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MODULE 4 - Org Man: Organization and Management Grade Level/Section: Subject Teacher

This document discusses the functions of management related to organizing. It defines organizing as arranging resources to accomplish goals. The key elements of organizational structure discussed are: 1. Specialization and departmentalization, which involve dividing work into tasks and grouping tasks into departments. 2. Organizational designs like functional, divisional, and matrix structures which determine how work is grouped. 3. Additional structural elements like chains of command, centralization, span of control, and formalization which establish reporting relationships, decision making processes, number of subordinates per manager, and standardized jobs. The document provides definitions and examples to explain these various aspects of organizing and organizational structure.

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JOHN PAUL LAGAO
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440 views5 pages

MODULE 4 - Org Man: Organization and Management Grade Level/Section: Subject Teacher

This document discusses the functions of management related to organizing. It defines organizing as arranging resources to accomplish goals. The key elements of organizational structure discussed are: 1. Specialization and departmentalization, which involve dividing work into tasks and grouping tasks into departments. 2. Organizational designs like functional, divisional, and matrix structures which determine how work is grouped. 3. Additional structural elements like chains of command, centralization, span of control, and formalization which establish reporting relationships, decision making processes, number of subordinates per manager, and standardized jobs. The document provides definitions and examples to explain these various aspects of organizing and organizational structure.

Uploaded by

JOHN PAUL LAGAO
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Organization and Management

Governor Pack Road, Baguio City, Philippines 2600


Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section:
Email: [email protected]; Website: www.uc-bcf.edu.ph

MODULE 4 – Org Man Subject Teacher:

Page 1 of 5
Organization and Management
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section:
Email: [email protected]; Website: www.uc-bcf.edu.ph

MODULE 4 – Org Man Subject Teacher:

Functions of Management: Organizing


“An organization, no matter how well designed, is only as good as the people who live and work in
it.”
– Dee Hock

OBJECTIVES

After completing this chapter, you’ll be able to:

1. Discuss the nature of organizations and the organizing process;


2. Identify the types of organizational design;
3. Distinguish the various parts of organization structures;
4. Apply organization theories in analyzing businesses and other organizations;
5. Identify the different elements of delegation; and
6. Differentiate formal from informal organizations.

Definition of Terms
➢ Organizing
➢ The process of arranging people and other resources to work together to accomplish a
goal.
➢ Organization structure
➢ The system of tasks, workflows, reporting relationships, and communication channels that
link together diverse individuals and groups
➢ Organizational culture
➢ A firm’s shared values, beliefs, traditions, philosophies, rules, and role models for behavior.

Organizing viewed in relationship with the other management functions:

Reasons of Developing Organizational Structure:


• Managers can easily assign work/ tasks to individuals & groups
• Coordination of diverse activities to attain objectives
Organizational Chart - A diagram describing the basic arrangement of work positions within an
organization. It also provides a representation of the organization's Formal Structure.
What Does an Organization Chart Tell Us?
➢ The Division of Work
➢ The Type of Work Performed
➢ Supervisor - Subordinate Relationships
➢ Formal Communication Channels
➢ Major Subunits
➢ Levels of Management
Page 2 of 5
Organization and Management
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section:
Email: [email protected]; Website: www.uc-bcf.edu.ph

MODULE 4 – Org Man Subject Teacher:

Six Key Elements of Organizational Structure/ Design:


a. Specialization- Managers divide the labor into small, specific tasks and assign to employees to
accomplish individual tasks.
Overspecialization - When a job is given to the right person but is not given improvement or
additional training that may lead to employees become boredom and job dissatisfaction. It
can also lead to poor quality work, increase injuries, and increased employee turnover.

b. Departmentalization -Grouping of jobs into working units (departments, units, groups, divisions)
It is during this period that the management will put the right person to the right position base
on the FORMS OF ORGANIZATIONAL STRUCTURE:

i. Simple Structure - the most basic structure. It is applicable to small businesses where
majority of power and decision making rests on the owner.

ii. Functional Structure - People with similar skills and performing similar tasks are grouped
together into formal work units and the members work in their functional areas of
expertise. It is not limited to businesses and it works well for small organizations producing
few products or services.

iii. Divisional Structure/ departmentalization – this structure is designed to meet pressures for
innovation and change in dynamic environments.

Types of Divisional Structures:


Product
•Grouping jobs by product line
• Allows specialization in particular products and services
•Managers can become experts in the industry
•Closer to the customer
Geographical
•Grouping jobs on the basis of region or geography
•More effective and efficient handling of specific regional issues that arise
•serve needs of unique geographic markets better
Process
•Grouping jobs on the basis of product or customer flow
• More efficient flow of work activities
Customer
•Grouping jobs by type of customer and needs
•Customers’ needs and problem can be met by specialists

Page 3 of 5
Organization and Management
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section:
Email: [email protected]; Website: www.uc-bcf.edu.ph

MODULE 4 – Org Man Subject Teacher:

iv. Matrix Structure - Combines functional and divisional structures to gain advantages and
minimize disadvantages of each.
Used in:
Manufacturing
Service industries
Professional fields
Non-profit sector
Multi-national corporations

c. Chain of command - the continuous line of authority that extends from upper levels of an
organization to the lowest levels of the organization and clarifies who reports to whom.
3 Principles:
➢ Delegation of authority
➢ Giving employees tasks and power to make commitments, use resources, and
take action to carry out tasks.
➢ Assigning responsibility
➢ Obligation placed on employees to perform assigned tasks and be held
accountable for proper execution.
➢ Employee accountability
➢ Employees are answerable to a superior for work outcomes.

d. Centralization
• Centralization: The degree to which decision making is concentrated at a single point in
the organization. Organizations in which top managers make all the decisions and lower-
level employees simply carry out those orders

• Decentralization: The degree to which lower-level employees provide input or actually


make decisions. It gives employee empowerment, increasing the decision-making
discretion of employees.

• Factors influence the amount of centralization:


o Environment is stable.
o Lower level managers are not as capable or experienced at making decisions as
upper level managers.
o Lower level managers don’t want to have a say in decisions.
o Decisions are significant.

e. Span of Management/Control - the number of subordinates who report to a particular manager.


• A wide span of management exists when a manager directly supervises a very large
number of employees.
• A narrow span of management exists when a manager directly supervises only a few
subordinates.
• Width of span is affected by:
o Skills and abilities of the manager and the employees
o Characteristics of the work being done
o Similarity of tasks
o Complexity of tasks
o Physical proximity of subordinates
o Standardization of tasks
o Sophistication of the organization’s information system
o Strength of the organization’s culture
o Preferred style of the manager

Page 4 of 5
Organization and Management
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section:
Email: [email protected]; Website: www.uc-bcf.edu.ph

MODULE 4 – Org Man Subject Teacher:

f. Formalization - the process of standardizing jobs and establishing rules and guidelines.

New developments in organization structures

A. Guidelines for horizontal structures:


 Focus the organization around processes, not functions.
 Put people in charge of core processes.
 Decrease hierarchy and increase the use of teams.
 Empower people to make decisions critical to performance.
 Utilize information technology.
 Emphasize multiskilling and multiple competencies.
 Teach people how to work in partnership with others.
 Build a culture of openness, collaboration, and performance commitment.

B. Team structures:
 Extensively use permanent and temporary teams to solve problems, complete special
projects, and accomplish day-to-day tasks
 Often use cross-functional teams composed of members from different functional
departments
 Project teams are convened for a specific task or project and disbanded once
completed

REFERENCES

Zarate, Cynthia A. (Organization and Management, 2016)


John R. Schermerhorn (2010). Introduction to Management
Ranulfo P. Payos, et al( 2016). Organization and Management. Rexetore.

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