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Chapter Four
PART ONE:
INTRODUCTION
POM/Chapter 4 - Organizing
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DEFINITION OF ORGANIZING
Activities:
of
activities
Grouping of Activities
Assignment of jobs to
formal groups
Establishing a
network of authority
and responsibility
Providing framework
for measurement,
evaluation and control
Resources:
Determining
the
specific need of
resources
Allocation of
resources into
specific groups
Evaluation and
control of use of
the resources
POM/Chapter 4 - Organizing
Identification
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ORGANIZING
POM/Chapter 4 - Organizing
is the process of
arranging and allocating
work,
authority,
and
resources
among
an
organizations members so
that
they
can
achieve
organizational goal.
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Organizing
PROCESS OF ORGANIZING
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Division of Work
Grouping of Work
Delegation of Authority
Coordination of Work
POM/Chapter 4 - Organizing
PROCESS OF ORGANIZING
SIMPLIFIED
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POM/Chapter 4 - Organizing
PRINCIPLES OF
ORGANIZING
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POM/Chapter 4 - Organizing
8.Exception
1.Unity of Objective
9.Efficiency
2.Specialization
10.Balance
3.Coordination
11.Homogeneity
4.Authority and
12.Continuity
Responsibility
5.Unity of Command 13.Simplicity
6.Scalar Chain
7.Span of Control
2.2
Horizontal differentiation
Functional Structure
Multidivisional Structure
Geographic Structure
Matrix Structure
POM/Chapter 4 - Organizing
Vertical differentiation
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2.1
President
Flat Organization
President
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ORGANIZATIONAL
ARCHITECTURE - VERTICAL
INTEGRATION
Tall Organization:
type of
organizational
architecture has
many layers and
narrow span of
control.
This
Flat organization:
type of
organizational
architecture
has few layers
and wide span
of control.
POM/Chapter 4 - Organizing
This
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Organizations
Are
Organizations
Lead
to higher levels of
employee morale and
productivity.
Create more
administrative
responsibility for the
relatively few managers.
Create more supervisory
responsibility for
managers due to wider
spans of control.
more expensive
because of the
number of managers
involved.
Foster more
communication
problems because of
the number of people
through whom
information must
pass.
Flat
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ORGANIZATIONAL ARCHITECTURE
HORIZONTAL DIFFERENTIATION
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1. FUNCTIONAL STRUCTURE:
Productio
n Dept
Finance
Dept
Marketing
Dept
HR
Deprtment
POM/Chapter 4 - Organizing
General Manager
12
ORGANIZATIONAL ARCHITECTURE
HORIZONTAL DIFFERENTIATION
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2. MULTI-DIVISION STRUCTURE
Division I
Multiple
Division II
Division III
POM/Chapter 4 - Organizing
General
Manager
13
ORGANIZATIONAL ARCHITECTURE
HORIZONTAL DIFFERENTIATION
Divisional
An
ORGANIZATIONAL ARCHITECTURE
HORIZONTAL DIFFERENTIATION
Eastern
Region
Central
Region
Departments are
created based on
geographic regions.
All the activities in
one geographic region
is categorized into one
unit.
Western
Region
POM/Chapter 4 - Organizing
General
Manager
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3. GEOGRAPHIC STRUCTURE:
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ORGANIZATIONAL ARCHITECTURE
HORIZONTAL DIFFERENTIATION
4. MATRIX ORGANIZATION
CEO
Vice president,
engineering
Project
manager A
Vice president,
production
Vice president,
finance
Vice president,
marketing
Employees
Project
manager B
Project
manager C
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MATRIX
STRUCTURE:
Advantages:
Employees
Disadvantages:
are uncertain
about reporting
relationships.
The dynamics of group
behavior may lead to
slower decision making,
one-person domination,
compromise decisions, or
a loss of focus.
More time may be
required for coordinating
task-related activities.
POM/Chapter 4 - Organizing
Enhances organizational
flexibility.
Team members have the
opportunity to learn new
skills.
Provides an efficient way
for the organization to use
its human resources.
Team members serve as
bridges to their
departments for the team.
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PART THREE:
RESPONSIBILITY
Meaning of Responsibility
3.3
POM/Chapter 4 - Organizing
3.2
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3.1
Creating Accountability
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RESPONSIBILITY:
is the
POM/Chapter 4 - Organizing
obligation to perform
or
duty to carryout certain
activities
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Responsibility
19
POM/Chapter 4 - Organizing
How
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Task
20
Chain of command
Span of control or span of management
POM/Chapter 4 - Organizing
It
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CREATING ACCOUNTABILITY
Accountability:
to report
POM/Chapter 4 - Organizing
Requirement
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4.2
Delegation of Authority
POM/Chapter 4 - Organizing
4.1
23
AUTHORITY:
Authority
Types
POM/Chapter 4 - Organizing
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Right
of Authority:
Line Authority
Staff Authority
24
LINE AUTHORITY
POM/Chapter 4 - Organizing
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The
25
STAFF AUTHORITY
Advisory or Counseling
Role:
The Service Role
The Control Role
The
POM/Chapter 4 - Organizing
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Staff
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DELEGATION OF
AUTHORITY
POM/Chapter 4 - Organizing
work to subordinates
and giving them necessary
authority to do the assigned
work effectively.
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Assigning
Simple terms,
FEATURES OF DELEGATION OF
AUTHORITY:
POM/Chapter 4 - Organizing
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No
28
POM/Chapter 4 - Organizing
Line Authority
Do not give Sound Advice
Steal Credit for Success
Fail to Keep line personnel
informed of their activities
Do not see the whole picture.
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Assume
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PART FIVE:
CENTRALIZATION AND DECENTRALIZATION
POM/Chapter 4 - Organizing
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EMERGING ISSUES IN
ORGANIZATION DESIGN
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POM/Chapter 4 - Organizing
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POM/Chapter 4 - Organizing
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