BBA 112: ORGANIZING AND HRM

Lecturer: Dr. Vera Ayitey


Principles of Organization

Types of Organization

Authority, Power and Responsibility

Management by Objectives (MBO)

Human Resource Management
 ORGANIZING
• Organization as a group of persons
• Organization as a structure of relationship
• Organization as a function of management
• Organization as a process.
 Organizing as a group of people

• Organization begins when people combine efforts for some common

purpose.
• An identifiable group of people contributing their efforts.
• An organization comes into existence when there are a number of
persons in communication and relationship to each other and are
willing to contribute towards a common goal.
 Organization as a structure of relationships

• It describes the scalar chain and the chain of command

• It sets up the scope of activities of the of the
organization by laying down the structure of
relationships.
• It refers of the organization structure.
 Organization as a function of Management

• It is a process of integrating and coordinating the efforts of

others, deploying resources for the accomplishment of
certain objectives.
 Organizing as a process
• Organization is the process of establishing relationship
among the members of the organization.
• Identification and grouping of activities to be
performed and dividing them among the individuals
and creating authority and responsibility relationship
among them in order to achieve organization goals.
 Steps in Organizing
1.Consideration of objectives which serve as guidelines for the
management and workers leading to unity of direction in the
organization.

2.Identification and grouping of activities (division of labor).

3.Assignment of duties

4.Delegation of authority: The role of authority and responsibility.

What is the relationship between authority and responsibility?
 Authority and Responsibility

• Responsibility without authority is an empty

vessel.
• Authority without responsibility is reckless
• Authority and responsibility are delegated to the
subordinates to enhance performance.
 Authority
• Authority: the line of authority extending from upper
organizational levels to the lowest levels, which clarifies
who reports to whom
• Line authority: authority that entitles a manager to direct
the work of an employee
• Staff authority: positions with some authority that have
been created to support, assist, and advise those holding
line authority (exams office, faculty exams office, student
registration help desks, etc).
 Responsibility

• Responsibility: the obligation or expectation to

perform any assigned duties.
• Duties of employees and employers???

• Unity of command: the management principle that

each person should report to only one manager.
 Authority, Power and
Responsibility
• Authority: the right by which things get done. It is the
right to order or command and is delegated from the
superior to the subordinate to discharge his
responsibilities.
• Power is the capacity or ability to influence the
behavior of other individuals.
• Responsibility is the obligation to perform.
 Nature of Organizations

• There are objectives to achieve

• People
• Communication is key
• It is a continuous process
• It involves a structure of relationships
• It involves a network of authority and responsibility.
 Organization Structure
• An organization structure shows the authority and responsibility
relationship between the various positions of the organization by
showing who reports to whom.
• It is a set of planned relationships between groups of related functions
and between physical factors and personnel required for the
achievement of organizational goal.
• The structure of an organization is generally shown on the organization
chart or a job task pyramid.
 Elements of Organizational Design
• Organizing: management function that involves arranging and
structuring work to accomplish the organization’s goals
• Organizational structure: the formal arrangement of jobs within an
organization
• Organizational chart: the visual representation of an organization’s
structure
• Organizational design: creating or changing an organization’s structure
 Purposes of Organizing
• Divides work to be done into specific jobs and departments.
• Assigns tasks and responsibilities associated with individual jobs.
• Coordinates diverse organizational tasks.
• Clusters jobs into units.
• Establishes relationships among individuals, groups, and departments.
• Establishes formal lines of authority.
• Allocates and deploys organizational resources.
 Work Specialization
•Work specialization: dividing work activities
into separate job tasks
 Departmentalization
• Departmentalization: the basis by which jobs are grouped
together
• Functional departmentation/departmentalization.
• Geographical departmentalization
• Product departmentalization
• Process departmentalization
• Customer departmentalization
 Today’s View on Departmentalization
• Two trends are:
• Cross-functional teams: a work team composed of
individuals from various functional specialties. This has
become more popular as tasks become more complex.
• Customer departmentalization: emphasizes monitoring and
responding to customers’ needs
 Span of Control
• Span of control: the number of employees a manager can efficiently
and effectively manage
Contrasting Spans of Controls
 Centralization and Decentralization
• Centralization: the degree to which decision making is
concentrated at upper levels of the organization
• Decentralization: the degree to which lower-level employees
provide input or actually make decisions
 Exhibit 11.5 Centralization or Decentralization
More Centralization More Decentralization

Environment is stable. Environment is complex, uncertain.

Lower-level managers are not as capable or Lower-level managers are capable and
experienced at making decisions as upper-level experienced at making decisions.
managers.
Lower-level managers do not want a say in Lower-level managers want a voice in
decisions. decisions.
Decisions are relatively minor. Decisions are significant.
Organization is facing a crisis or the risk of Corporate culture is open to allowing managers
company failure. a say in what happens.
Company is large. Company is geographically dispersed.
Effective implementation of company strategies Effective implementation of company strategies
depends on managers retaining say over what depends on managers having involvement and
happens. flexibility to make decisions.
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 Employee Empowerment
• Employee empowerment: giving employees more
authority (power) to make decisions
 Formalization
• Formalization: how standardized an organization’s jobs
are and the extent to which employee behavior is guided
by rules and procedures
 Mechanistic and Organic Structures

• Mechanistic organization: an organizational design that’s

rigid and tightly controlled
• Organic organization: an organizational design that’s
highly adaptive and flexible
Exhibit 11.6 Mechanistic Versus Organic Organizations

Copyright © 2021, 2018, 2016 Pearson Education, Inc. All Rights Reserved
 Strategy and Structure
• An organization’s structure should facilitate goal achievement.
• Because goals are an important part of the organization’s strategies,
it’s only logical that strategy and structure are closely linked.
 Size and Structure

• There’s considerable evidence that an organization’s size

affects its structure, but once an organization grows past a
certain size, size has less influence on structure.
 Technology and Structure
• Unit production: the production of items in units or small
batches (ships, customized vehicles, private jets, etc.).
• Mass production: the production of items in large batches
(automobile industry)
• Process production: the production of items in continuous
processes (hand lotions, beverages, etc.)
 Environmental Uncertainty and Structure

• In stable and simple environments, mechanistic designs can be

more effective.
• The greater the uncertainty, the more an organization needs
the flexibility of an organic design.
 Traditional Organizational Design Options

• Simple structure: an organizational design with little

departmentalization, wide spans of control, centralized authority, and
little formalization
• Functional structure: an organizational design that groups together
similar or related occupational specialties
• Divisional structure: an organizational structure made up of separate,
semiautonomous units or divisions
 Team Structures

• Team structure: an organizational structure in which the entire

organization is made up of work teams
 Matrix and Project Structures
• Matrix structure: an organizational structure that assigns specialists
from different functional departments to work on one or more projects
• Project structure: an organizational structure in which employees
continuously work on projects
 The Virtual Organization
• Virtual organization: an organization that consists of a small
core of full-time employees and outside specialists temporarily
hired as needed to work on projects
• Sometimes called “Network” or “Modular” organization
 Telecommuting

• Telecommuting: a work arrangement in which

employees work at home and are linked to the
workplace by computer
 Compressed Workweeks, Flextime, and Job
Sharing

• Compressed workweek: a workweek where employees work longer

hours per day but fewer days per week
• Flextime (or flexible work hours): a scheduling system in which
employees are required to work a specific number of hours a week but
are free to vary those hours within certain limits
• Job sharing: the practice of having two or more people split a full-time
job
 The Contingent Workforce

• Contingent workers: temporary, freelance, or contract

workers whose employment is contingent on demand for
their services
 MBO
• It is a process whereby the superior and subordinate
managers of an organization jointly identify its common
goals, define each individual’s major areas of responsibility in
terms of results expected of him, and use these measures as
guides for operating the unit and assessing the contribution
of each of its members.