Organizing in Management

Nature and
Structures of
Organization
Topic: Organizing Activity: Discussion, Quipper Activity
01 Discuss the nature of organizations
and the organizing process Objecti
02
Identify the types of organizational
design
Distinguish the various types of
ves
03 organization structures
Apply organization theories in analyzing
04 businesses and other organizations
05 Identify the different elements of

delegation
06 Differentiate formal from informal

organizations
An organization , no matter how well
designed, is only as good as the people who
live and work in it.
Dee Hock

NATURE of
ORGANIZ
ATIONS
A social group that is oriented
towards a purpose
Having well-coordinated
ORGANIZ
processes ATION
Interacting with its
environment
Structuring and grouping of
jobs
Ensuring these jobs are performed

ORGANIZ
by qualified and competent
personnel
ING
Brings together all the human, physical and
financial resources and integrates them
with related jobs and positions.
The Organizing
Process
1
Identification of
Activities 3 Definition of
Authority
Integration of
2 Departmentalizati
on 4 Authority and
Responsibility

Organizational
Design and
Structure
Organizational Design
Identifies the essential tasks and operations of the company,
establishes effective work relationships and divides the
company into departments that will contribute toward
achieving its goals and objectives

Organizational
Structure
The framework that shows how each component of
the company relates to each other

Configuration and Elements of
Organizational Structure
Mechanistic Structure
A rigid and tightly controlled structure that
resembles a bureaucracy
Organic Structure
More flexible and highly adaptable, decentralized
and less formal and employees are given broader
responsibilities

Elements of Organizational
Structure
Work Departmentaliz Chain of
Specialization ation Command
Way jobs are Grouping of similar Indicates the communication and
divided into steps functions, jobs and tasks work relationship between
or individual tasks into departments employees and managers
Span of Degree of Formalizatio

Control Specialization n
The number of employees a Extent authority and
Process of standardizing jobs
manager can effectively and decision-making is given to a
and establishing rules and
efficiently manage small group of people in the
guidelines that guide employees
organization
Organizational
Structures

SIMPLE
ORGANIZATIONAL
STRUCTURES
Most basic structure and is applicable to small

businesses where majority of the power and
decision-making rests on the owner.

FUNCTIONAL GROUPING
PROS
Employees with similar skills are
grouped together under the same
Tasks and operations are controlled department or unit
through a VERTICAL
HIERARCHY, where employees
follow a chain of command and top CONS
managers delegate tasks to lower – • Organization cannot respond quickly to
level managers environmental changes
• Can lead to poor coordination among
departments
• Innovation is unlikely to develop
because there is a narrower view of
organizational goals

FUNCTIONAL
ORGANIZATIONAL
STRUCTURE
• Emphasizes hierarchy and
specialization among departments
• Establishes clear professional
identities among its employees,
since they are given positions and
ranks in line with their areas of
expertise or specializations
• Brings about competitions among
employees assigned to different
departments

DIVISIONAL
• •
GROUPING
Organizes a company into divisions The divisions can focus more closely
that correspond to a certain product on their specific products and
or service services thus ensuring customer
• Can also be based on geography satisfaction
such as regional branch or office. • Communication and coordination
• Divisions are free to manage their among division should be
own activities maintained
• The decentralized nature of the • Disadvantage is that integration and
organization enables each division to standardization across product lines
adapt to the changes and threats they is difficult
encounter • Prone to competition among division

DIVISIONAL
ORGANIZATIONAL
STRUCTURE
• Allows employees in each division to
concentrate on their own division’s
performance
• Duplication of functions, expertise and
resources which is more costly to maintain
• Too much independence among divisions,
thereby discouraging camaraderie and
synergy among employees

MULTI-FOCUSED
This design combines both the functional and
GROUPING
divisional structures in organizing a PROS
company. Example is the matrix structure • There is greater sharing of human
with two types: resources among products.
• Provides an opportunity for functional
• Functional matrix – gives functional and product skills development
managers primary authority • Appropriate for complex decision-making
and business operations
• Product matrix – assigns greater CONS
authority to product managers • Dual authorities may lead to confusion
and divided loyalties among employees
• Frequent conflict resolutions

MATRIX
ORGANIZATIONAL
•
STRUCTURE
Combines features of functional and
divisional structures
• Often used in large companies where
employees may have dual reporting
relationships
• Beneficial to the personal and professional
growth of employees
• Conflict of interests among project managers
• Conflict of loyalty among employees

HORIZONTAL GROUPING
PROS
• Promotes flexibility and quick response to
changes
• Directs the attention of all employees towards
the production and delivery of quality products
and services to the customers.
CONS
• Determining the core processes of the
company will make organization time-
consuming
• Costly since it requires rigorous training of
• Eliminates the complexities of hierarchies and
employees to enable them to adapt to
divisions
horizontal structure.
• Establishes a structure with little or no level between
• Implementing a horizontal design requires a
employees, middle managers and top management
lot of changes in the work culture, job design,
• Employees are organized into general; core processes
management philosophy and information and
or operations and all departments in the company
rewards system of the company.
work together in all tasks

TEAM-BASED
ORGANIZATIONAL
A horizontal design structure that organizes
STRUCTURE
employees into teams whose members perform
varied functions
PROS
• Allotted time for each task ois maximized since
the hierarchy of management levels is removed,
which simplifies the task of reporting to immediate
PROS superiors and top management.
• Productivity ios increased since the entire group is
working for a common goal and the talents and
skills of each employee is maximized
CONS
• Time management is a disadvantage since
coordinating the teams requires constant
communication and frequent meetings.
• Employees may also lack motivation since team
performance is valued rather than individual
contribution

VIRTUAL NETWORK
GROUPING
• The company is structured as a group of losely
connected through electronic means.
• Technology is use in sharing information,
completing tasks and communicating
• Activities are coordinated by a small headquarter
PROS
• Requires fewer investment , reduces
administrative costs and is flexible to changing
needs
CONS
• Managers do not have hands-on control over the
separate companies and their employees
• No corporate culture and employee loyalty is
questionable
• Independent firms may be hard to monitor

THANK YOU!

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Nature and

05 Identify the different elements of

06 Differentiate formal from informal

Topic: Organizing Activity: Discussion, Quipper Activity

Ensuring these jobs are performed

Topic: Organizing Activity: Discussion, Quipper Activity

Topic: Organizing Activity: Discussion, Quipper Activity

Topic: Organizing Activity: Discussion, Quipper Activity

Topic: Organizing Activity: Discussion, Quipper Activity

Span of Degree of Formalizatio

Topic: Organizing Activity: Discussion, Quipper Activity

Most basic structure and is applicable to small

Topic: Organizing Activity: Discussion, Quipper Activity

Topic: Organizing Activity: Discussion, Quipper Activity

Topic: Organizing Activity: Discussion, Quipper Activity

Topic: Organizing Activity: Discussion, Quipper Activity

Topic: Organizing Activity: Discussion, Quipper Activity

Topic: Organizing Activity: Discussion, Quipper Activity

Topic: Organizing Activity: Discussion, Quipper Activity

Topic: Organizing Activity: Discussion, Quipper Activity

Topic: Organizing Activity: Discussion, Quipper Activity

Topic: Organizing Activity: Discussion, Quipper Activity

Topic: Organizing Activity: Discussion, Quipper Activity

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