Organizing
Asst. Profesor Sarah C. Vanguardia
Intended Learning Outcomes (ILO)
At the end of the discussion, the students should
be able to:
• understand the different activities in organizing;
• understand the connection of responsibility,
authority, and accountability;
• differentiate major types of organization
structure; and
• recognize the importance of major
contemporary organizing trends.
Discussion Outline
• Organizing and organization structure
• Steps in the process of organizing
• Establishing relationship among
individuals and groups
• Major types of organization structure
• Contemporary organizing trends
Organizing and Organization Structure
Organizing refers to the way in which the work of a
group of people is arranged and distributed among
group members
Organization structure is the system of tasks,
workflows, reporting relationships, and
communication channels that link together diverse
individuals and groups.
Organization Structure
The organization structure of a business unit consists of
the following elements:
• The number of sections, units and positions in each
department
• The function of each department, section and position
• The number of levels of management
• The responsibility, authority and accountability
relationships
• The channels of communication, i.e., the paths through
which information travels from one position to another
and from one level to the other.
Steps in the process of organizing
The process of organizing consists of the following
steps:
1. Determining the activities to be performed to
achieve the objectives of the organization.
2. Identification of major functions to which these
activities relate.
3. Grouping and sub-dividing the activities within each
function on the basis of similarity or relatedness.
4. Establishing relationship among individuals and
groups.
Establishing relationship among
individuals and groups
Responsibility is the obligation of a subordinate to
perform the assigned duties.
Authority includes the right to take decision, right to issue
orders and the right to take action if orders are not carried
out.
Accountability means answerability. It ensures that the
work is done as planned and authority is properly used.
Major types of organization structures
➢Functional structures
➢Divisional structures
➢Matrix structures
Major types of organization structures
➢ Functional structures
– People with similar skills and performing
similar tasks are grouped together into
formal work units.
– Members work in their functional areas of
expertise.
– Work well for small organizations
producing few products or services.
Functional structures in a business, branch bank,
and community hospital
Major types of organization structures
➢Divisional structures
– Group together people who work on the
same product or process, serve similar
customers, and/or are located in the same
area or geographical region.
– Common in complex organizations.
Divisional structures based on product,
geography, customer, and process
Major types of organization structures
➢ Types of divisional structures and how they
group job and activities:
– Product structures focus on a single product or
service.
– Geographical structures focus on the same
location or geographical region.
– Customer structures focus on the same customers
or clients.
– Process structures focus on the same processes.
Major types of organization structures
➢ Matrix structure
– Combines functional and divisional structures to
gain advantages and minimize disadvantages of
each.
– Used in:
• Manufacturing
• Service industries
• Professional fields
• Non-profit sector
• Multi-national corporations
Matrix structure in a small multi-project
business firm
Contemporary Organizing Trends
❑ Shorter chains of command.
❑ Less unity of command.
❑ Wider spans of control.
❑ More delegation and empowerment.
❑ Decentralization with centralization.
❑Reduced use of staff.
Contemporary Organizing Trends
➢ Shorter chains of command
– The line of authority that vertically links all
persons with successively higher levels of
management.
– Organizing trend:
• Organizations are being “streamlined” by
cutting unnecessary levels of management.
• Flatter structures are viewed as a competitive
advantage.
Contemporary Organizing Trends
➢ Less unity of command
– Each person in an organization should
report to one and only one supervisor.
– Organizing trend:
• Organizations are using more cross-functional
teams, task forces, and horizontal structures.
• Organizations are becoming more customer
conscious.
• Employees often find themselves working for
more than one boss.
Contemporary Organizing Trends
➢ Wider spans of control
– The number of persons directly reporting to
a manager.
– Organizing trend:
• Many organizations are shifting to wider spans
of control as levels of management are
eliminated.
• Managers have responsibility for a larger
number of subordinates who operate with less
direct supervision.
Spans of control in “flat” versus
“tall” structures
Contemporary Organizing Trends
➢ More delegation and empowerment
– Delegation is the process of entrusting
work to others by giving them the right to
make decisions and take action.
– The manager assigns responsibility, grants
authority to act, and creates accountability.
– Authority should be commensurate with
responsibility.
Contemporary Organizing Trends
➢ Guidelines for effective delegation:
–
–
–
–
–
–
–
–
–
–
–
Carefully choose the person to whom you delegate.
Define the responsibility; make the assignment clear.
Agree on performance objectives and standards.
Agree on a performance timetable.
Give authority; allow the other person to act independently.
Show trust in the other person.
Provide performance support.
Give performance feedback
Recognize and reinforce progress.
Help when things go wrong.
Don’t forget your accountability for performance results.
Contemporary Organizing Trends
➢ Decentralization with centralization
– Centralization is the concentration of
authority for making most decisions at the
top levels of the organization.
– Decentralization is the dispersion of
authority to make decisions throughout all
levels of the organization.
Contemporary Organizing Trends
➢ Reduced use of staff
– Specialized staff
• People who perform a technical service or
provide special problem-solving expertise to
other parts of the organization.
– Personal staff
• People working in “assistant-to” positions that
provide special support to higher-level
managers.
References
• Schermerhorn et al. Management Canadian Edition.
Copyright © 2007 John Wiley & Sons Canada, Ltd
•http://www.managementstudyguide.com/management_f
unctions.htm
• Chapter 7. Organizing Principles. © 2013 Cengage
Learning.
• Chapter 13. Organising. Business Studies.
•http://2012books.lardbucket.org/pdfs/managementprinciples-v1.1.pdf
•http://2012books.lardbucket.org/
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