7

Organizing
 Learning Outcomes

After studying this chapter, you should be able

to:
 Define the concept of organizing, and explain the
importance of the organizing function.
 Describe the process of organizing.
 Describe the types of organizing structures and
organizational relationships.
 Explain the types of organizational structures or
designs.

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 Introduction

 This chapter will explore organizing as one of

the management functions.
 It will also explore the division of work between
people and groups, the work carried out by
managers at different levels, and the
coordination of work produced by these people
and groups to enable the achievement of
organizational aims and objectives.

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 Organizing and Its
Importance
 Identification of organizational activities
 Departmentalization of organizational activities
 Classifying authority
 Coordination between authority and
responsibility

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 Organizing Process

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 Organizational Structure and
Relationships

 Understanding organizing structure helps us to

understand the different types of organizational
relationships.
 Organizational or working relationships that
exist within an organization affect how its
activities are accomplished and coordinated.

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 Formal and Informal
Organizations

 Formal organization
– A formal organization has a structure comprising
of well-defined jobs; each of which bears a
measure of authority and responsibility.
 Informal organization
– An informal organization, has a network of both
personal and social relationships that
spontaneously originates within the formal set up.

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 Types of Organizational
Relationships

 Chart and chain of command

 Span of control
 Line, staff and functional authority
 Delegation

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 Types of Organizational
Structures

 The types of organizational structures chosen are

influenced by certain factors—nature of an
organization, its specialization and its decision-
making hierarchy.
 A successful organization tends to follow a pattern
of structural development as it grows and expands.

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 Types of Departmentalization

 Functional departmentalization
– the grouping of related work activities according to
functions
 Divisional departmentalization
– an organization structure, whereby corporate
divisions operate as relatively autonomous
businesses under a larger corporate umbrella

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 Types of Departmentalization
(cont.)
 Geographical departmentalization
– the grouping of related work activities according to
areas that are served by a business
 Matrix departmentalization
– teams are formed in which individuals report to two
or more managers, usually the functional manager
and project manager
– brings together personnel from several specialties
to complete limited-life tasks

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 Divisional
Departmentalization
 Product departmentalization
– done according to products or services available
 Customer departmentalization
– groups related work activities according to what
customers are likely to buy in terms of an
organization’s products or services
 Process departmentalization
– groups related work activities according to
production processes

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