organizing cptr 4

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CHAPTER 4ORGANIZING


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LEARNING OBJECTIVE

When you have finished

studying this chapter, you

should be able to:

Explain why organizing is an

important managerial function,describe the process of organizing,and outline the primary stages ofthe process.

Define delegation and discuss whyit is important for managers todelegate.

Discuss the four types oforganizational structure and thestrategic conditions under whicheach might be appropriate.


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DEFINITION

OrganizingProcess of arranging people and other resources to

work together to accomplish a goal.

The process of determining:

The tasks to be done.

Who will do them.

How those tasks will be managed and

coordinated.


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ORGANIZINGPROCESS

Detailing of works

Division of works

Departmetalization

Monitoring and

reorganizing

Coordination of works


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The Process of Organizing

ORGANIZINGPROCESS

Detailing of works Various task of the organization must firstbe determined. e.g. a new restaurant must detailed the number

of person involved , types of cooking equipment and task

involved

Division of work- Dividing total workload into activities beperformed by group or individual. The tasks have to be allocated

based on capabilities and fair work load

Departmentalization Once the org. grows, grouped them withemployees which tasks are related.

Coordination of works : Harmonize the individual goals tocontribute to org goals.

Monitoring and reorganizing works- to measure in termof effectiveness and efficiency structure of the

organization.


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ORGANIZATIONAL STRUCTURE

The working relationships that exist within anorganization affect how its activities are accomplishedand coordinated.

These relationships are defined by:

Span of control

Chain of command

Line and staff responsibilities

Authority, responsibility and accountability


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1. Span of control

The number of employees reporting to a particular manager

Narrow span of management (tall) - In theory, when tasks

are very complex, span of control should be relatively narrow.(2-4 people)

Wide span of management (Lean/flat) - In contrast, wherejobs are highly standardized and routine (low complexity), a

manager will not need to spend as much time supporting

individual subordinates, and the span of control may be larger.(above 5 people)


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2. Chain of command

The line of authority and responsibility that flows throughout theorganization.

Unity of command = an employee in the organization isaccountable to one and only one supervisor

Multiple command = each employees is reporting to morethan one boss

Scalar relationship=relationship between each organizationmember in the chain of command.

3.Work specialization : The work will be separated into manysteps and every work has been done by a separate individualspecialist enable the work to be completed quickly

4.Formalization = The organization has a procedure to dojobs there needs to be some sort of formalization in the workprocess


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CENTRALIZATION

Definition: the process oftransferring andassigning decision making authority to higherlevel of an organizational hierarchy

The decision making has been moved to higherlevels or tiers of the organization such as head

office or corporate center

The span of control of top managers is relatively

broad and there are relatively many tiers in the

organization.


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DECENTRALIZATION

Def : the process oftransferring and signingdecision making authority to lower level ortiers of the organization such as division, branches,

department or subsidiaries.

Knowledge , information and ideas are flowing from

the bottom to the top of the organization

The span of control of top managers is relativelysmall. There are relatively few tiers in the

organization because the is more autonomy in thelower ranks


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Line and staff responsibilities

Line department = an organizational unit that is directlyinvolved in delivering the products and services of theorganization

Staff department = an organizational unit that is notdirectly involved in delivering the products and services

of the organization but provides support for linepersonnel.

Authority, responsibility and accountability

Authority = the formal right inherent in an organizationalposition to make decision

Responsibility = the obligation to perform the dutiesassigned

Accountability = being held answerable for result, toaccept credit or blame in carried out the assignment.


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DELEGATION

Delegation = the process oftransferring theauthority for a specific activity or task to anothermember of the organization and empowering theindividual to accomplish the task effectively

Empowerment - power to make decision withoutasking their superior permission

Signs of deleting too little

- Taking work home

- performing employee tasks

- feeling stress and pressure


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DELEGATION

Reasons for delegation

- Managers burden partly release

- Manager may receive more responsibilities

- Help develop the skills and managerial abilities

Barriers for delegation process

- Some manager unable to plan work in advance

- Some manager worry their staff do too well

- Managers may not trust the staff abilities

Overcoming barriers for delegation process- Manager must give real freedom to staff while doing task

- Allow them use their creativity ingenuity

- Provide appropriate training.


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LEARNINGTO DELEGATE EFFECTIVELY

1. Match the employee to the task.

2. Be organized and communicate clearly.

3. Transfer authority and accountability with the

task.4. Choose the level of delegation carefully.


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DEPARTMENTALIZATION

Organizational structure defines the primaryreporting relationships that exist within anorganization.

Common Forms of Organizational Structure Functional structure

Divisional structure

Matrix structure

Network structure


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FUNCTIONAL STRUCTURE


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DIVISIONAL STRUCTURE

Product Divisions

For organizations with relatively diverse product lines

that require specialized efforts to achieve high product

quality.

Geographic Divisions

For organizations with limited product lines that either

have wide geographic coverage or desire to grow

through geographic expansion.

Customer Divisions

For organizations that have separate customer groups

with very specific and distinct needs.


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PRODUCT DIVISIONAL STRUCTURE


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GEOGRAPHIC DIVISIONAL STRUCTURE


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CUSTOMER DIVISIONAL STRUCTURE

CEO

COUNTERCREDITCARD

REALESTATE

MORGAGE

LOAN


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reserved.

MATRIX STRUCTURE: A DUAL FOCUS

Multiple command system

Some employees actually report to TWO or more

supervisors simultaneously.


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MATRIX STRUCTURE


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NETWORK STRUCTURES: FLEXIBILITY

Using outsiders

Organization may be viewed as

Central core or Central Hub


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NETWORK STRUCTURE


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COORDINATION Process ofintegrating the objective and activities of the separate

units, so organization goal can be achieved efficiently.

The main reason for coordination is interdependent

Importance of coordination :- It would ease the tasks that require communication between units.

It is beneficial for work that is non routine and unpredictable, workin which factors in the environment are changing and for work in

which interdependence is high.

It can assist organization that set high performance objectives toachieved those objectives.


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COORDINATION

Three major form of interdependence;

1. Pooled interdependence

2. Sequential interdependence

3. Reciprocal interdependence


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EXERCISE

Discuss the differences between narrow span and

wide span of management control. (10 marks)

State the difference between centralization anddecentralization. (6 marks)

Explain the organizing process. (14 marks)


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organizing cptr 4

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