Organization: by Group 1

ORGANIZATION
by Group 1
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Page 1
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NATURE OF ORGANIZATIONS
1.Single Proprietor
2.Partnership
3.Corporation
Page 3
TYPES OF ORGANIZATION
STRCUTURE
ORGANIZATION STRUCTURE
designed to accomplish different
goals
TALL
 high levels between workers and
owners
FLAT
 few levels between workers and
owners
Page 4
TYPES OF ORGANIZATION
STRUCTURE
LINE STRUCTURE
 basic organization framework
 direct relationships
 consists of linear department,
which are involved in accomplishing
primary goals
STAFF FUNCTION
provides expertise, advice and
support for the line positions Page 5

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1. FUNCTIONAL
 each department is grouped

according to its function
+ fit for small business
- departments work
independently
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2. DIVISIONAL
used in large companies
operates in a geographic area or
according to types of products
+ adresses needs more rapidly and
specifically
- communication is inhibited
- costly because of size and scope
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3. MATRIX
divisional + functional
used in a large multinational
companies
- creates a power struggles because of
a functional manager and a divisional
manager
solid lines represent strong and direct
relationship
dotted lines are secondary relationship
+ flexibility and balanced decision making
- complexity leading to confusion Page 11

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FORMAL AND INFORMAL
ORGANIZATION
STRUCTURE
FORMAL
represented by
organization charts
INFORMAL
 are existing but not
officially prescribed
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INFORMAL
FORMAL
Page 17
informal structures develop
because:
people find ways doing things
when they find easier and save
time
people forget what the formal
structures are
 easier to work with informal
structures Page 18
FORMAL AND INFORMAL
BENEFITS OF INFORMAL
ORGANIZATION
1.promotes social and cultural
values
2.communication
3.better relationships
4.promotes creativity
5.social satisfaction Page 19

FORMAL AND INFORMAL
BENEFITS OF FORMAL
ORGANIZATION
1.clearly defines objectives
2.optimism utilization scarce organization
resources
3.clear division of work
4.synthesis of individual, group and
organization goals
5.rate of labor turnover and absenteeism
is low Page 20
ORGANIZATION THEORIES AND
APPLICATION
I. CLASSICAL
ORGANIZATION THEORY
Page 21
ORGANIZATION THEORIES
AND APPLICATION
I.A. Scientific Management
o Frederick Taylor
Father of Scientific Management
scientific management – focusing
on the management of work and
workers
o based on the concept of planning
of work to achieve efficiency,
standardization, specialization, and
simplification Page 22
science, not rule-of-thumb
scientific selection of worker
management and labor
cooperation rather than
conflict
scientific training of workers
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AND APPLICATION
I.B. ADMNISTRATIVE
MANAGEMENT
Henri Fayol’s administrative theory
Rules of a manager – planning,
organizing, commanding, coordinating,
controlling
14 Principles of Management
Luther Gulick
Management functions – planning,
organizing, staffing, directing,
coordinating, reporting, budgeting Page 24

Max Weber’s Bureaucratic approach
 “Power is principally exemplified within
organizations by the process of control
 Authority: existed when there was a
belief in legitimacy of power
 Power: one person can impose his will,
regardless of any resistance
 The organization is based on the
principles of: structure, specialization
predictability and stability, rationality and
democracy Page 25
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ORGANIZATION THEORIES AND
APPLICATION
II. NEOCLASSICAL
THEORY/MODERN
ORGANIZATION THEORY
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AND APPLICATION
 emphasizes individual or group behavior and human
relations in determining productivity
A.SYSTEMS APPROACH
-considers the organization as a system compose of a
set of inter-related and dependent subsystems
1. COMPONENTS
• the individual
• formal or informal organization
• role perception
• patterns of behavior
For•morephysical environment
: Powerpoint Backgrounds
Page 30
2. LINKING PROCESS
• Communication
• Balance
• Decision analysis
3. GOALS OF ORGANIZATION
• growth
• stability
• interaction
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AND APPLICATION
B. SOCIO-TECHNICAL APPROACH
-considers the organization as
composed of a social system, technical
system and its environment
C. CONTINGENCY OR SITUATIONAL
APPROACH
-recognizes that organization systems
are inter-related with their environment
and requires different organization
relationships Page 32
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DELEGATION
o the process of giving decision-making
authority to lower-level employees
The importance of delegation can be justified

by:
1.work load is reduced
2.increased effectivity of a manager
3.the superior-subordinate relationship become
meaningful
4.gives enough room for the subordinates to
flourish their abilities and skills
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QUIZ
Page 38

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ORGANIZATION

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support for the line positions Page 5

 each department is grouped

- complexity leading to confusion Page 11

5.social satisfaction Page 19

coordinating, reporting, budgeting Page 24

The importance of delegation can be justified

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