ORGANIZING
Chapter 10
What is organizing?

Define:
Organization Structure:
Organization Chart: a diagram that shows the arrangement of work positions
within an organization
What is the difference between the formal and informal structure of an
organization?

Formal Structure: official structure of the organization

Informal Structure:
Discuss the pros and cons of the informal structure.
Pros
Cons
Informal Structure
What does it mean to say that, for a manager structure is:
a) Structure is a characteristic of the work setting
b)
What is a functional structure?

Group together people with similar skills who perform similar tasks, share
technical expertise, interests and responsibilities
Advantages
Disadvantages
Functional Structure
A functional structure is the bedrock of horizontal differentiation. It is the
first “structure” that organizations adapt as they grow.
Draw Chart:
What is departmentalization?

Another word for functional structure
Draw Chart:
Divisional form of departmentalization

Product Divisions

Grouping activities around product groups
 Examples
GM, Chevrolet, Cadillac
Coke, Sprite, Dasani
Pros:

Cons:

Draw Chart:
The Silo Effect

The main problem with a divisional structure is that grouping people
together means you are isolating them from the other groups

Matrix Structure




Attempt to avoid the Silo effect by inserting horizontal lines of
communication into the structure
Ex: grouping people by function and customer division
Pros:
Cons:
Draw Chart:
The disadvantages of a matrix structure:




What is the scalar principle?

What changes are occurring to the traditional chain of command?

Businesses are trying to reduce Height of chain of command to a more
streamline horizontal structure.

What is the unity-of-command principle?

Each person should report to only one supervisor.
What changes are occurring to the traditional unity-of-command principle?

Explain the difference between a wide and narrow span of control.

Wide span of control:

Narrow span of control; only a few people are under a manager’s immediate
supervision, happens in Tall structures so they are more costly , less
efficient, less flexible and less customer sensitive
Which one seems to be more popular and why?

Wider span of control is more popular and it eliminates and empowers
managers

What is delegation?

Distributing and entrusting work to others
Explain the authority-and-responsibility principle.

Authority should equal responsibility when work is delegated
Discuss the difference between centralization and decentralization.

Centralization: decisions made at top level of organization

Decentralization:
Clarify the difference between personal and specialized staff in an
organization.

Personal staff: provide technical expertise for other parts of the
organization. Fire safety officer at bank

Specialized staff:
Explain the difference between a…
 line organization: responsible for work activities that make a direct
contribution to the organizations outputs: president, managers, dept
supervisors

a line-staff organization:

Functional authority require others to do as you say within boundaries of
staff expertise