business

Done in partial fulfillment of course

UU-MBA712 – Theories of Management

Presented to: Professor Elena Panayiotou

Presented by: Sheryll Alexander-Thomas ID#10474242

Date: December 12, 2021

Assignment 5: Discuss the organisational structure, and explain the characteristics,

elements, and importance of organizing. Also, discuss the factors which affect the choice of an

organisational structure. Finally, examine organization charts and explain the different types of

charts used in organisations.

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 Table of Contents

Page

Assignment Outline 2

Introduction 4

Organizational Structure and its Characteristics 5–6

Importance of Organizing 7

Elements of Organizing and its Importance 7–9

Organizational Charts and types used in organizations 9 – 10

Conclusion 11

References 12 - 13

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 Introduction

Understanding the meaning, characteristics, and processes of organizational structures, one has to

analyze and distinguish between the different types. Organizations are created by the coming

together of people in a group for the purpose of accomplishing what one individual is unable to

accomplish. As a consequence, better results are created through organisational accomplishment

and some organizational goal are achieved in this direction (Brodar, K, et al., 2008). The success

or failure of the organization can be the basis on which it is created. As such, internal order and

relations among organizational parts are the construct in obtaining the goals of the organization –

this describes the organizational structure. For the any organization to operate properly, all the

parts along with relations and mechanisms of their coordination are important. Many factors

influence organizations and these factors come from the organization itself as well as its dynamic

surrounding. The organizational structure cannot meet the requirements of adoptability and

efficiency at times because of its static nature. There are many different schools of thought

regarding the factors that influence organizational structure in the field of organization theory.

There are those who believe that factors such as size, environment, and/or technology are

determinants in the organizational structure. The argument put forward is that the imposition of

economic and/or other constraints on the organizations force them to choose particular structure

over others.

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 Organizational Structure and its characteristics

The definitions and opinions of organizational structure are numerous and varied. How the duties

are arranged for the work to be done is structure on one hand and characterized in the organization

(Jackson & Morgan, 1982). On the other hand, competence in business, leadership, talent,

functional relationship and arrangement are the building blocks of structure (Wolf, 2002). Levels

of hierarchy and spans of control, roles and positions, and the mechanisms for integration and

problem solving are the basis of organizing. (Walton, 1986). According to (Thompson, 1966),

“structure is the internal differentiation and patterning of relationships”. His reference is the means

by which limits and boundaries are set for the organization to achieve efficiency in performance

by its members. This is done by removing limit set on responsibility and resources control. The

level at which executives behave similarly to entrepreneurs is relative to differentiation, while the

accolades bestowed on integration gives rise to the organization’s members including managers

pulling all stops to obtain the goals of the organization. Likewise, a set of elements interacting,

organized level and decision making units all intertwined as an organization (Martinelli, 2001).

Paramount to researchers of organizational structure is the identity of these elements.

Dictionary-Organizational behavior defines the organizational structure as “the established pattern

of relationships among the components of parts of company (The way a company is set-up). They

formally defined framework of an organization’s task and authority relationships.” Crisply defined

by (Sablynski, 2012) as “how job tasks are formally divided, grouped and coordinated”. Many

organizational researchers define organizational structure using different tones and oratories,

which mean the same thing, using descriptivism differently. (Zheng, et al., 2010) stated that the

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crucial components of organizational structure comprise formalization, centralization, and control.

Formalization is the measurement to which rules and procedures to behaviour is prescribed by the

organization (Liao, et al., 2011). The degree to which the workers are provided with rule and

procedures that deprive versus encourage creativity, autonomy of and learning is the nature of

formalization (Nahm, et al., 2003). As such, organizations with high formalization are likely to be

an impediment to flexibility and spontaneity when there is need for internal innovation (Chen &

Huang, 2007).

The level of hierarchy with the decision-making authority is referred to as Centralization.

Delegated decisions to the organization’s lower level is decentralized and when the authority to

make decisions is kept at the top level it is centralized (Ferrell & Skinner, 1988). Centralization

reduces communication, commitment, and involvement with tasks among participants, which

create an environment of non-participation (Chen & Huang, 2007). Organizational control is

cyclical and consists of three components – target setting, measuring or monitoring and feedback.

The corridors of power in Control will entail rules, standards, and internal processes (Ferrell &

Skinner, 1988). The development and enforcement of performance control and prescribed

behaviours will improve the decision-makings process and the predictions of performance will

increase (Germain, et al., 1988). (Chen and Huang, 2007) posited that higher performance is as a

result of decentralized and informal structure. The study done by (Germain, et al., 1988) brought

to the fore that the effect of structure on the performance arbitrating supply chain management

found that in stable environment, formal structure has a positive effect on the performance, while

in dynamic atmosphere negative effect is obtained. As such, (Zheng, et al., 2010) concluded the

negative and ineffectiveness of the organization on the structure.

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 Importance of Organizing

(Lowstedt, 1993, p. 4) states “The organizing process can now be defined as the process in which

an organization, or part of it, develops and changes its structure, either gradually or in dramatic

leaps. It is a type of meta-process which generates more concrete processes, such as those

involving the actual work (the work process) or the transfer of goods to customers in exchange for

money (the exchange process).” As such two or more persons working collectively requires

organizing. Organizing therefore is the act that encompasses integrating, balancing and

coordinating the activities of people working together toward common goals. The process assigns

tasks and provides adequate authority to perform those tasks. When employees accept assigned

work, they become responsible for performing it (subordinate), and requisite authority is given in

the discharge of responsibility (superior).

Elements of Organizing and its Importance

Organizing is the process of identifying and grouping activities to be performed and dividing them

among individuals and creating authority and responsibility relationship among them to

accomplish the objectives of organizations. According to businessmanagementideas.com, an

essential part of the process of management is organizing. It is done in relation to all other

functions of management. Organizing follows planning while the other functions follow

organizing. As such, organizing then is a sub-process of management. The process is continuous

– once the introduction of new activities and/or functions as well as the reshuffling of activities

and functions in the organization. Organizing is a function that all managers practice in the

organization. It may vary with different managers depending on the nature and importance of the

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organizing function. It involves coordination in order to create balance and structure in the

organization, the members’ activities need to be well-coordinated and goal oriented. The basis of

organizing is designed on objectives and the aim of achieving those objectives smoothly. Group

efforts are made by attaining common goals and the establishment of authority-responsibility

relationship among members of the organization.

The process of organizing takes into consideration the identification and enumeration of activities

- manager’s identification and determination of activities to be performed in order to achieve a

common goal. Example, an organization producing and distributing roasted coffee has to perform

a number of activities that are related to production, distribution, finance, purchase and personnel,

etc. Following the determination and enumeration activities, there is division and sub-division

into small components known as jobs and tasks. These small activities can be put in various group

on the basis of their relationship and similarities such as production, marketing and sales. The

assignment of group of activities require the activities be allotted to the designated department,

with the right competencies to perform the activities. Granting of rights for assignments given in

order to satisfactorily perform the assigned tasks and, through the process of delegation rights are

granted. Finally, coordination of the functions of various departments in the achievement of the

organizational goals.

To this end the importance of organizing is so that management functions can be performed

through the provision of the framework efficiently, and via the superior-subordinate relationship

created by the process of organizing allows the manager to plan, direct and control activities of

subordinates. The facilitation of coordination leads to specialization and assists in achieving

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efficiency while promoting employee development, increase clarity of authority and responsibility,

and the ability to adapt.

Organizational Charts and types used in the organization

According to Investopedia.com, “an organizational chart is a diagram that visually conveys a

company’s internal structure by detailing the roles, responsibilities, and relationships between

individuals with an entity.” The organizational chart either broadly depict an enterprise

organization-wide, or drill down to a specific department or unit. Regardless of an organization’s

structure, the charts are very useful when restructuring of the organization is contemplated – either

its workforce or changing the complexities of management. More importantly, organizational

charts give transparency to employees as to how the role they play fit into the organization’s overall

structure. The Hierarchical Organizational Chart is the most common model that situates the

highest ranking individuals atop the chart and positions lower-ranked individuals below them.

Organizational hierarchies are dependent on the industry, geographical location, and size of the

company. An example of a public company typically shows shareholders in the highest box,

followed by the following in descending vertical order:

- Chair of the board of directors

- Vice-chair of the board

- Board members

- Chief executive officer

- Other C-suite executives (joined to one another by horizontal lines)

Other job titles that may follow c-suite executives include:

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 - President

- Senior vice president

- Assistant vice president

- Senior director

- Assistant director

- Manager

- Assistant manager

- Full-time employees

- Part-time employees

- Contractors

Other types of organizational charts are flat – known as the horizontal chart that positions

individuals on the same level, indicating more power equality and autonomy in the decision-

making ability. The Matrix organizational chart is more complex in structure and groups

individuals by their common skill-sets, the departments in which they work, and the people they

may report to. The matrix chart often interconnect employees and teams with more than one

manager, such as a software developer working on two projects-one with his/her regular team

manager, and another with a separate product manager. In this case the matrix chart connects the

software developer to each manager he/she is working with, via vertical lines. Divisional

Organization chart that subdivides the company based on some specific criteria. This may very

well be by product offerings or geographic regions. Examples is an automobile manufacturer

organizing its company by product type. The respective divisions have certain autonomy but this

would likely incur additional overhead cost.

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 Conclusion

A well designed organizational structure promotes success. Businesses require structure to grow

and be profitable. Designing an organization structure helps top management identify talent that

needs to be added to the company. If an organizational structure does not fit the company’s goals

and objectives, it can hinder cooperation therefore, the all the parts of an organization must

coordinate and correlate for the efficient use of resources and ultimately to meet the objectives of

the organization.

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 Reference

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