MANAGEMENT
Assoc. Prof. Trịnh Thùy Anh
KHOA QUẢN TRỊ KINH DOANH
Chapter 5. ORGANIZING
2
KHOA QUẢN TRỊ KINH DOANH
Chapter 5. ORGANIZING
1. Organizing 2.
and work Organizational
organization structure
3. Human
resource
management
3
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1. Organizing
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Concept of organizing
• Work organization
what? • Organizational structure
• Start up
when? • Re-structuring of the company
Divide,
how?
coordination of
work flow
2. Work organization
Establish authority
Divide & system
coordinate to
implement the Increase efficiency
work and work quality
Increase
communication in
the organization
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Work charasteristics and its affect to performance
Complexity of work
Diversification of
skills
Important role of Psychology Performance
work
Self-control
Responsiveness
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Basic issue in organizing
Work Authority and
specialization Span of control responsibility
Centralization
Chain of vs. Delegation of
command authority
decentralization
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Basic issue in organizing
Specialization of work
W1
W 1.1 W 1.2 W 1.3
W 1.1.1 W 1.1.2 W 1.1.3 W 1.2.1 W 1.2.2 W 1.2.3 W 1.3.1 W 1.3.2
W [Link] W [Link]
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Basic issue in organizing
Span of control (supervision)
Wide span of control Narrow span of control
Save cost of managerial works
Reduce levels of management Strickly control
Over-load of top-up manager cause trouser Smoothly information flow between top-up &
of dicision making bottom-down level
Top-up manager loose the control Cost much due to number of managerial levels
Long distance between the top and first-line
managers
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Span of control = 4 Span of control = 8
Factors influencing span of
control:
- Managerial abilities
- Competence of
subordinates
- Nature of work
- Delegation of authority
- Degree of
decentralization
Number of managers Number of managers (1-4)
(1-6) 4 585
Span of control = 4 Span of control = 8
Number of staffs = 4096 Number of staffs = 4096
Number of managers = 1365 Number of managers = 585
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Basic issue in organizing
Authority and responsibility
• Direct to others to follow • Responsible for
• Depend on position of the
manager, not the individual implementation
• Align with authority
ü Formal authority of position
ü Subordinate accept authority of the boss
ü Manager has ability and trait that create
trust from the subordinates
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Basic issue in organizing
Chain of command
Ability to
Oppression Authority
award
Professional
Relationships
skills
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Basic issue in organizing
Centralization & decentralization
Centralization Decentralization
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Basic issue in organizing
Delegation of authority
• Top manager • Output ><
• Midle manager initial objective
• First-line • Difficult to
manager control
Advantage Disavantage
Define the Delegation
Assign task Controlling
result of authority
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Principal of organizing
Unity of Efficiency Flexibility
command
Objective
Balance
alignment
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2. Organizational structure
1. Organizational structure
Tasks, work flows, reported
What? relationships, communication channel
Assign tasks for Coordinate
How?
division among division
Formal Un-formal
structure structure
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Organizational structure
Line structure
Functional structure
Hybrid structure
Matrix structure
Cấu trúc nhóm sản phẩm
Cấu trúc theo bộ phận
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Line/vertical/hierarchy structure
Director
Technical Sale Vice
Vice Director
Director
Unit 1 Unit 2 Shop 1 Shop 2
Team Team Team Team
1 Team 2 Team 3 4 5 6 … … … …
Fast decision Apply for small enterprise, unchanged High risk, accident toward
making, simple, environment director, low cooperation
flexible, less cost, Authority along line, manager has between divisions
responsibility for many function, they
are independent
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Functional/horizon structure
Specialization of Mass production Poor cooperation between division,
division, more Subordinate receive tasks split among divisions, difficult for
efficiency of resource from leader (CEO) and training good manager with vision
usage functional managers
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Hybrid structure (line – functional combination structure)
Conflict between line
Create advantage for Apply for larger and functional
cooperation between company, less organization, low
divisions changed environment response
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Divisional structure
Product Market Geography
divisional divisional divisional
structure structure structure
Large size, diversified product and market
High performance
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Product divisional structure
CEO
Director
of division
Product Product Product
director A director B director C
A1 A2 B1 B2 C1 C2
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Customer divisional structure
CEO
Director of
division
Director of Director of
Individual business SME director
customer customer
A1 A2 B1 B2 C1 C2
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Geography divisional structure
CEO
Director of
division
North Middle South
region region region
director director director
A1 A2 B1 B2 C1 C2
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Matrix structure
Large size, diversified environment CEO
Costly, employee has to report to 2
bosses Giám đốc
bộ phận
Marketing Tài chính Thiết kế R&D Sản xuất
Nhóm sản
phẩm A
Nhóm sản
phẩm B
Nhóm sản
phẩm C
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Organizational
chart of
McDonald’s
Corporation
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Viacom’s 2001
Product
Structure
Project structure
Flat structure
Advantage:
IT • Simple
outsourcing • Efficiency (reduce cost due to
management cost reduction)
• Good quality
Disadvantage:
• Difficult to manage, cooperate
IT company • Loose of control
Accountin Design
g company company
Virtual structure – non border
• Mobility immediately
• Voluntary
• Non-principle
Consulting, training, IT, multi-level Social networking
sale
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Process of designing organizational structure
Objective of Required activities Work specialization
company? • Production? Technology? • Employee competency?
• How to mobilize the human Marketing? Management? Supervisor?
resource?
Set up the Propose
organizational organizational
structure structure
• Authority, responsibility?
Implementation process?
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4. Effects influencing organizational structure
a n
u m ce
Env H our
iro
nm res
ent
Te
gy c hn
ate olo
St r gy
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3. Human resource management
Attraction Development Retention
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Qualified HR attraction
HR planning
Employee recruitment
Qualified HR attraction
Job description
Job
analysis Work
HR planning standardization
Preparation of Job Screening Shortlisting
recruitment announcem applications candidates
Employee ent for test
recruitment Final job Pre- Conditi Inter Written or
offer employ onal view job related
ment offer test
process
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Qualified HR development
Employee Trainning, educating: Evaluating: Opportunity:
orientation -Short course, long term - Evaluating - Empowering
/integrate training, on-house - Reward - Motivating
training - Relationships
-Coaching
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Qualified HR development
Employee
orientation Training : Opportunities:
• Onsite training, • Experience
short term training, • Challenges of
Training & long term training new job
educating • Coaching
Characteristics of Performance
employee:
• Knowledge, experience,
Employee competency
evaluation • Personalities, attitude,
behavior
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Employee retention
• Employee compensation: salary, wages,
incentives, commisions
• Assessment, feedback
• Performance & recognition
• Development & career opportunities
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Qualified HR retention
Salary paid Benefit
Compensation for increase
performance ment
Work-life Benefits
Total reward
Recognition Opportunities
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Focus points
1. What the manager should do to organizing a
work?
2. How to design an organizational structure?
3. Which organizational structure is the best
choice for changed environment today?
4. What difficulties the manager meet today
for HRM?