Principles

of
Management

Topic:ORGANIZING

Prepared by: Louise Marie

Fabale
Potential
Problems of
Specification
refers to boredom,
fatigue, and emotional
burnout can occur if the
job is so dehumanized
that people become mere
biological counterpart to
their machines.
Solutions to problem specification

1. Work Design – process of

structuring individual jobs,
integrating then within the
work groups and making
work efficient and
interesting.
2. Horizontal Job Specification
– results from diving
complicated task into
simpler jobs.
3 . Vertical Job Specification -
results from delegation of
responsibilities for task and
decisions to subordinates.

4. Job Enlargement – is the

process of combining task
to create a new job with
broader activities. It is
concerned with the breath
of work.
6. JobEnrichment –
results from
expanding a person’s
responsibilities so
that work would be
more challenging.
Leadership

Retains leadership duties

Marketing

Delegate marketing and sales

Operations
Hires operation manager

Finances
Promote accountant
Departmentalization is the
horizontal grouping of
activities. This grouping is
normally accomplished
through a functional
pattern of organization in
which personnel with
similar technical skills and
capabilities are gathered in
separate departments.
Departmentalization by
product, geographic
territory, and customer can
emerge as companies grow
Five Possible Ways to
Departmentalize Tasks:
• Derived from internal
operations
1. By business function
2. By process
• Based on external factors
1. By product or service
2. By customer
3. By geography
Quality Work of
Life
Is the concept of
making work
meaningful for
employees in an
environment where
they are motivated to
perform and satisfied
with the results of
there works.
 Seven Habits to Stay Organized
Habit Description
Initiative Seize the initiative! Bold leaders
don’t sit around and ask what to do.
Without being told
•They look into a problem
•Develop alternatives
•Recommend or choose a course
action
Vision Begin with the end. Have a plan and
visualize how it will unfold.
Priorities Put things first. Activities are either
urgent or not urgent and important or
not important:
•Learn to do important work
•Don’t let all urgent items (telephone
calls and other interruptions)
•Select only urgent items act on
•Delegate or postponed the rest

Collaboration Instead of sitting on the opposite

side of the table and viewing your
client as an opponent, sit along
side partners.
Listening Seek first to understand, then to be
understood. Listen to others first,
especially if they represent opposition.
After you learn there language and
perspective, help them understand yours.

Synergy The whole is greater than the sum of its

parts. Integrate your work with others.

Rest •Don’t overwork!

•Remember to rest, refresh, train, and
maintain your health.
•Take time to sharpen the saw.
Formal Organizations
and Standardization
Work can be also
standardized by redefining
the flow of operations.
Technology often dictates
workflows. The sequential
flow of organization
dictates a standard pattern
of work organization.
Bureaucratic and
Organic Structures
Bureaucracy’s form of
organization is one in
which activities are
rationally defined, division
of work is unambiguous ,
and managerial authority is
explicitly vested in
individuals according to
skills and responsibilities
prescribed for the
organizations
 Weber’s Ideal Bureaucracy
Jobs broken down into
Managers are career simple ,routine , and Positions
professional, not well – defined task organized in
owner’s of units hierarchy with
they manage a clear chain
of command
Division of Labor

Career orientation Authority hierarchy

A bureaucracy
should have

Impersonality Formal selection

Formal Rules
and regulations

Uniform application of
rules and controls, not System of written People selected for jobs
according to personalities rules and based on
standard operating technical qualifications
procedures
 Five Characteristics of
Modern Bureaucracies
1. Fixed and official jurisdictions
of authority. Activities are
governed by rules and
regulations that fixed decisions
making parameters.
2. Firmly established rational
chains of command. Graded
level of authority are
structured in an absolute
hierarchy with a narrow span
of control over subordinates.
• A chain of command is
the unbroken line of
authority between the
lowest and the highest
positions in an
organization.

• A span of control is
defined by the number of
subordinates one manager
supervises.
. Quantified and thoroughly
3

documented information.
Nearly everything is
reduced to writing in
bureaucracies: decisions
and conferences are
recorded, files are
maintained, and
allocations are qualified,
which creates complex
administration system.
 Supposition and
4.

Expertise.
Selection for
employment is based on
job skills and expertise.
5. Reliance leads to the
assumption that once
manager learns
administrative
processes, they will
have technical
knowledge.
Designing the Organization:
Contingency Theory and Organizational
Structures.

Contingency theory implies

that organization must be
capable of adapting to
situations under various
circumstances. The notion
of “one best design” for
most companies is
discarded in favor of
“design based on
contingency”
 Researchers have
categorized factors in four
basic concerns:

1. The organization’s age and size.

2. Its technology and that of
industry.
3. Environment forces that
influence decisions.
4. Power and personal attributes
of the organizations
management.
Joan Woodward’s Three
Categories of Technology
1. Unit production.
• Most enterprises start with a
customized service for a select
clientele.
• Unit production is non-
standard, often informal, and
indicates a close system of
individual control
management. Owner and
manager have a hands-on
style of decision making.
2. Mass production
technology
• It is characterized by
formalized work.
• Technical equipment may be
sophisticated, but job
specialization reduces work to
simple.
• A company success is often
predicated on mass production
techniques that make it low-
cost competitor.
 3. Process production

• Companies that require

continuous production
use a process technology
that concert materials
into homogenous and
undifferentiated products.
• The difference between
these product systems and
production technology is
automation.
• Mass production uses
many less skilled
workers to repetitive
machine-paced task.

• In technologically
advanced firms, taller
organizational
structures are being
replaced by flatter
ones.
Technological Imperative

According to Joan
Woodward and
Henry Mintzberg, is
that technology
which often dictates
the structure of the
firm.
• Small batch operators
who expand toward
mass production
techniques therefore
have to expand
middle management,
tighten span of
control, and strive for
greater formalization.
 Environment

• Environmental
influences are
culture, legislation,
politics, economics,
competitors, and
changes in
information
technology.
 Two dimensions of
External Environment
1. Rapidity of change
2. Complexity
The combination of these
dimensions create four general
types of environment:
3. Simple static
4. Complex static
5. Simple dynamic
6. Complex dynamic
Four General Models of
Organization
Resulting from
Conflicting Forces:
1. Decentralized
bureaucratic
organizations-
standardized systems
and skills to provide
replication of marketing
systems in complex but
stable environments.
2. Decentralized organic
organizations – develop
field specialist who have
authority over divisions.
Systems and skills are not
standardized.

3. Centralized bureaucratic
organizations –
standardized work process
and systems.
4. Centralized organic
organization – cannot
standardized process
systems or behavior.
These include young
entrepreneurial firms
in rapidly changing
markets or those with
rapidly changing
technologies.
Organization with Few Levels and Wide
Span Control

Executive

Middle Middle

Line Manager Line Manager Line Manager Line Manager

 Forms of Structuring to Re-
design Organizations
• Merger. It occurs when two
companies form one
corporation by mutual
agreement.
• Acquisition. It is purchase of
all or part of one business by
another.
• Takeover. In a takeover, the
purchasing firm meets
resistance from target
company stockholder.
• Leverage buyouts
or LBO’S. It
occurs when a
group often led by
the company
management,
borrows money to
buy a majority of
the stock in their
own company.
Thanks

for

listening…