FUNDAMENTALS OF ORGANIZING

ORGANIZING The deployment of an organizational

resources to achieve strategic goals. Organization structure

Framework in which tasks, resources and departments are deployed.

Organization Chart Visual representation of an organization’s

structure.

ORGANIZATION CHART

President

Director HR

Benefit Administrato

r

Industrial Relation manager

VP

ITFinancial AnalystChief

Accountant

ORGANIZATION CHART

Represent different work Titles with work Reporting and authority relationships Levels of management

THE VERTICAL STRUCTURE

Work specialization Chain of command Span of management Centralization Decentralization

Work specialization

Organization’s tasks are sub divided

into an individual tasks.

Chain of command Link all individuals and specifies who

report to whom. Responsibility

The assignment or task employees are supposed to carry out.

Authority Employee having a powers, right to make

decisions, give orders , draw on resources Accountability

People with authority and responsibility are subject to reporting and justifying tasks

Span of management

The number of employees reporting to the supervisors.

It can be wide when: Work is defined clearly Employees are highly trained Mangers are supportive Jobs are similar

Centralization An organization in which decisions are

made by top level managers

Decentralization Decisions authority near to lower level

managers

DEPARTMENTALIZATION

Line and staff Departments Functional organization and

divisional organization The matrix organization The network organization

Line department Units that deal directly with the

organization's primary goods and services.

Staff department Provide specialized or professional skills

that support line departments.

Functional organization Departmentalization (sub dividing

organization into smaller sub units) around specialized activities such as production, marketing and human resources.

Divisional organization Departmentalization that groups units

around products , customers or geographic region

The matrix organization

An organization composed of dual reporting relationships.

Some managers report to two supervisors as functional as well as divisional supervisors.

The network organization

Single-function firms that collaborate on goods or services.

ANY QUESTION