ORGANIZATION & MANAGEMENT

Handouts
The main intentions of organizing covers the determination of the tasks to be done in order to:
 fulfill objectives
 division of tasks into specific jobs
 grouping jobs into departments
 detailing reporting and authority relationships
 delegating the authority necessary for task accomplishment
 allocating and deploying resources in a coordinated fashion.
Importance of Organizing
• It sets the systematic utilization through delegating and harmonizing tasks.
• It translates plans into reality by decisive deployment of resources inside a decision-making structure known as
the organizational structure.
Process of Organizing
Five Steps of organizing:
1. Examine plans and objectives
Management must take to initiate the organizing process by reflecting on the organization’s plans and
objectives.
2. Determine major tasks essential to fulfill objectives
Management must shortlist and decomposes all major tasks or jobs to be done within the realization of
organizational goals.
3. Dividing major tasks into subtasks
Management can categorized group activities in accordance to various models of departmentalization like
functional, divisional, matrix, team or virtual.
4. Allocating resources and directives for subtasks
Management also assigns the prescribed activities to definite individuals. In addition, each individual must be
given authority to execute the assigned tasks.
5. Evaluating results of organizing strategy.
The feedback gathered provides information on how well the strategy is attaining the goals. The key is to keep
learning from mistakes and to continuously polish the process.
The organizational Chart
-it is a diagram that visualizes the vertical structure of an organization. It shows the connections and relative ranks of its
parts and positions/jobs.
-It is also concerned with relationships among tasks and the authority to do the tasks.
Kinds of relationships can be envisioned in an organizational chart:
1. Division or Specialization of Labor
-It is the breaking down of work into simple, repetitive tasks to eliminate unessential motion and confines the
handling of different tools and parts.
-Enhance productivity and efficiency by letting workers to specialize and become skilled at a particular task.
-Managers must be aware of the disadvantages of specialization: fatigue, stress, boredom, low quality products,
absenteeism, and turnover.
2. Relative Authority/Chain of Command
-It is a line of authority extending from the top to the bottom of the organizational structure.
-It is an unbroken line of authority that links all individuals whether managers or employees in the organization
and specifies who reports to whom.
Authority-is the formal and legal right of any manager to generate decisions, issue orders, and utilize resources in order
to accomplish planned objectives.
Types of Authority
 Line Authority-it gives individuals in management positions the formal power to direct and govern
immediate subordinates with consulting others.
 Staff Authority-it is granted to staff specialists in their areas of expertise, limited than line authority and
includes the right to advise, service, recommend, and counsel in the staff specialists’ area of expertise.
 Functional Authority is delegated to individuals in management positions to have formal power over
specific subset of activities undertaken by personnel in the department.
Delegation-is the downward shift of authority and responsibility from a manager to a subordinate. It separates
the manager from the dictate of exigency. Delegation separates the manager to use his time on high priority
activities.
3. Departmentalization-is the categorizing of jobs under the supervision of a sole manager, based on some logical
basis, for the purpose of planning, coordination and control.
Functional Departmentalization-it includes grouping parallel jobs into their own function, like accounting, sales,
human resources, information system, and engineering.

Divisional Departmentalization-is the grouping of common product, market (customers) or geographical

location.
Matrix-is mix functional and divisional and is used by highly technical organizations for projects with specific
timeframe.
Team-It is created usually for the purpose of accomplishing specific tasks. The creation of teams is mostly
temporary in nature.
Network-Managers in network structures consume most of their time coordinating and controlling, external
relations, usually via electronic ways.
4. Span of Control/Management-it refers to the number of subordinates that can be handled effectively by a
superior in an organization. It signifies how the relations are planned between superiors and subordinates in an
organization.
5. Degree of Centralization-Authority is aid to be centralized when solely managers at the top level of an
organization can make significant decisions.
6. Formalization-is the extent to which there are standardized rules and procedures controlling the activities of
employees in the organization.
7. Informal structure-It is prescribed by the patterns, behaviors and interactions from the personal rather than the
official relationships of organizational members.

Organizational Design-is the generation or modification of an organizational structure to reflect efforts in responding to
environmental changes both internal and external and ensuring collaboration.

Bureaucracy-is a form of organization characterized by logic, order and legitimate use of formal authority.

Factors affecting Organizational Design Decisions:

1. Strategy-how an organization tries to position itself in the market in terms of its product/service.
2. Size-Small enterprises tend to have less formalization, centralization, and complexity in their organizational
structure.
3. Environmental Conditions-The environment is the world in which the organization operates and includes factors
like economic, socio-cultural, legal-political, technological and natural conditions.
4. Technology-is the way tasks are done using tools, equipment, techniques and human-know-how.