ORGANIZATION AND MANAGEMENT :

ORGANIZING
C H A P T E R 4
Once a plan has been created, a manager can begin to
organize. Organizing involves assigning tasks,
grouping tasks into departments, delegating
authority, and allocating resources across the
organization. During the organizing process, managers
coordinate employees, resources, policies, and
procedures to facilitate the goals identified in the
plan. Organizing is highly complex and often involves
a systematic review of human resources, finances, and
priorities.
 Chapter 4:
Organizing

Lesson 1 Lesson 2 Lesson 3 Lesson 4 Lesson 5

Natures of Types of Organization Delegation Formal and
Organization organization theories and Informal
structure applications organization
Natures of
Organization
Differentiation of the Organization's
Internal Environment

Differentiation in organizations involves

division of labor and specialization
according to Bateman and Snell (2008).
These necessarily result from the
organization's composition-many different
work units with different kinds of tasks,
using different skills and work activities
coordinating with one another for a
common end.
 Division of labor involves
assigning different tasks to
different people in the
organization's different work
units. Related to it is
specialization, the process in
which different individuals
and units perform different
tasks.
the bigger the organization, the more work units or
work divisions and specializations are to be expected.
Integration is another
process in the organization's
internal environment which
involves the collaboration
and coordination of its
different work units or work
divisions.
Coordination refers to the
procedures that connect the work
activities of the different work
divisions/units of the firm in order
to achieve its overall goal.
 01. Process

02.Structure
Dividing and
03. Grouping the
Accomplishments
04. of goals and
activities objectives

Some common 05.

Authority-
Responsibility

features of Relationship

organization 06. Human Material

Aspects
 Lesson 2: Types of
Organization Structures
An organization structure is a system made up of
tasks to be accomplished, work movements from one
work level to other work level in the system, reporting
relationships, and communication passageways that
unite the work of different individual persons and
groups.
The types of
organizational
structures include:
A. VERTICAL STRUCTURE

B. HORIZONTAL STRUCTURE

C. NETWORK STRUCTURE
The vertical organizational
structure is a strict hierarchical
structure with power emanating
from the top to the bottom.

According to Bateman and Snell (2008), a

vertical structure clean out issues related to
authority rights, responsibilities, and
reporting relationships.

Authority rights refer to the legitimate rights

of individuals, appointed in positions like
president, vice president, manager, and the
like, to give orders to their subordinates, who
in turn, report to them what they have done
Owners of private business
companies are said to have
absolute authority, even if
other persons are appointed
as managers in their
companies.
In corporations, the owners
are the stockholders and they
elect a board of directors to
manage the organization's
activities.
The board has a chairman who
acts as the leader, while the
members act as the corporation's
authority figures, responsible for
making major decisions affecting
their organizations, subject to the
corporation's constitution and by-
law provisions.
a chief executive officer (CEO) is appointed to
occupy the top post in the organization pyramid
and is personally accountable to the members of
the board and ather owners for the organizational
performance.
 Under the middle-level managers are
Below the top-level managers are the
the lower-level managers which
middle-level managers in charge of
include office managers, sales
departments who, as earlier
managers, and supervisors who
mentioned, report to them.
directly report to the former.

Example:
Amazon is a company with a vertical Employees under the lower level
structure having 12 levels, in which Jeff managers also have reporting
Bezos is the pyramid’s summit at level 12 relationships with their respective
and distributors and packagers are at level department managers.
1.
 A horizontal structure refers to the
departmentalization of an organization
into smaller work units as tasks become
increasingly varied
Horizontal organizational structures, also called flat
organizational structures, outline reporting expectations for
employees with only a few hierarchical levels. For example,
they may include the owner at the top level, managers or
leaders in the middle and the remaining employees occupying
the same level within the rest of the business
Types of Department
Line Departments— deal
directly with the firm's primary
goods and services, responsible
for manufacturing, selling, and
providing services to clients.

Staff departments— support

the activities of the line
departments by doing research,
attending to legal matters,
performing public relations
duties, etc.
Meanwhile,
departmentalization may be
done using three approaches:

Functional approach— where

the subdivisions are formed
based on specialized activities
such as marketing, production,
financial management, and
human resources management.
Divisional approach— where
departments are formed based
on management of their
products, customers, or
geographic areas covered

Matrix approach— is a hybrid

form of departmentalization
where managers and staff
personnel report to the
superiors, the functional
manager, and the divisional
manager.
 A matrix organization is a
work structure where team
members report to multiple
leaders. In a matrix
organization, team members
(whether remote or in-house)
report to a project manager
as well as their department
head. This management
structure can help your
company create new products
and services without
realigning teams.
 Network structure is a
collection of independent,
usually single function
organizations/companies
work together to produce a
product or service.

Often their communication is

by electronic means where
sharing of information is
speedy. This results to their
ability to respond at once to
their customers' demands.
Lesson 3: Organization Theories
and Applications
 Definition of Terms
01. 02. 03.
Organizational
design—the Traditional Modern
manner in which a
Theories—are
management Theories—
achieves the right contemporary
combination of are the or new design
differentiation
and integration of
usual, old theories
the organization's fashioned
operations, in
response to the ways
level of
uncertainty In its
external
environment
Simple
This organizational design has
few departments, wide spans of
control, or a big number of
subordinates directly reporting
to a manager, has a centralized
authority figure and has very
little formalization of work;
usually used by companies that
start out as entrepreneurial Traditional Theories
ventures.
Functional
This organizational design
groups together similar or
related specialties. Generally,
functional departmentalization
is utilized and put into practice
in an entire organization. For
example: A marketing firm that
markets cars and related
products like tires, car Traditional Theories
batteries, and accessories.
Divisional
This organizational design is
made up of separate business
divisions or units, where the
parent corporation acts as
overseer to coordinate and con-
trol the different divisions and
provide financial and legal
support services.
Traditional Theories
 Team Design
In team design, the entire
organization is made up of work
groups or teams. Its advantages
include empowerment of team
members and reduced barriers
among functional areas. It also
has disadvantages, including
clear chain of command and
Modern Theories great pressure on teams to
perform.
 Team Design
In team design, the entire
organization is made up of work
groups or teams. Its advantages
include empowerment of team
members and reduced barriers
among functional areas. It also
has disadvantages, including
clear chain of command and
Modern Theories great pressure on teams to
perform.
 Matrix-Project Design
Matrix design refers to an
organization design where
specialists from different
departments work on projects
that are supervised by a project
manager. This design results in
a double chain of command
wherein workers have two
Modern Theories managers their functional area
manager and their project
manager who share authority
over them.
 Boundary-less Design
This is another modern
organizational design where the
design is not limited by vertical,
horizontal, and external
boundaries. In other words,
there is no hierarchical levels
that separates workers, there is
no departmentalization, there is
Modern Theories no boundaries.
 Lesson 4:
Delegation
Delegation refers to assigning
a new or additional tasks to a
subordi nate; it may also refer
to getting work done through
others by giving them the
right to make decisions and
take action. Elements of
delegation include: authority
or the right to set officially or
legally, responsibility or the
state of being answerable
legally/morally for the
discharge of a duty, and
accountability is to be liable
to be called to explain.
Steps in delegation include:
• Defining the goal clearly
• Selecting the person who will
be given the task.
• Assigning of responsibility
• Asking the person assigned
about his or her planned
approaches to accomplish the
task objectives.
• Granting the assigned person
the authority to act.
• Giving the assigned person
enough time and resources to
do the talk, while at the same
time emphasizing his her
accountability
7. Checking the task
accomplishment progress
8. Making sure that the task
objective has been achieved

It prevents work overload among It may cause laziness among organization

organization managers managers

provides opportunities for employee or subordinates assigned

to do the task to fully utilize their talents on the job
may encourage too much dependence on others

leads to empowerment of employees or

subordinates assigned to do the task, as it allows It may cause lack of control over
them freedom to contribute ideas and to perform priority management problems
their job in the best possible way

It increases job satisfaction among the assigned employees or

It may cause low self-confidence among managers.
subordinates, that may lead to better job performance
Lesson 5: Formal
and Informal
Organization
 Definition of Terms
01. 02.
Formal
organizations— refer Informal
to organizations organizations—
formed by the refer to
company owner or organizations that
manager to help the exist because of
firm accomplish its friendship or
goals: made up of common interest
formal groups made up of
(workgroups/ project informal groups
team/committee) which exist for the
similarly formed by members' need for
company authorities
to support their
activities and achieve
their objectives
A formal organization is a type of group that is
deliberately constructed and whose
members are organized to achieve a specific
goal. Churches, schools, hospitals, and
companies are just a few examples. Modern
formal organizations allow us to accomplish
tasks in the most efficient way possible.
Could you imagine how our society would run
without government, businesses, and
healthcare institutions?
Formal organizations are
characterized by hierarchical
and reporting relationships
among groups or members.
An informal organization is
a group of people who
share a common identity
and are committed to
achieving a common
purpose
informal organizations consist of
informal groups born out of the need
for social affiliation.
Formal organizations have the Meanwhile, informal organizations'
following function: function include the following:
1. Accomplish goals that require 1. Satisfy the members' need for
cooperation or collaboration affiliation;
among formal groups in the
organization; 2. Give the individual members a
chance to develop their
2. Produce or bring about new and esteem: 3. Give individual self-
creative ideas and solutions to members an opportunity to share
com pany problems; their ideas;
3. Coordinate interdepartmental 4. Lessen individual members'
activities: insecurities, and
4. Implement company 5. Provide a mechanism to solve
rules/regulations and policies; and members' personal and
5. Orient/train new employees. interpersonal problems.
 ORGANIZATION AND MANAGEMENT :

Thank You for Listening

Group 5: Sabina Macarandang—Mechaella
Aslor—Aravel Alvarez—Bea Gabayno—
Christian Jaz Mendonez