ORGANIZING

To create structure
WHAT IS ORGANIZING?
• process of arranging people and other
resources to work together to accomplish a
goal
• identify who is to do what, who is in charge of
whom and how different people and parts of
the organization are related to one another
WHAT DOES ORGANIZING DO?
• Divide the work
• Arrange resources
• Coordinate activities
WHY DO MANGERS ORGANIZE?
• Organizing creates and maintains relationships
between all organizational resources by
indicating which resources are to be used for
specified activities and when, where and how
they are to be used.
Purposes of Organizing
• Divides work to be done into specific jobs and
department
• Assigns tasks and responsibilities associated with
individual jobs
• Coordinates diverse organizational tasks
• Clusters jobs into units
• Establishes relationships among individuals, group and
departments
• Establishes formal lines of authority
• Allocate and deploys organizational resources.
HOW DO MANAGERS ORGANIZE?
FEEDBACK Step 1
Step 2
Reflect on plans and
Establish major tasks
objective

Step 5 Step 3
Evaluate results of organizing Divide major tasks into
strategy subtasks

Step 4
Allocate resource and
directives for subtasks
Concept of the Organization
• Herd Concept
• Man-to-Man Concept
• Social Concept
Herd Concept
• premised on the idea that people, especially the
working class, are faceless automatons that could be
coaxed and coerced to perform and accomplish a
definite goal through the use of authoritarian
measures
• the subordinates follow the leader who wields
exclusive power to decide and enforce unquestionable
obedience in his subordinates
• the rule is “obey now, question later”
• prevalent in the military organizations
Man-to-Man Concept
• the organization sees the individual working in terms
of direct personal relation with his superior
• There is a man-to-man relationship between the
subordinate and the superior as a result of direct
delegation of authority and definition of the area of
responsibility of the superior to the subordinate
• flow of communication is strictly up and down
between the subordinate and the superior
• There is no horizontal flow of communication among
peers on the same level of management
Social Concept
• viewed the company organization as a pattern
of group systems
• the superior and subordinates are members of
a team
• relationship is no longer man-to-man but
man-to-his-group
Organizational structure
• formal arrangement of jobs within an
organization.
• organizational design
- a process that involves decisions about six
key elements: work specialization,
departmentalization, chain of command, span
of control, centralization and decentralization
and formalization
Elements of Organizational Design
• Work Specialization – dividing work activities
in an organization into separate job tasks.
• Departmentalization - process of grouping
together people and jobs into work units
Types of Organizational Structure

• Functional Department/Structure – groups together

people with similar skills who perform similar tasks.
Members of functional structure share technical
expertise, interests and responsibilities
Functional
Departmentalization
Plant Manager

Engineering Accounting Production Human Resource Purchasing

• Divisional Department/Structure
- groups together people who work on the same product, work
with similar customers or who work in the same area or
processes.
- They are especially popular among organizations with diverse
operations that extend across many products, territories,
customers and work processes
Geographical
Departmentalization
Vice President
for Sales

Sales Director Sales Director Sales Director Sales Director Sales Director
Western Region Southern Region Central Region Northern Region Eastern Region
• Matrix Department/Structure
– combines functional and divisional approaches to emphasize
project or program teams.
- It’s an organizational structure that assigns specialist from
different functional departments to work with one or more
projects or organizational activities
Human Resources
R&D Marketing Customer Service(CS) Finance Information System(IS)
(HR)

Marketing
Product 1 R& D Group CS Group HR Group Finance Group IS Group
Group

Marketing
Product 2 R& D Group CS Group HR Group Finance Group IS Group
Group

Marketing
Product 3 R& D Group CS Group HR Group Finance Group IS Group
Group
• Chain of Command (a.k.a. scalar relationship)
– line of authority extending from upper
organizational levels to the lowest levels,
which clarifies who report to whom.
- It helps employees answer questions such as
“Who do I go to if I have problem?” or “To
whom am I responsible?”.
• Span of Control
– the number of employees a manager can
efficiently and effectively handled and managed.
- It is sometimes called span of management,
span of authority, span of supervision and
span of responsibility.
- The more individuals a manager supervises,
the greater the span of management and the
fewer individuals a manager supervises, the
smaller the span of management
• Flat Organization – characterized by few levels
and relatively broad span of management.
• Tall Organization – characterized by many
levels and a relatively narrow span of
management
• Centralization and Decentralization
– describes the degree to which decision
making is concentrated.
- If it is done mostly by the upper levels of
management (centralized) or if the lower level
employee provides input or could actually
make decisions (decentralized)
Factors that influence the Amount of Centralization and
Decentralization
More Centralization More Decentralization
 Environment is stable.  Environment is complex, uncertain.
 Lower-level managers are not as  Lower-level managers want a voice
capable or experienced at making in decisions.
decisions as upper-level managers.  Decisions are significant.
 Lower-level managers do not want  Corporate culture is open in
to have a say in decisions allowing managers to have a say in
 Decisions are relatively minor. what happens.
 Organization is facing a crisis or risk  Company is geographically
of company failure. dispersed.
 Company is large.  Effective implementation of
 Effective implementation of company strategies depends on
company strategies depends on having involvement and flexibility
how managers retaining say over to make decisions.
what happens.
• Formalization
– refers to how standardized an organization’s
jobs are and the extent to which employee
behavior is guided by rules and procedures.
- If the job is highly formalized, then the
person doing that job has little discretion over
what is to be done, when it’s to be done and
how he or she does it.
The Concept of Delegation and
Empowerment
• WHAT IS DELEGATION?

• Delegation is the actual process of

assigning job activities and corresponding
authority to specific individuals within the
organization. The process of delegation is the
core of any organization
Aspects of Delegation
• Responsibility – refers to the mental and physical
activities which must be performed to carry out a task.
•  
• Authority – the sum of powers and rights entrusted to
make possible the performance of the work delegated.

• Accountability – the answerability and the obligation to

carry on the delegated responsibility and to exercise the
authority granted to the subordinate for the proper
performance of the mission.
• WHAT IS EMPOWERMENT?
- reinforcing subordinates’ sense of confidence
Reason for Empowering Subordinates:
To avoid low self-efficacy – the conviction
among people that they cannot successfully
perform their jobs or make meaningful
contributions.
Five Broad Approaches to Empowerment:
• Helping employees achieve job mastery (giving proper training,
coaching and guided experience that will result in initial success)
• Allowing more control (giving them discretion over job
performance and then holding them accountable for outcomes)
• Providing successful role models (allowing them to observe peers
who already perform successfully on the job)
• Using social reinforcement and persuasion (giving praise,
encouragement, and verbal feedback designed to boost self-
confidence)
• Giving emotional support (providing reduction of stress and
anxiety through better role definition, task assistance and honest
caring)
Organizational Design Decision
• Organizations don’t and won’t, have identical
structures. A company with 50 employees
isn’t going to look like one with 50,000
employees. But even organizations of
comparable size don’t necessarily have similar
structures. What works for one organization
may not work for another
GENERIC MODELS OF ORGANIZATIONAL
DESIGN
• Mechanistic Organization
- rigid and tightly controlled structure.
- It is characterized by high specialization, rigid
departmentalization, narrow spans of control, high formalization, a
limited information network (mostly downward communication)
and little participation in decision making by lower-level
employees.
• Organic Organization
- highly adaptive and flexible where jobs can change rapidly as
needs require.
- It may have specialized jobs, but those jobs are not standardized.
- Employees are highly trained and empowered to handle diverse
jobs activities and problems and these organizations frequently use
employee teams.
 Woodward’s Findings on Technology,
Structures and Effectiveness

Unit production Mass Production Process

Production

Structural Low vertical Moderate vertical High vertical

Characteristics differentiation differentiation differentiation
Low horizontal High horizontal Low horizontal
differentiation differentiation differentiation
Low formalization High formalization Low formalization

Most effective Organic Mechanistic Organic

structures
TRADITIONAL ORGANIZATIONAL DESIGNS
• Simple Structure – organizational design with low
departmentalization, wide spans of control, authority
centralized in a single person and little formalization that is
commonly used by small businesses in which the owner
and manager are one and the same

• Functional Structure - groups similar or related

occupational specialties together. It’s a functional
departmentalization applied to the entire organization.

• Divisional Structure – made up of separate business units

or divisions. In this structural design, each unit or division
has limited autonomy, with a division manager responsible
for performance and who has strategic and operational
authority over his or her unit
 CONTEMPORARY ORGANIZATIONAL DESIGNS

• Team Structure – the entire organization is made of

work groups or teams.

• Matrix Structure – assigns specialist s from different

functional departments to work on one or more projects

• Project Structure – employees continuously work on

projects. It has no formal departments that employees
return to at the completion of a project. Instead,
employees take their specific skills, abilities and
experiences to other projects.

•
• Boundary less Organization – this design is not
defined by or limited to, the horizontal, vertical
and horizontal boundaries imposed by a
predefined structure.
– Internal Boundaries – horizontal boundaries imposed
by work specialization and departmentalization and
vertical boundaries that separate employees into
organizational levels and hierarchies.

– External Boundaries – boundaries that separate the

organization from its customers, suppliers and other
stakeholders.
Types of Organizational Boundary

• Virtual Organization – an organization that

consists of a small core of full-time employees
and that hires outside specialists temporarily
as needed to work on projects.
•  
• Network Organization (a.k.a. modular
organization) – an organization that uses its
own employees to do some work activities
and networks of outside suppliers to provide
other needed products component or work
processes.
Organizational Design Challenges

• Keeping employees connected

• Building learning organization
• Managing global structural issues
Organizing Trends in the Modern Workplace

• Shorter Chains of Command

• Less Unity of Command
• Wider Span of Control
• More Delegation and Empowerment
• Decentralization with Centralization
A Final Thought:
No matter what structural design managers choose for
their organizations, the design should help employees do
their work in the best – most efficient and effective way
they can. The structure should aid and facilitate
organizational members as they carry out the
organization’s work. After all, the structure is simply a
means to an end.