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2.2 Organizing

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LEARNING OBJECTIVES
 After the completion of this chapter the students will

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able to:
 Explain meaning of organizing
 Elucidate the key elements of organizational structure
and related function
 Describe organizational process(delegation,
decentralization, coordination and authority)

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DEFINITION OF TERMS

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Organizing
The process of arranging people and other
resources to work together to accomplish a goal.

 Structuring of resources & activities to accomplish

objectives efficiently & effectively.

 In a general sense means systematic arrangement of

activities”
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DEFINITION OF TERMS…..

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Organization structure

The system of tasks, workflows, reporting

relationships, and communication channels that
link together diverse individuals and groups.

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 PROCESS OF ORGANIZING
1. Identification of activities

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 The activities to be performed depends upon the objectives, nature and
size of the enterprise.
2. Grouping of Activities
 The various activities are the grouped into departments or divisions
according to similarity and common purpose
3. Delegation of authority
 The assignments of activities create responsibility and ensures
certainty of work performance.
4. Assignment of duties
 Every individual is given the authority required to carry out the
responsibility assigned to him
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 FUNDAMENTAL CONCEPT OF
ORGANIZING:

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 Differentiation: It means that an organization is
composed of units that work on specialized tasks using
different work methods and requiring employees with
unique competencies.

 Integration: It means that the various units must be put

back together so that work is coordinated.

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IMPORTANCE OF ORGANIZING

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– Creates synergy-------?

– Establishes lines of authority

– Improves communication

– Improves competitiveness
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 ORGANIZATION CHART

A chart that shows the structure of the organization

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including the title of each manager’s position and,
by means of title of each manager’s connecting
lines, who is accountable to whom and who has
authority for each area.

 Isa diagram describing reporting relationships and

the formal arrangement of work positions within an
organization.

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Organizational Structure and Design:

 Organizational structure: The way tasks are divided,

resources are deployed, and departments are coordinated

 Organizational design: The determination of the

organizational structure that is most appropriate for the strategy,
people, technology and tasks of the organization.

Is a process in which managers develop or change their

organization’s structure
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 A clear organizational structure:

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 Clarifies the work environment

 Creates a coordinated environment

 Achieves a unity of direction

 Establishes a chain of command

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 ORGANIZATIONAL STRUCTURES

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There are three types of organizational structures

1. Functional organizational structure

2. Product/market/divisional organization structure

3. Matrix organization structure

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1. FUNCTIONAL ORGANIZATIONAL STRUCTURE
 A form of departmentalization in which individuals engaged in
one functional activity, such as nursing, public health, and

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surgery etc… is grouped into one unit

 The structure is based on functions and specialized skills

 It is the most logical and basic form of departmentalization

as a result it has been used most commonly

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CONT…
 Advantages

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– Efficient use of specialized resources
– Supervision is easier
– Mobilizing specialized skill is easier
o Disadvantages
– Difficult when the organization grows
– Determination of accountability is often difficult
– Hierarchical decision-making- delayed decision making

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2. DIVISIONAL ORGANIZATION STRUCTURE
 It is structuring an organization into divisions that bring

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together those involved with a certain type of product or
market
 NB. Division is large organization department that resembles
separate business
 This type of org. structure is appropriate when there is:
• High environmental uncertainty
• A need for semi-autonomous units
 Three patterns of divisions
– Division by product/service
– Division by geography
– Division by customer (patient/client)
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• Example: FGAE, Southern Branch
 MATRIX ORG. STRUCTURE

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 It is an org. structure in which employee reports to both a
functional or division manager and to a project or group
manager

 It is sometimes called “ multiple command system”

 It has the two types of structures(functional &

divisional) simultaneously

 Attempts to combine the benefits of both types of designs

while avoiding their draw backs 15
CONT.…

 Advantages
 Understanding increases laterally and vertically

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 Developing interest in other’s work

 Cost-saving as unnecessary duplication of resources and work is

avoided

 Disadvantages
• Dual authority –conflicting directions
• Needs for competition & interpersonal skills
• Needs rearrangement of staff after the end of the project – reduce
staff moral

 Example:

Central Referral /teaching Hospitals
 Projects 16
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WHAT DETERMINES ORGANIZATION STRUCTURE

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 Environment. Fast-changing environments require organic
structures; slowly changing environments favor mechanistic
structures.

 Technology. Unit and continuous production processes

favor organic structures. Mass production processes favor
mechanistic structures. production processes favor mechanistic
 Goals. Ask, “What are the main goals we want to achieve via
this organization?”
 Pros and cons. Each approach to departmentalization has
pros and cons.
 Logic and common sense.

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Mechanistic organizations :

 Are rigid in that they consist of very clearly

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outlined/delineated jobs

 Have a well-defined hierarchical structure

 Relyheavily on the formal chain of command for

control.

 Bureaucratic (inflexible)organizations are form of

mechanistic structures. 20
Organic structure :

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 Characterized by informality, working in groups and open
communication
 More flexible
 More adaptable to a participative form of management
 Less concerned with a clearly defined structure.
 The organic organization is open to the environment.

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FUNCTIONAL STEPS IN ORGANIZING

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The four building blocks/elements

1. Division of work
2. Departmentalization
3. Hierarchy

4. Coordination
5. Authority 22
1. Division of work / Division of labour/

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 Tasks are broken down and divided into smaller parts

 Itis the process by which tasks and responsibilities are

allocated

 It is essential for greater efficiency and higher

productivity

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CONT…

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Advantages

– Creates simplified tasks

– Fosters specializations–
– Creates opportunity for utilizing talents and interests

Disadvantages:- Job specialization may create

 Boredom
 Alienation(absence of a sense of control)

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 2. DEPARTMENTALIZATION SECTION B
 The basis on which work or individuals are grouped into

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manageable units.

 Grouping of tasks and employees into departments that is

similar and logically connected

 An org. chart shows the formal relationships

– Each single box in the chart represents the departments

– No. and type of departments vary in each organization

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3. Hierarchy
 A pattern of multiple levels of an organizational
structure at the top of which is the senior-ranking

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managers; other low-ranking managers are located down
the various levels of the organization.

 The number of subordinates under each manager is

important.

The later is called the span of management control.

- Hierarchy specifies the chain of command (who reports to

whom?)
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4. Coordination

 The integration of activities of separate parts of an

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organization for accomplishing the organizational goals.

 Integration: the degree to which various departments work

in a unified manner

 It is a means of distributing authorities, providing

channels of communication and arranging the work so
that right things are done in the right place at the right
time in the right way by the right people
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 5. AUTHORITY
 Is the right to do something or to tell someone else what

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to do
 Right to do decide and command subordinates

 Allocate resources to achieve organizationally desired

outcomes
 Power: Is the ability to do something.

 In this role as a supervisor a manager’s power may be

seen in his ability to causes subordinates to do what he
wishes them to do
 Rewards are the positive sides of power and punishment
is the negative side of power 28
 NK YO U VE RY
THA
MUCH!!!