إدارة الأعمال: تنظيم - الفصل الرابع

Management Functions: Organizing

This course covers the fourth chapter: Organizing, from the "Principles of Business Administration" (1310) course.
The course was prepared and organized by Dr. Anjum Ahmed, an assistant professor of business administration from the Applied College branch in Abha.
The course is for the first semester of the academic year 1446H.

Chapter 4 Objectives: Organizing

Students will be able to differentiate between formal and informal organizational structures.
Students will be able to explain the elements and goals of organizational structure.
Students will be able to define concepts related to the organizing function.
Students will compare organizational structures to other related concepts.
Students will present the characteristics of an effective organizational structure.
Students will discuss organizational principles.
Students will design a simple organizational structure.

Chapter 4 Content: Organizing

Introduction
Definition and objectives of organizing
Types of organization (formal and informal)
Principles of organizing
Organizational concepts (organizational structure - organizational design - organizational chart - organizational manual)
Methods for building an organizational structure
Glossary of terms
Chapter questions and assignments

Introduction to Organizing

Organizing is a crucial management function that aims to systematically arrange resources and tasks to achieve organizational goals.
It follows and builds on planning, as one of the steps in the overall management cycle. It involves arranging, organizing, coordinating, and assigning the work needed, to ensure efficient use of resources and clear accomplishment of the organization's mission, vision and goals.

Defining Organizing

Organizing encompasses the processes of grouping and classifying tasks, assigning responsibilities and authority, and arranging relationships to enable people to work together more effectively.
This involves establishing clear lines of authority, responsibility, and communication within an organization.

Elements of Organizing

Defining Objectives: Setting clear organizational and departmental objectives.
Analyzing Tasks: Identifying and classifying essential and subordinate tasks.
Grouping Tasks (Departments): Organizing related tasks into departments based on similarities and compatibility.
Staffing: Determining the required employee skills, expertise and qualifications for each task/function.
Selection: Choosing personnel based on identified requirements.
Delegation of Authority and Responsibility: Allocating authority and responsibility related to roles/functions.
Communication Systems: Creating channels of communication between different organizational levels.

Objectives of Organizing

Creating a framework for executing plans and programs to achieve goals.
Ensuring a balance between goals and resources, considering external factors.
Assembling the resources required to reach the defined goals (human, financial, material).
Establishing rules and procedures to guide resource utilization and output attainment.

Types of Organization

Formal Organization: A structured, deliberate framework outlining relationships, duties, and authority levels within an organization, designed to achieve specified goals more efficiently.
This organization follows rules, procedures and an established hierarchical structure.
Informal Organization: A spontaneous, unplanned network of relationships that develops among employees based on shared interests, friendships, or common goals.
- Although informal, it can influence work relationships and potentially be utilized as feedback mechanisms, and to mitigate formal issues.

Advantages of Informal Organization

Addresses the social and emotional needs of employees.
Facilitates faster communication and information dissemination.
Provides supplemental feedback and insights about organizational processes/decisions.
Solves gaps in formal structures, and issues addressed informally.
Boosts morale and worker satisfaction.

Disadvantages of Informal Organization

Sometimes hinders the formal structure's workflow.
Can lead to rumors and misinformation.
Might lead to protective behaviors and cover-ups when there are issues.
Can lead to conflict among employees or departments.

Principles of Organizing

Objective: Alignment of departmental goals with overall organizational objectives.
Function: Clear division of work and responsibilities based on specified functions.
Division of Work: Separation of tasks to improve efficiency.
Unity of Command: Reporting to one superior.
Span of Control: Effective supervision limits per superior.
Authority and Responsibility: Balanced authority with corresponding responsibility.
Centralization/Decentralization: Centralizing power or dispersing decision-making authority.
Delegation: Empowering subordinates with authority to handle tasks.
Coordination: Harmonizing and integrating different parts to achieve organizational goals.
Balance and Flexibility: Adapting the structure as needed without disrupting productivity.

Features of Effective Organizational Structures

Enhanced communication channels between departments and hierarchical levels.
Enhanced performance measurement capabilities for departments and individuals, to facilitate organizational goal achievement.
Optimal resource utilization through appropriate job assignments, reducing waste and promoting efficiency.
Clear delineation of critical versus secondary tasks, leading to prioritized focus and enhanced impact.
Enhanced transparency through clear job descriptions and task allocations.
Control mechanism for overseeing organizational activities.
Harmony and compatibility among organizational components, fostering organization strength and flexibility for adapting to changes in external environments.

Organizational Concepts: Organizational Structure, Design, Chart & Manual

Organizational Structure: The formal framework of tasks, reporting relationships, and lines of communication within an organization. Depicts how work is divided, grouped, and coordinated.
Organizational Design: The process of developing and implementing an organizational structure. This includes deciding on the formal layout and relationships of various work units. Also considering, departmentalization, delegation, span of control and other organizational principles.
Organizational Chart: Visual representation of an organization's structure, depicting the reporting relationships and hierarchical levels. The structure is useful in showing the connections between individuals/departments, to portray the flow of authority and work distribution effectively.
Organizational Manual: A document that outlines the organization's structure, policies, procedures, and operating guidelines. Providing a reference and a clear framework for processes.

Types of Organizational Structures

Functional Structure: Departments grouped by similar functions (marketing, production, finance).
Divisional Structure: Departments grouped by products, services, customers, or geographic areas.
Matrix Structure: Employees report to two or more managers in different departments, creating overlapping responsibilities.
Other Structures: (e.g. project-based, team-based).

Organizational Design Methods

Goal Analysis Method: Starts by analyzing organizational objectives/goals and then branching into departmental/unit goals to achieve overall mission.
Activity Grouping Method: Classifies and groups activities based on similarities into logical units, and eventually departments.

Organizational Chart Types

Traditional Charts (Vertical): Shows hierarchical relationships in a top-down format.
Horizontal Charts: Depicts relationships in a left-to-right manner.
Circular Charts: Illustrates interrelationships between departments and functions in a concentric structure.
Hybrid Schemes: Combining features of the previous structures (vertical, horizontal, or circular) in a single chart.