PRESENTED BY GROUP 4

GROUP REPORT
 LESSONS
LESSON 1 NATURE OF ORGANIZATIONS

LESSON 2 TYPES OF ORGANIZATION STRUCTURES

LESSON 3 ORAGNIZATION THEORIES AND APPLICATIONS

LESSON 4 DELEGATION

LESSON 5 FORMAL AND INFORMAL ORGANIZATIONS

LESSON 1
Nature of Organizations
Differentiation of the organization’s
Internal Environment
Differentiation in organizations involves division of labor and specializa- tion. These necessarily result from
the organization's composition--many different work units with different kinds of tasks, using different skills
and work activities coordinating with one another for a common end.
Division of labor involves assigning different tasks to different people in the organization's different work
units. Related to it is specialization, the process in which different individuals and units perform different
tasks. An organization's overall work is complex and would be too much for any individual, therefore, the
bigger the organization, the more work units or work divisions and specializations are to be expected.

Integration of works units

Integration is another process in the organization's internal environment which involves
the collaboration and coordination of its different work units or work divisions.
Coordination refers to the procedures that con- nect the work activities of the
different work divisions/units of the firm in order to achieve its overall goal. Structural
mechanisms may be devised in order to increase collaboration and coordination. The
more highly differentiated one's organization is, the greater the need for integration
among the different units.
 DEFINITION OF TERMS
Organization Organizing Organization Chart

a collection of people or a management function a visual representation of

groups of people working which involves assigning the organization's
together to achieve a tasks, allocating structure showing the
common goal resources, and different job positions in
coordinating work the firm and their
activities in order to hierarchical arrangement
achieve a common for the purpose of
purpose dividing labor and
providing a picture of the
reporting structure
LESSON 2
Types of Organization Structures

Differentiation of the organization’s

Internal Environment An organization structure is a system made up of tasks to be
accomplished, work movements from one work level to other work levels in the
system, reporting relationships, and communication passageways that unite the
work of different individual persons and groups. The types of organizational
structures include:

Vertical Structure a pyramid-like top-down management structure

Horizontal Structure one that consists of few hierarchal levels

Network Structure is a system that involves interacting with internal and
external parties to deliver a product or service
VERTICAL STRUCTURE
A vertical structure clears out issues related to authority rights, responsibilities, and
reporting relationships. Authority rights refer to the legitimate rights of individuals,
appointed in positions like president, vice president, manager, and the like, to give
orders to their subordinates, who in turn, report to them what they have done.
HORIZONTAL STRUCTURE
A horizontal structure refers to the departmentalization of an organization into
smaller work units as tasks become increasingly varied and numerous.
 NETWORK STRUCTURE

Finally, a network structure is a collection of independent, usually single function

organizations/companies that work together in order to produce a product or
service.
LESSON 3
Organization Theories and Applications

There are two main classification of theories

regarding organizational design according to
Robbins and Coulter (2009): traditional and modern.
Traditional pertains to the usual or old-fashioned
ways, while modern refers to contemporary or new
design theories. Traditional organizational design
theories include:
 DEFINITION OF TERMS

organizational design-the manner in which a

management achieves the right combination
of differentiation and integration of the
organization's operations, in response to the
level of uncertainty in its external
environment
 This organizational design has few departments, wide spans of control, or a big number of
subordinates directly reporting to a manager; has a centralized authority figure and has very little
formalization of work; usually used by companies that start out as entrepreneurial ventures. When
applied, its strengths and weaknesses are revealed. See Table 4.1 below.

SIMPLE
This organizational design has few departments, wide spans of control, or a big number of
subordinates directly reporting to a manager; has a centralized authority figure and has very little
formalization of work; usually used by companies that start out as entrepreneurial ventures. When
applied, its strengths and weaknesses are revealed. See Table 4.1 below.
 FUNCTIONAL
This organizational design has few departments, wide spans of control, or a big number of
subordinates directly reporting to a manager; has a centralized authority figure and has very little
formalization of work; usually used by companies that start out as entrepreneurial ventures. When
applied, its strengths and weaknesses are revealed. See Table 4.1 below.
 DIVISIONAL
This organizational design has few departments, wide spans of control, or a big number of
subordinates directly reporting to a manager; has a centralized authority figure and has very little
formalization of work; usually used by companies that start out as entrepreneurial ventures. When
applied, its strengths and weaknesses are revealed. See Table 4.1 below.
TEAM DESIGN

In team design, the entire organization is made up of work groups or teams. Its advantages
include empowerment of team members and reduced barriers among functional areas. It also
has disadvantages, including a clear chain of command and great pressure on teams to perform.

MATRIX-PROJECT DESIGN
Matrix design refers to an organization design where specialists from different departments work on
projects that are supervised by a project manager. This design results in a double chain of command
wherein workers have two managers-their functional area manager and their project manager-who share
authority over them.

BOUNDARY-LESS DESIGN
This is another modern organizational design where the design is not defined or limited by vertical,
horizontal, and external boundaries. In other words, there are no hierarchical levels that separate
employees, no departmentalization, and no boundaries that separate the organization from customers,
suppliers, and other stakeholders.
LESSON 4
Delegation

Delegation refers to assigning a new or additional task to a

subordinate ;
It may also refer to getting work done through others by giving them
the right to make decisions and take action. Steps in delegation
include:
 DEFINING THE GOAL CLEARLY- Managers must clearly explain the task objective and the
work or duties someone else is expected to do.

SELECTING THE PERSON WHO The selected subor dinate must be competent and must
-
WILL BE GIVEN THE TASK share the manager's task objectives.

ASSIGNING OF RESPONSIBILITY - Managers must explain that the respon- sibility assigned to
the selected subordinate is an expectation for him or her to
perform the assigned tasks well.
ASKING THE PERSON ASSIGNED
ABOUT HIS OR HER PLANNED -
It is expected that the person chosen to do the task already has a tentative
APPROACHES TO ACOMPLISH plan of action that may be presented to the manager, to assure him or her
THE TASK OBJECTIVES that the person assigned could achieve the task objective.

GRANTING THE ASSIGNED - If the manager is satisfied with the tentative plan of action presented,
PERSON THE AUTHORITY TO granting of the authority to act immediately follows. Authority is a right
ACT to act in ways needed to carry out the assigned task.

-
GIVING THE ASSIGNED PERSON Accountability is the assigned person's willingness to
ENOUGH TIME AND RESOURCES
complete the job, as agreed upon.
TO DO THE TASK, WHILE AT THE
SAME TIME EMPHASIZING HIS OR
HER ACCOUNTABILITY
CHEKING THE TASK ACCOMPLISHMENT - Following up and dis- cussing the task accomplishment
PROGRESS progress at regular intervals is necessary. Making sure that
the task objective has been achieved
DELEGATION HAS ADVANTAGES AND DISADVANTAGES AS WELL
LESSON 5
Formal and Informal Organizations

Whether an organization is formal or informal is determined by

the kind of relationships that prevail in each organization type.
Formal organizations are characterized by hierarchical and
reporting relationships among groups or members. On the
other had, informal organizations consist of informal groups
born out of the need for social affiliation. Both formal and
informal organizations may exist in the same organization
structure.
 DEFINITION OF TERMS
FORMAL INFORMAL
ORGANIZATION ORGANIZATION
Formal organizations-organizations formed by the informal organization - organizations that
company owner or manager to help the firm exist because of friendship or common
accomplish its goals; made up of formal groups (work
interest; made up of informal groups which
groups/ project team/committee) similarly formed by
company authorities to support their activities and exist for the members' need for social
achieve their objectives affiliation.
1.ACCOMPLISH GOALS THAT REQUIRE COOPERATION OR COLLABORATION AMONG FORMAL GROUPS IN THE ORGANIZATION

2. PRODUCE OR BRING ABOUT NEW AND CREATIVE IDEAS AND SOLUTIONS TO COM- PANY PROBLEMS

3. COORDINATE INTERDEPARTMENTAL ACTIVITIES

4.IMPLEMENT COMPANY RULES/REGULATIONS AND POLICIES

5.ORIENT/TRAIN NEW EMPLOYEES

1.SATISFY THE MEMBERS' NEED FOR AFFILIATION

2.GIVE THE INDIVIDUAL MEMBERS A CHANCE TO DEVELOP THEIR SELF-ESTEEM

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3.GIVE INDIVIDUAL MEMBERS AN OPPORTUNITY TO SHARE THEIR IDEAS
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4.LESSEN INDIVIDUAL MEMBERS' INSECURITIES

5. PROVIDE A MECHANISM TO SOLVE MEMBERS' PERSONAL AND INTERPERSONAL PROBLEMS

ADVANTAGES AND DISADVANTAGES OF FORMAL AND INFORMAL ORGANIZATIONS
THANK YOU FOR
LISTENING!!