Engineering Management

ORGANIZING

MAPUA INSTITUTE OF TECHNOLOGY

School of Chemical Engineering & Chemistry
 LEARNING OBJECTIVES
• Understand the basics of organizing
• Be aware of organizational design
variables
• Appreciate the benefits of division of labor
• Be familiar with departmentalization bases
• Gain an insight to power and authority
• Understand the effects of span of control
 Managerial Functions

PLANNING
Selecting missions
and objectives
and the actions
to achieve them

CONTROLLING ORGANIZING
Making sure that Establishing an
the organization intentional
is accomplishing structure of roles
its objectives for people to fill
in an organization

LEADING
Influencing people
to perform
essential tasks
 ORGANIZING
Who is going to do which tasks?

Who is responsible for which results?

• Establishing an intentional structure of

roles for people to fill in an organization
 ORGANIZATIONAL
DESIGN VARIABLES

Span of Control Division of Labor

Delegation of Authority
Departmentalization
 Division of Labor
• The extent to which jobs are specialized

HIGH Specialization LOW

e.g. hospitals e.g. shops, parlors

 Delegation of Authority
• Right of individuals to make decisions and
to exact obedience from others

HIGH Decentralization LOW

e.g. schools e.g. military

 Span of Control
• Number of jobs to be included in a group

Few Number of Jobs Many

e.g. R&D e.g. military

 Departmentalization
• Defining and grouping activities and
responsibilities for jobs

Homogenous Basis Heterogeneous

e.g. universities e.g. project teams

 Bases for
Departmentalization
• Functional Departmentalization
• Territorial Departmentalization
• Product Departmentalization
• Matrix Organization
 Functional Departmentalization

MANUFACTURING
COMPANY

OPERATIONS FINANCE

MARKETING HR

Advantage(s) Disadvantage(s)
– Efficient – Sub-optimization of
organizational goals
 Territorial Departmentalization

MULTINATIONAL
COMPANY

NORTH
ASIA-PACIFIC
AMERICA

EUROPE MIDDLE-EAST

Advantage(s) Disadvantage(s)
– Training ground for general – Redundant positions
management positions
– Caters to local needs
 Product Departmentalization

CONSUMER-GOODS
COMPANY

DETERGENTS SKINCARE

SOAP
COSMETICS &
SHAMPOO

Advantage(s) Disadvantage(s)
– Fosters initiative & autonomy – Redundant positions
– Training ground for general
management positions
 Matrix Organizations

PROCESS ELECTRICAL

PROCESS ELECTRICAL
PROJECT A
ENGINEER ENGINEER

PROCESS ELECTRICAL
PROJECT B
ENGINEER ENGINEER

Advantage(s) Disadvantage(s)
– Efficient use of resources – Potential for conflict
– Flexible
 Workshop
• Your group is the complete workforce
of Paper Pane Corporation.
Established in 1943, Paper Plane has
led the market in paper plane
production. Presently under new
management, the company is
contracting to make aircraft for the
U.S. Air Force. You must establish an
efficient production plant to produce
these aircraft.
 Workshop
• Conditions
– The Air force will pay $20,000 per airplane.
– The aircraft must pass a strict inspection.
– A penalty of $25,000 per airplane will be
subtracted for failure to meet production
requirements.
– Cost of Materials will be $3,000 per bid plane.
 Workshop
• Bid: __ Aircraft @ $20,000 per aircraft = _____
• Results: __ Aircraft @ $20,000 per aircraft = _____
• Less: _____ x $3,000 = _______
• Less: _____ x $25,000 = ________
• Profit: ______
 Step 1
• Take a sheet of paper and fold it in
half, then open it back up.
 Step 2
• Fold upper corners to the middle.
 Step 3
• Fold the corners to the middle again.
 Step 4
• Fold in half.
 Step 5
• Fold both wings down.