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MGT Chapter 4-Organizing
MGT Chapter 4-Organizing
Organizing
FUNDAMENTALS OF
MANAGEMENT (MGT162)
o Define organizing.
o Describe the process of organizing.
o Understand the division of
work/labour.
o Explain the types of organizational
LEARNING structure/departmentalization.
OBJECTIVES o Describe the span of management,
chain of command, authority,
centralization and decentralization.
o Discuss delegation and its importance.
o Understand coordination.
Organizing is defined as the process
of:
-Boredom
TYPES OF ORGANIZATION
STRUCTURE (Departmentalization)
1.Functional Structure
2.Product Structure
3.Customer Structure
4.Geographic Structure
5.Matrix Structure
6.Network Structure
TYPES OF ORGANIZATION STRUCTURE :
Functional Structure
◦ Grouping based on functions performed.
Advantages Disadvantages
Experts in job function Slow in decision
Easy supervision Difficult to monitor performance
TYPES OF ORGANIZATION STRUCTURE :
Functional Structure
TYPES OF ORGANIZATION STRUCTURE :
Product Structure
◦Grouping based on the basis of products manufactured.
Advantages Disadvantages
Easy focus Focus only on own products
Quick/speed in decision Increase costs
TYPES OF ORGANIZATION STRUCTURE :
Product Structure
TYPES OF ORGANIZATION STRUCTURE :
Customer Structure
◦Grouping based on the types of customers served.
Manager,
Product A
Manager,
Product B
TYPES OF ORGANIZATION STRUCTURE :
Network Structure
◦ Set of alliances with other organizations.
2. Scalar Relationship
Suggests that there must be a clear and unbroken line of
authority that extends from the lowest to the highest
position in the organization
AUTHORITY
◦“The right to make decisions with respect to work assignments & to require
subordinates to perform assigned tasks in accordance with the decision made”
◦Types of authority:
1.Line authority
Those organizational members that are directly involved in delivering the
products and services of the organization
2. 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
DELEGATION
◦ 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”
STEPS IN DELEGATION