Chapter 2: The Organizing Process
Overview
An administrative office manager spends a considerable portion of his/her time with the
organizing function. The extent to which the organizing function is performing effectively is a
significant determinant of whether organizations maximize the efficient use of their resources.
This chapter covers these topics:
Organizational principles
Organizational structures
Centralization versus decentralization
Organization chart
Informal organization
Chapter Aim
After studying this chapter, you should be able to develop an appropriate philosophy regarding
the organizing function of administrative office management.
Slide 1
Introduction
Slide 2
Organizing function is helpful by
1. Assuring more efficient use of the organization's resources.
2. Improving employee understanding of job duties and responsibilities.
3. Improving employee morale.
4. Providing a sense of direction for each of the organization's functional areas.
Slide 3
Organization's objectives
Should be written in context of outcomes, understood and accepted by employees,
be measurable, contain a time reference, and be challenging but attainable.
Slide 4
Span of control
Refers to the number of subordinates an individual is able to supervise.
Slide 5
Interrelated functions
Organization's functions have become so interrelated that when a problem arises in one
functional area, other related functions are also likely to be affected.
Slide 6
Chain of command
Identifies who reports to whom within an organization.
Slide 7
Unity of command
States that each employee should be directly responsible to one supervisor.
Slide 8
Authority and responsibility
States that individuals who are given the responsibility to undertake a task must also be
given an appropriate amount of authority to ensure task completion.
Slide 9
Work assignment
States that each employee's work assignments should be based on his/her special
strengths and talents.
Slide 10
Employee empowerment
States that empowered employees are encouraged to participate as much as possible in
making decisions that affect all aspects of their job tasks.
Slide 11
Organizational structures
Line
Line and Staff
Functional
Product
Committee
Matrix
Slide 12
Line structure
Is the oldest and simplest of structures.
Has direct authority flowing vertically from the top.
Is generally found in small organizations because support staff is needed once they begin
to grow.
Slide 13
Advantages
Employees are fully aware of the boundaries of their jobs.
Decision making is expedited.
Is a simple structure to understand.
Employees can be held directly accountable when they fail to perform as
expected.
Slide 14
Disadvantages
Fails to provide specialization needed when organization begins to grow.
Line managers need to begin to perform specialized activities.
Slide 15
Line and staff structure
Has line authority similar to line structure.
Specialized staff activities are added that support line activities.
Staff employees assist the line function.
Slide 16
Difference between line and staff employees:
Line employees are directly concerned with the organization's primary objectives.
Staff employees support the line employees.
Slide 17
Advantages
1. Line employees have time to focus on those activities directly related to the
organization's primary objectives.
2. Staff employees can lend their specialized support.
3. Flexibility of staff units facilitates undertaking new projects.
Slide 18
Disadvantages
1. Line and staff employees sometimes are in conflict with one another.
2. Line employees sometimes suppress the talents of staff employees.
Slide 19
Functional structure
Tends to parallel the departments in many organizations.
Line managers have both line and functional authority.
Slide 20
Line managers can take disciplinary action against those for whom they have line
authority.
Line managers cannot take disciplinary action against those for whom they have
functional authority.
Slide 21
Advantages
1. It provides expertise by functional specialists.
2. It prevents employees from slighting certain specialized areas in the organization.
Slide 22
Disadvantages
1. Some employees may appear to have two or more supervisors.
2. Some managers evade those areas for which they have functional authority.
Slide 23
Product structure
Company's products provide the basis for its structure.
Each major product is given division status.
Incorporates line and staff structure into these divisions.
Each product tends to operate independently of other divisions.
Slide 24
Advantages
1. Enables divisions to develop processes that best meet their needs.
2. Divisions can coordinate their own activities without constraint from main unit.
Slide 25
Disadvantages
1. Divisions can "go their own way" to the extent that they don't work toward
common goals.
2. Problems of some divisions may eventually be felt throughout the entire
organization.
Slide 26
Committee structure
Is often used in conjunction with line, line and staff, and functional structures.
Some committees perform important managerial functions; others are advisory.
Slide 27
Advantages
1. Recommendations are often widely accepted.
2. Widely varying views of committee members broaden the nature of their
recommendations.
3. Its use reduces the risk of making an incorrect decision.
Slide 28
Disadvantage:
1. It sometimes takes a long time to function properly.
Slide 29
Matrix structure
Is often used by organizations undertaking complex projects.
Results in the formation of temporary new units to accommodate the undertaking of a
new project.
Involves temporarily borrowing employees from other areas of the organization and
assigning them to the new temporary unit.
Slide 30
Advantages
1. Allows companies to assign employees on the basis of their expertise.
2. Helps companies avoid having to hire new employees for a project.
3. Enables companies to adapt quickly to new situations.
Slide 31
Disadvantages
Employees often have two supervisors.
Employees may experience job-related pressures.
Managers may have difficulties coordinating employee activities.
Slide 32
Centralization vs. decentralization
Centralization places related activities under jurisdiction of one individual.
Decentralization places related activities under jurisdiction of several individuals
throughout the organization.
Slide 33
Factors that determine feasibility of centralization:
1. Nature of the organization.
2. Size of the organization.
3. Diversification of the organization.
4. Conformity to standardized processes.
5. Quality of personnel.
6. Distribution of operations.
7. Attitude of personnel.
Slide 34
Organization chart
Depicts formal relationships between various individuals and the organizational structure.
Identifies lines of authority.
Gives employees a better understanding of the formal structure of the organization.
Helps identify areas of overlapping responsibility that should be eliminated.
Identifies promotional opportunities for job applicants and new employees.
Identifies areas suitable for training and orientation.
Slide 35
Guidelines for preparing organization charts
1. Place individuals/departments in relation to their hierarchical level.
2. Identify vertical and horizontal authority by solid lines.
3. Identify functional authority by dotted lines.
4. Use complete titles on the chart.
5. Include on the chart the name of organization and the date the chart was prepared.
Slide 36
Informal organization
Refers to the spontaneous personal and social relationships that exist within
organizations.
Two common elements of information organization:
Informal groups
Informal communication patterns