Fundamentals of ORGANIZING

Group 6 Bernardo, Jannyne Beltran, Mia De Villa, Sherylen Simpao, Angela Soria, Racquel

STUDY QUESTIONS
One What is organizing as management function? What are the traditional organizing structures?

Two

What are the newer types of organization structures? Three How are organizing designs changing the workplace

Four

OBJECTIVES

DE VILLA BERNARDO BELTRAN

SIMPAO

SORIA

To To define define discuss network organizing each way structures. to as improve management To explain subsystem the function concept deigns ToTo discuss know the the Matrix Functional and To boundary be and able integration to less explain structure the and Team Divisional structure structures difference To To know describe between the trends concept formal in of mechanistic and organizational informal an organic structures designs designs

To set the direction

Planning Organizing

Divide up the work Arrange resources Coordinate Activites

Leading
Controlling

To inspire effort

To ensure results MANAGEMENT FUNCTIONS

Is the process of arranging people and other resources to work together to accomplish a goal

ORGANIZATION- a collection of people working together for a common puropose

ORGANIZATION STRUCTURE
Is a system of tasks reporting relationships, and communication linkages

ORGANIZATION CHART
Describes the arrangement of work positions within an organization

Director

Assistant Director

Manager 1

Manager 2

Manager 3

Employee

Employee

Employee

Employee

Employee

Formal Structure
Is the official structure of the organization
DIVISION OF WORK Positions and titles show work responsibilities SUPERVISORY RELATIONSHIPS Lines who reports to whom COMMUNICATION CHANNELS Lines show formal communication flows MAJOR SUBUNITS Positions reporting to a common manager are shown. LEVELS OF MANAGEMENT Vertical layers of management are shown.

Informal Structure
Is the set of unofficial relationships among an organizations members
SOCIAL NETWORK ANALYSIS - identifies the informal structures and the embodied social relationships that are active in an organization

Helping people accomplish their work.

Overcoming limits of formal structure.

Gaining access to interpersonal networks.

2
Connecting with people who can assist in task performance

May work against best interests of entire organization.

Susceptibility to rumor.

May carry inaccurate information.

1
Resistance to change. Feeling of alienation by outsiders.

3
Diversion of work efforts from important objectives.

President

Business Form Vice President Marketing Vice President Finance Vice President Production Vice President Resource

Bench Manager

Branch Bank Manager loans Manger Investment Manager Operations Manager Trusts

Administrator

Community Hospital Director Medical Staff Director Nursing Director Clinics Director Patient Services

Better cooperation across functions. Improved decision making. Increased flexibility in adding, removing or changing operations to meet changing demands. Better customer service & Improved strategic management. Better performance accountability through the program, product or project managers.

Uncertain about reporting relationship,

May create anarchy in which they have unlimited freedom Group decision-making may take long time, More time may be required for coordinating task-related activities.

Information Technology

BUSINESS CORE

Outsourcing Contracts

Strategic Alliance

Information Technology

BUSINESS CORE

Outsourcing Contracts

Strategic Alliance

Team Structure

Network Structure

Temporariness

A virtual organization uses IT and the Internet to engage a shifting network of strategic alliances.

PRESIDENT

R& D Division

Manufacturing Division

Sales Division Deals with Marketing subenvironment

Deals with Scientific subenvironment Product quality Long time horizons Organic structures

Deals with Manufacturing subenvironment Cost Efficiency Short time horizons Mechanistic structures

Customer Satisfaction Short time horizons Mechanistic structures

Source: Fig. 9.9, page 252

Differentiation
- the degree of difference between subsystems in an organizations

Integration
- is the level of coordination achieved between subsystems in an organization.

 HOW TO IMPROVE SUBSYSTEMS INTEGRATION

Rules and procedures : Clearly specify required activities Hierarchical referral: Refer problems upward to a common superior Planning : Set targets that keep everyone headed in the same direction Direct contact: Have subunit managers coordinate directly. Liason roles: Assign formal coordinators to link subunits together Task forces: Form temporary task forces to coordinate activities and solve problems on a timetable. Teams: Form permanent teams with the authority to coordinate and solve problems over time. Matrix organizations: create a matrix structure to improve coordinator on specific programs.

 Chain of Command

-line of authority that vertically links each position with successively higher levels of management.

 Span of control - is the number of subordinates directly reporting to a manager. Tall Structure
(narrow span of control)

Flat Structure
(wide span of control)

less efficient less flexible less customer- sensitive

wider spans fewer levels of production reduces overhead costs

Trend : Organizations are cutting unnecessary levels of management and shifting to wider spans of control. Managers are taking responsibility for larger numbers of subornates who operate with less direct supervision.

MORE DELEGATION AND EMPOWERMENT

Delagation - is the process of distributing and entrusting work to to other persons.

 Three Steps in Delegation

Assign responsibility explain task and expectations Grant authority allow others to make decisions and act Create accountability require others to report back on results

Authority-and-responsibility principle states that

authority should equal responsibility when work is delegated from superior to subordinate.

Empowerment - letting others to make decisions

and exercise discretion in their work - when delegation is well done it leads to empowerment

Trend : Managers are delegating more. They are finding ways to empower people at all levels to make more decisions that affect themselves and their work.

DECENTRALITION WITH CENTRALIZATION

Should most decisions be made all the top levels of an organization or should they be dispersed by extensive delegation throughout all levels of management? Centralization- concentration of authority for most decisions at the top level of organization. Decentralization is the dispersion of authority to make decisions throughout all organization levels.

Trend : Delegation,empowerment, and horizontal structures are contributing tpo more decentralization in organizations: at the same time , advances in information technology are allowing adequate centralized control.

REDUCED USE OF STAFF

Staff positions

- provide technical expertise for other parts of the organization Trend : Organizations are reducing the size of staff. They are lowering costs and increasing efficiency by employing fewer staff personnel and using smaller staff units.

A cost effective staff component that satisfies, but doesnt overreact to needs for specialized technical operations.

THANK YOU