REORGANIZATION

Is the process by which an existing organization

undergoes changes in the size and shape of the
organization structure.
Matrix Structure
DEPARTMENTATION
Is the process of grouping the functions and
activities in an organization.

FOUR BASES FOR DEPARTMENTATION:
1. Departmentation by function - Activities can be
grouped according to function (work being done).
2. Departmentation by product - Grouping activities
by product line.
Managing
director
Refrigerators
division
Fans division
Lamps
division
Stoves
division
3. Departmentation by process - Grouping activities
on the basis of product or service or customer flow.

4. Departmentation by geographical location
- Grouping activities on the basis of territory.

Managing
directors
NCR Luzon Visayas Mindanao
RESULTS IN GOOD
ORGANIZATION
A good organization would result in the following:

1. Establishing responsibility and
preventingbuck passing.
2. Providing for easier communication;
3. Eliminating jurisdictional disputes between
individuals;
4. Helping develop executive ability;
5. Aiding in measuring a persons performance
against his charges and responsibilities;
6. Aiding in equitable distribution of work, functions,
and/or personnel supervision;
7. Permitting expansion and contraction without
seriously disrupting the structure;
8. Pointing out dead-end jobs;
9. Affording movement in the direction of ideal
organization in times of change;
10. Establishing closer cooperation and higher morale;
11. Delineating avenues of promotion;
12. Preventing the application of work;
13. Making growth possible with adequate control and
without literally killing top executives through
overwork; and
14. Aiding in wage and salary administration through
forced job analysis and description.

DELEGATION
Is the process of entrusting and
transferring responsibility by the top of
management to the lowest level.

THE ELEMENTS OF DELEGATION
Responsibility
- This is work or duty assigned to a particular
position. It involves mental and physical
activities which must be performed to carry
out a task or duty.
AUTHORITY

- It refers to the power of the right to be
obeyed. It is also the sum of the powers and
rights entrusted to make possible
performance of the work delegated.
Authority can be defined as the power and
right of a person to use and allocate the
resources efficiently, to take decisions and
to give orders so as to achieve the
organizational objectives. Authority must be
well- defined.


- means giving explanations for any
variance in the actual performance
from the expectations set. Being
accountable means being innovative
as the person will think beyond his
scope of job. Accountability, in short,
means being answerable for the end
result. Accountability cant be
escaped. It arises from responsibility.
THE ART OF DELEGATION
The purpose of delegating is to enable you to dispose
of simpler tasks to free you up to perform tasks which
are of greater value to your organization.

To become a more effective delegator, use the four
step process:
STEP 1: THINK IT THROUGH.
Every successful project/deal/case needs defined
and approved goals, a committed team and a viable
plan of action that can effectively accommodate
change. Invest the time at the beginning to think
through the project. This will enable you to clearly
define the goals and objectives, assign the tasks and
assess the progress to ensure you get the end result
you want, which will ultimately save time.

STEP 2: ASSEMBLE THE TEAM
IDENTIFY THE PERSON(S) WHO CAN GET THE JOB
DONE. (GRANTED, SOMETIMES YOU HAVE NO CHOICE
OF TEAM MEMBERS. IN THAT INSTANCE, THE NEXT
STEPS ARE EVEN MORE CRITICAL!) BE SURE TO GET A
COMMITMENT FROM EACH TEAM MEMBER THAT THEY:
HAVE THE ABILITY TO PERFORM THE TASK;
UNDERSTAND THE PROJECTS OVERALL OBJECTIVE;
CAN COMPLETE THE TASK IN THE ALLOTTED TIMEFRAME;
ARE AWARE OF ESTABLISHED PERFORMANCE
STANDARDS.
STEP 3: COMMUNICATE! COMMUNICATE!
COMMUNICATE!
ALWAYS OPERATE UNDER THE PRINCIPAL THAT YOU
CAN NEVER BE TOO CLEAR. IT IS IMPORTANT TO
COMMUNICATE EXACTLY WHAT NEEDS TO BE DONE IN
AN UNAMBIGUOUS EFFECTIVE MANNER.

HE EXCEPTION PRINCIPLE
The exception principle or Management by Exception (MBE) is
a practice where only significant deviations from a budget or
plan are brought to the attention of management. The idea
behind it is that management's attention will be focused only
on those areas in need of action. When they are notified of a
variance, they can hone in on that specific issue and let staff
handle everything else. If nothing is brought up, then
management can assume everything is going according to plan.
This model is similar to the vital signs monitoring systems in
hospital critical care units. When one of the patient's vital signs
goes outside the range programmed into the machine, an alarm
sounds and staff runs to the rescue. If the machine is quiet, it's
assumed that the patient is stable, and they will receive only
regular staff attention.

FORMAL AND INFORMAL
ORGANIZATION
Have planned structure
Deliberate attempts to create
patterned relationships
Usually shown by chart
Traditional theory advocates
Formal
Not formally planned
Arise spontaneously as a
interactions
Not depicted in a chart
human relations theory
informal organization
Informal
ENTRALIZED AND
DECENTRALIZED
ORGANIZATION
Centralized
Control by few because
men at the top believe
they are indispensable.
Don't trust subordinates,
and like to build empires
within.
As a result of the above
attitude, decisions are
made by the top
management.
The drawback is potential
paralysis of decision
making and poor moral
Decentralized
Control by many because
men at the top believe that
participation will increase
efficiency and effectiveness.
As a result of above attitude,
decisions are made
throughout they organization.
The drawback maybe
controlled by many.
THE NATURE OF LINE AND STAFF
RELATIONSHIP
This is a relationship which the managers in an
organization deal with one another. It is
classified in two categories:

Line Relationship
- authority and responsibility of
receiving and giving instructions or
orders.

Staff Relationship
- giving and taking advice
Large, complex organizations
often require a taller hierarchy.
In its simplest form, a tall
structure results in one long
chain of command similar to
the military.
Flat structures have fewer
management levels, with each
level controlling a broad area or
group. Flat organizations focus
on empowering employees
rather than adhering to the
chain of command.
Tall organizational
structure
Flat organizational
structure