TOPIC 4

ORGANIZING

DEFINITION

• Organizing means to structure /

arrange the relationship between

people, the work to be done, & the

facilities so that goals are achieved.

• Organizational structure • Is the basic framework within which the

manager & his subordinates operate.

• The organization enables similar activities to

be grouped & assigned to appropriate

specialist workers to achieve the objectives of

the organization

• Division of work/labor• Work has to be divided among the members

& different jobs related to each other.

• It is easy to assign task to individuals based

upon the talents, interests & position.

ORGANIZATION CHART

• 5 Major aspects of an organization’s structure illustrated by the organization chart :– The division of work– Managers & subordinates (who is whose

boss)– The type of work being performed (nature

of work)– The grouping of work segments– The level of management

SPAN OF MANAGEMENT

• Span of management refers to the number of

subordinates who report directly to a given

manager of supervision.

• In any organization, they can structure their

organization according to :

• A flat organization (WIDE SPAN OF MANAGEMENT)

• A steep organization (NARROW SPAN OF

MANAGEMENT)

FLAT ORGANIZATION

STEEP ORGANIZATION

DEPARTMENTALIZATION

• Departmentalization is the process of grouping into separate units’ activities / tasks that are intended.

• The organization can be departmentalization as follows

• By function• By product• By geography• By customer• By matrix

BY FUNCTION

BY PRODUCT

BY GEOGRAPHY

BY CUSTOMER

BY MATRIX

AUTHORITY

• The right to make decisions with respect to

work assignments & to require subordinates

to perform assigned tasks in accordance

with the decision made.

• Types of authority :

• Line authority• Staff authority

• Delegation – A concept describing the passing of

formal authority to another person – may become necessary when managers are absent from their jobs.

• Centralization– Practice of having responsibility &

authority concentrated in one place, so that major decisions are made by the central controlling body.

• Decentralization– Delegating authority to subordinates for

many decisions while maintaining control over certain essential matters.