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o Define organizing.
o Describe the process of organizing.
o Understand the division of
work/labour.
CHAPTER 4: o Explain the types of organizational
LEARNING structure/departmentalization.
Organizing OBJECTIVES o Describe the span of management,
chain of command, authority,
centralization and decentralization.
FUNDAMENTALS OF o Discuss delegation and its importance.
MANAGEMENT (MGT162)
o Understand coordination.

ORGANIZING PROCESS
Organizing is defined as the process
of:

◦ determining the tasks to be done,

DEFINITION ◦ who will do them, and
◦ how those tasks will be managed and
coordinated.
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ADVANTAGES OF DIVISION OF WORK/LABOUR

DIVISION OF WORK/LABOUR -Person-to-fit (based on talents and interests) - the job

given

◦ Breaking down of a job. can be fit based on individual’s ability.

◦ The work has to be divided among the members so that -Creates job specialization
individuals are responsible for a limited set of jobs instead -Increase productivity
doing the task as a whole

DISADVANTAGES OF DIVISION OF WORK/LABOUR

-Higher degree of control

-Boredom

TYPES OF ORGANIZATION STRUCTURE TYPES OF ORGANIZATION STRUCTURE :

(Departmentalization) Functional Structure
1. Functional Structure ◦ Grouping based on functions performed.
2. Divisional Departmentalization
Advantages Disadvantages
- Product Structure Experts in job function Slow in decision
- Customer Structure Easy supervision Difficult to monitor performance
3. Geographic Structure
4. Matrix Structure
5. Network Structure
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TYPES OF ORGANIZATION STRUCTURE : TYPES OF ORGANIZATION STRUCTURE :

Functional Structure Product Structure
◦ Grouping based on the basis of products manufactured.

Advantages Disadvantages
Easy focus Focus only on own products
Quick/speed in decision Increase costs

TYPES OF ORGANIZATION STRUCTURE : TYPES OF ORGANIZATION STRUCTURE :

Product Structure Customer Structure
◦ Grouping based on the types of customers served.

Advantages Concentration on customers’ needs

Good feeling from customers
Expert in the customer handling
Disadvantages Difficult to coordinate operations
Must be experts in customers’
problems
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TYPES OF ORGANIZATION STRUCTURE : TYPES OF ORGANIZATION STRUCTURE :

Customer Structure Geographic Structure
◦ Grouping based on geographical areas.
Advantages Better serve local needs
positive competition
Better communication with
customers
Disadvantages Duplication of jobs
Less control

TYPES OF ORGANIZATION STRUCTURE : TYPES OF ORGANIZATION STRUCTURE :

Geographic Structure Matrix Structure
◦ Two different dimensions/departments grouped simultaneously.

Advantages Disadvantages
Good use of resources Frustration and confusion

Sharing of information High conflict

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TYPES OF ORGANIZATION STRUCTURE : TYPES OF ORGANIZATION STRUCTURE :

Matrix Structure Network Structure
◦ Set of alliances with other organizations.

Advantages Do more with less resources

Effective
Reduce cost
Manager,
Product A
Disadvantages Difficult to develop loyalty
Difficult to control
Manager,
Conflict between management
Product B

TYPES OF ORGANIZATION STRUCTURE :

Network Structure SPAN OF MANAGEMENT
Number of subordinates who report directly to a
manager.
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CHAIN OF COMMAND
◦Line of authority and responsibility.
◦Components:
TYPES OF SPAN 1. Unity of Command
OF Suggests that each person within an organization must have a
clear reporting relationship to only one superior
MANAGEMENT
2. Scalar Relationship
Suggests that there must be a clear and unbroken line of
authority that extends from the lowest to the highest
position in the organization

AUTHORITY DELEGATION
◦ “The right to make decisions with respect to work assignments & to require ◦ The process of transferring the authority for a specific activity or task to
subordinates to perform assigned tasks in accordance with the decision made”
another member of the organization and empowering that individual to
◦ Types of authority:
1. Line authority
accomplish the task effectively”
Those organizational members that are directly involved in delivering the
products and services of the organization

2. Staff authority
Those organizational members that are not directly involved in delivering the
products and services to the organization, but provide support for line personnel
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STEPS IN DELEGATION Benefits of Delegation

1. Empowerment
Decide which Hold
goals or tasks
Make Grant
responsible/ Monitor
2. Better decision-making
assignments authority
to delegate accountable
3. Provide an opportunity for the development of analytical
and problem-solving skills
4. Managers magnify their accomplishments

Barriers of Delegation
1. Manager may refrain to delegate because they are insecure about
their value to the organization
2. Managers simply lack confidence in the abilities of their
subordinates
3. Manager experience dual accountability
4. Subordinate are reluctant to accept delegation