Organizing Organizing

The Unified System is represented by

Comes after the Planning an Organization Chart, with Structural
activities by creating a elements including:
 Allocation of duties, tasks, and
Unified System to support
responsibilities between
the established Strategies departments and individuals
and Goals.  Reporting relationships
 Number of levels
Week 7 1 Week 7 2

Organizing Organization and Environment

 Organizational charts show only the formal
structure.
 An incomplete picture because of hidden and
informal arrangements and underlying
behavioral processes, and natural
organizational evolution
 Two basic goals of organizational design
- Get information to decision makers
- Coordinate the interdependent parts of an organization
Week 7
 Burns and Stalker’s suggest that there are
strong evidences that the nature of the
organization’s environment influences the way
an Organization is organized and managed.
 In a stable environment, the organization tends
to be more mechanistic, whereas in an
innovative/changing environment, the
organization tends to be organic.
3 Week 7 4

Organic vs. Mechanistic Organization Functional Departmentalization

UNCERTAINTY
Low High General Manager
Mechanistic Structure Organic Structure
 Change Unlikely
Finance Human Resource
 Change Likely
 High Formalization  Low Formalization
 Narrow Span of Control  Wide Span of Control
 Tall Structure  Flat Structure R&D Operations Marketing
 Centralized Authority in few top  Decentralized and Diffused
people Authority throughout Organization
 Rigid Rules
 Many Specialists
 Considerable Flexibility 1
 Many Generalists

Week 7 5 Week 7 6
 Matrix Departmentalization
Matrix Departmentalization M Director

• Functions?
• Products?
• Customers? Project Production & Engineering & Materials & Personnel &
Management Facilities Research Procurement Safety
• Channels?
• Geographic?
Begins with a Functional
• Process? Departmentalization

Week 7 7 Week 7 8

Matrix Departmentalization Matrix Departmentalization

M Director M Director

General Manager General Manager General Manager General Manager

General Manager General Manager General Manager General Manager
Technical Electrical /Mechanical Contracts Mechanical
Construction Electrical Mechanical Civil Works
Services Services Plant

Project Production & Engineering & Materials & Personnel &

Project Production & Engineering & Materials & Personnel & Management Facilities Research Procurement Safety
Management Facilities Research Procurement Safety

Residential

Infrastructure
Product Departments are & Heavy
Three Product Groups are
then superimposed superimposed
Industrial

Week 7 9 Week 7 10

Matrix Departmentalization Matrix Departmentalization

M Director M Director

General Manager
General Manager General Manager General Manager General Manager General Manager General Manager General Manager
Construction
Construction Electrical Mechanical Civil Works Electrical Mechanical Civil Works

Project Production & Engineering & Materials & Personnel & Project Production & Engineering & Materials & Personnel &
Management Facilities Research Procurement Safety Management Facilities Research Procurement Safety

Residential Production Engineering Materials Personnel Residential Production Engineering Materials Personnel

Infrastructure Infrastructure
Production Engineering Materials Personnel Production Engineering Materials Personnel
& Heavy & Heavy 2
Reps.from each Functional
Industrial Industrial Production Engineering Materials Personnel
Dept. are assigned to each
Product Group Week 7 11 Week 7 12
 Hybrid Departmentalization
Products M Director

Production & Engineering & Materials & Personnel &

Functions Customers Marketing
Facilities Research Procurement Safety

Hybrid
Firms
Marketing
Process
Channels

Geographic Hybrid structure comprises the Functional structure

and some of the Divisional Structures (i.e. Products,
Week 7 13 Customers, Channels, Geographic, Process) Week 7 14

Hybrid Departmentalization Hybrid Departmentalization

M Director M Director

Production & Engineering & Materials & Personnel & Production & Engineering & Materials & Personnel &
Marketing Marketing
Facilities Research Procurement Safety Facilities Research Procurement Safety

Nairobi County Nandi County Uasin Gishu County Vihiga County Nairobi County Nandi County Uasin Gishu County Vihiga County

Structural Steel Aluminum Sections Precast Concrete Timber Products

This Hybrid structure example comprises the

Functional structure and Geographic structure Week 7 15
… and Products structure) Week 7 16

Hybrid Departmentalization Hybrid Departmentalization

M Director M Director

Production & Engineering & Materials & Personnel & Production & Engineering & Materials & Personnel &
Marketing Marketing
Facilities Research Procurement Safety Facilities Research Procurement Safety

Nairobi County Nandi County Uasin Gishu County Vihiga County Nairobi County Nandi County Uasin Gishu County Vihiga County

Structural Steel Aluminum Sections Precast Concrete Structural Steel Aluminium Sections Precast Concrete Timber Products
Timber Products

3
Local Export Retail Wholesale (bulk) Local Export Retail Wholesale (bulk)

… and Marketing Channels structure) Week 7 17 A Functional, Geographic, Products and Channels Hybrid structure Week 7 18