ORGANIZING
Patterns of Departmentation
Organizations are divided into smaller units (a process called
Departmentation) by using a number of different approaches :
• Basic
• Functional
• Product
• Geographic
• Mixed
Methods of Departmentation:
Basic
YOU
Jane Jack Jill
Methods of Departmentation:
Functional Organization
The first logic of subdivision for most new
organizations, and which is present at some level in
almost any organization. Functional subdivision
need not be confined to a single level as in the next
figure. Marketing is often divided into sales,
advertising, and market research; and so on.
President
Finance Production Sales
Designer
Manager Manager Manager
Methods of departmentation:
Product organization
President
Vice-President Vice-President CD Cabinet Disk Box Vice-President Vice-President
Finance Production Division Division Marketing R&D
Accounting Accounting
Production Production
Marketing Marketing
Human Human
Resources Resources
Spans of Control
The number of subordinates that one manager is
considered to be able to supervise effectively.
Factors Determining Effective Spans
• Subordinate training
• Nature of jobs
• Rate of change of activities and personnel
• Clarity of delegation
• Staff assistance
Current Trends in Spans
The current trend in spans of control is definitely to increase
the "spans of control“, which ultimately decreases the number
of organizational levels within a given company or
organization. This shift to large spans of controls is due in part
to the Information Revolution. With more automated systems,
databases, and ever-increasing methods of communication,
decisions can be made efficiently. Line workers and
technicians no longer have a small role in a particular process,
but have the ability to manage, in large part, the particular
process that they are partly responsible for with the latest in
technology. This trend to large spans will generally be around
20 to 30 subordinates per span. and the organization should
consist of no more than five organizational levels.
Line and Staff Functions and Relationships
• line functions in an organization were those that
accomplished the main mission or objectives of the
organization, and these were thought to include
production, sales, and finance.
• Staff functions those that helped the line accomplish
these objectives by providing some sort of advice or
service.
Types of Relationships
• Line: relationships are superior-subordinate
relationships typically represented vertically in
organizational charts
• Staff: relationships are advisory in nature, degree
of influence may vary
– Provide advice on request
– Recommendations when appropriate
– Must be consulted by line but have no direct
authority
– Concurring authority - veto authority over line
Types of Relationships
• Service: Centralized support functions
– Custodial
– Security
– Medical
Staff
Line
Types of Relationships
• Functional: Specialized authority
– As binding as line authority
– Usually procedural
• Budget formats
• Computer systems
– Cafeteria
Teams
• Small group of people
• Serve interests of its members
• Exchange ideas freely and clearly
• Have common goals
• Committed to achieving goals
• Each team member treated equally