CHAPTER 4

ORGANIZING
Organization is a group of individuals who are
communicating and cooperating with each other with
a view to achieve their common goals and objectives.
In other words, organization maybe defined as a
cooperative and healthy relationship among the
groups which is built up by them through proper
network of communication system with a view to
achieve their specific or common goals.
Organizing is the process of making
certain strong relationship between
work units or departments through
appropriate communication channel so
that workforce can offer their
contributions in the achievement of
most goals and objectives.
For an organizational role to be real and to be significant to
people, it must integrate these subsequent characteristics:
1.demonstrable objectives from planning
2.an understandable idea of the key duties concerned
3.an understandable area of authority , so that the person
filling it know what he can do to accomplish results
4.provisions should be prepared for required information
and where and how it may be acquired
The organization structure defines the
manner of tasks division, resources
deployment and departments’ coordination.
This structure must be planned to clarify the
environment so that everyone knows who is
to do what and who is responsible for what
results.
CONCEPT OF ORGANIZING
A structure of relationship
A group of individuals
A process
A means not an end
An essential function of management
Connected to its objectives
Ineffective without communication
THE ORGANIZATIONAL CHART
The organization chart is the diagram
version of the organization structure. Every
member of the workforce has a delegated
task, line of authority and decision
responsibility which can be seen in this
chart.
An organizational chart can be important for a
number of reasons:
First, an organizational chart allows everyone
in an organization to understand the structure of
the company. They can understand the chain of
command, knowing which departments and
individuals answer to whom.
An organizational chart can provide
incentives for entry-level employees. They
can clearly see what the hierarchy is within
their firm and they can aspire to climb the
corporate ladder. The chart makes the steps
in this process clearer, making them see
more attainable.
TWO PRINCIPLES OF ORGANIZING

Authority
Span of control
Authority is the official and
justifiable right of a manager to make
decisions, issue orders and apportion
resources to realize good outcomes
for the organization.
It is distinguished by three attributes namely:
1.authority is given to organizational positions
not people
2.authority is acknowledged by subordinates
3.authority streams downward the vertical
hierarchy
There are three main types of authority can exist within an organization:

1. Line Authority – The most fundamental authority within an

organization, reflects existing superior subordinate relationships.

2. Staff Authority – Staff authority consists of the right to advise or

assist those who possess line authority as well as other staff
personnel. Staff authority enables those responsible for improving
the effectiveness of line personnel to perform their required tasks.
3. Functional Authority – Functional authority consists of the right
to give orders within a segment of the organization in which the right
is normally non-existent.
 Span of control, on the other hand is the number of
employees reporting directly to a supervisor for close
monitoring.

 A tall structure has a narrow span of management and

more levels in a hierarchy. In these organizations, there
are usually many managers, and each manager has a
small span of control- they are in charge of only a
small group of people.
 Flat structure has a wide span and has levels
in the hierarchy. An organizational structure,
in which most middle-management levels and
their functions have been eliminated, thus
brings the top management in direct contact
with the frontline sales people, shop floor
employees, and costumers.
There are several determinants of span of control, namely:
1.subordinates’ work must be stable
2.subordinates carry out parallel tasks
3.subordinates are located in a single place or location
4.subordinates are properly trained and require less
supervision
5.tasks are defined by rules and procedures
6.support systems and personnel are accessible for the
manager
7.lowest amount time is needed for nonsupervisory tasks
8.managers’ personal favorites chose a large span
ORGANIZING PROCESS
A manager performs organizing function with the help of
following steps:

1.Division of work
2.Departmentation
3.Linking departments
4.Assigning duties and responsibilities
5.Defining hierarchical structure
 TYPES OF ORGANIZATIONAL STRUCTURE
1.FUNCTIONAL ORGANIZATIONAL STRUCTURE
- A structure of this type groups individuals
based on similar skills, expertise and resources
use. Common departments such as human
resources, marketing, production, finance and at
times research and development are organized by
separating each of these areas are grouped into a
single department.
Strengths
1. employees in the same department also understand each other’s “lingo”
2. job extent is understood within departments due to relatedness of function
3. clear-cut chain of command which clearly establishes who reports to
whom
4. enhanced coordination as workers within the same department easily come
to a meeting of the minds.
5. leaves no doubt when it comes to accountability and management
privileges, so directives are clear and unified
6. relies on division of labor, which turns employees into expert specialists
7. experts on hand also makes training easier, and problems get solved more
quickly
8. equipment and personnel are clustered rather than being duplicated in
more than one area which increases efficiency
Weaknesses
1.slow and less accurate coordination and
communication between departments
2.limited decision-making authority of individual
department managers
3.different departments gave diverse concerns that
at times costumers’ interests and needs might
become unnoticed
2. PRODUCT/SERVICE ORGANIZATIONAL
STRUCTURE
-Another common structure is to be arranged by
specific product type. In order to take benefit of the
numerous product/service lines within the business,
companies execute a product/service-based
organizational structure.
Strengths
1.responsibility for each product can be pinpointed
at the division level
2.concentration on one product can yield higher
quality of output
3.team spirit builds up on each other product line
4.rivalry among division can improve business
5.promotes autonomous decision-making
6.faster reply to costumer appeal
Weaknesses
1.less giving out of resources across divisions
2.extra doubling-up of effort resulting in higher costs
3.customers who demand more than one product/service
will have to work with more than one division
4.company maybe slow to identified that the ;product
must be changed, dropped or added
5.could be stifled by one product focus
3. CUSTOMER ORGANIZATIONAL
STRUCTURE
Certain business organizations are organized by
customer type in order to make certain specific
customer expectations are satisfied by a customized
service approach.
This type of structure specializes in the needs of
each customer group but at times overlook the needs
of different customer types.
4. GEOGRAPHIC ORGANIZATIONAL
STRUCTURE
It is used for organization that have offices or
business units in different geographic locations. This
structure defines a reporting and functional system
across multiple locations. This structure allows an
organization’s offices to operate individually while
adhering to company policies and values. Office
locations can be local, national or international.
Strengths
1.Unique needs of each type of customer
are well-served
2.Focus on costumers’ needs and
preferences
3.Unprofitable product lines more likely to
be dropped
Weaknesses
1.Maybe less sharing of resources across
division/departmental boundaries
2.More duplication of effort and
infrastructure resulting in higher costs
3.Internal systems may evolve in different
ways to serve different customer segments
5. MATRIX ORGANIZATIONAL STRUCTURE
A matrix structure combines features of both
functional and divisional structures all together in an
organization. Typically matrix structure is used in
large multinational companies. This structure can
generate power struggles because most areas of the
company will have a double management hat of
functional manager and a product or divisional
manager working at equal level covering some of the
same managerial territory.
Strengths
1.Enables organization to use its resources efficiently
(provides flexibility to assign staff to protect requirements
and reassign as needed).
2.Takes full advantage of the use of teams (maintaining in-
depth technical expertise in critical functions)
3.Provides individuals an opportunity to work with different
skills and expertise
4.Requires managers to cooperate with one another and
moderates their power over subordinates
 
Weaknesses
1.Multiple bosses may result in confusion
2.Slows down decision-making
3.Conflicting demands from bosses leads to personal
stress and reduced work quality
4.Power struggle between managers regarding
resources
5.Can disrupt the work and get in the way of customer
service
6.Subordinates may play one boss against another
6. TEAM ORGANIZATIONAL STRUCTURE
A team-based organizational structure groups
employees who carry out definite duties into project
teams that do specific functions. This type of
organizational structure permits and guarantees the best
treatment for activities such as product development,
customer support and process-improvement initiatives.
With low-overhead and minimal management, the
consents to exploit successful opportunities and evade
threats.
Strengths
1.Focus on organization is outward to costumer
2.Reduces number of levels of management – “flatten
organizations” (reduced management cost ; less need for
coordination)
3.Time and money saved due to reduced need to pass information
up and down the hierarchy and between departments
4.Promotes self-management by employees (greater job
satisfaction because of more involvement)
5.Broadens individuals’ knowledge and skill bases
6.Faster decision-making, reduced cycle time and improved
responsiveness to customers
Weaknesses
1.Involves major transformation of the
organization (difficult, timely and costly
change; new systems required for virtually
everything)
2.company may need to retain functional
expertise if not sufficient within each progress
3.may require major and costly training
initiative
Thank you for
listening!!!