ORGANIZING

Group 2 Lead By: Chastine Ventura

NATURE OF ORGANIZATION
BY: RHOBERT DEL MONTE & COLEEN AROLLADO
 Nature of Organization
The concept of organization has been evolved from the commencement of human
civilization when they started to live in groups. It means that the family is the beginning
form of organization.
But nowadays, people have to form different types of an organization on the basis of
their goals consisting of business, social, religious, clubs and so on.
Activities of each member get coordinated with the help of an effective communication
network. Responsibility and authority are delegated on the basis of the structure of the
organization.
It is a collection of people working together with a division of labor or work to achieve
a common purpose.
When people decide to accomplish any work or job for mutual benefit, they need to
form an organization.
 Nature of Organization:

Organization as Process & Organization as a Structure

As a process, organization is an executive function.
The process of organization thus, involves dividing the
work in a rational way and integrating the activities with
work situations and personnel. It also represents
humanistic view of the enterprise since it is the people who
are uppermost in the process of integration of activities.
Continuous review and adjustment makes it dynamic as
well.
 Unity of Command

 Unity of command means that  Unity (also called harmony) is

all forces operate under a single an important principle of design
commander with the requisite that gives the artwork a sense of
authority to direct all forces cohesion or coherence. It is the
employed in pursuit of a wholeness or completeness of a
common purpose. picture. Unity and harmony in
art are used by artists to tie a
composition together and help
the composition make sense as a
whole piece of art.
Authority and Responsibility
Authority means a formal,
institutional or legal power in Authority means power to take
a particular job, function or decision. 
position that empowers the
holder of that job, function or
position to successfully
perform his task.
Responsibility means obligatio
n to complete the job assigned
Responsibility is
on time. According to
the obligation of a subordinate this principle there must be
to perform a duty, which has balance or parity between the
been assigned to him by his authority and responsibility.
superior
 Departmentalization

Departmentalization refers to the formal structure

of the organization, composed of various
departments and managerial positions and their
relationships with each other. As an organization
grows, its departments grow and more sub-units are
created, which in turn add more levels of
management.
 What is the process of departmentalization?

 Process Departmentalization is a manner or practice

of implementing a process through combining
related activities into separate groups or specialized
functional areas which are distinct from each other.
 Span of Control

 Span of control refers to the number of subordinates

that can be managed effectively and efficiently by
supervisors or managers in an organization.
Typically, it is either narrow or wide resulting in a
flatter or more hierarchical organizational structure
TYPES OF ORGANIZATION
STRUCTURES
BY: CHASTINE VENTURA
 .

 1. Hierarchical org structure - The pyramid-shaped organizational chart we referred

to earlier is known as a hierarchical org chart. It’s the most common type of
organizational structure––the chain of command goes from the top (the CEO or
manager) down (entry level and low-level employees) and each employee has a
supervisor.
 2. Functional org structure - Similar to a hierarchical organizational structure, a
functional org structure starts with positions with the highest levels of responsibility at
the top and goes down from there. Primarily, though, employees are organized
according to their specific skills and their corresponding function in the company.
Each separate department is managed independently.
 3. Horizontal or flat or structure - A horizontal or flat organizational structure fits
companies with few levels between upper management and staff-level employees.
Many start-up businesses use a horizontal org structure before they grow large enough
to build out different departments, but some organizations maintain this structure since
it encourages less supervision and more involvement from all employees.
.
4. Divisional org structure
-In divisional organizational
structures, a company’s divisions
have control over their own
resources, essentially operating like
their own company within the larger
organization. Each division can have
its own marketing team, sales team,
IT team, etc. This structure works
well for large companies as it
empowers the various divisions to
make decisions without everyone
having to report to just a few
executives.
5. Matrix org structure
-A matrix organizational chart
looks like a grid, and it shows
cross-functional teams that form
for special projects. For example,
an engineer may regularly belong
to the engineering department (led
by an engineering director) but
work on a temporary project (led
by a project manager). The matrix
org chart accounts for both of
these roles and reporting
relationships.
.

6. Team-based org structure 7. Network org structure

- It’ll come as no surprise that a - These days, few businesses have all
team based organizational their services under one roof, and
structure groups employees juggling the multitudes of vendors,
according to teams–think scrum subcontractors, freelancers, offsite
teams or tiger teams. A team locations, and satellite offices can
organizational structure is meant get confusing. A network
to disrupt the traditional organizational structure makes sense
hierarchy, focusing more on of the spread of resources. It can
problem solving, cooperation, and also describe an internal structure
giving employees more control. that focuses more on open
communication and relationships
rather than hierarchy
ORGANIZATION THEORIES AND
APPLICATION
BY: RAVEN JOY DELFIN & JHADE VOLANTE
 Classical Theory
Classical Theory Management takes
place within a formal administrative
framework of recommended
responsibilities
Characteristics of classical theory
 CRITICISM OF CLASSICAL THEORY
YROEHT LACISSALC FO MSICITIRC

This theory is It does not It does not give It underestimates This theory
based on care about the two way the influence of neglected the
authoritarian human communications. outside factors importance of
approach. element in an on individual informal groups.
organization. behavior.
 Scientific Management
Approach
Focuses on the concept of planning of work in
achieving efficiency, standardization, specialization
and simplification. This increases productivity
between management and workers based on mutual
trust.
 Management and Labor
Science, not rule- cooperation rather than
of-thumb conflict

Scientific selection of Scientific training of

the worker workers
 Weber’s Bureaucratic Approach
Max Weber’s bureaucracy is one of the accepted theories of organization.
He stressed that organization is a part of the social system. He gave due
importance to bureaucracy and its usefulness for effective functioning of
an organization. He also made proper rules and procedures to regulate
the behavior of personnel in an organization.
 Administrative Theory
Founded by Henry Fayol, this approach of organization management
is accounted as set of planning, organizing, training, commanding,
and coordinating functions. Henry Fayol is one of the famous names
to be attributed to this theory. This theory made its contribution on
the managerial aspect of an organization.
 PRINCIPLES OF ADMINISTRATIVE THEORY
YROEHT EVITARTSINIMDA FO SELPICNIRP

DIVISION AUTHORITY SCALAR CHAIN INITIATIVE

OF WORK
 Human Relations Theory
Pointing out individual or group behavior and human relations
in determining productivity. The Neoclassical perspective
began with the Hawthorne studies in the 1920s. This approach
gave emphasis to “affective and socio-psychological aspects
of human behaviors in organizations.”
 Neo Classical Theory
The presumption is made that the needs at each level must
be met before the needs are raised to the next higher level. At
present, the emphasis is on the items towards the top of
Maslow's ladder, of which the job and work environment or
happiness are common attributes.
CRITICISM OF NEO-CLASSICAL THEORY
A survey conducted by American
Management Association (AMA) indicates
that most of the companies reported found
little or nothing useful in behavioral theory.
 Hawthrone Theory
The Hawthorne study suggested that employees
have social and psychological needs along with
economic needs in order to be motivated to
complete their assigned tasks.
 Modern Organization
Theory
Organization is an adaptive system that is adjusting accordingly to the
changes in environment.

According to one authority, it was organized in the early 1950s. This

theory composed of the ideas of different approaches to management
development.
Like the general system theory, modern organization
theory studies:
 .

The parts
(individual) in
aggregates and
the movement of
individuals and The interaction of
out of the system. individual with the
environment The interaction
found in the among individual
system. in the system.
 It gives importance to inter-
It is integrating in disciplinary approach to
nature organizational analysis.

It concentrates on both It is not a unified body

quantitative and behavioral of knowledge.
sciences.
 Systems Approach
Considered as a system composed of a set of
inter-related and mutually dependent-sub-
systems
Social – Technical Approach
Organization is composed of social system, technical
system, and its environment. Interaction among the
three disciplines is a must to appropriately balance its
effective function of the organization.
 Contingency or Situational
Approach
Organizational approach is inter-related with their
environments. Whereas, different environment has different
organizational relationships for effective work.
 Situational Approach
This theory points out that the actions taken
by the manager are dependent on the current
situation rather than on a one-size-fits-all
approach. The manager takes reasonable
steps based on the factors that are relevant to
the current situation.
 Decision Making
Theory
Herbert A. Simon (who was awarded in the year 1978, the
Nobel Prize mainly on the basis of this theory) regards
organization as a structure of decision makers. In an
organization, decisions are made at all levels, and important
decisions tend to be made at higher levels. The decision
making approach to organization accepts the hierarchical
form of organization.
 Motivation Theory
It is concerned with the study or work motivation of employees
of organization. The works are performed effectively if proper
motivation is given to the employees. The motivation may be in
monetary and non-monetary terms
 Decision Theory
The other name of decision theory is decision making theory. This
theory was given by Herbert. A. Simon. He was awarded Nobel Prize in
the year of 1978 for this theory. He regarded organization as a
structure of decision makers. The decisions were taken at all levels of
the organization and important decisions (policy decisions) are taken
at the higher levels of organization.
DELEGATION
BY: AVIONA SANTIAGO & JADE CABRERA
 What is Delegation?
Delegation is the assignment of authority to another
person to carry out specific activities. It is a group of
people who have been tasked with a specific job or given a
specific purpose, or the act of assigning a specific task or
purpose to a person or group of people.
 Importance of Delegation
Delegation of authority helps develop the capacity of
others and makes them feel valuable to the organization. It
also encourages job satisfaction through a sense of
shared responsibility and breaks the monotony of a
subordinate's usual tasks and routine.
 The Core
Elements of
Delegation
Authority Can Be Delegated
As a leader, you can transfer pieces of your formal
authority to another teammate when assigning a task to
that person. In essence, you can deputize your teammate
to take action on your behalf within the boundaries of the
delegated authority
 Responsibility Cannot Be
Delegated but It Can Be
Assigned
As a leader, you can assign responsibility to another
teammate in terms of the results that need to be achieved.
However, you need to keep in mind that you only assigned
responsibility to your teammate.
 Accountability Means
Obligation
Accountability is the moral compulsion felt by a teammate
to meet the goals and objectives of an assigned task. As a
result of accepting a task assignment, your teammate in
effect gives you a promise to do her best in carrying out
the activities associated with it.
FORMAL & INFORMAL
BY: ANANIE DEVULGADO
Formal and Informal Organization

 Formal organizations are more  Informal organizations do not require

structured and rely on authority based hierarchies of authority or structured
upon chains of command. internal processes. 
  Formal organizations are formed to   Informal organizations serve the needs
serve a specific purpose or meet set goals of individuals and can be created
spontaneously with a purpose that is not
well-defined. Goals are not always clear
because informal organizations primarily
serve social requirements for members
What is formal organization?

 A formal organization is a social system structured by clearly laid

out rules, goals, and practices and that functions based on a
division of labor and a clearly defined hierarchy of power. Example
of Formal Organization Businesses Governments
WHAT IS INFORMAL ORGANIZATION ?

 An informal organization is the interlocking social structure that

governs how people work together in practice. It consists of a
dynamic set of personal relationships, social networks, communities
of common interest, and emotional sources of motivation.
 According to Chester Barnard, “An informal organization is an
aggregate of interpersonal relationships without any conscious
purpose but which may contribute to joint
The difference of formal and informal Organization

FORMAL ORGANIZATION INFORMAL ORGANIZATION

 Structure of authority relationships created by  Network of social relationships arising out of
the management. interaction among employees
 Arises as a result of company rules and  Arises as a result of social interaction.
policies.
 Arises out of personal qualities.
 Arises by virtue of position in management.
 There is no set behavior pattern.
 It is directed by rules.
 Flow of communication is not through a
 Communication takes place through scalar planned route. It can takes place in any
chain. direction.
 Rigid  Flexible
 Managers are leaders  Leaders may or may not be managers. They
are chosen by the group