ORGANIZI

NG ENGINEERING
MANAGEMENT EMGT311 –
MODULE 5
 UNIT EXPECTED
At the end of this OUTCOMES
unit, the students are expected to:

1. Understand why organizing is an important function of

Management.
2. Define Organizing Technical Activities in Management.
3. Identify the different types and purpose of Structure in
Organization.
4. Understand the types of authority in an organization.
5. Describe the purpose of different committees in an
organization.
 AGEND
REASONS
FOR
ORGANIZI A
THE
NG 01 ORGANIZI
PURPOSE NG
OF 02 DEFINED
STRUCTU
RE 03 FORMAL
ORGANIZ
INFORMA 04 ATION
L ORGANIZ
GROUPS 05 ATIONAL
STRUCTU
TYPES OF 06 RES
AUTHORI PURPOSE
TY 07OF
COMMITT
08EES
 ORGANIZING
TECHNICAL
ACTIVITIES
The engineer manager needs to acquire
various skills in management, including
those for organizing technical activities.
In this highly competitive environment, the
unskilled manager will not be able to bring
his unit or his company, as the case may
be, to success.
 01

SECTION 01
REASONS
FOR
 REASONS FOR
Organizing is
ORGANIZING
In effective Doing these will In turn, these will
undertaken to organizing, steps make it possible help facilitate the
facilitate the are undertaken to assign
assignment of
implementation to breakdown the particular tasks to
of plans. total job into particular authority,
more persons. responsibility, and
manageable accountability for
man-size jobs. certain functions
and tasks.
 02

SECTION 02
ORGANIZING
DEFINED
 ORGANIZING
Organizing is a DEFINED
The arrangement or
management function relationship of positions
which refers to “the
within an organization is
structuring of resources
and activities to called the structure. The
accomplish objectives in result of the organizing
an efficient and effective process is the structure.
manner.”
 03

SECTION 03
PURPOSE OF
STRUCTURE
 PURPOSE OF
1. STRUCTURE
It defines the relationship between tasks and authority for
individuals and departments.
2. It defines formal reporting relationships, the number of levels in
the hierarchy of the organization and the span of control.
3. It defines the groupings of individuals into departments and
departments into organization.
4. It defines the system to effect coordination of effort in both
vertical (authority) and horizontal (tasks) directions.
 When structuring an
organization, the engineer
manager must be concern with
the following:
1 2 3 4 5
Division of Delegation of Departmen Span of Coordination
Labor Authority talization Control The linking of
Determining the The process of The grouping of The number activities in the
scope of work assigning various related jobs, of people organization
and how it is degrees of activities or into who report that serves to
combined in a decision-making directly to a
major achieve a
job. authority to given
subordinate. organizational manager. common goal
subunits. or objective.
 04

SECTION 04
FORMAL
ORGANIZATIO
 FORMAL
Formal ORGANIZATION
What is depicted in It is “the planned
Organization is the the organization structure” and it
structure that
chart is the formal “represents the
details lines of
responsibilities, organization. deliberate attempt to
authority and establish patterned
position. relationships among
components that will
meet the objectives
effectively.”
 FORMAL
The Formal StructureSTRUCTURE
is described by management through:

ORGANIZATION ORGANIZATIONAL POLICY MANUAL

CHART MANUAL

A diagram of the Provides written Describes personnel

organization’s descriptions of activities and company
official positions authority relationships, policies.
details the functions of
and formal lines of
major organizational
authority. units and describes job
procedures
 06

SECTION 06
ORGANIZATIONAL
STRUCTURES
 ORGANIZATIONAL
FUNCTIONAL
STRUCTURES
PRODUCT OR MARKET MATRIX
ORGANIZATION ORGANIZATION ORGANIZATION
This is a form Refers to the An organizational
departmentalization organization of a structure in which
in which everyone company by each employee
engaged in one divisions that reports to both a
functional activity, brings together all functional or
such as those involved with division manager
engineering or a certain type of and to a project or
marketing, is group product or group manager.
into one unit. customer.
 FUNCTIONAL
ORGANIZATION
This is a form departmentalization in which everyone engaged in one
functional activity, such as engineering or marketing, is group into one
unit.

It’s very effective in smaller firms, especially “single-business firms

where key activities revolve around well-defined skills and areas of
specialization.
 ADVANTAGES OF
1. The grouping ofAFUNCTIONAL
employees who perform a common task permit
ORGANIZATION
economy of scale and efficient resource use.
2. Since the chain of command converges at the top of the
organization, decision-making is centralized, providing a unified
direction from the top.
3. Communication and coordination among employees within each
department are excellent.
4. The structure promotes high-quality technical problem-solving.
5. The organization is provided with in depth skill specialization and
development.
6. Employees are provided with career progress within functional
departments.
 DISADVANTAGES OF
1. Communication AFUNCTIONAL
and coordination between the departments are
often poor.
ORGANIZATION
2. Decisions involving more than one department pile up at the top
management level and are often delayed.
3. Work specialization and division of labor, which are stressed in a
functional organization, produce routine, non-motivating employee
tasks.
4. It is difficult to identify which section or group is responsible for
certain problems.
5. There is limited view of organizational goals by employees.
6. There is limited general management training for employees.
 A TYPICAL FUNCTIONAL
ORGANIZATION CHART OF A
CONSTRUCTION COMPANY
PRESIDENT

Vice President Vice President Vice President Vice President

Marketing Construction Finance Human Resource
 PRODUCT OR MARKET
ORGANIZATION
Refers to the organization of a company by divisions that brings
together all those involved with a certain type of product or customer.

“Appropriate for a large corporation with many products lines in

several related industries”.
 ADVANTAGES OF A
PRODUCT OR MARKET
ORGANIZATION
1. The organization is flexible and responsive to change.
2. The organization provides a high concern for customer’s
needs.
3. The organization provides excellent coordination across
functional departments.
4. There is easy pinpointing of responsibility for product problems.
5. There is emphasis on overall product and division goals.
6. The opportunity for the development of general management
skills is provided.
 DISADVANTAGES OF A
PRODUCT OR MARKET
1. There is a highORGANIZATION
possibility of duplication of resources across divisions.
2. There is less technical depth and specialization in divisions.
3. There is poor coordination across divisions.
4. There is less top management control.
5. There is competition for corporate resources.
A TYPICAL PRODUCT/MARKET
ORGANIZATION CHART OF A
CONSTRUCTION COMPANY
PRESIDENT

Vice President Vice President Vice President

Governments Industrial Residential
Account Accounts Accounts

Marketing Marketing Marketing

Construction Construction Construction

Finance Finance Finance

Human Human Human
Resources Resources Resources
 MATRIX ORGANIZATION
An organizational structure in which each employee reports to both a
functional or division manager and to a project or group manager.

According to Thompson and Strickland, “is a structure with two (or

more) channels of command, two lines of budget authority, and two
sources of performance and reward”.
Higgins declared that “the matrix structure was designed to keep
employees in a central pool and to allocate them to various projects
in the firm according to the length of time they were needed.”
 ADVANTAGES OF A MATRIX
ORGANIZATION
1. There is more efficient use of resources than the divisional
structure.
2. There is flexibility and adaptability to changing environment.
3. The development of both general and functional management
skills are present.
4. There is interdisciplinary cooperation and any expertise is
available to all divisions.
5. There is enlarged tasks for employees which motivate them
better.
 DISADVANTAGES OF A
MATRIX ORGANIZATION
1. There is frustration and confusion from dual chain of command.
2. There is high conflict between divisional and functional
interests.
3. There are many meetings and more discussion than action.
4. There is a need for human relations training for key employees
and managers.
5. There is a tendency for power dominance by one side of the
matrix
 PRESIDENT

Vice President Vice President Vice President

for Finance for Construction for Human
Resources

Project Construction Purchasing Contract

Manager Manager Manager Administration
Manager

Project X Purchasing Contract

Engineer
Manager Specialist Negotiator

Project Y Engineer Purchasing Contract

Manager Specialist Negotiator

Project Z Purchasing Contract

Engineer
Manager Specialist Negotiator
 07

SECTION 07
TYPES OF
AUTHORITY
 TYPES OF
LINE AUTHORITY
AUTHORITY
STAFF AUTHORITY FUNCTIONAL
AUTHORITY
A manager’s A staff A specialist’s right to
right to tell specialist’s right oversee lower level
subordinates to give advice to personnel involved
what to do and a superior. in that specialty,
then see that regardless of where
they do it. the personnel are in
the organization.
 TYPES OF
AUTHORITY
Line departments – perform tasks that reflect organization’s primary
goal and mission. In a construction firm, the department the negotiates
and secures contracts for the firm is a line department.

Staff Departments – include all those that provide specialized skills in

support of the line departments. Examples of staff departments include
those which perform strategic planning, labor relations, research,
accounting and personnel.
 08

SECTION 07
PURPOSE OF
COMMITTEES
 PURPOSE OF
COMMITTEES
A committee is a formal group of persons formed for a specific purpose.

For instance, the product planning committee, as described by Millevo,

is “often staffed by top executives for marketing, production, research,
engineering and finance who work part-time to evaluate and approve
product ideas”.

Committees may be classified as follows:

Ad hoc Committees – one created for a short term purpose and a limited life.

Standing Committees – it is a relatively permanent committee that deals with

issues on an on-going basis.
THANK
YOU!

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