ORGANIZING
- Process of arranging and structuring the
people and the resources of the
organization in order to meet its goal
Issues involving organizing:i. Determine what to be done
ii. Things to be done
iii. Assigning activities to the people
iv. How to achieve coordination among the available
resources
v. Span management – number of subordinates who
report directly to a given manager
vi. How much authorization to be delegated
vii.Determine the chart of an organization
presiden
Vice presiden
secretary
asst
manager
manager
manager
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Why we need to organized?
1. To divide the work according to the nature and
similarity of task
2. To pool resources and increase the efforts
3. To build continuity and synergy
•A good organizing can lead to the success of achievement
Organizational Structure
Specifies of division of work activities
Show how different function of activities are link
Show the level of specialization of work activities
Indicate the organization hierarchy and authority
structure
Show reporting structure
division of work
The main activities in the organization
The division of work will only be implemented
once the organization’s goal and mission are clear
Work division increase organization productivity
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A Flat Organizational Structure
Few organization Level with flat wide span of authority
Organization can be structured according to:-
A Tall Organizational Structure
Short span of authority with many organizational level
Level with flat wide span of authority
Organization can be structured according to:-
Organizing
Organizational
structure
Span management
Organizational
authority
Departmentalization
structure
Delegation
Functional Dept
Product Dept
Customer Dept
Geographic Dept
Matrix Dept
3
DEPARTMENTALIZATIONAL
STRUCTURE
SUBDIVIDING WORK & WORKERS
INTO SEPARATE ORGANIZATIONAL
UNITS REPONSIBLE FOR
COMPLETING PARTICULAR TASKS
THE FUNCTION Dept.:To create area of expertise in an organization
Advantages
 Allow works to be done by highly qualified
specialist
 Lower cost by reducing duplication
 Dept. members consist of people who have
the same expertise and experience
Disadvantages
 Cross department coordination difficulty
 More interested in benefiting their own function than the
entire organization
 Slower decision making
 Managers and workers will be narrow in experiences and
expertise.
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Product Departmentalization:Organizing workers & work into separate unit
responsible for producing products or service
Product Departmentalization:advantages
 Allow specialization
 Easier for top managers
to assess work unit
performance
 Faster decision making
 Due to fewer conflict
Product Departmentalization:disadvantages

Duplication of HR,
finance sales function
resulting to higher
cost

Difficult to achieve
coordination across
different product
departments
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Customer Departmentalization:Organizing workers & work into separate unit
responsible for particular kinds of customers
Customer Departmentalization:advantages
 Focus on
customers needs
 Specialize and
adapt products
to customers
needs and
problems
Customer Departmentalization:disadvantages
 Duplication of
resources
 Difficult to coordinate
across different
customer department
 Decision made will
please customers but
sometime not for
business
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Geographic
Departmentalization:Organizing workers
& work into
separate unit
responsible for
doing business in
particular
geographic areas
Geographic Departmentalization:advantages
 Helps companies to
respond to demand of
different markets
 Reduce cost – unique
organizational
resources near
customers
Geographic Departmentalization:disadvantages

Duplication
of
resources

Difficult to
coordinate
– different
locations
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Matrix Departmentalization:It’s a hybrid organizational structure
Refers to 2 or more forms of
departmentalization
Employees report to 2 bosses.
This will lead to cross functional interaction
This will requires significant coordination
between functional and project managers
Matrix Departmentalization:advantages
 Allows companies to
efficiently manage the
complexity
 Avoids duplication
 More diverse –
experience & expertise
Matrix Departmentalization:disadvantages

Needs high level of
coordination

Requires more
management skill

Conflict between
bosses
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