This document discusses organization and management, specifically focusing on organizing and different organizational structures. It explains that organizing establishes a structure of roles and responsibilities to coordinate efforts towards goals. There are three main types of organizational structures: vertical, horizontal, and network. A vertical structure defines authority, responsibilities, and reporting relationships. A horizontal structure involves departmentalizing work into specialized units. A network structure connects independent organizations that work together on projects. The document then examines traditional theories like simple, functional, and divisional structures as well as modern theories such as team, matrix, project, and boundaryless designs.
This document discusses organization and management, specifically focusing on organizing and different organizational structures. It explains that organizing establishes a structure of roles and responsibilities to coordinate efforts towards goals. There are three main types of organizational structures: vertical, horizontal, and network. A vertical structure defines authority, responsibilities, and reporting relationships. A horizontal structure involves departmentalizing work into specialized units. A network structure connects independent organizations that work together on projects. The document then examines traditional theories like simple, functional, and divisional structures as well as modern theories such as team, matrix, project, and boundaryless designs.
This document discusses organization and management, specifically focusing on organizing and different organizational structures. It explains that organizing establishes a structure of roles and responsibilities to coordinate efforts towards goals. There are three main types of organizational structures: vertical, horizontal, and network. A vertical structure defines authority, responsibilities, and reporting relationships. A horizontal structure involves departmentalizing work into specialized units. A network structure connects independent organizations that work together on projects. The document then examines traditional theories like simple, functional, and divisional structures as well as modern theories such as team, matrix, project, and boundaryless designs.
This document discusses organization and management, specifically focusing on organizing and different organizational structures. It explains that organizing establishes a structure of roles and responsibilities to coordinate efforts towards goals. There are three main types of organizational structures: vertical, horizontal, and network. A vertical structure defines authority, responsibilities, and reporting relationships. A horizontal structure involves departmentalizing work into specialized units. A network structure connects independent organizations that work together on projects. The document then examines traditional theories like simple, functional, and divisional structures as well as modern theories such as team, matrix, project, and boundaryless designs.
Quarter 1 Week 7 to 8 After planning, organizing follows. The goals and objectives established during planning will all go to waste w/out effective organizing, through the development of a designed structure of roles for effective performance. It requires an interlacing of decision and communication work units to coordinate efforts toward the organizational goals and objectives that were set. To function well, organization structures and their specific roles must be understood by all members of the organization. Rules and regulation principles must also be put in practice. However, that organizing depends on the specific situation of the firm. As you read and study this module, concentrate on the following objectives, and at the end of the module be able to:
1. Discuss the nature of organizations;
2. Distinguish the various types of organizational structures; and 3. Apply organization theories in solving business cases; Lesson 1 Nature of Organizations Differentiation of the organization’s internal environment Differentiation in organizations involves division of labor and specialization. These necessarily result from the organization’s composition – many different work units with different kinds of tasks, using different skills and work activities coordinating with one another for a common end. Division of labor involves assigning different task to different people in the organization’s different wok units. Related to it is specialization, the process in which different individuals and units perform different tasks. An organization’s overall work is complex and would be too much for any individual, therefore, the bigger the organization, the more work units or work divisions and specializations are to be expected. Integration of work units Integration is another process in the organization’s internal environment which involves the collaboration and coordination of its different work units or work divisions. Coordination refers to the procedures that connect the work activities of the different work divisions/units of the firm in order to achieve its overall goal. Structural mechanisms may be devised in order to increase collaboration and coordination. The more highly differentiated one’s organization is, the greater the need for integration among the different units. Activity
1. What is the negative effect of not having division of labor in organizations?
2. Is the term “specialization” synonymous with the term “differentiation”? Explain. 3. Construct an organizational chart of your school’s senior high school department. Lesson 2 Types of Organization Structures An organization structure is a system made up of tasks to be accomplished, work movements from one work level to other work levels in the system, reporting relationships, and communication passageways that unite the work of different individual persons and groups. The types of organizational structures include:
A. Vertical structure B. Horizontal structure C. Network structure A vertical structure clears out issues related to authority rights, responsibilities, and reporting relationships. Authority rights refer to the legitimate rights of individuals, appointed in positions like president, vice president, manager, and the like, to give orders to subordinates, who in turn, report to them what they have done. Owners of private business companies are said to have absolute authority, even if other persons are appointed as managers in their companies. In corporations, the owners are the stockholders and they elect a board of directors to manage the organization’s activities. The board has a chairman who acts as the leader, while the members act as the corporation’s authority figures, responsible for making major decisions affecting their organizations, subject to the corporation’s constitution and by-laws provisions. Besides the chairman of the board, a chief executive officer (CEO) is appointed to occupy the top post in the organization pyramid and is personally accountable to the members of the board and other owners for the organizational performance. Below the top level managers are the middle level managers in charge of departments who report to them. Under the middle level managers are the lower level managers which include office managers, sales managers, and supervisors who directly report to the former. Employees under the lower level managers also have reporting relationships with their respective department managers. A horizontal structure refers to the departmentalization of an organization into smaller work units as tasks become increasingly varied and numerous. Types of department: Line departments – deal directly with the firm’s primary goods and services; responsible for manufacturing, selling, and providing services to clients. Staff departments – support the activities of the line department by doing research, attending to legal matters, performing public relations duties, etc. Meanwhile, departmentalization may be done using 3 approaches: Functional approach – where the subdivisions are formed based on specialized activities such as marketing, production, financial management, and human resources management. Divisional approach – where departments are formed based on management of their products, customers, or geographic areas covered. Matrix approach – is a hybrid form of departmentalization where managers and staff personnel report to the superiors, the functional manager, and the divisional manager. Finally, a network structure is a collection of independent, usually single function organizations/companies that work together in order to produce a product or service. Such network organizations are each capable of doing their own specialized work activities independently, like producing, distributing, designing, etc. but are capable of working effectively at the same time with other network members. Often, their communication is by electronic means where sharing of information is speedy. This results to their ability to respond at once to their customers’ demands. Organizational structures are needed to keep employees needed, to build a learning organization and to manage global structural problems. Activity
1. In your opinion, who have greater responsibilities, the line department
managers or the staff department managers? Explain your choice. D. Draw or find a picture/image that shows a Vertical structure, Horizontal structure, and Network structure. Lesson 3 Organization Theories and Applications There are 2 main classifications of theories regarding organizational design: traditional and modern. Traditional pertains to the usual or old-fashioned ways, while modern refers to contemporary or new design theories. Traditional organizational design theories include: Simple It has few departments, wide spans of control, or a big number of subordinates directly reporting to a manager; has a centralized authority figure and has very little formalization of work; usually used by companies that start out as entrepreneurial ventures. When applied, its strengths and weaknesses are revealed. Strengths
• Flexible • Fast decision making • Clear accountability Weaknesses
• Risk that overdependence with over-dependence on a single person
• No longer appropriate as the company grows Functional It groups together similar or related specialties. Generally, functional departmentalization is utilized and put into practice in an entire organization. For example: a marketing firm that markets cars and related products like tires, car batteries, and accessories. Strengths
• Cost-saving advantages • Management is facilitated because workers with similar tasks are grouped together Weaknesses
• Managers have little knowledge of other unit’s functions
Divisional This organizational design is made up of separate business divisions or units, where the parent corporation acts as overseer to coordinate and control different divisions and provide financial and legal support services. Strengths
• Focused on results • Managers are responsible for what happens to their products and services Weaknesses
• Possible duplication of activities and resources
• Increased cost and reduced efficiency Modern organizational design theories include: Team design In team design, the entire organization is made up of work groups or teams. Its advantages include empowerment of team members and reduced barriers among functional areas. It also has disadvantages, including a clear chain of command and great pressure on teams to perform. Matrix-Project design It refers to an organization design where specialist from different department work on projects that are supervised by a project manager. This design results in a double chain of command wherein workers have 2 managers – their functional area manager and their project manager – who share authority over them. Advantage: specialists are involved in the project. Disadvantage: task and personality conflicts. Project design refers to an organizational design where employees continuously work on a project. Advantages: flexible designs and fast decision-making. Disadvantages: complexity of assigning people to projects and tasks and personality conflicts. Boundary-less design This design is not defined or limited by vertical, horizontal, and external boundaries. In other words, there are no hierarchical levels that separate employees, no departmentalization, and no boundaries that separate the organization from the customers, suppliers, and other stakeholders. Virtual organization designs are often used in this design; small groups of full time employees and outside specialist are temporarily hired to work on projects. Its advantages include being highly flexible and responsive, while its disadvantages are lack of control and problems in communication.
Activity
1. Task and personality conflicts are said to be the disadvantage to the use of the matrix-project design. Explain the rationale of this statement.
