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Management Function:

ORGANIZING

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The Manager

Organizing is defined as the process of creating an organizations structure.

Defining Organizational Structure

Organizational structure is the formal framework by which job tasks are divided, grouped, and coordinated. Some purposes of organizing:
- Divides work to be done into specific jobs and departments. - Assigns tasks and responsibilities associated with individual jobs. - Coordinates diverse organizational tasks - Clusters jobs into units - Establishes relationships among individuals, groups, and departments - Establishes formal lines of authority - Allocates and deploys organizational resources Colegio de San Juan de Letran

The Manager

Organizational design pertains to developing or changing an organizations structure. It also a process that involves decisions about six key elements: Work specialization the degree to which tasks in an organization are divided into separate jobs; also known as division of labor. Departmentalization the basis by which jobs are grouped together.
Functional groups jobs by functions performed. Geographical groups jobs on the basis of territory or geography. Product groups jobs by product line. Process groups jobs on the basis of product or customer flow. Customer groups jobs on the basis of common customers. Cross-functional groups of individuals who are experts in various specialties who work together.

Defining Organizational Structure

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The Manager

Defining Organizational Structure


Chain of command the continuous line of authority that extends from upper organizational levels to the lowest levels and clarifies who reports to whom.
Authority the rights inherent in a managerial position to tell people what to do and to expect them to do it. Responsibility the obligation to perform any assigned duties. Unity of command the management principle that each person should report to only one manager.

Span of control the number of employees a manager can efficiently and effectively manage.
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Defining Organizational Structure


Centralization the degree to which decision making is concentrated at a single point in the organization. Decentralization the degree to which lower-level employees provide input or actually make decisions. Formalization the degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures.

Colegio de San Juan de Letran

The Manager

Organizational Design Decision


Mechanistic organization an organizational design that is rigid and tightly controlled. It is characterized by high specialization, rigid departmentalization, narrow spans of control, high formalization, limited information, little participation in decision making by lower-level employees. Organic organization an organizational design that is highly adaptive and flexible. It is characterized by cross-functional teams, cross-hierarchical teams, free flow of information, wide spans of control, decentralization, and low formalization.

Colegio de San Juan de Letran

The Manager

Common Organizational Designs


Traditional Organizational Designs 1. Simple structure an organizational design with low departmentalization, wide spans of control, centralized authority, and little formalization. strengths: fast; flexible; inexpensive to maintain; clear accountability weaknesses: not appropriate as organization grows; reliance on one person is risky

Colegio de San Juan de Letran

The Manager

Common Organizational Designs


Traditional Organizational Designs

2. Functional structure an organizational design that groups similar or related occupational specialties together. strengths: cost-saving advantages from specialization and employees are grouped with others who have similar tasks. weaknesses: pursuit of functional goals can cause managers to lose sight of what is best for overall organization; functional specialists become insulated and have little understanding of what other units are doing.
Colegio de San Juan de Letran

The Manager

Common Organizational Designs


Traditional Organizational Designs

3. Divisional structure an organizational structure made up of separate, semiautonomous units or divisions. strengths: focuses on results division managers are responsible for what happens to their products and services. weaknesses: duplication of activities and resources increases costs and reduces efficiency

Colegio de San Juan de Letran

The Manager

Contemporary Organizational Designs


Traditional Organizational Designs

3. Divisional structure an organizational structure made up of separate, semiautonomous units or divisions. strengths: focuses on results division managers are responsible for what happens to their products and services. weaknesses: duplication of activities and resources increases costs and reduces efficiency

Colegio de San Juan de Letran