Organizing

- process of grouping together of a certain group

establishing relationship among them

Origin of making- the inconsistency of the groups

As a process
1) must reflect objectives;
2) arrangement of positons from top to
low; 3) must be true and contains
limitations
Types of organizational
structures
1. Line organization- simpliest
Types of organizational
structures
2. Line and staff- shows the head of
departments and corresponding positions
below on it
Types of organizational
structures
3. Functional - based on functions
itself
Types of organizational
structures

Committe Organization- exclusive only to

the top management not for the ordinary
employees
Organizational Chart

George Terry- diagramattical form

which show important aspects to
organize the major and minor functions
of the organization

Purpose- assists one to view the

firm's structure as a whole
Types of Organizational Chart

Master Chart or Chart of Authority

-whole Organization
Functional Chart
-function itself too
Personnel Chart
-lower division of employees
How to draw an Organizational Chart

1. existing positions and/or departments;

2. objectives, functions, and activities of positions
and/or departments;
3. organization;
4. lines of authority and responsibility from top
management to middle;
5. functional relationships between line and staff
positions/departments;
6. positions and job titles;
7. physical location of each position/department.
 How to draw an Organizational Chart

1. Box or rectangles representing various job and position

should be placed according to their levels;

2. Boxes should have same same sizes in the same

department;

3. Purpose of lines;

4. Assistants should be on the left or right portion;

5. Staff should be under the head units

Departmentation
- setting of departments

1. By function-arranging based on
their functions
2. By product- by their products
3. By process- by the distribution
of work
4. By geographical location- by
their assigned location
Delegation - transferring of work

Elements of delegation
1. Responsibility- duty assigned
to a particular position
2. Authority- power to obey,
command etc
3. Accountability- answerability
to the obligation of loss
Exception Principle

The manager/s are not liable in any

failure of his subordinates
Formal and informal
formal- the area of responsibility is well-
organized

informal- the area of

responsibility and
authority are not
defined
centralized- decisions are made by the
executives and the top managers

Centralized
vs.
Decentralized
Decentralized- decisions are made by the
majority
Flat- the authority within the head is
broad

Flat
vs.
Tall
Tall- the authority within the head is
focused in few