MODULE 5
MANAGEMENT FUNCTION: ORGANIZING
Organizing
• Determining what task are to be done, who is to
do these, how the tasks are to be grouped, who
reports to whom and what decisions are to be
made.
• Process of identifying and grouping the work to be
performed, defining and delegating responsibility
and authority and establishing relationships for the
purpose of enabling the people to work more
effectively together in accomplishing objectives.
Organizing Process Includes
1. Identifying and defining basic tasks.
2. Delegation of authority and assigning
responsibility
3. Establishing relationships
Key Principles in Organizing
A. Unity of command – employees should be
responsible to only one superior, to avoid confusion,
overlapping of duties and responsibilities and
misunderstanding.
B. Scalar principle – [ “chain of command”] authority
and responsibility should flow in clear unbroken lines
from the highest executive to the lowest, usually a
military term.
C. Homogeneous assignment or Departmentation –
workers performing similar assignment are group
together for a common purpose. Departmentation
promotes specialization of activities, simplifies the
administrators work, and helps maintain effective
control.
D. Span of Control—the number of workers that a
supervisor can effectively manage should be limited,
depending upon the pace and pattern of working
area.
E. Exception Principle –recurring decisions should be
handled in a routine manner by lower level managers
whereas problems involving unusual matters should
be referred to the higher level.
F. Decentralization or Proper Delegation of Authority –
decentralization is the process of pushing decisions to
the lower levels of the organization.
Organizational Chart
Drawing that shows how the parts of the
organizations are linked. It depicts the formal
organizational relationship, areas of responsibility and
accountability and channel of communication.

Major Characteristics of an Organizational Chart

An organizational chart should show the following

components:

1. Division of work. Each box represents the

individual or sub-unit responsible for a given task
of the organization’s work load.
2. Chain of Command. Lines indicate who reports to
whom and by what authority.
3. Type of work to be performed. Indicated by labels
or descriptions for the boxes.
4. Grouping of Work Segments. Shown by the clusters
or work groups (departments or single units).

Kinds of Organizational Charts

A hierarchical structure is typical for larger businesses
1. Hierarchical Organizational Chart: This is the most
and organizations. It relies on having different levels
common type, and it gives rise to the
of authority with a chain of command connecting
synonym Hierarchy Chart. A hierarchy is where
multiple management levels within the organization.
one group or person is at the top, while those with
The decision-making process is typically formal and
less power are beneath them, in the shape of a
flows from the top down.
pyramid.
2. Matrix Org Chart: This is usually only seen when
individuals have more than one manager. This may
be disadvantageous as having more than one
person or department to answer to can also create
confusing loyalties or conflicts of interest for
employees.
3. In a flat, horizontal structure, most layers of
management are cut out, with close relationships
between the top and the employees. This is common
in smaller companies and organizations, but it’s
generally not practical for larger organizations.
Line Quality The Managerial Levels

A. The supervisor-subordinate relationship is depicted Level Scope of Examples

by a solid line. The solid line manager tends to look Responsibility
after the objective setting and performance
Top Level Generally, make CEO, President,
evaluation processes and in the event of a dispute is Managers decisions with the V-President
help of few
the manager to whom the individual will tend to guidelines or
defer. structure. They
Coordinate internal
& external influences
B. Dashed and dotted lines are used to lay out less
straightforward relationships. Those in advisory roles -- Middle They conduct day- Department Head,
Level day operations with Unit Supervisor/
a legal team, for instance -- may be connected by a
Managers some involvement, Manager
broken line to those whom they advise. An employee long term planning
and policy making.
that is occasionally loaned to a different department
might be connected to it on the chart by a dashed First Level Concerned with Team Leader
line. Those with functional authority -- say, a finance Managers specific unit
workflows. They
manager with authority over department heads only deal with
in terms of expense procedures -- may be connected immediate day-
day problems.
to those heads by a dotted line.