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CHAPTER 4ORGANIZING
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LEARNING OBJECTIVE
When you have finished
studying this chapter, you
should be able to:
Explain why organizing is an
important managerial function,describe the process of organizing,and outline the primary stages ofthe process.
Define delegation and discuss whyit is important for managers todelegate.
Discuss the four types oforganizational structure and thestrategic conditions under whicheach might be appropriate.
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DEFINITION
OrganizingProcess of arranging people and other resources to
work together to accomplish a goal.
The process of determining:
The tasks to be done.
Who will do them.
How those tasks will be managed and
coordinated.
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ORGANIZINGPROCESS
Detailing of works
Division of works
Departmetalization
Monitoring and
reorganizing
Coordination of works
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The Process of Organizing
ORGANIZINGPROCESS
Detailing of works Various task of the organization must firstbe determined. e.g. a new restaurant must detailed the number
of person involved , types of cooking equipment and task
involved
Division of work- Dividing total workload into activities beperformed by group or individual. The tasks have to be allocated
based on capabilities and fair work load
Departmentalization Once the org. grows, grouped them withemployees which tasks are related.
Coordination of works : Harmonize the individual goals tocontribute to org goals.
Monitoring and reorganizing works- to measure in termof effectiveness and efficiency structure of the
organization.
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ORGANIZATIONAL STRUCTURE
The working relationships that exist within anorganization affect how its activities are accomplishedand coordinated.
These relationships are defined by:
Span of control
Chain of command
Line and staff responsibilities
Authority, responsibility and accountability
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1. Span of control
The number of employees reporting to a particular manager
Narrow span of management (tall) - In theory, when tasks
are very complex, span of control should be relatively narrow.(2-4 people)
Wide span of management (Lean/flat) - In contrast, wherejobs are highly standardized and routine (low complexity), a
manager will not need to spend as much time supporting
individual subordinates, and the span of control may be larger.(above 5 people)
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2. Chain of command
The line of authority and responsibility that flows throughout theorganization.
Unity of command = an employee in the organization isaccountable to one and only one supervisor
Multiple command = each employees is reporting to morethan one boss
Scalar relationship=relationship between each organizationmember in the chain of command.
3.Work specialization : The work will be separated into manysteps and every work has been done by a separate individualspecialist enable the work to be completed quickly
4.Formalization = The organization has a procedure to dojobs there needs to be some sort of formalization in the workprocess
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CENTRALIZATION
Definition: the process oftransferring andassigning decision making authority to higherlevel of an organizational hierarchy
The decision making has been moved to higherlevels or tiers of the organization such as head
office or corporate center
The span of control of top managers is relatively
broad and there are relatively many tiers in the
organization.
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DECENTRALIZATION
Def : the process oftransferring and signingdecision making authority to lower level ortiers of the organization such as division, branches,
department or subsidiaries.
Knowledge , information and ideas are flowing from
the bottom to the top of the organization
The span of control of top managers is relativelysmall. There are relatively few tiers in the
organization because the is more autonomy in thelower ranks
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Line and staff responsibilities
Line department = an organizational unit that is directlyinvolved in delivering the products and services of theorganization
Staff department = an organizational unit that is notdirectly involved in delivering the products and services
of the organization but provides support for linepersonnel.
Authority, responsibility and accountability
Authority = the formal right inherent in an organizationalposition to make decision
Responsibility = the obligation to perform the dutiesassigned
Accountability = being held answerable for result, toaccept credit or blame in carried out the assignment.
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DELEGATION
Delegation = the process oftransferring theauthority for a specific activity or task to anothermember of the organization and empowering theindividual to accomplish the task effectively
Empowerment - power to make decision withoutasking their superior permission
Signs of deleting too little
- Taking work home
- performing employee tasks
- feeling stress and pressure
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DELEGATION
Reasons for delegation
- Managers burden partly release
- Manager may receive more responsibilities
- Help develop the skills and managerial abilities
Barriers for delegation process
- Some manager unable to plan work in advance
- Some manager worry their staff do too well
- Managers may not trust the staff abilities
Overcoming barriers for delegation process- Manager must give real freedom to staff while doing task
- Allow them use their creativity ingenuity
- Provide appropriate training.
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2007Thoms
on/South-
Western
.Allrights
reserved.
717
LEARNINGTO DELEGATE EFFECTIVELY
1. Match the employee to the task.
2. Be organized and communicate clearly.
3. Transfer authority and accountability with the
task.4. Choose the level of delegation carefully.
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DEPARTMENTALIZATION
Organizational structure defines the primaryreporting relationships that exist within anorganization.
Common Forms of Organizational Structure Functional structure
Divisional structure
Matrix structure
Network structure
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FUNCTIONAL STRUCTURE
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DIVISIONAL STRUCTURE
Product Divisions
For organizations with relatively diverse product lines
that require specialized efforts to achieve high product
quality.
Geographic Divisions
For organizations with limited product lines that either
have wide geographic coverage or desire to grow
through geographic expansion.
Customer Divisions
For organizations that have separate customer groups
with very specific and distinct needs.
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PRODUCT DIVISIONAL STRUCTURE
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GEOGRAPHIC DIVISIONAL STRUCTURE
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CUSTOMER DIVISIONAL STRUCTURE
CEO
COUNTERCREDITCARD
REALESTATE
MORGAGE
LOAN
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2007Thoms
on/South-
Western
.Allrights
reserved.
MATRIX STRUCTURE: A DUAL FOCUS
Multiple command system
Some employees actually report to TWO or more
supervisors simultaneously.
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MATRIX STRUCTURE
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2007Thoms
on/South-
Western
.Allrights
reserved.
NETWORK STRUCTURES: FLEXIBILITY
Using outsiders
Organization may be viewed as
Central core or Central Hub
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NETWORK STRUCTURE
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COORDINATION Process ofintegrating the objective and activities of the separate
units, so organization goal can be achieved efficiently.
The main reason for coordination is interdependent
Importance of coordination :- It would ease the tasks that require communication between units.
It is beneficial for work that is non routine and unpredictable, workin which factors in the environment are changing and for work in
which interdependence is high.
It can assist organization that set high performance objectives toachieved those objectives.
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COORDINATION
Three major form of interdependence;
1. Pooled interdependence
2. Sequential interdependence
3. Reciprocal interdependence
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EXERCISE
Discuss the differences between narrow span and
wide span of management control. (10 marks)
State the difference between centralization anddecentralization. (6 marks)
Explain the organizing process. (14 marks)
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THE ENDTHANK YOU FOR LISTENING!!!
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