NEGROS ORIENTAL STATE UNIVERSITY

College of Engineering and Architecture

ENS 343
ENGINEERING MANAGEMENT

Bautista, Elyra Anne G.

Dr. Marinela C. Bansuela

May 2, 2021
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ORGANIZATIONAL FUNCTION OF MANAGEMENT

Learning Outcomes

At the end of the report, you will be able to:

o Discuss the nature of organizing function of management.

o Distinguish the various types of organization structures.

o Identify the steps of delegation.

Definition

Organizing is a function in which the synchronization and combination of human,

physical and financial resources takes place.

The Nature of Organizing

Organizing involves assigning tasks, grouping tasks in to departments, delegating

authority, and allocating resources across the organization. During the organization process,

managers coordinate employees, resources, policies, and procedures to facilitate the goals

identified during planning. Managers must organize the assets of the business to execute the plan

efficiently and effectively. Since many of the assets are employees, it is a must to understand,

specialization and the division of work.

DIFFERRENTIATION OF THE ORGANIZATION’S INTERNAL ENVIRONMENT

(Bateman and Snell, 2008)

• Division of Labor – assigning different tasks to different people in the organization’s

different work units.

• Specialization – the process in which different individuals and units perform different

tasks.
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In the division of labor, the way a good or service is produced is divided into a number of

tasks that are performed by different workers whereas in the specialization, tasks are being

performed by the same person who is skilled in terms of the work.

Integration of Work Units

Integration of work units is another process in the organization’s internal environment

which involves the collaboration and coordination of its different work units or work divisions.

In integration, organizations work together between their components.

THREE MAJOR TYPES OF ORGANIZATIONAL STRUCTURE

Functional Structure

An organization is divided into smaller groups by are of specialty (such as marketing,

operations, finance and IT). Some refer to these functional areas as “siglos” which refers to

entities that are vertical and disconnected from one another.

 Advantage – Employees with shared skills and knowledge are grouped together

according to the work they do. Each group of specialists can therefore operate

independently.

 Disadvantage - They may not communicate with one another which can

potentially decrease flexibility and innovation within the business.

Divisional Structure

Within the divisional structure, each organizational function has its own division. Each

division contains all the necessary resources and functions within it to support that particular

product or geography.

Two types of Departmentalization:

a. Product Departmentalization

Example: A company builds luxurious sedans and SUVs, the Sedan division

will have its own sales, engineering and marketing departments, and these are

separated from the SUV division.

b. Geographic Departmentalization

It is particularly important if tastes and brand responses differ across regions,

as it allows for flexibility in product offerings and marketing.

 Advantage - People work in different geographical locations and enjoy different works.

They can share ideas and enhance their skills, thereby creating a collaborative work

culture.

 Disadvantage - Segmentation creates boundaries among divisions and may lead to poor

inter-unit coordination.
Divisional Structure Organizational Chart
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Matrix Structure

Individuals are grouped by two different operational perspectives at the same time. Here,

both functional and project managers share their respective authorities. Project managers are

responsible for project planning, execution of the project and completion of the project activities.

While the functional managers are concerned with the operational aspects of the project and also

responsible for providing technical guidance.

 Advantage – Helps in sharing available resources efficiently and they can communicate

with each other across boundaries.

 Disadvantage – It can create issues when there is no coordination between functional

and project managers. This is also costly to maintain since it has many managers.

Divisional Structure Organizational Chart

DELEGATION

Delegation is assigning a new or additional task to subordinate; it may also refer to

getting work done through others by giving them the right to make decisions and take actions.

Elements of delegation include: authority, responsibility, and accountability.

Steps in Delegation:

1. Defining the goal clearly.

2. Selecting the person who will be given the task.

3. Assigning responsibility.
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4. Asking the person assigned about his or her planned approaches to accomplish the task

objectives.

5. Granting the assigned person, the authority to act.

6. Giving the assigned person enough time and resources to do the task, while at the same

time emphasizing his or her personality.

7. Checking the task accomplishment progress.

8. Making sure that the task objective has been achieved.

REFRENCES

Altarejos, A.D., Cabrera, H.M., & Benjamin, R. (2016). CHAPTER 4: ORGANIZING

(C.D. Del Castillo, Ed). Vibal Group, Inc.

Lumen Learning. (n.d.). Organizing │ Introduction to Business [Deprecated]. Retrieved from

https://courses.lumenlearning.com/wmopen-introbusiness/chapter/organizing/

Management Study Guide. (2021). Functions of Management – Planning, Organizing, Staffing,

Directing and Controlling. Retrieved from

https://www.managementstudyguide.com/management_function.htm
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Nagmoti, S. (2019, November 15). Common Types of Organizational Structures in Project

Management. Retrieved from

https://www.greycampus.com/blog/project-management/common-types-of-

organizational-structures-in-project-management

Office Work Software. (2019, December 4). Organizational Structure. OrgChart. Retrived from

https://www.orgchartpro.com/3-basic-types-of-organizational-structure/

Planning, Organizing, Leading, and Controlling – Principles of Management.

(2015, October 27) Pressbooks. Retrieve from

https://open.lib.umn.edu/principlesmanagement/chapter/1-5-planning-organizing-leading-

and-controlling-2/