Organizing

Organizational
2. Organizational
3. Organizational
4. Organizational
1.

Structure
Designs
Cultures
Change

Organizing is the process of arranging people and other resources

to work together to accomplish a goal.
Its purpose is to create a division of labor and then coordinate
results to achieve a common purpose.
The beauty of organizing is synergy- bringing together the
contributions of many people to achieve something that is much
greater than what an individual can accomplish alone.

Empowerment- letting others make decisions and exercise

discretion in their work.
Empowerment gives synergy a chance. It means joining with
others to get things done; allowing and even helping them to
do things that you might be very good at doing yourself.

OrganizingTo create structures

Divide up the work
Arrange resources
Coordinate activities
PlanningTo set the direction

ControllingTo ensure results

LeadingTo inspire efforts

Organizational Structure

Organizational structure is the way in which the various

parts of an organization are arranged .

It is the system of tasks, workflows, reporting

relationships, and communication channels that link
together the work of diverse individuals and groups

A structure should do a good job of both allocating tasks

through a division of labor and providing for the
coordination of performance results.

1.

Formal Structure

Formal Structure is the official structure of the organization.

It is a typical organizational chart that identifies positions
and job titles as well as the lines of authority and
communication between them.
It shows how the organization is intended to function.
Organizational chart describes the arrangement of work
positions within an organization.

The basics of an organizations formal structure includes:

Division of work: Positions and titles show work
responsibilities.
Supervisory relationships: Lines show who reports to
whom.

Communication
channels:
communication flows.

Lines

show

formal

Major subunits: Positions reporting to a common manager

are shown.
Levels of management: Vertical layers of management are
shown.

2. Informal Structure
Informal Structure is a shadow organization made up of the
unofficial, but often critical, working relationships between
organizational members.
The informal structure show who talks and interacts with whom,
regardless of their formal structure.
The lines of the informal structure cut across levels and move
from side to side.

Social network analysis is one way of identifying

informal structures and their embedded social
relationships.
Such an analysis asks people to identify others to
whom they turn for help most often, with whom
they communicate regularly, and who give them
energy and motivation.
Lines are drawn from person to person according to
frequency and type of relationships maintained.

Informal structures and social networks are in many ways

essential to organizational success.
They allow people to make contacts with others who can
help them get things done.
They stimulate informal learnings as people work and
interact together throughout the workday.
They are also sources of emotional support and friendship
that satisfy members social needs.

Informal structures have also potential disadvantages. They

can be susceptible to rumor, carry inaccurate information,
breed resistance to change, and even divert work efforts
from important objectives.

3. Functional Structures
In functional structures, people with similar skills and
performing similar tasks are grouped together into formal
work units.
Members of functional departments share technical
expertise, interests, and responsibilities

President

Vice President
Marketing

Vice President
Finance

Vice President
Production

Vice President
Human Resources

Administrator

Director
Medical Staff

Director
Nursing

Director
Clinics

Director
Patient Services

Advantages of a Functional Structure:

1.

Economies of scale with efficient use of resources

2.

Task assignments consistent with expertise and training

3.

High-quality technical problem solving

4.

In depth training and skill development within functions

5.

Clear career path within functions

Disadvantages:
6.

Difficulties in pinpointing responsibilities for things like cost containment,

product or service quality, and innovation.

7.

Too little communication across functions.

8.

Too many problems referred upward for solution

These problems happens because the functions become formalized not only in
organizational chart, but also in the mind set of the people. A sense of common
purpose gets lost and self-centered, narrow viewpoints become prominent.

4. Divisional Structure
Divisional structure groups together people working on
the same product, in the same area, with similar
customers, or on the same process
This is common in complex organizations with divers
operations that extend across many products, territories,
customers, and work processes.
The idea is to use as the divisional focus to overcome the
disadvantages of a functional structure.

Type

Focus

Product

Goods or service
produced

Example

General
Manager
Grocery
Products

Geographical

Location of
Activity

Drugs &
Toiletries

President

Asian Division

European
Division

Customer

Customer or
client serviced

Agency Administrator

Problem Youth

Process

Activities part
of same process

Senior Citizens

Catalog Sales Manager

Product
Purchasing

Order
Fulfillment

Product Structure: Groups together people and jobs focused on a

single product or service.
Geographical Structure: Groups together people and jobs
performed in the same location. Sometimes called Area
Structure.
Customer Structure: Groups together people and jobs that serve
the same customers or clients.
Process Structure: Groups jobs and activities that are part of the
same processes.

Advantages of Divisional Structures

1.

More flexible in responding to environmental changes.

2.

Improved coordination across functional departments.

3.

Clear points of responsibility for product or service delivery.

4.

Expertise focused on specific customers, products, and

regions.

5.

Greater ease in changing size by adding or deleting

divisions.

Disadvantages of Divisional Structure

1.

Can reduce economies of scale and increase costs through

the duplication of resources and efforts across division.

2.

Can create unhealthy rivalries as divisions compete for

resources and top management attention.

5. Matrix Structure
Matrix Structure is often called matrix organization. It
combines the functional and divisional structures. This is an
attempt to gain the advantages and minimize the disadvantages
of each.
This is accomplished by creating permanent teams that cut
across functions to support specific products, projects or
programs.
Workers in the 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 function and the other within the team.

General
Manager

Manager of
Projects

Project A
Manager

Project B
Manager

Project C
Manager

Manuafacturing
Manager

Engineering
Manager

Sales
Manager

Advantages of Matrix Structure

1.

Better communication and cooperation across functions.

2.

Improved decision making; problem solving takes place at the team level
where the best information is available.

3.

Increased flexibility in adding, removing or changing operations to meet

changing demands.

4.

Better customer service.

5.

Better performance accountability through the project manager.

6.

Improved strategic management; top managers are freed from lower

level problem solving to focus time on more strategic issues.

Disadvantages of Matrix Structure

1.

Two boss system is susceptible to power struggles if

functional supervisors and team leaders compete with
one exercise authority.

2.

Two boss system is frustrating if it creates task confusion

and conflicting work priorities.

3.

Team meeting in the matrix can take a lot of time and

the team may develop groupitis- strong team loyalties
that cause a loss of focus on larger organizational goals.

6. Team Structures
A team structure uses permanent and temporary cross
functional teams to improve lateral functions (like solve
problems, complete special projects, and accomplish day to day
tasks).
A cross-functional team brings together members from
different functional departments.
Team structures use many project teams that are convened to
complete a specific task or project.

Advantages of Team Structure

1.

Breaks down barriers and mobilizes talents.

2.

Improved performance by increasing the speed and quality of

decisions in many situations.

3.

Boost morale. People working in teams often experience

greater sense of task involvement and identification, and this
increases their enthusiasm for the job.

Disadvantages of Team Structure

1.

Conflicting loyalties for persons with both team and functional

assignments.

2.

Issues concerning time management and group process, by

nature team spend a lot of time for meetings.

3.

Quality of outcomes depend a lot on how well tasks,

relationships and overall team dynamics are managed.

7. Network Structures
Network structure uses information technologies to link with
networks of outside suppliers and service contractors.
Network structure have a central core of full time employees
surrounded by networks of outside contractors and partners
that supply essential services.
The network structure helps lower costs and improve
flexibility in dealing with changing environments.
Instead of doing everything for itself with full time
employees, the network organization employs minimum staff
and contracts out as much work as possible.

Advantages of Network Structure

1.

Reduces overhead cost and increase operating efficiency.

2.

Employ outsourcing strategies and contract out specialized business

functions.

3.

Interesting jobs are created for those who coordinate the entire
system of relationships.

Disadvantages of Network Structure

4.

The more complex the business, the more complicated it is to control

and coordinate the network of contracts and alliances.

5.

If one part of the network breaks down or fails to deliver, the entire
system suffers.

6.

Organization may loss control over activities contracted out.

7.

Outsourcing can become aggressive and become dangerous to the

firm especially on activities such as finance, logistics and human
resources.

8. Boundaryless Structures
A boundaryless structure can be viewed as a combination of the team and
network structures with the addition of temporariness.
This structure eliminates internal boundaries among subsystems and external
boundaries with the external environment.
In boundaryless structure, spontaneous teamwork and communication replace
formal lines of authority.
People work in teams that form and disband as needed. There is less
hierarchy but a lot of empowerment and technology utilization.

C
C
Time 1

Research and
Development
Production

Purchasing

Time 2

Sales

Distribution
E

B
Time 3

Internal boundaries are eliminated as people

work together as needed

External boundaries vary as

alliances change with shifting needs

Organizational Designs
Organizational design is the process of choosing and
implementing structures to accomplish the organizations
mission and objectives.
Every organization is unique, hence no design applies to all
circumstances.
The best design at the moment is the one that achieves a
good match between structure and situational contingencies.

Mechanistic Designs
Mechanistic design are highly bureaucratic. It is also
described as tight structures.
Bureaucracy is a form of organization based on logic, order,
and the legitimate use of formal authority.. It is a vertical
structure and its distinguishing features include a clear cut
division of labor, strict hierarchy of authority, formal rules and
procedures and promotion based on competency.

 Mechanistic design work best for organizations doing routine tasks in

stable environments.
Organic Designs
Organic designs create adaptive organizations. It can perform well in
environments that demand flexibility in dealing with changing
conditions.
These are horizontal structures with decentralized authority, fewer
rules and procedures, less precise division of labor, wider spans of
control, an more personal means of coordination.
They are relatively loose systems where a lot of work gets done
through informal structures and networking. It is built on a foundation of
trust that people will do the right things on their own initiative.

Bureaucratic
Mechanistic design
Predictability
Centralized
Many

Narrow

Adaptive
Organic design

Goal
Authority

Adaptability
Decentralized

Rules and Procedures

Few

Span of Control

Wide

Specialized

Tasks

Shared

Few

Teams and Task Forces

Many

Formal &
Impersonal

Coordination

Informal &
Personal

Organizational Culture
Organizational culture is the system of shared beliefs and
values that guides behavior in organizations. It is also called
corporate culture.
Organizational culture influence employees and customers
that it can have big impact on performance. It create unique
identities and help to distinguish them from one another.

Types of Organizational Cultures

1.

Hierarchical culture: this emphasize tradition and clear

roles.

2.

Dependable culture: this emphasize process and slow

change.

3.

Enterprising culture: This emphasize creativity and

competition.

4.

Social culture: emphasize collaboration and trust.

Organization build a strong and positive culture through

socialization. Socialization is the process through which
members learn the culture of an organization.

Levels of Organizational Culture

1.

Outer level

2.

Inner level

Outer level is the observable culture. The observable culture

is visible an readily apparent at the surface of every
organization.
It is expressed in the way people dress at work, how they
arrange their offices, how they speak to and behave towards one
another, the nature of their conversations, and how they talk
about and treat their customers.

Inner level is the core culture. It consists of the core values or

underlying assumptions and beliefs that shape and guide peoples
behaviors.
Core values are beliefs and values shared by organization
members.
Values of best companies have been found to emphasize
performance excellence, innovation, social responsibility, integrity,
worker involvement, customer service, and teamwork.

Multicultural Organization
Multicultural organization has a culture with core values
that respect diversity and support multiculturalism.
Multiculturalism involves inclusiveness, pluralism, and
respect for diversity.

Characteristics of a Multicultural Organization

1.

Pluralism: Members of both minority and majority cultures are

influential in setting key values and policies.

2.

Structural integration: Minority culture members are well represented

in jobs at all levels and in all functional responsibilities.

3.

Informal network integration: various forms of mentoring and support

groups assist in the career development of minority culture members.

4.

Absence of prejudice and discrimination: A variety of trainings and

task force activities address the need to eliminate culture group
biases.

5.

Minimum intergroup conflict: Diversity does not lead to destructive

conflicts between members of majority and minority cultures.

Organizational Change

What if the existing culture of an organization is flawed, doesnt drive

high performance, and needs to be changed?

A change leader is needed. A change leader is someone who takes

initiative to change the existing pattern of behavior of another person or
social system. These are managers who act as change agents and make
things happen.
In theory, every manager should act as a change leader, but people
show more tendencies toward staying status quo- accepting things as
they are and not wanting change.

Change Leaders versus Status quo Managers

Status quo Managers

Change Leader
Confident of ability
Willing to take risks
Seize opportunity
Expect surprises
Make things happen

Promote
and
actively
support

Creativity
and
Innovation

Avoid and
even
discourage

Threatened by change
Bothered by
uncertainty
Prefer predictability
Support the status quo
Wiat for things to
happen

Top Down Change

In top own change, the change initiatives comes from senior
management.
Bottom Up Change
In bottom up change, the change initiatives come from all
levels in the organization.

How to lead organizational change?

1.

Establish a sense of urgency for change.

2.

Form a powerful coalition to lead the change.

3.

Create and communicate a change vision.

4.

Empower others to move change forward.

5.

Celebrate short term wins and recognize those who help.

6.

Build on success; align people and systems with the new ways.

7.

Stay with it; keep the message consistent; champion the vision.

Phases of Change
Change leaders task: create a felt need for change
Phase 1
Unfreezing

This is done by:

Establishing a good relationship with the people involved.
Helping others realize that present behaviors are not effective.
Minimizing expressed resistance to change.
Change leaders task: implement change

Phase 2
Changing

Phase 3
Refreezing

This is done by:

Identifying new, more effective ways of behaving.
Choosing changes in tasks, people, culture, technology, structures.
Taking action to put these changes into place.
Change leaders task: stabilize change
This is done by:
Creating acceptance and continuity for the new behaviors.
Providing any necessary resource support.
Using performance contingent rewards and positive reinforcement.

Thank You