Organising
Prof. Ramesh Mittal
What is organizing?
► Arranging and structuring work to
accomplish organizational goals
Purpose 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
Organizational Structure
► Itis a formal arrangement of jobs within
organization
► We can illustrate the organizational
structure by using “organizational chart”
► When managers create or change the
structure, they’re engaged in
“organizational design”
Common Elements of
Organization
► Common Purpose
► Coordinated Effort
Proposed by Edgar Schien,
► Division of Labor professor in organizational
development
► Hierarchy of Authority
► Span of Control
► Authority, Responsibility, & Delegation Most
authorities
► Centralization v.s. Decentralization of agree on
Authority
Common Purpose
► The means for unifying members
► The common purpose unifies employees or
members and give everyone an
understanding of organization’s reason for
being
► An organization without purpose soon begin
to drift and become disorganized
Coordinated Effort
► Working together for common purpose
► The common purpose is realized through
coordinated effort, the coordination of
individual efforts into a group or
organization-wide effort
► Individuals
can make a difference, however,
they cannot do everything by themselves
Division of Labor
► Work specialization for greater efficiency
► Division of labor is the arrangement of
having discrete parts of a task done by
different people
► With division of labor, an organization can
parcel out the entire complex work effort to
be performed by specialists, resulting in
greater efficiency
Assignment (three groups)
► Find 2 articles, from reliable sources, related
to:
▪ Effective management
▪ Ineffective management
► Analyzethose articles in your own word by
group in five slides only
► Due date: next Tuesday(24/3/26)
Organizing Process
Organizational
Authority
Job Design Structure Coordination
Allocation
Design
Chain of
command
Span of
control
Delegation
Centralized or
Decentralized
Job Design
► The number, kind, and variety of tasks that
individual workers perform in doing their
jobs.
▪ Job Specialization: a job composed of a small
part of a larger task or process
Alternatives to Job Design
▪ Job Rotation: periodically moving workers from
specialized job to another to give them more variety
and opportunity to use different skills
▪ Job Enlargement: increasing the number of tasks that
a worker performs within one particular job
▪ Job Enrichment: increasing the number of tasks in a
particular job and giving workers the authority and
control to make meaningful decisions about their
work
Organizing Process
Organizational
Authority
Job Design Structure Coordination
Allocation
Design
Chain of
command
Span of
control
Delegation
Centralized or
Decentralized
8 Types of Organizational
Arrangement
► Simple Structure
► Functional Structure
► Divisional Structure
► Conglomerate Structure
► Hybrid Structure
► Matrix Structure
► Team-Based Structure
► Network Structure
1. Simple Structure
► For a small firm
► An organization with a simple structure has
authority centralized in a single person, a
flat person, a flat hierarchy, few rules, and
low work specialization
Owner
Simple structure: an example
Administrative
Assistant There is only one hierarchical
level of management beneath
the owner
2. Functional Structure
► Grouping by similar work specialty
► In a functional structure, people with similar
occupational specialties are put together in
formal groups President Structure for a
Business
Vice President,
Vice President, Vice President, Vice President,
Human
Marketing Finance Production
Resources
Chief Structure for a
Administrator hospital
Chief of Director of Director of Director of
Medical Admistrative Outpatient Nutrition &
Services Services Services Food Services
3. Divisional Structure
► Grouping by similarity of purpose
► In a divisional structure, people with diverse
occupational specialties are put together in
formal groups by similar products or
services, customers or clients, or geographic
regions
Divisional Structure
Product
President divisional
structure
Motion
Internet
Pictures & Magazine
Music Division Product
Television Division
Division
Division
Customer
President
divisional
structure
Consumer Mortgage Agricultural
Business Loans
Loans Loans Loans
Geographic
President
divisional
structure
Western Northern Southern
Eastern Region
Region Region Region
4. Conglomerate Structure
► Grouping by industry
► The conglomerate structure groups divisions
or business units around similar businesses
or industries
This resemble the
structure of TATA, a
global company
President
Plastics & Engineered
Electronics Fire & Security Healthcare Products &
Adhesives
Services
5. Hybrid Structure
► Functional & divisional used within the same
organization
► In a hybrid structure, an organization uses
functional and divisional structures in
different parts of the same organization
Hybrid Structure General [Link]
CEO
General
Product Motors
divisional
structure President, President, President, President,
Cadilac Buick Pontiac Chevrolet
Vice President, Vice President, Vice President, Vice President,
Production Marketing Finance Human
Resources
Functional
Manager, Manager, Manager, Manager, structure
Region I Region II Region III Region IV
Geographical
divisional
structure
6. Matrix Structure
►A grid of functional & divisional for 2 chains
of command
► In a matrix structure, an organization
combines functional and divisional chains of
commands in a grid so that there are 2
command structures—vertical and horizontal
Matrix Structure
Ford Motor Company [Link]
President Functional
An example of an arrangement Structure
that Ford might use
Vice President, Vice President, Vice President, Vice President,
Project Engineering Finance Production Marketing
Structure
Project
Manager,
Taurus
Project
Manager,
Mustang
Project
Manager,
Explorer
Project
Manager,
Expedition
Subordinate reports to both VP of Marketing (above) and Project Manager for Expedition
7. Team-Based Structure
► Eliminatingfunctional barriers to solve problems
► In a team-based structure, teams or workgroups,
either temporary or permanent, are used to
improve horizontal relations and solve problems
throughout the organization
► When managers from different functional divisions
are brought together in teams —known as cross
functional teams—to solve particular problems,
the barriers between the divisions break down.
Team-based structure
President
Functional
structure
Vice President, Vice President, Vice President, Vice President,
R&D Design Engineering Marketing
Product Team Product Team Product Team
Project Manager, Manager, Manager,
teams Manufacturing, Manufacturing, Manufacturing,
Light Trucks Sedans Sport Cars
Project team
members
8. Network Structure
► Connecting a central core to outside firms
by computer connections
► The network structure is the organization
has a central core that is linked to outside
independent firms by computer connections,
which are used to operate as if all were a
single organization
► Corporations using this structure are
sometimes called virtual corporations
Network structure
Example of a personal computer company
Component
Design studio:
assembly:
Sweden
Mexico, Asia
Core of
personal
computer
company
Engineering USA Distribution
company: company:
Japan Canada
Accounting &
finance: USA
Organizing Process
Organizational
Authority
Job Design Structure Coordination
Allocation
Design
Chain of
command
Span of
control
Delegation
Centralized or
Decentralized
• Hierarchy of Authority
► Or the Chain of Command
► It is a control mechanism for making sure
the right people do the right things at the
right time
► Without tiers or ranks of authority, a lone
manager would have to confer with
everyone in his/her domain, making it
difficult to get things done
Example
• Span of Control:
Narrow (or Tall) v.s. Wide (or Flat)
► orspan of management, refers to the number of
people reporting directly to a given manager
► There are 2 kinds of spans of control:
▪ Narrow (or tall): manager has limited number of
people reporting — more managers are required,
managers can communicate quickly to subordinates and
control them easily
▪ Wide (or flat): manager has several people reporting—
less managers are required = more efficient in terms of
cost, the message reaches more employees faster,
faster decision making
• Authority, Responsibility, &
Delegation: Line vs. Staff Position
► Authority refers to the rights inherent in a
managerial position to make decisions, give
orders, and utilize resources
► Authority means accountability—managers
must report and justify work results to the
managers above them
► Beingaccountable means you have the
responsibility for performing assigned tasks
Authority, Responsibility, &
Delegation: Line vs. Staff Position
► Responsibility is the obligation you have to
perform the tasks assigned to you
► Example: a car assembly-line worker has
little authority but also little responsibility:
just install those windshields over and over.
Manager, however, has greater
responsibilities
► With more authority comes more
responsibility
Authority, Responsibility, &
Delegation: Line vs. Staff Position
► Delegation
is the process of assigning
managerial authority and responsibility to
managers and employees lower in the
hierarchy
► Tobe more efficient, most managers are
expected to delegate as much of their work
as possible
Delegation: Responsibility,
Authority, and Accountability
Authority, Responsibility, &
Delegation: Line vs. Staff Position
► Regarding authority and responsibility, the
organization chart distinguishes between 2
positions:
▪ Line position: Line managers have authority
to make decisions and usually have people
reporting to them (are indicated by solid line)
▪ Staff position: Staff personnel have authority
function; they provide advice,
recommendations, and research to the
line managers (are indicated by dotted line)
Line and Staff
Board of
Staff Directors
Line
Strategic
Planning CEO Legal Counsel
Advisor
Cost-
President Containment
Staff
Executive Executive
Administrative Medical
Director Director
• Centralization vs.
Decentralization of Authority
► With centralized authority, important decisions Kmart [Link]
are made by high-level managers
► Very small companies tend to be the most
centralized, however, Kmart and McDonald are McDonald's Corporate [Link]
using this kind of authority
► Advantages:
▪ Less duplication of work (fewer employees perform the
same task; rather, the task is often performed by a
department of specialists)
▪ Procedures are uniform and thus easier to control
Centralization vs. Decentralization
of Authority
► With decentralized authority, important
decisions are made by middle-level and General [Link]
supervisory-level managers
► Here, obviously, power has been delegated
throughout the organization. General Motors and
Sears are using this kind of authority [Link]
► Advantages:
▪ Managers are encouraged to solve their own problems
rather than to buck the decision to a higher level
▪ Decision are made more quickly, which increases the
organization’s flexibility and efficiency
Organizing Process
Organizational
Authority
Job Design Structure Coordination
Allocation
Design
Chain of
command
Span of
control
Delegation
Centralized or
Decentralized
Coordination
Important Elements:
► Coordinator
► Roles & Responsibility
► Rules & Regulations
THANK YOU