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MARIANOMARCOSSTATEUNIVERSITY

COLLEGEOFBUSINESSECONOMICSANDACCOUNTANCY
MAY2010

JONAHCALAUSTRO
VANESSADAMO
CHRISTIANDELACRUZ
SALVEILDEFONSO
ROMMELTABILI

MANAGEMENTFUNCTIONS
ORGANIZING
C/D/DC/I/T (c) 2010

C/D/DC/I/T (c) 2010

Acc. To Chester Barnard

function
define the role positions, the jobs related and
the coordination between authority and
responsibility

C/D/DC/I/T (c) 2010

Acc. To Clayton State University:


School of Business

process
creating an organizations framework
degree of complexity, formalization, and

centralization

C/D/DC/I/T (c) 2010

Acc. To Medina

management function
structuring of resources and activities
accomplish objectives efficiently and
effectively

C/D/DC/I/T (c) 2010

Acc. To Attner & Morgan

management function
establishes relationships between activity
and authority
results to an organization
a system acting in harmony to execute whole

tasks to achieve goals effectively and efficiently

C/D/DC/I/T (c) 2010

Acc. To Champ Academy

C/D/DC/I/T (c) 2010

Importance of Organizing

Plan implementation
Assignment of authority, responsibility, and
accountability
Division of work
Coordinates diverse organizational tasks
Establish relationship among individuals, groups and
departments
Establish formal lines of authority
Allocation and deployment of organizational resources
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C/D/DC/I/T (c) 2010

Productivity

Division of Labor

Time
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Productivity

Division of Labor
HUMANDISECONOMIES
Boredom
Fatigue
Stress
Low Productivity
Poor Quality
Increased Absenteeism
High Turnover

Time
C/D/DC/I/T (c) 2010

Unity of Command

Superior

Subordinate

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Chain of Command
A
RECEIVE
REPORTS

B
GIVE
REPORTS

C
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Chain of Command: Authority


A
B
C
LINE AUTHORITY
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Chain of Command: Authority


A
B
C
STAFF AUTHORITY
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Chain of Command: Authority


A
B
C
FUNCTIONAL AUTHORITY
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Chain of Command:
Responsibility

Responsibility

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Chain of Command:
A-R Models
A

AUTHORITY < RESPONSIBILITY


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Chain of Command:
A-R Models
A

AUTHORITY > RESPONSIBILITY


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Chain of Command:
A-R Models
A

AUTHORITY = RESPONSIBILITY
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Span of Control

Span of 8
(Classical)

Span of 4
(Contemporary)
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Classical Viewpoint
SPAN OF 8
Operatives =
4 096

64096
8
1
4
512

Managers
(levels 1-4)
= 585
C/D/DC/I/T (c) 2010

Contemporary Viewpoint
16096
256
64
4
024

SPAN OF 4
Operatives =
4 096
Managers
(levels 1-6)
= 1 365
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Centralization &
Decentralization

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Centralization &
Decentralization

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CENTRALIZATION

DECENTRALIZATION

Environment is stable

Environment is complex, uncertain

Lower level managers (LLM) are not


as capable or experienced at making
decisions as upper level mangers

LLM are capable and experienced a


making decisions

LLM do not want to have a say in


decisions

LLM want a voice in decisions

Decisions are significant

Decisions are relatively minor

C/D/DC/I/T (c) 2010

CENTRALIZATION

DECENTRALIZATION

Organization is facing a crisis or the


risk of company failure

Corporate culture is open to allowing


managers to have a say in what
happens

Company is large

Company is geographically dispersed

Effective implementation of company


strategies depends on managers
retaining say over what happens

Effective implementation of company


strategies depends on managers
having involvement and flexibility to
make decisions

C/D/DC/I/T (c) 2010

Departmentalization

Putting specialists together


Direction of a manager
Departmentation
Process
Setting up and establishing departments

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C/D/DC/I/T (c) 2010

Common Elements of Organization


Organization

HENRY MINTZBERG
McGill University
C/D/DC/I/T (c) 2010

Operating Core

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Strategic Apex

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Middle Line

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Technostructure

Affects certain forms of standardization


Examples:
Time and motion engineers
Job description designers
Systems and procedures analysts

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Support Staff

Fill staff units


Provides indirect support

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Design Configurations
Operating Core

PROFESSIONAL
BUREAUCRACY

Strategic Apex

SIMPLE STRUCTURE

Middle Line

DIVISIONAL STRUCTURE

Technostructure

MACHINE BUREAUCRACY

Support Staff

ADHOCRACY
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C/D/DC/I/T (c) 2010

The Organizing Process


1

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1. Consider Plans & Goals


Purposes

To establish a partnership business engaged in


the production of childrens shoes
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2. Determine Work Activities


Production

Selling

Training
Accounting

Delivery
Maintaining
Personnel
Advertising

Recruitment
Compensating
Budgeting

Purchasing
Quality Control

C/D/DC/I/T (c) 2010

3. Classify & Group Activities


MARKETING

>Selling
>Advertising
>Delivery

OPERATIONS

>Production
>Purchasing
>Quality control

FINANCE

>Accounting
>Budgeting
>Compensating

HUMAN
RESOURCES

>Recruitment
>Training
>Maintaining
personnel

Functional Departmentalization
C/D/DC/I/T (c) 2010

5. Design hierarchy
General
Manager
Operations
Manager

C/D/DC/I/T (c) 2010

6. Staffing
1

C/D/DC/I/T (c) 2010

C/D/DC/I/T (c) 2010

Organizational Structure

Formal system of tasks, reporting


relationships
Controls, coordinates, motivates employees
Achieve organizations goals

C/D/DC/I/T (c) 2010

Purpose of the Structure

Defines relationships between tasks and


authority
Defines formal reporting relationships, levels
of hierarchy, span of control
Defines individual departments
Defines systems that affects the organization

C/D/DC/I/T (c) 2010

Departmentalization:
Simple Numbers
DatuNorth

C/D/DC/I/T (c) 2010

Departmentalization:
Time
Principal
A.M. Adviser

C/D/DC/I/T (c) 2010

Departmentalization: Function
President
VP Marketing

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Departmentalization:
Geography
Chairman
Power
Electric
Systems
Company
Group (Belgium)

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Departmentalization: Customer
Director
Manager
of Sales
Retail

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Departmentalization:
Process
PlantPattern & Cutting Department

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Departmentalization: Product
President
VP Industrial
MarketingProducts

C/D/DC/I/T (c) 2010

C/D/DC/I/T (c) 2010

Formal System

Planned structure
Lines of responsibility, authority, and position
Establish patterned relationships among
components
Can be described through:
Organizational Chart
Policy Manual
Departments
C/D/DC/I/T (c) 2010

Informal System

Based on needs, sentiments, and interests of


people
Vulnerable to expediency, manipulation and
opportunism
More subtle and invisible in the organizational
chart
Can be classified as:
Horizontal = same department or same level
Vertical = different levels
Mixed = combination of both
C/D/DC/I/T (c) 2010

For
mal
vs
Info
rmal
Org
aniz
atio
ns

FO
RM
AL

INF
OR
MA
L

Have planned structure


Deliberate attempts to create patterned
relationships
Usually shown by a chart
Advocated by traditional theory

Not formally planned


Arise spontaneously as a result of interactions
Not depicted in a chart
Stressed by human relation theory
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C/D/DC/I/T (c) 2010

C/D/DC/I/T (c) 2010

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C/D/DC/I/T (c) 2010