CSC350: Learning
Management Systems
COMSATS Institute of Information
Technology (Virtual Campus)
Lecture # 8
Fundamentals of
Organizing
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Review of the Previous Lecture
1.
2.
3.
4.
5.
6.
7.
8.
Definitions of strategic planning
Main aspects of the strategic management process
Key components of environmental analysis
Role of organizational direction in strategic
management
Primary aspects of strategy formulation
Importance of strategic control
Coordination of tactical planning & strategic planning
Competitive dynamics & organization’s financial
performance
Topics of Discussion
1. An understanding of the organizing function
2. Benefits and costs of bureaucracy
3. Advantages and disadvantages of division of
labor
4. Complexities of determining appropriate
organizational structure
5. Advantages and disadvantages of
departmentalization
DEFINITIONS OF ORGANIZING
AND ORGANIZATION SKILL
• Organizing
– Process of establishing orderly uses for resources
within the management system
• Organizing Skill
– Creating a network of people throughout the
organization who can help solve implementation
problems as they occur
• Organization
– End result of organizing process
Fayol’s Organizing Guidelines
Organizing Process
CLASSICAL ORGANIZING
THEORY
• Weber’s Bureaucratic Model:
– Detailed procedures and rules
– Clearly outlined organizational hierarchy
– Impersonal relationships among organization
members
CLASSICAL ORGANIZING
THEORY
• Division of Labor:
– Assigning various portions of a task among a
number of organization members
– Advantages:
• Specialized skills – Only one job to do – Efficiency
– Disadvantages:
• Overlooks human variable – Boring – Decreased
production
Division of Labor & Coordination
• Coordination:
– Orderly arrangement of group effort
– Unity of action
– Synchronized order of tasks
• Mary Parker Follett Guidelines:
– Peer discussion resolves problems
– Planned by managers
– Maintaining is continuing process
STRUCTURE
• Designated relationships among organizational
resources
• Two basic types of structure:
– Formal
• Represented on organization chart
– Informal
• Evolves naturally, spontaneously
Formal Structure
• Organization Chart
– Graphic illustration of firm’s organization structure
– Pyramid form
– Boxes are jobs/positions
– Lines designate formal communication lines
Vertical Dimensioning
• Scalar Relationships
– Chain of Command
• Unity of Command
– Employee reports to only one manager
• Span of Management
– Number of employees one manager can effectively
manage
• Height of Organization Chart
Horizontal Dimensioning
• Lateral subdivisions or specialties
• Departments
– Unique group of resources established by
management to perform organizational tasks
TYPES OF
DEPARTMENTALIZATION
Functional Departmentalization
Product/Service Departmentalization
Geography Departmentalization
Customer Departmentalization
Matrix Departmentalization
Forces Influencing Formal Structure
• Managerial Forces
• Task Forces
• Environmental Forces
• Subordinate Forces
Fayol’s Chain of Command Rationale
Informal Structure
• Mechanistic Structures
– Formal organizational structures
– Suited for large companies in stable industries
• Organic Structures
– Less formal
– Represent loosely coupled worker networks
– Suited for smaller companies in volatile industries
Thank You
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