ORGANIZING

What is an organization?

● It is a collection of people who work together and

coordinate their actions to achieve a wide variety of goals.
● The organization encompasses division of work among
employees and alignment of tasks towards the ultimate
goal of the company.
Types of Organization
FORMAL ORGANIZATION
● Characterized by intentional structure of roles and
responsibilities coordinated towards achievement of common
goals.

INFORMAL ORGANIZATION
● Characterized by group of people within the organization
having common values, interests, and desires.
Principles of Organization
● Division of Labor
● Unity of Command
● Authority and Responsibility
● Span of Control
DIVISION OF LABOR
● Breaking down of jobs into simple and repetitive tasks. Individual
specialize in part of job.

ADVANTAGES: DISADVANTAGES
1. Efficient use of diversity of Leads to:
skilled/unskilled labor. ● Boredom,
2. Repetition improves ● Fatigue,
performance skill. ● Stress,
3. No time wasted ● low productivity,
4. Training for specialization is ● poor quality,
more efficient from ● absenteeism, and
organization’s perspective. ● high turnover.
UNITY OF COMMAND
● No member of organization should report to more than
one superior. This is to ensure that conflicting demands
and priorities are not received by the employee.
● Modern organizations have employees reporting to more
than one superior.
AUTHORITY AND RESPONSIBILITY
● Authority is the right inherent in a manger to give others and be
obeyed.
● Required to coordinate activities in an organization.
● Can be delegated to subordinates for proper functioning and efficient
performance.
Responsibility comes with authority.
1. Operating responsibility - can be delegated to subordinate
2. Ultimate responsibility - cannot be delegated. Remains with the
manager who is accountable for the actions and omissions of his
subordinates.
SPAN OF CONTROL
● Refers to the number of people the manager controls.
● Difficult to determine the optimum number.
● Narrow span leads to many hierarchies and a tall organization
structure.
● Wide span will result in few hierarchies and a wider structure.
SCALAR CHAIN
- Authority and responsibility should flow in a clear unbroken line
from top to bottom. This implies that organization is a hierarchy.
ORGANIZATIONAL
STRUCTURE
What is an organizational structure?
● An organizational structure is a system that outlines how certain
activities are directed in order to achieve the goals of an
organization. These activities can include rules, roles, and
responsibilities.
● The organizational structure also determines how information
flows between levels within the company. For example, in a
centralized structure, decisions flow from the top down, while in a
decentralized structure, decision-making power is distributed
among various levels of the organization.
● Having an organizational structure in place allows companies to
remain efficient and focused.
TYPES of Organizational Structure

1. Hierarchical Structure
2. Matrix Schedule
3. Horizontal/ Flat Structure
4. Network Structure
5. Divisional Structure
6. Line Organizational Structure
7. Team-based Organizational Structure
Hierarchical Organizational Structure

A hierarchical structure is typical for larger businesses and

organisations.
It relies on having different levels of authority with a
chain of command connecting multiple management
levels within the organisation.
The decision-making process is typically formal and flows
from the top down.
TYPES of Organizational Structure

1. Hierarchical Structure
2. Matrix Schedule -6
3. Horizontal/ Flat Structure -5
4. Network Structure -4
5. Divisional Structure -3
6. Line Organizational Structure -2
7. Team-based Organizational Structure -1