Submitted To: Ma’am Sadia

Submitted From: Noor Nasir

Roll no: 221601
BS BRIDGING
1st semester
 All about Organizing

According to Henry Fayol, Organizing is a managerial function that involves arranging

and structuring work to accomplish the organizational goal. Managers are responsible for
arranging and structuring work that employee do to accomplish the organization’s goals. We call
this function organizing. When managers organize, they determine what tasks are to be done,
who is to do them, how the tasks are to be grouped, who report to whom, and where decisions
are to be made.

Organization Structure is the formal arrangement of jobs within an organization. This is

a way or method by which organizational activities are divided, organized and coordinated. And
organizational design is a process of developing or changing an organization’s structure. It’s
basically a process for shaping the way organizations are structured and run. Its aim is to
improve effectiveness and efficiency. This process involves six key elements, work
specialization, departmentalization, chain of command, span of control, centralization and
decentralization, and formalization.

Organization Design Key Elements

Work specialization is basically dividing work activities into separate job tasks. We can
call it division of labor. It’s an important process because it helps employees to be more efficient.
After deciding what job tasks will be done by whom, common work activities need to be
grouped back together so work gets done in a coordinated and integrated way?

Grouping of jobs together is called departmentalization.

Functional departmentalization is to group jobs according to their functions. It grouped

together people with common skills, knowledge and orientation. Geographical
departmentalization grouped jobs according to geographic regions. This process is more
effective and efficient handling of specific regional issues that arise. It serves needs of unique
geographic markets better. Product departmentalization group jobs through product line. It
allows specialization in particular product and services. These are close to customers. Process
Departmentalization is the grouping of organizational activities around all of
the processes needed to produce a product of value for an organizationally internal or external
customer. Flow of work activities is more efficient. Customer departmentalization is where the
organization's activities are ready to respond to and interact with
specific customers or customer groups, who have common needs.

One specific type of team that more organizations are using is a cross-functional
team. A cross-functional team is a group of people with different functional skill working
toward a common goal.

Chain of Command is the line of authority spreading from upper organizational levels to lower
levels, which explains who reports to whom. Authority of manager is basically the right to order
other employees, which they’ve to obey. There are two types of authority, line authority and staff
authority. Line authority allows the managers to direct the work of an employee.

According to chain of command, a manager with line authority has the right to
direct the work of an employee and to make certain decisions without discussing with anyone.
Staff authority purposes to support, help, advice, and to reduce some of line authority manager’s
informational burdens. And when managers use their authority to give work to employees, those
employees take on a responsibility to perform those given duties. This expectation to perform is
known as responsibility. Next principle is Unity of Command, expresses that a person should
report to only one manager.

Span of Control determines the number of levels and managers in an organization—an

important consideration in, how efficient an organization will be. All other things being equal,
larger the span, the more efficient the organization is.

Centralization is decision making takes place at upper levels of the organization. If top
managers make key decisions with little input from below, then the organization is more
centralized.

Decentralization is, in which decisions are made by lower-level employees.

Formalization refers to how systematized an organization’s jobs are and the degree to which
employee behavior is guided by rules and procedures.

Organizational Structures

Mechanistic organizations have specialized tasks for their organization. They have well-defined
departments with clear hierarchy. There’s always centralized decision making by a few people.
Organizations with mechanistic structures have unity of command. Managers put together the
activities of clearly defined departments through formal meetings. Mechanistic structures support
routine technology.

Organizations with Organic structure work with cross-functional teams. They have a low
scale of formality, specialization and standardization. Their decision making is decentralized. It
usually uses cross-hierarchical teams. They allow their employees to develop more ideas and be
more creative because the business is not as strictly structured. Organic structure supports no
routine technology.
 Contingency Factors Affecting Structural Choice

Top managers put a lot of thought into designing suitable organizational structure. That
appropriate structure is depends on four contingency variables: the organization’s strategy, size,
technology, and degree of environmental uncertainty.

Goals play a very crucial role for organizations strategy. Structure should
always be able to ease the organization with goal achievement. Structures and strategies are
usually linked together. Size of an organization affects their structure as well.

Organization’s size affects its structure. Usually large organizations have

mechanistic structure and small organizations have organic structures. Every organization is
using some kind of technology for better rate of input and output. Organizations use different
kind of technology according to required capacity.

First is unit production, where production of products is done in units. Second is mass

production, for larger batches of production. And last one is process production, includes
production process in continuity.

Some organizations face constant and simple environments with little uncertainty and others face
dynamic and complicated environments with a lot of uncertainty. Managers minimize that
uncertainty with organizational structure.

Traditional Organization Design

When designing a structure, managers choose one of the traditional organizational designs.
These structures tend to be more mechanistic in nature.

New emerging organizations use simple structures. Simple structure is a basic organizational
design structure with low departmentalization, little work specialization, broad spans of control,
centralized authority and little rules that oversee process. Organizations that use a simple
structure are typically flat, in that there are not many hierarchical levels.
Functional structure is an organizational design that groups similar or related working
specialties together. This structure works as functional departmentalization applied to the entire
organization. Divisional structure is an organizational structure which is made up of separate
business units or divisions. In this structure, each division has limited self-dependency, with a
division manager who has power over his unit and is responsible for performance. Major
cooperation over sees the work of divisional organizations.

Many organizations are finding that traditional organizational design are often are not
appropriate for today’s increasingly dynamic and complex environment. In this regard managers
are finding new ways to structure and organize work.

Contemporary Organizational Designs

Team structure is an organizational structure in which the entire

organization is made up of work teams. Employee teams design and do work in the way they
think is best, but the teams are also held responsible for all work performance results in their
respective areas.

A matrix organizational structure is a work arrangement in which

employees report to two or more managers rather than one manager overseeing every aspect of a
project. One manager can be functional; other can be product or project manager.

Project structure is basically a structure in which employees continuously

work on projects. All work in project structure is performed by teams of employees. Project
structure has no formal department.

Boundary less Organization is an organization without boundaries.

Design isn’t defined in this structure. There’s no limit for employees. Mostly employees have
their own projects to do.

Virtual organization is a network of independent firms that join together,

often temporarily, to produce a service or product.
 Autonomous management is a business management system in which
individual employees and work groups are given the authority to manage their own processes
instead of having work details controlled by senior management or company shareholders.

In Learning Organization employees continually acquire and share new

knowledge and apply that knowledge in making decisions and doing their work.