BMAN 121

ORGANISING

Study Unit 6 (Chapter 15)

 Learning outcomes
After completing this study unit you should be able to :

1. Explain the concepts of organising and

organisational structure
2. Describe the importance of organising
3. Discuss the fundamentals of organising
4. Describe how an organisation evolves from a single-
entrepreneur organisation to a large one
(departmentalisation).
5. Discuss the factors that influence organising
 LO
Introduction 1

Organising
In your owniswords, define
the process the term
of delegating
and coordinating
'organising' andtasks, activities
explain how andyou
resources in order to achieve
apply 'organising' in yourorganisational
daily life.
objectives.

Pg. 349
 LO
Introduction 1

Organisational structure defines how

tasks are divided and resources are
deployed.

Further defined in three ways:

 Set of formal tasks assigned to individuals and
departments
 Formal reporting relationships, including lines of authority,
responsibility, number of hierarchical levels and span of
management's control
 Design of systems to ensure effective co-ordination of
employees across departments

Pg. 349
 LO
The importance of organising 2
1. Provides detailed analysis of the work to be done and resources to be
used to accomplish the goals of the business

2. Divides the total workload into activities that can comfortably be

performed by an individual or a group

3. Promotes productive deployment and utilisation of resources

4. Related activities and tasks of individuals are grouped together

rationally in specialised departments in which experts in their particular
fields carry out their given duties.

5. Development of an organisational structure results in a mechanism

that co-ordinates the activities of the whole business into a complete,
uniform and harmonious unit

Pg. 350
 LO
The fundamentals of organising 3

There are FIVE building blocks or fundamentals of

organising that managers can use in constructing an
organisation:

1. Designing jobs
2. Grouping jobs (departmentalisation)
3. Establishing reporting relationships
4. Establishing authority relationships
5. Co-ordinating activities

Pg. 351
 LO
The fundamentals of organising 3

1. Designing jobs

• Determination of an employee’s work-related

responsibilities
• Departure point is determining the level of
specialisation within the business or
• Degree to which the overall task of the business is
broken down into smaller, more specialised tasks.
• Specialisation is the way in which a task is broken up
into smaller units to take advantage of specialised
knowledge or skills to improve productivity

Pg. 351-352
 LO
The fundamentals of organising 3

►1. Designing jobs:

• Alternatives to counter limitations or problems
associated with specialisation:
Job rotation Job enlargement Job enrichment Work teams

Systematically Increasing the Increasing both Allowing an

moving total number of the number of entire group to
employees tasks that a tasks and the design the work
from one job worker control the system it will use
to another. performs. worker has to perform an
over the job. interrelated set
of tasks.

Pg. 351
 LO
The fundamentals of organising 3&4

2. Grouping jobs:

►Departmentalisation
• As soon as businesses has reached a given size, it becomes necessary to
split the total task of management into smaller units.

• Various organisational structures may be developed through

departmentalization.

• These include:
 Functional departmentalisation
 Product departmentalisation
 Location departmentalisation
 Customer departmentalisation
 Matrix organisational structure Pg. 353-356
 LO
The fundamentals of organising 3&4
(continued)
2.1. Functional departmentalisation (Figure 15.1)

Pg. 354
 LO
The fundamentals of organising 3&4
(continued)
2.2 Product departmentalisation (Figure 15.2)

Pg. 354
 LO
The fundamentals of organising 3&4
(continued)
2.3. Location departmentalisation (Figure 15.3)

Pg. 354-355
 LO
The fundamentals of organising 3&4
(continued)
2.4. Customer departmentalisation (Figure 15.4)

Pg. 355
 LO
The fundamentals of organising 3&4
(continued)
2.5. Matrix organisational structure (Figure 15.5)

Pg. 355-356
 LO
The fundamentals of organising 3

3. Establishing reporting relationships

• Develop clear and precise reporting lines (chain of
command)

• Determine how many people will report to one

manager (span of management)

Pg. 356-358
 LO
The fundamentals of organising 3

3. Establishing reporting relationships (Figure 15.6)

Factors that
influence span of
management.
p357

Pg. 357
 LO
The fundamentals of organising 3

4. Establishing authority relationships

• Assignment of tasks to sections and members of staff also entails

the assignment of responsibility, authority and accountability

• Responsibility – the duty to perform the task or activity assigned

• Authority – right to command or give orders:

Formal authority
 Line authority

 Staff authority

Pg. 358-359
 LO
The fundamentals of organising 3

►Line and staff authority in the organisational structure

(Figure 15.7)

Pg.359
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The fundamentals of organising 3

5. Co-ordinating activities:

• Process of linking the activities of the various departments in the

business into a single integrated unit

• Primary reason is that departments and groups within a business

are interdependent and require each other to perform their
activities

• Timing is necessary because various smaller tasks have to be

scheduled to mesh with one another

Pg.360
 LO
Factors that influence 5
organisational structure
1. The environment in which a business operates:
Stable environment
Turbulent environment
Technologically dominated environment

2. The relationship between strategy and structure

3. The size of the business

4. Staff employed by the business

5. The organisational culture

Pg. 361-363
Remember to complete Quiz 4
available on
4/09 @ 14h00 – 22h00

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