CHAPTER 4

ORGANIZING
Organizing –
is a management function which
involves assigning of tasks,
allocating or resources, and
coordinating work activities in
order to achieve a common
purpose.
Organization Chart –
shows the different job positions in
the firm and its hierarchical
arrangement for dividing labor and
providing a picture of the
reporting structure.
Organization structure –
is a system made up of task to be
accomplished, work movements
from one work level to other work
levels in the system, reporting
relationships, and communication
passageways that unite together the
work of different individual persons
and groups.
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1. Vertical Structure - or top to
bottom line in an organization, is
rooted on basic concepts.

Delegation – permits critical decisions to

be made at the lower levels of the
organization, the term for which is called
decentralization.
2. Horizontal Structure –
Line function are actions related to
the principal activities of a firm, or
have ultimate responsibility for the
operational decisions of the
organization. Typical line functions
include manufacturing tasks, such as
design, fabrication, assembly, and
distribution.
Staff functions – are specialized or
professional skills that support the line
departments . some staff functions have
huge responsibility in organizations.
Example s the approving and monitoring
activities of finance group.
 s i g n
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Traditional Design- focuses on
performance improvement of
people in firms
1. Simple Structure
a design with low
departmentalization, wide spans
of control,
 centralized authority, and little
formalization.
 very common in small startup
businesses.
1. Simple Structure
 employees work in all parts of the
business and don’t just focus on one
job
 In this type of design there are usually
no standardized policies and
procedures
2. Modern Design- focuses on
team work, flexibility, and problem
solving.

3. Specialization is the process

in which different individuals and
work units perform different tasks.
4. Integration – is another
process in the organizations
internal environment which
involves the working together and
coordination of tits different work
units.
Five approaches of Organizational
Structures
1. Functional Structure – As
the simplest approach a functional, structure
features well-defined channels of communication
and authority/responsibility relationships

ADVANTAGES:

 the Functional Structure groups positions into

work units based on similar activities, skills,
expertise, and resources
ADVANTAGES:
 common grouping within a
functional structures.

Examples: Production, marketing,

finance, and human resources

 improve productivity by minimizing

duplication of personnel and
equipment
DISADVANTAGES:
Can result in narrowed perspectives
because of the separateness of different
department work groups

Managers may have a hard time relating to

marketing,
Disadvantages:

 Decisions and communications

are slow to take place because
of the many layers of hierarchy.

 Gives managers experience in

only one field their own.
2. Divisional Structure –
 departments are divided according to
their organizational outputs.

 departments allow managers to better

focus their resources and results.

 makes performance easier to monitor.as

a result.

 flexible and responsive to change CEO

Examples: include department s created to
distinguish among production, customer
service, and geographical categories. This
grouping of departments is called divisional
structure.
3. Matrix structure
- combines functional
specialization with the focus of
divisional structure.

- uses permanent cross-functional

teams to integrate functional
expertise with a divisional focus.
3. Matrix structure
- Employees in a matrix structure belong to
at least two formal groups at the same
time
– a functional group and
-a product, program or project team.

They also report to two bosses – one

within the functional group and the other
within the team.
4. Team structure
Team structure organizes separate functions into a
group based on one overall objective. These cross-
functional teams are composed of members form
different departments who work together as
needed to solve problems and explore
opportunities. The intent is break down functional
barriers among departments and create a more
effective relationship for solving ongoing problems.
 5. Network structure

The network structure relies on

other organizations to perform
critical functions on a contractual
basis. In other words, managers
can contract out specific work to
specialists.
 THANK YOU AND GOD BLESS

Prepared by:

RIENALYN B. AGNES,
LPT.
TEACHER 1I