ORGANIZING

CHAPTER 3
ORGANIZING

• deciding how best to group organizational

activities and resources

• allocating human resources to ensure the

accomplishment of objectives
BASIC ORGANIZING ELEMENTS:
• Designing jobs
• Grouping jobs
• Establishing reporting relationship between jobs
• Distributing authority among jobs
• Coordinating activities between jobs
• Differentiating among jobs
FOUR CHARACTERISTICS

• Coordination of efforts
• Common goal or purpose
• Division of labor
• Hierarchy of authority
By EDGAR SCHIEN,
Organizational Psychologist
BENEFITS OF ORGANIZING

• avoids duplication, conflict, and misuse of resources , both material

and human
• clarifies individual performance expectations and specialized tasks
• logical flow of work activities can be comfortably performed
• establishes channels of communication
• ensures harmony among organization members engaged in
diversified activities
• enhances planning and controlling throughout the organization
SYNERGISM - combining efforts to
effectively accomplish the tasks that would
exceed simple sum of individual efforts
DECISIONAL ROLES OF MANAGERS
BY: MINTZBERG

• Entrepreneur
• Disturbance handler
• Resource allocator
• Negotiator
HOW MANAGERS SPEND THEIR TIME
Mintzberg's research
Ex.:
Chief executive
59 % in scheduled meetings
10 % unscheduled meetings
22 % at their desks
6 % on the telephone
3 % on all other activities
 FIGURE 1: THE ACTIVITIES OF REAL MANAGERS

• Communicating -> Exchanging informations

-> Paper works
• Networking -> Interacting with outsiders
-> Socializing/ Lobbying
• Traditional Management -> Planning
->Decision Making
->Controlling
• Human resource Management -> Motivation
THE MANAGEMENT HIERARCHY

TOP MANAGEMENT - responsible for the overall direction of the

(Executives) firm and its relations with its various policies

- they supervise sub-units of an organization

MIDDLE MANAGEMENT
- they may direct the activities of other managers
(Plant, Division, Staff
Manager)
- they are involved in specific operations within the
organization

SUPERVISORY MANAGEMENT
- they are directly responsible for the
(Fin-Line Supervisors,
Foreman, Department Heads) details of assigning workers to specific job
 FUNCTIONAL AND GENERAL MANAGERS
• Functional Management
• -a horizontal division of management which is based on expertise and
specialization
• Line managers
• -are concerned with primary organizational activities such as marketing
and production
• Departments
• -are in-turn defined according to functional line duties such as
production control, receiving, sales, shipping and customer service
• General managers
• -oversee collective operations that include several functional managers

• Katz – a specialist in organizational theory, identified

three managerial skills:
• Conceptual Skills
• Human Relations skills
• Technical skills
FIGURE 3: MANAGERIAL SKILLS
Relative Importance by Skills needed by Managers
Management Level
Conceptual - ability to solve long-term
FOCUS problems and view the total
organizations as an interactive system

Human Relations – ability to work

efficiently, and assure harmonious
FOCUS
interpersonal relations

Technical -ability to use tools, apply

specialized knowledge,and manage
FOCUS processes and techniques
MANAGEMENT STYLE

• are characteristic ways of making

decisions and relating to
subordinates.
TYPES OF MANAGEMENT STYLE:

• Autocratic style
• -characterized by the manager making all decisions and issuing orders
for the completion of work without the input of subordinates.
• Democratic Style
• -characterized the manager making decisions that takes into account
the input of subordinates.
• Free-rein style
• -characterized by the manager allowing subordinates to make most
decisions.
NATURE OF ORGANIZATION STRUCTURE

• Organization Structure - formal pattern of interactions and coordination

to link the tasks of individuals and groups in achieving organizational goal

ELEMENTS
• the assignment of tasks and responsibilities
• the clustering of individual positions to form an organization’s hierarchy
• the various mechanisms required to facilitate vertical coordination
• the various mechanisms that needed to foster horizontal coordination
• Organization Design - process of developing an
organization structure

• Organization Chart – aids in visualizing the structure

• Chain of Command – unbroken line of authority that

ultimately links each individual with the top
organizational position through a managerial position
Two major reason why JOB DESIGN is important:
1. Task activities need to be grouped in reasonably logical way
2. The way the jobs are configured , or designed, has the important influence on
employee motivation to perform well

APPROACHES :
• Job Simplification - process of designing jobs
• Job Rotation - the practice of shifting workers through a set of jobs in a
planned sequence
• Job Enlargement – the allocation of a wider variety of similar tasks
to a job
DIVISION OF WORK

• Means to divide or break up a single complicated job into

different smaller specialized task.
• Involves allocating tasks and clarifying individual
performance expectations.
Specialization
-is planned division of work into
individual tasks that can be
repeated efficiently.
Work simplification
- a process of planning " the works
and breaking it down to most
common elements
Standardization
-is the process of making work
uniform through repeated use of
similar methods, machines, and
materials to achieve similar and
predictable results over time.
HORIZONTAL AND VERTICAL
JOB SPECIALIZATION
• Horizontal job specialization
– is the result of dividing complicated tasks into simpler
job or operations, reducing the scope of tasks

Task with 6 operations Broken into six tasks

Vertical job specialization
– results from delegating responsibilities for tasks and
decisions to subordinates.
SPAN OF CONTROL
- number of persons/ subordinates who report to supervisors

Two Important Implications

- Determines the complexity of manager’s job
- Determines the configuration of the organization

3 Kinds of Interactions by A.V. Graicunas

1. Direct
2. Cross
3. Group
Types:
- Narrow Span of Control
- Wide Span Control
BUREAUCRATIC STRUCTURES
- activities are rationally defined, division of work is unambiguous, and managerial
authority is explicitly vested in individuals

CHARACTERISTICS:
1. Fixed and official jurisdictions of authority.
2. Firmly established rational chain of command.
3. Quantified and thoroughly documented
information.
4. Supposition of expertise.
5. Management is technically scientific.

ATTRIBUTES:
1. Chain of Command
2. Span of Control
FORMAL ORGANIZATIONS
• It is the allocation of functions among departments and the
policies, standards, procedure that help define the scope of
each person's activities.

INFORMAL ORGANIZATIONS
• Are concerned with the employees sense of
belonging to an organization or with their alienation
from the purpose of that organization.
DEPARTMENTALIZATION
- the horizontal grouping of work activities based on expertise, products, markets,
customers, or projects to enhance planning, leading and controlling

Approaches:
- Functional Organization
- Product Organization
- Geographical Organization
- Customer Organization

TYPES OF FORMAL ORGANIZATION

- Line Organization
- Line and Staff Organization
-Functional Organization
DELEGATION

• This involves the partial distribution of

authority to subordinates for making
decisions or performing tasks.
Manager Authority Subordinate Authority Degree of decision making
Subordinates authority
advise Personnel assistance
Subordinates
Manager makes decisions have voice in Participative assistance
decision

Subordinates share decision Joint decision making

Manager shares decision making making

Manager reviews Subordinates make decision,

Subordinate decision
Decisions implement after review making

Manager reviews
Results Subordinates makes decision and Autonomy in decision
implement: report results making
Manager reviews
on need
only
 REASONS FOR DELEGATING
AUTHORITY
1. Managerial overload
2. Need for expertise
3. Proximity of tasks
4. Behavioral needs
 GUIDELINES FOR EFFECTIVE DELEGATION
1. Determining what each member of a work unit can do.
2. Decide whether you want the subordinate to pinpoint the problem or purpose a
solution.
3.Once goals are defined, consider whether the person chosen can handle the
responsibility
4.Do not make mistake of spelling out in detail how the subordinate should
approach the task
5.Make sure subordinates has the time, budget, date or equipment needed to get
the job done, on a deadline. Be prepared to make investment
6. Unless the project is relatively simple, set up specific checkpoints to review
progress
7. Be prepared, too, to live with a less than perfect result.
 COMMITTEES
Structure committees / Standing committee
- are a permanent part of the structure of an
organization
Ad Hoc committees
-function similarly to a task force in seeking to
accomplish a specific purpose and are then disbanded,
they do not have permanency.
BASIC COMMITTEE FUNCTIONS
Committee Purpose
1. Coordinating

2. Advising

3. Decision Making
HUMAN RESOURCE PLANNING
- STAFFING - set of activities aimed at attracting and
selecting individuals for positions

- RECRUITMENT - process of finding and attempting

to attract job candidates

- SELECTION - process of choosing the best among applicants