ORGANIZING CONCEPTS
Chapters 12,13,14,15,16,17, &18
CHAPTER 12
Organizing is based on two principles:
Authority
Span of management/span of control/
span of supervision
Authority
It is the key to the managerial job
It is the lifeblood of the managerial position
It gives legitimate power to the manager or
supervisor to give directives to
subordinates
It is limited in scope by both internal and
external factors
Types of Authority
Positional
Functional
Personal
Span of Management
It is also called span of control and span of
supervision
It is the number of subordinates that a manager
directs and supervises
The number of subordinates varies
The smaller or narrower the span, the more
levels of management will be required
Some managers are able to supervise more
subordinates than are others
Factors Determining the Span of
Supervision
Competence of the supervisor
Competence and makeup of the subordinates
Amount and availability of help from staff specialists
Nature and importance of the activities performed
The dynamics and complexity of the activity to be
performed
The degree to which a comprehensive set of standards
and procedures are available to guide subordinates
Availability of self-directed teams
CHAPTER 13
Division of Work:
Tasks are broken down and divided into
smaller parts
It is the process by which tasks and
responsibilities are allocated
It is essential for greater efficiency and
higher productivity
Departmentalization
The process of grouping the activities of an
organization into units
The units are grouped by the following methods:
- Functions
- Process and equipment
- Territory or location
- Customer
- Time
- Product
Mixed Departmentalization
Uses multiple methods of
departmentalization to meet the desired
outcome
Matrix organization
It is an organizational design that combines both
functional and product departmentalization
Several projects can be conducted simultaneously
Employees have two bosses
It violates the unity of command concept
Creates a number of problems such as conflicting
directives from two bosses, roles may not be clearly
defined, power struggle between the two bosses, and
subordinates may be confused regarding to whom they
should report
CHAPTER 14
Delegation of authority:
It makes the organization operative
It gives life to the organization
An organization can only exist if authority has been delegated
Top management must create the mood by preaching and practicing broad
delegation of authority
It is distributed throughout an organization, starts at the top and flows
downward throughout the various levels of management
It follows the principles of chain of command or scalar chain and unity of
command
Frees the time of managers
Increases morale, interest, and enthusiasm for work
Provides a training ground and helps identify up coming leaders
Authority hoarders must be discouraged
Supervisors who carefully delegate authority does not lose status or free
them from their responsibilities
Three steps of the process of
delegation
Assignment of duties and defining the
results expected
Granting of permission (authority)
Creation of an obligation (responsibility)
In order to make delegation of authority a
success, those three steps must blend
together
General Supervision
Permits subordinates to decide how to achieve
results within accepted professional standards
Allows the manager or supervisor to have more
time to perform management functions
Enables subordinates to take great pride in
decision-making
Creates an environment to enhance the
performances of team work
Barriers to delegation of authority
Supervisors that are authority hoarders
Reluctant subordinates to take on
authority and responsibility
The unavailability of suitable subordinates
to whom authority can be delegated
Organizing Concepts [Link] 15, 16, 17, & 18
CHAPTER 15
Line authority
Authority is based on superior-subordinate
relationships and is managerial in nature
Authority to give orders to subordinates
The authority to direct subordinates and
require them to comply to decisions,
policies, plans, and objectives
Generally follows the principle of unity of
command
Staff Authority
Authority is based on expertise in specialty
areas
Provides information, counsel, advice, and
guidance in specialty areas and is not
managerial in nature
The authority to make recommendations
to line organization
The recommendations can be accepted,
rejected, or altered by the line organization
Functional authority
The CEO or administrator gives a staff
member special limited right to command
The right is based on expertise in a
specialized area
It allows maximum effective use of staff
specialists
It violates the principle of unity of
command
CHAPTER 16
Reorganization:
Changes in organizational structures,
departmentalization, assignment of activities,
and authority relationships
It is closely aligned with reengineering
Reorganization occurs because of:
- Changes in priorities and goals
- Financial needs
- Scientific and technological advances
- New developments and practices
Tools used for reorganization
Job design
Job redesign
Job rotation
Job enlargement
Job enrichment
Work redesign
In order to ensure quality in services or products,
supervisors should continuously monitor the
processes of reorganization
Reengineering
The focus is on customer needs
It is continuous
Relies heavily on teams of employees that
are coordinated by management
It has the potential to improve quality,
customer responsiveness, reduce costs,
and streamline operations
Downsizing and Rightsizing
Downsizing:
Reduction in workforce
Quickly initiated
Little or no input from employees
Rightsizing
Moderate to high cost reduction
Quickly initiated
Little or no input from employees
Quality Management
Continuous service improvements that
meet the needs of the organization and
customers
Empowers employees to attain the desired
outcomes
CHAPTER 17-Committees as an
Organizational Tool
Committees:
A formal group of people who function together to attain a desired organizational goal
Permit a group of people to function collectively in areas that a single individual cannot handle
Group members have regular full-time duties in the organization
Group members devote part of their regular working time to committee activities
Committee members must be carefully selected
Found at all organizational levels
Have line or staff capacity
Can be classified as standing or temporary
Promote coordination and cooperation among various departments in the organization
Produce continuity in the organization
Provide a forum for potential leaders to be identified
Give opportunities for various departments to be heard and get involved in the affairs of the
organization
Must have a mandate; know its scope and function
The degree of authority must be specified
The chair is the most important member of the committee
A well prepared agenda is required with a degree of flexibility
CHAPTER 18
The Informal organization:
It is a social subsystem
It interacts with the formal organization both in negative and positive
ways
It is found in almost all organization and cannot be eliminated
Small groups are the basis for an informal organization
Employees join small groups because of the following:
- Social needs
- Sense of satisfaction
- Friendship and companionship
- Security, support, and collective power
- Acceptance
- Access to the informal organization (grapevine)
- Status
The supervisor and the informal
organization
The informal organization is part of a complex system
that interacts with the formal organization
The supervisor must understand the workings of the
informal organization
The supervisor should approach the informal
organization in a positive manner
The supervisor should utilize the informal organization to
achieve departmental objectives
The supervisor should combine the interests of the
formal organization with those of the formal organization