Organizing

Organize
MeaningMeaning- Placement of ideas in correct order so that they are easily available when required

Management meaningmeaning Deployment of Organisational resources in a sequential order to achieve strategic goals. goals. The process of identifying and grouping the work to be performed, defining and delegating authority and responsibility and establishing relationships to effectively accomplish the goals of the organisation. organisation.

Acc. To Champ Academy

The Organizing Process

1. Consider Plans & Goals

2. Determine Work Activities

Production Selling Training Accounting Recruitment Purchasing Compensating Budgeting Quality Control Delivery Maintaining Personnel Advertising

3. Classify & Group Activities

MARKETING OPERATIONS FINANCE
HUMAN RESOURCES

>Selling >Advertising >Delivery

>Production >Purchasing >Quality control

>Accounting >Budgeting >Compensating

>Recruitment >Training >Maintaining personnel

5. Design hierarchy
General Manager Human Resources Manager Recruitment Office Head Personnel Maintenance Office Head

Operations Manager

Finance Manager

Marketing Manager

Production Head

Accounting Head

Product Division Head

Administrative Head

Budget Section Head

Promotions Head

6. Staffing
1

Recruitment Selection

2 3

Hiring
Orientation Training and Development Performance Appraisal

5 6

Constituents of Organizing
1. Organisation- Two or more people who Organisation-

work together in a structured way to achieve a specific goal or set of goals.

a. Organisational Structure
b. Organisational Relationship c. Departmentation Span of Control

2. Employee Empowerment

Formal vs Informal Organizations

FORMAL
Have planned structure Deliberate attempts to create patterned relationships Usually shown by a chart Advocated by traditional theory

INFORMAL
Not formally planned Arise spontaneously as a result of interactions Not depicted in a chart Stressed by human relation theory

A tall organizational structure has many levels of management, with well-defined wellbut long reporting lines.. On the other hand, a flat organizational structure has relatively fewer layers of management, resulting in a and simpler communication process Tall Organization

President

Flat Organization

President

1. Organisation 1.a.Organizational Structure

The way in which an organisations activities are divided, organised and coordinated. Organization Design is determination of the organisational structure that is most appropriate for integrating the people, tasks, information and technology of an organization to achieve organizational goals. Organisational Chart A Graphical representation of Organisational Structure Types Vertical, Horizontal and Circular

Components of Organization Structure

Barney, Jay B. and Ricky W. Griffin, The Management of Organizations. Copyright 1992 by Houghton Mifflin Company. Used with permissions.

1.b. Organisational Relationship

Defines the nature of authority relationships between different positions in the organisational hierarchy. Line Function- represents those positions that are Functionhaving a decision making authority within their scope of work Staff Function represents those positions that merely have an advisory role in the org. structure

1.c.Grouping Jobs: Departmentalization

Departmentalization
The process of grouping jobs according to some logical arrangement.

Common Bases of Departmentalization

Barney, Jay B. and Ricky W. Griffin, The Management of Organizations. Copyright 1992 by Houghton Mifflin Company. Used with permission.

TeamTeam-based
The Team Organization
An approach to organizational design that relies almost exclusively on project-type teams with little or projectno underlying functional hierarchy.

Matrix Design The matrix organization is an attempt to combine the advantages of the pure functional structure and the product organizational structure.
Employees in the resulting matrix are members of both their departments and a project team under a project manager. The matrix creates a multiple command structure in which an employee reports to both departmental and project managers.

A Typical Matrix structure

Emerging Issues in Organization Design

The Virtual Organization
An organizational design that has little or no format structure with few permanent employees, leased facilities, and outsourced basic support services. It may conduct its business entirely on-line and exist ononly to meet a specific and present need.

The Network Organization Structure

Organization D
Human Resource Services

Organization E
Legal Services

Organization C
Sales and Distribution

The Central Office/Organization

The partnership of several organizations who pool their core competencies

Organization B
Advertising Agency

Organization A
Manufacturer in Korea

2.Span of Control
Span of Management (or Span of Control)
The number of people who report to a particular manager.

Wide span of control means one manager supervises many members Narrow span of control means one manager supervises a small number of members

Establishing Reporting Relationships

Chain of Command
A clear and distinct line of authority among the positions in an organization. Unity of Command
Each person within an organization must have a clear reporting relationship to one and only one boss.

Scalar Principle
A clear and unbroken line of authority must extend from the bottom to the top of the organization.

Unity of Command

Superior

Subordinate

3.Employee Empowerment
1. Centralisation and Decentralisation 2. Power and Authority 3. Delegation

Decentralization and Centralization

Decentralization
The process of systematically delegating power and authority throughout the organization to middlemiddleand lower-level managers. lower-

Centralization
The process of systematically retaining power and authority in the hands of higherhigher-level managers.

Centralization & Decentralization

Centralization & Decentralization

Authority
A B C
Authority is vested in organizational positions, not people. Authority is accepted by subordinates Authority flows down the vertical hierarchy

Distributing Authority
Authority Power that has been legitimized by the organization. Delegation The process by which managers assign a portion of their total workload to others. Reasons for Delegation To enable the manager to get more work done by utilizing the skills and talents of subordinates. To foster the development of subordinates by having them participate in decision making and problem solving that allows them to learn about overall operations and improve their managerial skills.

Steps in the Delegation Process

Step 1 Assigning responsibility Step 2 Granting authority Step 3 Creating accountability

Manager

Manager Manager

Manager Manager

Subordinate

Subordinate

Subordinate

Coordinating Activities
Coordination
The process of linking the activities of the various departments of the organization.

The Need for Coordination

Departments and work groups are interdependent; the greater the interdependence, the greater the need for coordination.