Objectives: At the end of the lesson, the learners shall be able to: a. Apply organization theories in solving business cases; b. Identify the different elements of delegation
Lesson 1: Organization theories and Applications
The are two main classifications of theories regarding organizational design according to Robbins and Coulter (2009); traditional and modern. Traditional pertains to the usual or old-fashioned ways, while modern refers to contemporary or new design theories.
Traditional Organization design theories include:
1. Simple 2. Functional 3. Divisional
Simple Organizational Design
This organizational design has few departments, wide span 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 Weaknesses • Flexible • Risk that overdependence with over-dependence on • Fast decision-making and results a single person • Clear accountability • No longer appropriate as the company grows
Functional Organizational Design
This organizational design groups together similar or related specialties. It is generally, functional departmentalization 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 Weaknesses • Cost-saving advantages • Managers have little knowledge of other units’ • Management is facilitated because functions workers with similar tasks are grouped together
Divisional Organizational Design
This organization design is made up of separate business divisions or units, where the parent corporation act as overseer to coordinate and control different divisions and provide financial and legal support services.
Strengths Weaknesses • Focused on results • Possible duplication of activities and resources • Managers are responsible for what • Increased cost and reduced efficiency happens to their products and services
Meanwhile, modern organizational design theories include:
Team Design In team design, the entire organization is made up work groups or teams. Its advantages include empowerment of team members and reduced barriers among functional areas. It also has advantages, including clear chain of command and great pleasure on teams to perform.
Matrix-Project Design Matrix design refers to an organization design where specialists from different departments work on projects that are supervised by a project manager. This design results in a double chain of command wherein workers have two managers- their functional area manager and their project manager-who share authority over them. Advantage specialists are involved in the project. Disadvantages are tasks and personality conflicts. Project Design refers to an organizational design where employees continuously work on a project. Advantages: flexible design and fast decision-making. Disadvantages: complexity of assigning people to projects and tasks and personality conflicts.
Boundary-less Design This is another modern organizational design where the 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 customers, suppliers and other stakeholders. Virtual organization designs are often used in this design; small groups of full-time employees and outside specialists are temporarily hired to work on projects. Its advantages include being highly flexible and responsive. While its disadvantages are lack control and problems in communication.
Activity 1: Identification Directions: Identify the following statements whether it is Traditional and Modern Organizational Structure Design.
1. Design that groups together similar or related specialties
2. It is made up of work teams. 3. Design where employees continuously work on a project 4. Focus on performance improvement of people 5. Focus on flexibility and problem solving 6. Design made up of separate units where parent corporations act as overseer 7. Boundaryless 8. Big number of subordinates reporting to a centralized authority figure 9. Matrix Design 10. Design with few departments, wide span of control
Lesson 2: Delegation Delegation refers to assigning a new or additional task to a subordinate; it may also refer to getting work done through others by giving them the right to make decisions and take action. Steps in delegation include:
1. Defining the goal clearly. Managers must clearly explain the task objective and the work or duties someone else is expected to do. 2. Selecting the person who will be given the task. The selected subordinate must be competent, and mist share the managers’ task objectives. 3. Assigning of responsibility. Managers must explain that the responsibility assigned to the selected subordinate is an expectation for him or her to perform the assigned tasks well. 4. Asking the person assigned about his or her planned approaches to accomplish the task objectives. It is expected that the person chosen to do the task already has a tentative plan of action that may be presented to the manager to assume him or her that the person assigned could achieve the task objective. 5. Granting the assigned person the authority to act. If the manager is satisfied with the tentative plan of action presented, granting of the authority to act immediately follows. Authority is a right to act in ways needed to carry out the assigned tasks. 6. Giving the assigned person enough time and resources to do the task, while at the same time emphasizing his or her accountability. Accountability is the assigned person’s willingness to complete the job as agreed upon. 7. Checking the task accomplishment progress. Following up and discussing the task accomplishment progress at regular intervals is necessary. 8. Making sure that the task objective has been achieved.
Activity 2. Sequencing Direction: Arrange the following delegation steps in chronological order. Number the first step 1 and the last step 8.
___a. Granting to the assigned person the authority to act
___b. Assigning of responsibility ___c. Checking the task accomplishment progress ___d. Defining the goal clearly ___e. Giving the assigned person enough time and resources to do the task ___f. Making sure that the task objectives have been achieved ___g. Asking person assigned about his planned approaches ___h. Selecting the person who will be given the task.
Reflection: What are the positive effects of delegating tasks?
• Cabrera, H.M.F, Altajeros, A.DC., Benjamin, R. (2016). Organization and Management. Vibal Group. Quezon City • DepEd Teachers Manual Organization and Management pp. 18-21
