ORGANIZING

Module Four

Bueno, Maybelle
Bumanglag, Maryjane
PARTS OF MODULE 4:
 4.1 Division of work; organizational structure; and coordination

 4.2 Authority; delegation; and decentralization

 4.3 Human Resource Management

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 4.4 Managing organizational change and development

 4.5 Managing organizational conflict and creativity

OBJECTIVES OF MODULE 4:
After completing this module, you should be able to:

• Understand what is division of work; organizational

structure; and coordination
• Understand what is authority; delegation; and
decentralization
• Understand what is Human Resource Management
• Understand the relationship of managing
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organizational change and development
• Understand the relationship of managing
organizational conflict and creativity
Definition of ORGANIZING

The process of determining the tasks to be done,

who will do them, and how those tasks will be
managed and coordinated.

To structure or arrange the relationship between

people, the work to be done, & the facilities so that
goals are achieved.
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WHY ORGANIZE?

Managers have to organize the activities they want to

perform for the following reasons:

• So that they can divide the work according to the

nature & similarity of tasks.
• So that they can pool resources & increase the efforts
which lead to efficiency.
• So that they can build continuity & synergy.
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4.1: PROCESS OF ORGANIZING
 Division of Work
 Grouping of Work/Organizational
structure
 Coordination of Work

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4.1: PROCESS OF ORGANIZING
 Division of Work

The work has to be divided among the

members so that individuals are responsible
for a limited set of jobs instead doing the task
as a whole.

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4.1: PROCESS OF ORGANIZING
ADVANTAGES & DISADVANTAGES
OF DIVISION OF WORK/LABOUR
Advantages Disadvantages
• Person-to-fit (based on • Higher degree of control
talents and interests) - the • Boredom
job given
can be fit based on
individual’s ability.
• Creates job specialization
• Increase productivity
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4.1: ORGANIZATIONAL ARCHITECTURE
Shows the flow of interactions within the organization

Specifies its division of work activities and shows how different

functions of activities are linked

Shows level of specialization of work activities

Indicates the organization’s hierarchy and authority structure

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Shows organization’s reporting structure
4.1: ORGANIZATIONAL ARCHITECTURE
2.1 Vertical differentiation
 Tall versus Flat Structure

2.2 Horizontal differentiation

 Functional Structure
 Multidivisional Structure

 Geographic Structure

 Matrix Structure

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0
TALL VERSUS FLAT ORGANIZATIONS
Tall Organization
President

Flat Organization
President

6–9
ORGANIZATIONAL ARCHITECTURE -
VERTICAL INTEGRATION
 Tall Organization:  Flat organization:
 This type of This type of
organizational
architecture has organizational
many layers and architecture
narrow span of has few layers
control. and wide
span of
control.
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 ESTABLISHING REPORTING
RELATIONSHIPS: TALL VERSUS FLAT
ORGANIZATIONS
 Tall  Flat Organizations
Organizations
 Are more  Lead to higher
because of the number levels
expensive of
employee morale and
of managers involved. productivity.
 Create more administrative
 Foster more
communication responsibility for the
problems because of relatively few managers.
the number of people  Create more supervisory
through whom responsibility for managers
information must pass. due to wider spans of
control.
6–11
 ORGANIZATIONAL ARCHITECTURE – HORIZONTAL
DIFFERENTIATION
1. FUNCTIONAL STRUCTURE:
General Manager

Production Finance Marketing HR

Dept Dept Dept Deprtment

Structure is createdbased onthe

various functions of an organization.
ORGANIZATIONAL ARCHITECTURE – HORIZONTAL DIFFERENTIATION

2. MULTI-DIVISION STRUCTURE

General Manager

Division I Division II Division III

 Multiple divisions are created in a

related industry.
ORGANIZATIONAL ARCHITECTURE – HORIZONTAL DIFFERENTIATION

 Divisional or M-form (Multidivisional) Design

 An organizational arrangement based on multiple
businesses in related areas operating within a larger
organizational framework; following a strategy of
related diversification.
 Activities are decentralized down to the divisional
level; others are centralized at the corporate level.
 The largest advantages of the M-form design are the
opportunities for coordination and sharing of
resources.
ORGANIZATIONAL ARCHITECTURE – HORIZONTAL DIFFERENTIATION

3. GEOGRAPHIC STRUCTURE:

General
 Departments are
Manager created based on
geographic regions.
 All the activities in one

Eastern Central Western geographic region is

Region categorized into one
Region Region
unit.

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ORGANIZATIONAL ARCHITECTURE – HORIZONTAL DIFFERENTIATION
4. MATRIX ORGANIZATION
CEO

Vice president, Vice president, Vice president, Vice president,

engineering production finance marketing

Employees
Project
manager
A

Project
manager B

Project
manager C

6–16
MATRIX
STRUCTURE:
 Advantages:
 Disadvantages:
Enhances organizational
flexibility.
 Team members have the
opportunity to learn new
skills.
 Provides an efficient way for
the organization to use its
human resources.
 Team members serve as
bridges to their
departments for the team.

 Employees are uncertain
about reporting
relationships.
 The dynamics of group
behavior may lead to
slower decision
making, one-person
domination, compromise
decisions, or a loss of
focus.
 More time may be required
for coordinating task- 17
related activities.
4.1: COORDINATION
Mooney and Reiley – ‘Coordination is an orderly
arrangement of group efforts to provide unity of action in
the pursuit of common goals.‘

Charles Worth – ‘Coordination is the integration of

several parts into an orderly hole to achieve the purpose
of understanding.‘

Brech – ‘Coordination is balancing and keeping together

the team by ensuring suitable allocation of tasks to the
various members and seeing that the tasks are
performed with the harmony among the members
themselves.‘
4.1: COORDINATION

Coordination is the function of management which ensures

that different departments and groups work in sync. The
important features of coordination are:

 It is essential for group efforts and not for individual

efforts.
 It is a continuous and dynamic process.
 Coordination emphasizes the unity of efforts
 Helps in the integration of functions
 It is the responsibility of every manager in the
organization.
4.2: AUTHORITY
Definition : “The right to make decisions
with respect to work assignments & to
require subordinates to perform assigned
tasks in accordance with the decision
made”.
4.2: AUTHORITY
Line & Staff Authority

Line Authority
◦ Those organizational members that are directly involved in
delivering the products and services of the organization.
Staff Authority
◦ Those organizational members that are not directly involved in
delivering the products and services to the organization, but
provide support for line personnel.
4.2: DELEGATION
• Definition: “The process of transferring the authority for a
specific activity or task to another member of the
organization and empowering that individual to
accomplish the task effectively”.
• Transforming the responsibility for a specific activity or
task to another member of the organization.
• Empowering that individual to accomplish the task
effectively.
4.2: DELEGATION
Steps in Delegation
• Decide which goals or tasks to delegate
• Make assignments
• Grant authority
• Hold responsible/accountable
• Monitor

Benefits of Delegation
• Empowerment
• Better decision-making
• Provide an opportunity for the development of analytical
and problem-solving skills
• Managers magnify their accomplishments
4.2: CENTRALIZATION & DECENTRALIZATION

Centralization is the process of

systematically maintain the power and
authority in the hands of higher-level
managers.
Decentralization is the process of
systematically hand over/assign power
and authority throughout to middle and
lower manager.
4.2: CENTRALIZATION
Advantages Disadvantages
 A clear chain of command  Bureaucratic leadership
 Focused vision  Remote control
 Reduced costs  Delays in work
 Quick implementation of  Lack of employee loyalty
decisions
 Improved quality of work
4.2: DECENTRALIZATION
Advantages Disadvantages
 Quick decision and  Coordination problems
response times
 Increased administrative
 Better ability to expand costs due to duplication of
company efforts
 Incongruity in operations
 Increased morale of
employees  Each department/division
is often self-centered
 Better use of lower and
middle management
4.3: HUMAN RESOURCE MANAGEMENT
What Is Human Resource Management?
Human resource management is the
organizational function that manages all of the
issues related to the people in an organization.
That includes but is not limited to
compensation, recruitment, and hiring,
performance management, organization
development, safety, wellness, benefits,
employee motivation, communication, policy
administration, and training.
BY: SUSAN M. HEATHFIELD
4.3: HUMAN RESOURCE MANAGEMENT
What Is Human Resource Management?
Human Resource Management (HRM) is the term
used to describe formal systems devised for the
management of people within an organization. The
responsibilities of a human resource manager fall
into three major areas: staffing, employee
compensation and benefits, and defining/designing
work. Essentially, the purpose of HRM is to
maximize the productivity of an organization by
optimizing the effectiveness of its employees.

Edward L. Gubman
4.4: MANAGING ORGANIZATIONAL CHANGE
AND DEVELOPMENT

What is Organizational Development?.

A systematic means for planned change that involves the
entire organization and is intended to increase
organizational effectiveness
According to Middlemist and Hitt (1988, p. 493)

A system wide application of behavioral science knowledge

to the planned development and reinforcement of
organizational strategies, structure, and processes for
improving an organization’s effectiveness.
According to Cummings and Huse (1988, p. 1)
4.4: MANAGING ORGANIZATIONAL CHANGE
AND DEVELOPMENT
Model for organizational change includes a four-phase
change management process:
 Define—Align expectations regarding the scope of the
change as well as timing and business impact.
 Plan—Understand how the change will impact stakeholders
and design a strategy to help them navigate it.
 Implement—Engage with leaders and associates to execute
the change.
 Sustain—Work with leaders and employees to track adoption
and drive lasting change.
4.4: MANAGING ORGANIZATIONAL CHANGE
AND DEVELOPMENT
RESISTANCE TO CHANGE
A manager trying to implement a change, no matter how small, should
expect to encounter some resistance from within the organization.
Resistance to change is normal; people cling to habits and to the
status quo.
Six key steps to effective organizational change management:
1. Clearly define the change and align it to business goals.
2. Determine impacts and those affected.
3. Develop a communication strategy.
4. Provide effective training.
5. Implement a support structure.
6. Measure the change process.
4.5: MANAGING ORGANIZATIONAL CONFLICT
AND CREATIVITY
What Is Conflict?
Conflict refers to conceived incompatible differences that result in
interference or opposition. If people perceives that differences exists
then a conflict state exists. Antagonist interaction in which one party
attempts to block the intentions or goals of another.
2.1 Organizational Conflict - Disagreement between two or more
organization members.
2.2 Competition - Exists when the goals of the parties are
incompatible but the parties cannot interfere with each other.
2.3 Cooperation - Occurs when two or more parties work together to
achieve mutual goals
4.5: MANAGING ORGANIZATIONAL CONFLICT
AND CREATIVITY
What Is Conflict?
Conflict refers to conceived incompatible differences that result in
interference or opposition. If people perceives that differences exists
then a conflict state exists. Antagonist interaction in which one party
attempts to block the intentions or goals of another.
2.1 Organizational Conflict - Disagreement between two or more
organization members.
2.2 Competition - Exists when the goals of the parties are
incompatible but the parties cannot interfere with each other.
2.3 Cooperation - Occurs when two or more parties work together to
achieve mutual goals
4.5: MANAGING ORGANIZATIONAL CONFLICT
AND CREATIVITY

Conflict can be destructive to a team and to an

organization. Disadvantages can include:
• Teams lose focus on common goals
• Winning eclipses any other goals of the group
• Judgement gets distorted
• There is a lack of cooperation
• Losing members lack motivation to continue
participation
4.5: MANAGING ORGANIZATIONAL CONFLICT
AND CREATIVITY

But if managed well, conflict can be healthy and

spark creativity as parties try to come to
consensus. Some of the benefits of conflict
include:
• Cohesiveness within the group
• Discussion of issues
• Force frank exchange of ideas
• Spark a competition to succeed or improve
• Challenge existing perspectives and processes
4.5: MANAGING ORGANIZATIONAL CONFLICT
AND CREATIVITY

Managing Conflict Process

Thank you!

End of presentation