DEFINITION OF

ORGANIZATION
ORGANIZING
 isa managerial function that usually comes
after planning. It is viewed as the second
step in the management cycle. The concern
of organization as a management function is
to put together all the necessary resources
and devise a design so that individual may
end up accomplishing their activities in the
most effective and efficient manner.
 The main intention of organizing covers the
determination of the tasks to be done in
order to fulfill objectives, division of tasks
to specific jobs, into departments, detailing
reporting and authority relationships,
delegating the authority necessary for tasks
accomplishment, and locating and deploying
resources in a coordinate fashion
Importance of Organizing

Organizing is pooling of human, physical

and/or financial resources so as to
achieve the objectives taking into
account the organizational structure
And environment. It sets the systematic
utilization through delegating and
harmonizing tasks.
THE PROCESS OF ORGANIZING

Organizing
 must be cautiously worked out
and must have a directed process. The end
outcome of this process is an organization-
whole consisting of an orchestrated parts
working in consolidation to administer tasks
to accomplish objectives more effectively
and efficiently.
 The following are the five steps that have to be consecutively reiterated in order to ensure that organizing is as efficient as
possible:

1. Examine plans and objectives

Management must take to initiate the organizing process by reflecting on the organization's plans and
objectives. Objectives are the particular activities that must be terminated to fulfill goals. On the other
hand, plans mold the activities necessary to reach these goals.

2. Determine major tasks essential to fulfill objectives

Management must shortlist and decomposes all major tasks or jobs to be done within the realization
of organizational goals. For some managers this task may appear engulfing.

3. Dividing major tasks into subtasks

Major jobs may be divided into manageable work units. Management can categorized group activities
in accordance to various models of departmentalization like functional, divisional, matrix, team or virtual.
4. Allocating resources and directives for subtasks

This step supply. sufficient resources for the staff to realize the tasks.
Management also assigns the prescribed activities to definite individuals. In
addition, each individual must be given authority to execute the assigned
tasks.

5. Evaluating results of organizing strategy

The fifth step is in many perspectives, the most significant. The feedback
gathered provides information on how well the strategy is attaining the goals.
The key is to keep learning from the mistakes and to continuously polish the
process.
 TYPES OF
ORGANIZATION
STRUCTURE
Organizational structure is a formal system of working relationships that body
separates and integrates tasks. Separation of tasks makes clear who should do what,
and integration of tasks indicates how efforts should be meshed. Organizational
structure helps employees work together effectively by:

1. assigning human and other resources to tasks;

2. clarifying employees' responsibilities and how their efforts should mesh through
job descriptions, organization charts, and lines of authority;

3. letting employees know what is expected of them through rules, operating

procedures, and performance standards; and

4. establishing procedures for collecting and evaluating information to help

manager make decisions and solve problems.
Specialization is the process of identifying particular tasks and
assigning them to individual or teams who have been trained to do
them.

Standardization refers to the uniform and consistent procedures

that employees are to follow in doing their jobs. Written procedures,
job descriptions, instructions, rules, and regulations are used to
standardize the routine aspects of jobs.

Coordination comprises the formal and informal procedures that

integrate the activities separate individuals, teams, and departments
in an organization.
Authority is basically the right to decide and act. Various
organizations distribute authority differently.

In a centralized organization, such as Pier 1, top managers make

decisions about what merchandise to buy and where to locate a new
store and communicate these decisions to lower level managers.
In a decentralized organization, such as Jian, decision making
authority is given to lower level managers and employees working in
teams.
THE ORGANIZATION CHART
One way to visualize the interrelationships of these four basic elements of organizational
structure is to create an organization chart.
 1. Tasks. The chart shows the range of different within the organization.. For instance,
task at FedEx range from personnel to properties and logistics to satellite system to line
haul operation
 2. Subdivisions. Each box represents a subdivision of the organization that is responsible
for certain tasks.
 3. Levels of management. The chart shows the management hierarchy from the
chairman of the board to the various divisional managers. All those directly subordinate
to the same individual usually appear at the same management level and report to that
individual.
 4. Lines of authority. Vertical lines connecting the boxes on the chart show which
positions have authority over others.
ORGANIZATIONAL STRUCTURE

A. Division of Labor. The Scottish economist Adam Smith saw division of
labor as a key to economic progress by providing a cheaper and more efficient
means of producing goods. Division of labor also known as work specialization
is the breaking down of work into simple, repetitive tasks to eliminate
unessential motion and confines the handling of different tools and parts.
B. Departmentalization. Departmentalization addresses two of the four basic
elements of organizational structure: specialization and standardization.
departmentalization involves subdividing work into tasks and assigning them to
specialized groups within an organization. it also includes devising standards for
the performance of tasks.
1. Functional Departmentalization. Functions are the groups or sets of tasks that
an organization performs, such as production, marketing and finance.
Functional departmentalization groups employees according to their areas of
expertise and the resources they draw on to perform a common set of tasks .
Functional grouping is the most widely used and accepted form of
departmentalization.

2. Divisional. Is the grouping of common product, common product, market

(customer) or geographical location.
By segmenting according to the different products, the different customers
served or the different products, the different customers served or the different
geographical locations in which the entity operates, it will not be difficult to
monitor all the company’s products and activities
PLACE DEPARTMENTALIZATION
Place departmentalization groups all functions for a
geographic area at one location under one manager, rather
than dividing functions among different managers or grouping
all task in one central office.

STRATEGIC ACTION COMPETENCIES

A. Product Departmentalization
Product departmentalization divides the organization into self contained units,
each capable designing, producing, and marketing its own goods and/or
services.

B. Customer Departmentalization
Customer Departmentalization involve organizing around the type of customer
served. It is used when management wants to ensure a focus on the customer’s
needs rather than on the organization’s skills [functional] or brands its
produc3es and skills [production].

C. Geographic Division
Services customers according to different geographical areas like regional,
national or international level.
3. Matrix. Matrix is mix functional and divisional and is used by
highly technical organizations for projects with specific time
frame. It is a complex form which simultaneously categorized
employees in two ways --- by the function Of which they are a
member and by the product team on which they are currently
working. Employees are supervised by both their regular
supervisor and their current project manager. In practice the
individual member of the organization has two bosses — a
functional boss and a product boss.