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Rganizing: Chapter Four
Rganizing: Chapter Four
Chapter Four
PART ONE: INTRODUCTION
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1.1 Meaning of organization
POM/Chapter 4 - Organizing
1.2 Process of Organization
2
DEFINITION OF ORGANIZING
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Activities: Resources:
Identification of Determining the
POM/Chapter 4 - Organizing
activities
Grouping of
specific need
Activities of resources
Assignment of jobs to Allocation of
formal groups
resources into
Establishing a network
of authority and specific groups
responsibility Evaluation and
Providing framework for control of use of
measurement, evaluati
on and control the resources 3
ORGANIZING
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Organizing is the process of
arranging and allocating
POM/Chapter 4 - Organizing
work, authority, and resources
among an organization’s
members so that they can
achieve organizational goal.
Stoner, Freeman and Gilbert
4
PROCESS OF ORGANIZING
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Division of Work
Grouping of Work
POM/Chapter 4 - Organizing
Delegation of Authority
Coordination of Work
5
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6
PROCESS OF ORGANIZING SIMPLIFIED
PRINCIPLES OF ORGANIZING
Unity of Objective 8. Exception
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1.
2. Specialization
9.Efficiency
POM/Chapter 4 - Organizing
3. Coordination
4.Authority and 10.Balance
Responsibility
11.Homogeneity
5. Unity of
Command 12.Continuity
6. Scalar Chain
13.Simplicity
7. Span of
7
Control
PART TWO: ORGANIZATIONAL ARCHITECTURE
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2.1 Vertical differentiation
Tall versus Flat Structure
POM/Chapter 4 - Organizing
2.2 Horizontal differentiation
Functional Structure
Multidivisional Structure
Geographic Structure
Matrix Structure
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TALL VERSUS FLAT ORGANIZATIONS
Tall Organization
President
6–9
ORGANIZATIONAL ARCHITECTURE -
VERTICAL INTEGRATION
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Tall Organization: Flat organization:
This type of This type of
POM/Chapter 4 - Organizing
organizational organizational
architecture has architecture
many layers
has few layers
and narrow
span of control. and wide
span of
control.
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ESTABLISHING REPORTING RELATIONSHIPS:
TALL VERSUS FLAT ORGANIZATIONS
Tall Flat Organizations
Organizations
Are more Lead to higher
because of the number levels
expensive of
employee morale and
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General Manager
POM/Chapter 4 - Organizing
Production Finance Marketing HR
Dept Dept Dept Deprtment
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General Manager
POM/Chapter 4 - Organizing
Division I Division II Division III
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General
POM/Chapter 4 - Organizing
Departments are
Manager created based on
geographic regions.
All the activities in one
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ORGANIZATIONAL ARCHITECTURE – HORIZONTAL
DIFFERENTIATION
4. MATRIX ORGANIZATION
CEO
Employees
Project
manager
A
Project
manager B
Project
manager C
6–16
MATRIX STRUCTURE:
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Advantages:
Disadvantages:
Enhances organizational Employees are uncertain
flexibility.
POM/Chapter 4 - Organizing
about reporting
Team members have the relationships.
opportunity to learn new The dynamics of group
skills. behavior may lead to
Provides an efficient way for slower decision
the organization to use its making, one-person
human resources. domination, compromise
Team members serve as decisions, or a loss of
bridges to their focus.
departments for the team. More time may be required
for coordinating task- 17
related activities.
PART THREE: RESPONSIBILITY
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3.1 Meaning of Responsibility
POM/Chapter 4 - Organizing
3.2Establishing Task and
Reporting Relationships
3.3
Creating
Accountability
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RESPONSIBILITY:
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Responsibility is the
POM/Chapter 4 - Organizing
obligation to perform
or
duty to carryout certain
activities
19
ESTABLISHING TASK AND REPORTING
RELATIONSHIP:
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Task Relationship:
How activities related to each other in an
POM/Chapter 4 - Organizing
organization.
How the basic units of an organization are
formed.
Establishment of job description and job
specification
Job Specification: Prerequisites of job. Various skills and
experiences needed to perform certain job.
Job Description: The activities that have to be
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Establishing Reporting Relationship:
It is finding out
POM/Chapter 4 - Organizing
Chain of command
Span of control or span of management
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CREATING ACCOUNTABILITY
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Accountability:
Requirement to
POM/Chapter 4 - Organizing
report
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PART FOUR:
AUTHORITY
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4.1 Line and Staff Authority
POM/Chapter 4 - Organizing
4.2 Delegation of Authority
23
AUTHORITY:
Right to take decisions that arises due to
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position in organizational structure.
POM/Chapter 4 - Organizing
Authority is the right to perform or
command. It allows its holder to act in
certain designated ways and to directly
influence the actions of others through
orders.
Types of Authority:
Line Authority
Staff Authority 24
LINE AUTHORITY
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The chain of command in the
organizational structure that flows
POM/Chapter 4 - Organizing
major decision making power.
The officially
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Staffauthority consists of the right to
advise or assist those who possess
POM/Chapter 4 - Organizing
line authority as well as other staff
personnel.
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Assigning work to subordinates
and giving them necessary
POM/Chapter 4 - Organizing
authority to do the assigned work
effectively.
Simple terms,
GRANTING AUTHORITY TO SUBORDINATES
27
FEATURES OF DELEGATION OF
AUTHORITY:
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No delegation of total authority
Delegation of only that authority a
POM/Chapter 4 - Organizing
manager has
Representation of the superior
Delegation for organizational
purpose
Restoration of delegated
authority
Balance of authority and 28
responsibility
No delegation of responsibility
CONFLICT BETWEEN LINE – STAFF EMPLOYEES
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Assume Line Authority
Do not give Sound Advice
POM/Chapter 4 - Organizing
Steal Credit for Success
Fail to Keep line personnel
informed of their
activities
Do not see the whole 29
picture.
PART FIVE:
CENTRALIZATION AND DECENTRALIZATION
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Meaning : Centralization and Decentralization
POM/Chapter 4 - Organizing
Reasons: In which case which is needed
30
EMERGING ISSUES IN ORGANIZATION DESIGN
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POM/Chapter 4 - Organizing
31
STAFFING: CONCEPT AND IMPORTANCE
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POM/Chapter 4 - Organizing
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