ENGINEERING

MANAGEMENT
WEEK 4: ORGANIZING
 ORGANIZING FUNDAMENTALS AND CONCEPT

 IMPORTANCE OF ORGANIZING AS MANAGEMENT FUNCTION

 ORGANIZING PROCESS

 ORGANIZATIONAL STRUCTURES AND ITS TYPES

 DIFFERENT TYPES OF DEPARTMENTALIZATION

Upon completing this topic, student will be able to:

1. Describe the fundamentals and concept of organizing.

2. Illustrate the types of organizing and its application.
3. Classify different types of structure and departmentalization.
4. Develop an organizational structure as per plan from previous topic.
ESSENCE OF ORGANIZING AS MANAGEMENT FUNCTION

The role of organizing is extremely important for the management system since it is the driving
mechanism used by engineer-managers to initiate the plan. Organizing creates and manages
relationships between all organizational resources by specifying the tools to be used for
different tasks and when, and how to use them. If organizing is properly created, cost of
operation can effectively be managed since allocation of resources is appropriate. Duplication
and idle of resources can avoided.

Figure 1: ORGANIZING
PROCCESS
The first process of organizing is to understand the plan and goals of the
organization, this is to ensure that the engineer manager translate clearly what the
organization wants to achieve. Otherwise, if the plan is misinterpreted, the structure
they created might not contribute on the achievement of plans. The next two steps
include the creation of the major tasks and subdividing them, this is to administer the
specific activities in the structure.

Resources allocation to the sub-tasks is the next process. Proper distribution of

resources should be taken care on this process. Lastly is the evaluation and
feedback. Evaluation should take place to check whether the organizing strategy is
effective. Feedback should constantly be done to assess the organization status.
ORGANIZATIONAL STRUCTURE:

Organization is basically represented by a structure. Structure is the output of organizing.

It shows how the relationship of positions are being arranged. Its purpose is to facilitate
the use of each resource, individually and collectively, as the management system
attempts to attain its objectives. An engineer-manager should properly select the best
structure that could fit on the organization’s objectives.

TYPES OF STRUCTURE:

1. Formal Structure - is defined as the relationships between organizational resources

as outlined by management. This structure is represented by an organizational chart,
organizational manual, or policy manual.
  Organization Chart - is a diagram of the official positions and formal lines of
authority of the organization

 Organizational Manual - details the outline of the relationships between the

authorities, describes the roles of the major organizational units, and explains the
work procedures.

 Policy Manuals - describes the organizational practices and strategies of the

company

Purpose of the formal structure:

 It determines the relationships for individuals and departments between tasks and
authority

 It describes hierarchical reporting relationships, the number of levels

in the organization's hierarchy and the scope of controls

 It describes organizational groupings of individuals into divisions and departments

 It specifies the framework for effecting effort coordination in both vertical(authority)

and horizontal (task) directions.
 2. Informal Structure - defines as the formation of relationships that grows because of
the informal activities of members in the organization. This is normally formed because of the
following factors:

 Friendship
 Common Interest
 Proximity
 Collective Power
 Group Goals

Informal structure can be useful if engineer-manager could utilize it properly, but could
also be destructive if neglected.
 FACTORS TO CONSIDER WHEN STRUCTURING AN ORGANIZATION:

 Division of labor – determines the type and scope of work and how they are integrated into a
job. This is also called work specialization, where many believes that tasks can be perform
efficiently if the work is specialized

 Delegation of authority – the method of allocating subordinates to varying degrees of

decision- making authority. It is also called the chain of command, an unbroken line of
authority connecting all individuals within an entity and showing who reports to whom. The
chain of command illustrates the authority, responsibility, and delegation. Authority is the
legitimate right of the manager to make decisions. Responsibility is the commitment to
execute the task or function as assigned. Accountability is a system by which authorities and
obligations are put in together. All workers regardless of the position should be accountable
for every task they perform.
 Types of authority:

a. Line authority – manager's right to tell his employees what to do and then see them
doing it

b. Staff authority – specialist’s or experts right to advice to superior

c. Functional authority – the right of a professional to supervise the lower level of

personnel engaged in that discipline, regardless of where the worker is in the
organization

 Departmentalization – grouping similar employees, tasks, or processes

into main organizational sub-units
 TYPES OF DEPARTMENTALIZATION:

 Departmentalization based on Function - organization structure is based on the

function of work, example marketing, finance, operation, etc.
 New Types of Departmentalization:

• Team Approach - recently the most common trend that is used in departmentalization. Since
most of the previous departmentalization are mostly vertical in approach, the relay of
communication and decisions would sometimes take so long. These approach offers managers
a way to delegate power, move accountability down to lower levels and be more agile and
sensitive in a dynamic global environment. With a team-based structure, the entire organization
consists of horizontal teams which organize their work and work directly with clients to
achieve the goals of the organization.

Figure 7: Example of Team Approach Departmentalization

Figure 8: Example of Virtual Network Approach Departmentalization
Factors Influencing Span of Control:

 Similarity of function
 Geographic Contiguity
 Complexity of function
 Coordination
 Planning
Committee - is a structured group of individuals organized for a particular purpose.
They are classified:

1. Ad-hoc committee – type of committee which is developed for a short-term

purpose and with limited life. Examples of these are: program committee, food
committee, and so on.

2. Standing committee – is a defined as a systematic committee which constantly

deals with issues. Examples of these committees are safety committee,
environmental committee, kaizen committee and the like.
THANK
YOU