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OrgMan -Module-3

Module 3: Organizing
Organization Structure and Design
- The overall set of structural elements that
can be used to configure the total
- A means to implement strategic and plans
to achieve organizational goals.
1. Skills variety - number of tasks a
a person does a job.
2. Task identity - extent to which the
worker does a complete or
identifiable portion of the total job.
3. Task Significance - perceived
importance of the task by the worker.
4. Autonomy - the degree of control
the worker has over how the work is
5. Feedback - extent to which the
worker knows how well the job is
being performed.
The Basic Elements of Organizing
Job specialization
Degree to which the overall task of the
organization is broken down and divided
into smaller component parts.
Decide how much you break down task in
the job
Ex. Doctors and Nurses
- Proficiency of workers
- Decrease in transfer time
- Easier development of specialized
- Low training cost
- Dissatisfaction and boredom of workers
5 Characteristics:
Growth Need Strength: The desire for
people to grow, develop, and expand their
capabilities that is their response to the
core dimensions.
F. Work teams - allows an entire group to design
the work system it will use to perform an
interrelated set of tasks; groups decide how jobs
will be allocated. (groups)
2. Departmentalization
Alternatives to Specialization
- efficiency & productivity = creativity and
A. Job Rotation
systematically moving employees from
one job to the other
jobs do not change, but instead workers
move from job to job. (apply only to
simple task; job rotation for training)
B. Job Enlargement
increases the total number of tasks that
workers perform
workers perform a variety of tasks.
C. Job Enrichment
- increase both the number of tasks a
worker does and the control the worker
has the over the job
- delegate more authority to employees
D. Job Characteristics
- suggests the jobs should be diagnosed
and improved along five core dimensions.
Taking into account both the work system
and employee preferences
- skills variety, task identity, task
significance, autonomy, and feedback.
(focus on characteristic system)
the process of grouping jobs according to
some logical arrangement
Organizational growth exceeds the owner
- manager’s capacity to personally
supervise all of the organization
“How will you group the Job?”
4 ways to group jobs:
1. Functional Departmentalization
- grouping jobs involving the same or
similar activities (Ex. Marketing,
Operations, Finance Department)
- Each department can be staffed by
functional-area experts
- Supervision is facilitated in the managers
only need to be families with a narrow set
of skills.
- Coordination inside each department is
- Decision-making becomes slow and
- Employees narrow their focus to the
department and lose sight of
organizational goals/issues
Accountability and performance are
difficult to monitor.
Product Departmentalization - grouping
activities around products or product
groups. (ex. Unilever: Shampoo, soap)
- All activities associated with one product
can be integrated and coordinated.
- Speed and effectiveness of decision
making are enhanced
- Performance of individual products or
product groups can be assessed.
- Managers may focus on their product to
the exclusion of the rest of the
- Administrative costs may increase due to
each department having its own
functional-area experts
Customer Departmentalization - grouping
activities to respond and interact with
customer/customer group. (Ex. Bank)
- Skilled specialists can deal with unique
customers or customer groups.
- A large Administrative staff is needed to
integrate activities of various
Location Departmentalization
grouping jobs on the basis of defined
geographic sites or areas (Ex. Transpo)
- Enables the organization to respond each
to unique customer and environmental
- Large administrative Staff may be needed
to keep track of units in scattered
3. Establishing Reporting Relationship
Chain of Command
- a clear and distinct line of authority
among the positions in an organization.
Unity of command
each person within an organization must
have a clear reporting relationship to one
and only one boss
Scalar Principle
there must be a clear and unbroken line of
Authority that extends from the lowest to
the highest position in the organization.
Span of Management
- The number of people who report to a
particular manager
- Also called span of control
Tall vs Flat Organizations
- number of layers in the organizational
Tall Organization - more layers more tall the
organization become
Flat Organization - has a lot vice president; span of
management is wider; more people are reporting
to one person.
4. Distributing Authority
Authority - power that has been legitimized by the
The Delegation Process
the process by which a manager assigns a
portion of his or her total workload
Assigns total workload to other people
Give control over the job; how she will do
Establish a sense of accountability to that
Decentralization and centralization
Decentralization - the process of
systematically delegating power and
authority throughout the organization to
middle- and lower-level managers
Centralization - the process of
systematically retaining power and
authority its the hands of higher-level
managers.; authority remains in the
higher-level manager
5. Coordinating Activities/Coordination
Coordination - the process of linking the activities
of the various departments of the organization
- Systems must be put into place to keep
the activities of each department focused
on the attainment
The need for coordination
- department and work groups are
interdependent - they depend on one
another for information and resource to
perform their respective activities
- The greater the interdependence, the
more coordination the organization
1. Pooled Interdependence - when units with little interaction; their
output is pooled at the organizational
- Interdependent in terms of the output
they produce
- Ex. H&M branches
2. Sequential Interdependence
- When the output of one unit becomes the
input for another in a sequential fashion.
- applies to assembly line
- The output of the other becomes the input
of the other; one way
- Step by step process
- Ex. Laptop Making
Reciprocal Interdependence
when activities flow both ways between
interact with each other; coordinate
Ex. Hotel: reservation > front desk >
Structural Coordination Techniques
Managerial Hierarchy - when one
manager is in charge of interdependent
department or units
Rules and Procedures - when
coordination is governed by a set of rules
and procedures
Ex. Airports: landing is the priority
Liaison Roles- when an individual acts as
a common point of contact; individuals
may not have any formal authority over
the groups but simply facilitate the flow of
Liaison officers facilitate the flow of
information: Ex.
Task Forces - when individuals are
assembled by drawing one representative
from each group; usually temporary
Formed to perform a simple or one task
Integrating Departments - similar to a
task force but more permanent
Situational Influences on Organizational
- Based on the assumption that the optimal
design for any given organization depends
on a set of relevant situational factors.
1. Core Technology - Technology conversion
process used to transform inputs into
2. Environment
3. Organization Size and life cycle
- Organization Size: Total number of
full-time or full-time equivalent
- Organizational Life Cycle: Progression
through which organizations evolve as
they grow and mature.
Basic Forms of Organization Design
Functional (U-form) Design
Based on the functional approach to
U for Unitary Approach; bc you all work
together for the goal of the organization
Members and units are grouped into
functional departments
Promotes a functional rather than
organizational focus and tends to promote
2. Conglomerate (H-form) Design
- used by an organization made up of a set
of unrelated businesses
- H for Holding
- A holding company that results from
unrelated diversification
- Managers usually find it difficult to
compare and integrate activities across a
large number of diverse operations.
4. Matrix Design
- based on two overlapping bases of
- The foundation of a matrix is a set of
functional departments then a set of
product groups or temporary
departments is superimposed to access
the functional departments.
- Employees in a matrix are simultaneously
members of functional departments and
project teams.
5. Hybrid Design
- Combination of two or more of the
common forms of organization design
- Ex. Five relate divisions and one unrelated
division (M-form + H-form)
Emerging Issues in Organization Design
3. Divisional (M-form) Design
- Based on multiple businesses in related
areas operation within a larger
organizational framework.
- M for Multi-divisional
- Results from related diversification
- The M form designs basic objective is to
optimize internal competition and
cooperation by sharing resources
The team organization - an approach to
organization design that relies almost
exclusively on project-type teams, with
little or no underlying hierarchy
Virtual Organization - one that has little
or no formal structure
Learning Organization - one that works to
facilitate the lifelong learning and
personal development of all its employees
while continually transforming itself to
respond to changing demands and needs.