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CHAPTER 4

ORGANIZING
DIANA DULAY
MAIRA BRUZOLA
ALLYSSA COBALES
CHRISEL BELMONTE
MA JOYCE MARPURI

LEARNING COMPETENCIES…
01 Discuss the nature of organizations;

02 Distinguish the various types of organization structures.

03 Apply organization theories in solving business cases

04 Identify the different elements and delegations; and

05 Differentiate formal from informal organization.

NATURE OF ORGANIZING .

ORGANIZING Is a systematic process of structuring. Provision of Organizing can be thought of as: commensurate authority to the manager so that he can be able to The grouping of supervise the group the activities of activities that has identified been assigned to him. . and activities to resources in order to attain objectives. 1 3 and 5 Identification and The assignment Co-ordination which classification of 2 of the activities 4 ensures that the required activities which have been group of activities necessary for the grouped (each assigned to a accomplishment of the group of manager has a link objectives of the activities) to a with other group of organization. integrating. co-ordinating task goals. manager activities assigned to other manager in the organization.

the to identify who is to do that. . It makes it possible for smooth decision making Removes Obstacles network. that is. internal environment is made clear Presence of communication Organizing makes it possible network. ADVANTAGES OF ORGANIZING Organizing makes it possible The environment. to identify who is responsible for what result.

WHAT IS ORGANIZATION? .

In one sense. some people look at the word as including all the behaviours of the people that work in an establishment. .The term “Organization” is one word that people use loosely.

Purpose:  division of work among members of the organization. work roles and relationships and channels of communication. The structure defines tasks and responsibilities. and the coordination of their activities so they are directed towards achieving the goals and objectives of the organization.MULLINS Structure is the pattern of relationships along positions in the organization and among members of the (2000) organization. .

. DRUCKER (1989) Suggest the organization structure should satisfy three requirements It must be organized The structure should Organization structure for business contain the least possible must make possible the number of management training and testing of performance. levels. future top management.

. Monitoring activities of the and adapt to changing environment organization influences The social satisfaction of members Accountability for areas of work working in the organization undertaken by groups and individual members of the organization. Flexibility in order to respond to future demands and developments. and the level of resource utilization. OBJECTIVES OF ORGANIZATIONAL STRUCTURE Knight (1977) Coordination of different parts of The economic and efficient organization and different areas of performance of the organization work.

TYPES OF ORGANIZATION STRUCTURE .

FUNCTIONAL ORGANIZATIONAL STRUCTURE MARKETING MANAGER SALES ADVERTISING PRODUCT PURCHASING MANAGER MANAGER MANAGER MANAGER .

PRODUCT / MARKET STRUCTURE MARKETING MANAGER GENERAL GENERAL GENERAL GENERAL MANAGER MANAGER MANAGER MANAGER FOODS HOUSEHOLD PHARMACEUTICAL PERSONAL PRODUCTS CARE .

MATRIX STRUCTURE .

much authority is held at the policies and procedures that various management levels in guide employee behavior. rules. than organizations with only a is widely used in modern organization for both managerial and operative jobs few job titles and departments. the organizational hierarchy. 01 02 FORMALIZATION CENTRALIZATION Refers to the amount of Deals with the issue of how written job description. DIMENSION OF ORGANIZATIONAL STRUCTURE Organizational structure can be analyzed along several dimensions. 03 04 COMPLEXITY SPECIALIZATION Concerns the number of Means breaking a complex distinctly different job titles and task into simple parts so that departments in an organization the individual or group with many different department performing the task can focus and job titles are more complex on specific parts of it. .

Advantages and Disadvantages of Specialization of Labor ADVANTAGES: Workers became very efficient when doing the same portion of a carped 01 task over and over again. Workers can learn specialized jobs much faster than jobs requiring 03 many 04 Quantity may improve because workers know their job excellently. One manager can supervise large numbers of workers doing identical 02 tasks. The coordination of many specific task may be the only way for the 05 organization to achieve its complex overall goals. .

Boredom. . absenteeism. Advantages and Disadvantages of Specialization of Labor DISADVANTAGES: Workers fail to develop any sense of pride for the product and service 01 that they are producing. Motivation among workers erodes and a sense of alienation from work 02 may develop. Workers may feel that they are not using valued skills to do their 03 work. and turnover among workers may cause quality 04 to decline Workers may be unaware of how their area of specialization fits 05 into the overall goal of the organization.

BOARD OF DIRECTORS This is the first layer of a typical business organization. Members of the board are drawn from the share holders. DETERMINATION OF ORGANIZATIONAL POLICY It is the responsibility of the board to fashion out what should be the policy of an organization. It provides the framework through which all other activities are carried. Composition and Members in the Organizational Structure THE STRUCTURE IS IMPORTANT BECAUSE IT SHOWS THE DUTIES THAT SHOULD BE PERFORMED IN ORDER THAT THE GOALS AND OBJECTIVES CAN BE REACHED. . The policy is important because it gives a guide to actio n. The board provides leadership and that is why whoever is going to be elected or appointed to the board must be matured individual capable of contributing constructively to the leadership role of the board.

QUIZ! Get ¼ sheet of yellow paper .

A. Centralization Drucker (1989) It is the pattern of relationships along positions in C. Specialization held at the various management levels in the organizational hierarchy. Formalization It deals with the issue of how much authority is C. Complexity rules. Complexity Knight (1977) the organization and among members of the organization. policies and procedures that guide employee behavior. A. QUIZ! A. Centralization It refers to the amount of written job description. B. C. . Centralization 03 B. Formalization 01 B. A. C. Formalization Mullins (2000) 02 B.

Formalization B.05 Give at least 2 Functional organizational structure A. Centralization C. Complexity . QUIZ! 04 .

& MATRIX STRUCTURE . FORMALIZATION 02 A. MULLINS (2000) 03 A.ANSWER! 01 A. CENTRALIZATION 04 FUNCTIONAL ORGANIZATIONAL STRUCTURE 05 PRODUCT / MARKET STRUCTRE.