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CHAPTER 4

Organizing
Technical
Activities
REASONS FOR ORGANIZING

- undertaken to facilitate the


implementation of plans.
- undertaken to breakdown the
total job into more manageable
man-size jobs.
DEFINITION

- A management function which


refers to the structuring of
resources and activities to
accomplish objectives in an
efficient and effective
manners.
Structure
- arrangement or relationship of
positions within an organization

- the result of the organizing


process is the structure
THE PURPOSE OF THE
STRUCTURE
1. The relationships between tasks
and authority for individuals
and departments.
2. Formal reporting relationships,
the number of levels in the
hierarchy of the organization,
and the span of control.
3. The groupings of individuals
into departments and
departments into organization.
4. The system to effect
coordination of effort in both
vertical (authority) and
horizontal (tasks) directions.
CONCERNS ON STRUCTURING
THE ORGANIZATION
1. Division of labor
- determine the scope of work and
how it is combined in a job.
2. Delegation of authority
process of assigning various
degrees of decision making
authority to subordinates.
3. Departmentation
the groupings of related jobs ,
activities , or processes into major
organizational subunits.
4. Span of control
the number of people who report
directly to a given manager.
5. Coordination
the links of activities in the
organization that serves to achieve
a common goal or objective.
THE FORMAL
ORGANIZATION

The formal organization is the


structure that details lines of
responsibilities, authority, and position.
THE FORMAL STRUCTURE IS
DESCRIBED BY MANAGEMENT
THROUGH:

1. Organization chart
2. Organizational manual and
3. Policy manuals
INFORMAL GROUPS
Formal organizations require the
formation of formal groups which will
be assigned to perform specific tasks
aimed at achieving organizational
objectives.
The formal group is a part of the
organization structure.
Informal group
- members of an organization
spontaneously form a group
with friendship as a principal
reason for belonging.
- useful in the accomplishment of
major tasks, especially if these
tasks conform with the
expectations of the members of
the informal group.
- informal organization, useful as it
is vulnerable to expediency,
manipulation, and opportunism,
according to Valentine
TYPES OF ORGANIZATIONAL
STRUCTURES

1. Functional organization
2. Product or market
organization
3. Matrix organization
FRIENDSHIP Reasons or Factors for
COMMON joining or Forming a
INTEREST Group
PROXIMITY

NEED
SATISFACTION FORM
AN
INFORMAL
COLLECTIVE GROUP
POWER
JOIN

GROUP GOALS
A Typical functional
organization chart of a
construction company
PRESIDENT

VICE
VICE VICE VICE
PRESIDENT
PRESIDENT PRESIDENT PRESIDENT
HUMAN
MARKETING CONSTRUCTION FINANCE
RESOURCE
FUNCTIONAL ORGANIZATION

- Functional organization
structures are very effective in
smaller firms, especially “single-
business firms where key
activities revolve around well-
defined skills and areas of
specialization.”
ADVANTAGES OF FUNCTIONAL
ORGANIZATION
1. The grouping of employees who
perform a common task permit
economies of scale and efficient
resource use.
2. Decision-making is centralized,
providing a unified direction from
the top.
3. Communication and coordination
among employees with each
department are excellent.
4. Promotes high-quality technical
problem solving.
5. Provides with in depth of skill
specialization and development.
6. Provides with career progress within
functional departments.
DISADVANTAGES OF
FUNCTIONAL ORGANIZATION

1. Poor communication and


coordination between the
departments
2. Decisions involving more
than one department pile up
at the top management level
and are often delayed
3. Produce routine, non-motivating
employee tasks for work
specialization and division of labor.
4. Difficult to identify which section or
group is responsible for certain
problems.
5. Limited view of organization goals by
employees.
6. Limited general management
training for employees.
PRODUCTION OR MARKET
ORGANIZATION
The product or market
organization which its feature
of operating by divisions, is
“appropriate for large
corporation with many
product lines in several
related industries”
ADVANTAGES OF A PRODUCT OR
MARKET ORGANIZATION

1. Flexible and responsive to change


2. Provides a high concern for
customer’s needs.
3. Provides excellent coordination
across functional departments.
4. Easy pinpointing of responsibility
for product problems.
5. Emphasize on overall product and
division goals.
6. Opportunity for the development of
general management skills is
provided.
THE DISADVANTAGES OF THE
PRODUCT OR MARKET
ORGANIZATION
 There is a high possibility of duplication of
resources across divisions.
 There is less technical depth and
specialization in division.
 There is poor coordination across divisions.
 There is less top management control.
 There is competition for corporate
resources.
MATRIX
ORGANIZATION
DEFINITION

Thompson and Strickland,


“is a structure with two or
more channels of command,
two lines of budget authority,
and two resources of
performance and reward.”
Higgins
“the matrix structure was
designed to keep employees in
central pool and allocate them to
various projects in the firm
according to the length of time
they were needed.
ADVANTAGES

1. More efficient use of resources


than the divisional structure.
2. Flexible and adaptability to
changing environment.
3. Development of both general and
functional management skills are
present.
4. Interdisciplinary cooperation
and any expertise is available to
all divisions.
5. Enlargement of tasks for
employees which motivate them
better.
DISADVANTAGES
1. Frustration and confusion from dual
chain of command.
2. High conflict between divisional and
functional interests.
3. Many meetings and more discussion
than action.
4. Need for human relations training
for key employees and managers.
5. Tendency for power dominance by
one side of the matrix
TYPES OF AUTHORITY

Line authority
– a manager’s right to tell
subordinates what to do and then
see that they do it.
Staff authority
– a staff specialist’s right to give
advice to a superior.
Functional authority
– a specialist’s right to
oversee lower level personnel
involved in that specialty,
regardless of where the
personnel are in the
organization.
A Typical Product/Market Organization
for a Construction Company
PRESIDENT

Vice President Vice President Vice President


Government Accounts Industrial Accounts Residential Accounts

Marketing Marketing Marketing

Construction Construction Construction

Finance Finance Finance

Human Human Human


Resources Resources Resources
A Typically Matrix
Organization of a Construction
Firm
Line departments
- perform task that reflect the
organization primary goal and
mission . In a construction firm
goal and mission.

Staff department
- include all those that provide
specialized skills support in support of
line department.
(examples: perform Strategic, Planning, Labor
Relation, Research, Accounting and Personnel.)
Personal staff
- assigns to a specific
manager to provide needed
staff service.
Specialized Staff
-provides needed staff service
for the whole organization.
Functional Authority is one to a
given person or a work group to
make decision related to their
expertise even if decision concern
other department this authority is
given to most budget officer of
organization as well as other
organization.
THE PORPOSE OF
COMMITEES
Committee
- a formal group of person
forms for a specific purpose
for instance the product
planning committee.
- Millevo prescribes that staff
by top executive from
marketing production
research engineering and
finance who work part time
to evaluate and approve
product ideas.
TYPES OF COMMITTEE
Adho committee
- one created for short term
purpose and have a limited
life . an example is the
committee created to manage
the anniversary festivities of
a certain firm.
Standing committee
- It is relatively permanent
committee that deals with
issue on an ongoing basis .
- An example is the grievance
committee set up to handle
initially complains from
employees of the organization.
PREPARED BY :

Nicky M. Abellonar
Jane Anda
Arjay N. Dasmariñas
Rommel B. Macawili
Rodel James S. Trajano

“The achievement of the organization are the results of the


combined effort of each individual.”
-Vince Lombardi

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