ORGANIZIN

G
 WHAT IS THE
DIFFERENCE
BETWEEN
ORGANIZING AND
ORGANIZATION?
THREE MAIN LINE ORGANIZATION
TYPES OF In this type of organization, authority flows
from top to bottom and responsibility flows
ORGANIZATIO from bottom to top.

N
STRUCTURE
 FUNCTIONAL
THREE MAIN ORGANIZATION
The main feature of functional
TYPES OF organization is the division of work and
specialization. In each department, there
ORGANIZATIO is one expert. An expert is not only a
counselor but also an administrator.
N
STRUCTURE
 LINE AND STAFF
ORGANIZATION
THREE MAIN Is that in which the line heads are
TYPES OF assisted by specialist staff. In each
department, there is one expert and some
ORGANIZATIO line personnels / line officials. Line
official will do all managerial work and
N expert will give advice to line official or
line personnel.
STRUCTURE
 LINE ORGANIZATION
UNDUE
SIMPLICITY
RELIANCE
ADVANTAGES
AND STRONG IN
DISCIPINE
PERSONAL
LIMITATIONS
DISADVANTAGES
UNITY OF OVERLOAD OF
COMMAND WORK
 FUNCTIONAL
ORGANIZATION
SEPERATION
CONFUSION
ADVANTAGES OF WORK

AND EASE OF
SHIFTING OF
SELECTION
DISADVANTAGES AND TRAINING RESPONSIBILITY

INCREASE OF
COST
 LINE AND STAFF
ORGANIZATION
PLANNED CHANCES OF MIS-
SPECIALIZATION INTERPRETATION
ADVANTAGES
AND AVAILABILITY OF
SPECIALIZED EXPENSIVE
DISADVANTAGE KNOWLEDGE
S ADAPTABILITY LOSS OF INITIATIVE
TO PROGRESSIVE BY LINE
BUSINESS EXECUTIVES
 • Establishing enterprise objectives.

• Formulating supporting objectives,

THE policies, and plans.

LOGIC • Identifying, analyzing, and classifying

the activities necessary to accomplish
OF these objectives.
ORGANIZING
 • Grouping these activities in light of the
human and material resources.

• Delegating to the head of each group the

THE authority necessary to perform the activities.

LOGIC • Tying the groups together horizontally and

vertically, though authority relationships
OF and information flows.

ORGANIZING
CONSIDERATIONS IN STRUCTURING

1. Division of labor
2. Delegation of authority
3. Departmentation
4. Span of control
5. Coordination
FORMAL
ORGANIZATIO
NFormal Organization means the intentional structure of roles in
formally organized enterprise.

A formal organization must be flexible.

Individual effort in group situation must be channeled
toward group and organizational goals.
THE FORMAL STRUCTURE IS
DESCRIBED BY
MANAGEMENT THROUGH:
1. Organization chart
2. Organizational manual
3. Policy manuals
 INFORMAL
ORGANIZATION
• It is a network of interpersonal relationships.
• It is any joint personal activity without
conscious joint purpose.
• A relationships that do not appear on the
organization chart.
 ORGANIZATION
STRUCTURE
A system that outlines how certain
activities are directed in order to
achieve the goals of an organization.
 1. DEPARTMENTATION by
enterprise function
-It is the grouping of activities according to the functions of
the enterprise, such as production, selling, and financing.

ORGANIZATIO
N STRUCTURE
2. DEPARTMENTATION by
Territory or geography
-It is the grouping of activities by area or territory that
is common in enterprises operating over wide
geographic areas.
 3. DEPARTMENTATION by
Customer Group
-It is the grouping of activities that reflects a primary
interest in customer.

ORGANIZATIO
N STRUCTURE
4. DEPARTMENTATION
by Product
-It is the grouping of activities according to products or
product line, especially in multiline, large enterprises.
 5. Matrix Organization
ORGANIZATIO -It is the combining of functional and project or
product patterns of departmentation in the same
N STRUCTURE organization structure.
POWER & 1.Line authority

AUTHORIT
–a manager’s right to tell subordinates what to do
and then see that they do it.

Y
2.Staff authority
Power
–staff specialist’s right to give advice to a superior.
Refers to the ability or potential for an
3.Functional authority
individual to influence others and
control their behavior. –specialist’s right to oversee lower level personnel
involved in that specialty, regardless of where
thepersonnel are in the organization.
Authority
Authority refers to the legal and formal
right to give commands and make
decisions.
 1. Legitimate power
-It normally arises from and derives from our cultural
system of rights, obligations, and dutieswhereby a

BASES
“position” is accepted by people as being “legitimate”.
2. Expertness of a person or a group
This is the power of knowledge. Physicians, lawyers, and
university professors may have considerable influence on
others because they are respected for their specialized
OF knowledge.
3. Referent Power
It is an influence that people or groups may exercise
because people believe in them and their ideas.

POWER
 3. Referent Power
It is an influence that people or groups
may exercise because people believe in
them and their ideas.
BASES 4. Reward Power
- It refers to the ability that arises from the
ability of some people to grant rewards.
5. Coercive Power
OF - It is the power to punish, whether by firing a
subordinate or by withholding a merit pay
increase.

POWER
THANK YOU!