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Lesson No. 6 - Organizing (Basic Elements of An Organizational Structure)
Lesson No. 6 - Organizing (Basic Elements of An Organizational Structure)
MANAGEMENT
Lesson No. 6 – Organizing: Basic
Elements of an Organizational
Structure
Specific Objectives of the Lesson
SECRETARY’S
OFFICE
MARKET HEALTH
SUPPORT ACTUARIAL UNIT I NVESTMENT
FIELD FINANCIAL
MANAGEMENT ANALYSISI
Example of an
REGION II
Organizational
TAX
Chart
Elements of Organizational
Structure
1. Job Design. The assignment of tasks and
responsibilities that define the jobs of individuals
and units.
2. Departmentalization. The clustering of individual
positions into units and of units into departments
and larger units to form an organizations hierarchy.
3. Vertical Coordination. Top to bottom coordination
such as number of persons reporting to a
supervisor and degree of delegation of authority.
4. Horizontal Coordination. Linkages across
departments, such as taskforces and
interdepartmental teams.
JOB DESIGN
Different types of job can involve different activities
Example: A job as a buyer for the department store chain
may involve keeping in contact with various suppliers in a
certain specialty area (such as shoes), previewing new
offerings, developing sources for in-house brands, and
studying trends in consumer tastes. In contrast, a job of a
salesperson may include learning about new items in
certain departments, keeping merchandize neatly
arranged, helping customers and ringing up sales at the
cash register.
The different activities of the buyer and the salesperson
reflect work specialization.
Work Specialization is the degree to
which the work necessary to achieve
organizational goal is broken down
into various jobs.
Without some specialization, it would
be difficult for most organizations to
function. This is because it is usually
impossible for every organization
member to have the entire range of
skills necessary to run an effective
organization.
What is included in a given job depends on
job design, the specification of task activities
associated with a particular job.
Job design is important to the organizing
function for two major reasons:
1. Task activities need to be grouped in logical
way for workers to function effectively
2. Jobs configuration or designation has an
influence on employee motivation to perform.
Approaches to Job Design
Job specialization
breaking jobs into smaller tasks
simple, easy-to-learn, and economical
can lead to low job satisfaction, high absenteeism, and
turnover
Job rotation
periodically moving workers from one job to another
Job enlargement
increasing the number of tasks performed by a worker
Job enrichment
adding more tasks and authority to a worker’s job
A related aspect of designing jobs is
creating alternative work schedule,
based on adjustments in the normal
work schedule rather in the job
content or activities.
The basic objective of this approach is
to increase worker’s job satisfaction
and motivation by arranging work
schedules that allow a diverse work
force greater flexibility in balancing
both work life ad personal life
Major Types of Alternative Work
Schedules
Customer
Geographic
Matrix
Functional
Departmentalization
Exhibit 11.1
Functional
Departmentalization
Advantages Disadvantages
creates highly cross-department
skilled specialists coordination can
lowers costs be difficult
through reduced may lead to slower
duplication
decision making
communication
and coordination produces
problems are managers with
lessened narrow
experiences
Product Departmentalization
Advantages Disadvantages
managers duplication often
specialize but increases costs
have broader difficult to
experience coordinate across
easier to assess departments
work-unit
performance
decision making is
faster
Customer
Departmentalization
American Express
Coca-Cola Enterprises
Group positions
into units on
the basis of
geographical
location
Geographic
Departmentalization
Advantages Disadvantages
responsive to duplication of
demand of resources
different markets difficult to
reduce costs by coordinate across
locating resources departments
close to
customers
Matrix Departmentalization
Advantages Disadvantages
efficiently manage requires high
large, complex levels of
tasks coordination
effectively increased conflict
manage large, levels
complex tasks requires high level
of management
skills