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CHAPTER 4 Z
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BRAINTEASER’S 
1. The legal right of a manager to
tell someone to do or not. HUTRTYIOA
2. The obligation to carry out
one’s assigned duties to the
best of one’s ability. RPLBIIEOSTYSNI
3. The study of task into parts or
the assigning of tasks to an
individuals or position. DVISNOII FO RBOLA
4. Direct supervisory authority
from superior to subordinate.
NELI TOIYTUAHR
5. Management activity that
determines the work activities
to be done, classifies and group
that work. IGNIGZNROA
ORGANIZING
 Management function that establishes
relationships between activity and authority.
 Its goal is to make the organization have a
system in acting harmony to execute tasks to
achieve goals, both effectively and efficiently.
 Four Distinct activities:
 It determines what work to be done.
 It classifies the type of work needed
 It assigns the work to individuals and delegates
authority.
 It designs a hierarchy of decision-making
relationships.
THE RELATIONSHIP BETWEEN
PLANNING AND ORGANIZING
 This two is intimately related.
 Plans state where and how it is going.
 Organizing is governed by plans.
 It is a tool of management to achieved plans
 What works for one organization will not
necessarily woks for another.
IMPORTANCE OF THE ORGANIZING
PROCESS
 They are concerned with the subsequent
development or modification.
 Organizing process will make it possible by the
attain the purpose of the organization.
 Organizing process should provide benefits.
REAL BENEFITS
1. Clarified work environment
 Tasks and responsibilities of all individuals, departments, and major
organization divisions should have been clarified.
2. Coordinated environment
 confusion should minimized, obstacles to performance removed and
guidelines have been defined.
 Interrelationship of the various work units will have been developed.

 Guidelines should been defined.

Principle of UNITY OF COMMAND should be achieved.


UNITY OF COMMAND- establishment of one authority figure for each
designated task of the organization.
3. Formal Decision-making structure
 Orderly progression up through the hierarchy for decision making and
decision-making communications.
THE ORGANIZING PROCESS
 It will improve the possibilities of
achieving work environment.
 It has components or five steps process:
 STEP 1: CONSIDER PLANS AND GOALS
 Its affect organizing and its result.
 Plans dictate the purposes and activities that
organization have or will have.
 STEP 2: DETERMINE THE WORK ACTIVITIES
NECESSARY TO ACCOMPLISH OBJECTIVES
 List of tasks to be accomplished begins with those
that will be ongoing tasks and end with the unique or
one-time-only tasks.
 STEP 3: CLASSIFY AND GROUP ACTIVITIES
-this steps asks managers to perform three processes.
1. Examine each activity and determine its general
nature.
2. Group the activities into theses related areas.
3. Establish the basic department design for the
organization structure.
 STEP 4: ASSIGN WORK AND DELAGATE APPROPRIATE
AUTHORITY
 Identified activities necessary to achieve objectives.
 Activities are classified and grouped into operational

areas.
 Activities must be assigned individuals and given the

appropriate authority to accomplish the task.


 STEP 5: DESIGN A HIERARCHY OF RELATIONSHIP
 This step requires the determination of both vertical

and horizontal operating relationship as a whole.


 VERTICAL STRUCTURING results in a decision-making

hierarchy showing who is in charge of each task.


Levels of management are established from bottom to top
in the organization.
These levels create the Chain of Command or hierarchy of
decision-making.
THE HORIZONTAL STRUCTURING HAS TWO
IMPORTANT EFFECTS:
1. Defines the working relationship between operating
departments.
2. Makes the final decision on the span of control of
each manager.
Organization Chart
VALUE OF THE ORGANIZATION CHART IN
MANAGERS

1. Who reports to whom- chain of command.

2. How many subordinates work for each manager- the span of control.

3. Channels of official communication through the solid lines that connect


each job.
4. How the company is structured- by function, customer, or product.

5. The work being done in each job- the labels on the boxes.

6. The hierarchy of decision-making- where a decision maker for a problem is


located.

7. How current the present organization structure is.

8. Types of authority relationship- solid connections between each staff and


managers.
APPROACHES TO ORGANIZING
 It should represent the most effective
and efficient use of all resources.
 Fives Approaches to Organizing are the:
 Functional Approach
 Geographic Approach
 Product line Approach
 Customer Approach
 Matrix Approach
FUNCTIONAL APPROACH
 Most common approach
 It groups activities under the major heading-
the finance, production, marketing and
personnel.
 Each person or unit will become a basis of
organizing.
 It help to avoid overlap in the businesses
activities.
Organizational Chart for a Company
Organized by Function
THE GEOGRAPHIC APPROACH
 It is a Grouping activities for one
department or for an entire enterprise.
 Under geographic heads or territories
makes sense in various marketing, financial
and production companies.
 Geographic Organization structure can
lead to staffing duplicate
President

Vice-Pres. Vice-Pres. Vice-Pres. Vice-Pres. Vice-Pres. Vice-Pres. Vice-Pres.


Northeast Northwest Southeast Southwest Midwest Western Pacific
Region Region Region Region Region Region Region

Sales Sales Sales Sales Sales Sales Sales Sales


Mgr. Mgr. Mgr. Mgr. Mgr. Mgr. Mgr. Mgr.

Sales Sales Sales Sales Sales Sales


Mgr. Mgr. Mgr. Mgr. Mgr. Mgr.
THE PRODUCT APPROACH
 It’s the establishment of an organization
pattern based on product.
 It should be considered when attention,
energy, and efforts are needed to be
focused on an organization’s particular
products.
 It can happened if the product requires a
unique strategy or production process.
THE CUSTOMERS APPROACH
 Organization round groups of customers
makes economic sense when the customers
are distinct enough on their demands,
preferences and needs to justify it.
 Interpret and apply various rules,
regulations and procedures that must be
complied in doing business with
government agency.
Organization Chart for a company organized
by customer
THE MATRIX APPROACH
 A matrix organization pattern is a design
blending the function organization
structure with a project team structure.
 Found in high-technology, project based
industries such as government, contracting
consulting, and research ad development
businesses.
MATRIX ORGANIZATION STRUCTURE
MAJOR ORGANIZATIONAL CONCEPTS

 It is necessary to examine some major


organizational concepts and principles that
managers work with in developing a
workable system.
 Working knowledge of authority, power,
delegation, span of control, and the
centralization vs. decentralization issue is
essential to the on-going process.
AUTORITY:THE CONCEPT AND APPLICATION

 STEP 4 OF THE ORGANIZING PROCESS


 Assignment of activities with appropriate
authority.
This section will develop the concept in detail
- Its nature
- Sources
- Importance
- Relationship to power, and
- Types of authority.
NATURE , SOURCES AND IMPORTANCE OF
AUTHORITY

 All managers in an organization have


authority in different degrees based on the
level of management they occupy.
 Authority is the “glue” that holds the

organization together.
 It provides the means of command.

 It is a tool of a manager.

“as the right to commit resources or the


legal right to give orders”
RELATIONSHIP OF AUTORITY TO POWER

POWER
 Ability to exert influence in the

organization .
 Having power can increase the effectiveness

of a manager.
Authority is positional- it will be there when
the incumbent leaves.
Power is personal- it exist because of the
person.
THE SOURCES OF POWER ARE THESE:

1. LEGITIMATE OR POSITION POWER


 the manager has the right to use power because of might
of the position.
 “The higher the position, the greater is the perceived
power”.
2. POWER TO REWARD OR PUNISH
 ability to grant favour of cause discomfort to others can
serve as a basis of power.
 Preferential treatment, overtime, and expediting service
can provide the means to influence behavior and results
 The “boss’s” secretary normally possesses power well
beyond the scope of the job .
3. REFERENT OR CHARISMATIC POWER
 This power is based on the kind of personality
an individual has.
 Personality is perceived by others.
 Adoration, desire to identify with or imitate a
person are indications of this person’s power.
4. EXPERT POWER
 Power is possesses by persons who have
demonstrated their superior skills and
knowledge.
 Know what to do and how to do it.
TYPES OF AUTHORITY
 Create by the relationships between individuals and
departments.
 THERE ARE THREE TYPES OF AUTH0RITY:

1. LINE AUTHORITY
 the relationships between superior and subordinates.
 It is a direct supervisory relationship.

 Line authority flows downward in an organization directly from

superior to subordinates .
The flow of line authority is downward.
2. STAFF AUTORITY (advisory)
 Managers whose role it is to provide advice or
technical assistance are granted advisory authority.
 Does not provide any basis for direct control over

the subordinates.
Staff Authority is advisory an Normally Flows upward
LINE AND STAFF DEPARTMENT
 Have different roles or position within the
organization structure.
 Lines and staff authority are concepts that describe

the authority granted to managers.


LINE DEPARTMENT
 Headed by a “line to manager”
 Established meet the major objectives of the organization.
STAFF DEPARTMENTS
 provides assistance to the line departments and to each
other.
 Viewed as making money indirectly for the company.
3. FUNCTIONAL AUTHORITY
 authority delegated to an individual or department
over specific activities under taken by personnel in
other departments.
 Staff departments may be given functional authority
to control their systems procedure in other
departments.
 UNITY OF COMMAND
 concern of all managers in the application of both
staff and functional authority is violation of the
principle of unity of command.
 Each person within the organization should take
orders from and report to only one person.
 Should be a guiding principles in any attempt to
develop operating relationships.
Functional authority crosses over
department lines for specific activities
DELEGATION
 A concept describing the passing of
formal authority to another person.
 Delegation may become necessary
when managers are absent from their
jobs or just be my philosophy of the
manager in order to develop
subordinates.
THE REASON FOR DELEGATION, CREATES A
SEQUENCE OF EVENTS:

1. Assignment of tasks
 Specific tasks or duties that are to be undertaken are
identified by the manager for assignment to the subordinate.
2. Delegation of Authority
 In order for the subordinate to complete the duties or tasks.
 A guideline for authority is that be adequate to complete the
tasks.
3. Acceptance of responsibility
 Obligation to carry out one’s assigned duties to the best of one’s
ability.
4. Creation of accountability
 Is having to answer to someone for your actions means taking
the consequences, either credit or blame.
SPAN OF CONTROL
 “Span of management”
 Concerned with the number of

subordinates each manager should have


the direct.
Narrow and wide spans of control
CENTRALIZATION VS. DECENTRALIZATION

 Refers to a philosophy of organization and


management that focuses on either the selective
concentration (centralization) or the dispersal
(decentralization) of authority within an
organization structure.
 The top level management may decide to centralize
all decision making; purchasing, staffing, operations.
 Decentralize the hiring decisions to first-level
management for clerical workers and let operational
decisions be made where appropriate .
GUIDELINES TO FOLLOW IN DETERMINING
THE DEGREE OF DECENTRALIZATION IN A
COMPANY

1. The greater the number of decisions made


at the lower levels of management, the more
the company is decentralized.
2. The more important the decisions made at
the lower levels, the greater the
decentralization.
3. The more flexible the interpretation of
company policy at the lower levels, the
greater the degree of decentralization .
4. The more widely disperse the operations
of company geographically, the greater the
degree of decentralization .
5. The less a subordinate has to refer to his
or her manager prior to a decision , the
greater the decentralizations.
THE INFORMAL ORGANIZATION
 A network of personal and social relationships
that arise spontaneously as people associate
with one another in a work environment.
 Composed of all informal groupings of people
within a formal organization.
 Membership in most informal organization
change with time.
 Members are bonded together through the
need for each other’s company.
TYPES OF GROUPS IN THE INFORMAL
ORGANIZATION

 Often looked at as groups of people.


 Informal Groups may be classified as:
1. Horizontal
2. Vertical, or
3. Mixed
1. HORIZONTAL GROUPS
 include persons whose positions are on the
same level of the organization
2. VERTICAL GROUPS
 include people on different levels of the
formal organization’s hierarchy in the same
work areas.
3. MIXED GROUP
 is a combination of two or more persons whose
position are on different level of the formal
organization in different work areas .
WHY PEOPLE FORM INFORMAL GROUPS

1. Need for satisfaction


2. Proximity and interaction
3. Similarity
WHY INFORMAL GROUPS REMAIN IN EXISTENCE

1. They maintain the social and cultural values


of the group members hold in common.
2. They provide group members the
opportunity for status and opportunity for
social interaction and filfillment.
3. They provide information for their
members.
They influence the work environment.
1-3. Give at least 3 Approaches to Organizing
• Delegation 4-6. 3 Reasons why people form informal groups
• Matrix 7-8. Give at least 2 Relationship between planning and organizing
Approach 9. Management activity that determines the work activities to be done,
• Power classifies and group that work.
• Span of 10. It is the most common approach that groups activities under the major
Control heading.
• Functional 11. This approach is needed when product requires a unique strategy or
Approach production process.
• Authority 12. This approach is a design blending of the functional organization structure
• Power is with a project team structure.
personal 13. It is a tool of a manager that gives them the right to give orders.
• Informal 14. It is the ability to exert influence in the organization that can increase the
Organizatio effectiveness of a manager.
n 15. This power exist because of the person.
• Product 16. This power is possessed by persons who have demonstrated their superior
Approach skills and knowledge.
• Division of 17. The study of task into parts or the assigning of tasks to an individuals or
labor position.
• Expert 18. The principle of organization that is concerned with the number of the
Power subordinates each manager should have.
• Organizing 19. The downward transfer of formal authority from one person to another.
20. A network of personal and social relationship that arise spontaneously as
GROUP 1: ORGANIZING GROUP 
Leader: Yzzabel Cruz
Members:
 Krisha Mae Salazar
 Queenie San Diego
 Robert Jero Quintos
 Michael Cuntapay
 Jenny Bhebs Paro
 Leslie Joy Cebuha
 Riged Auxillo
 Daryll Ubera
 Michaella Nedia

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