Chapter 5 The Structure Of Organizing PDF

Chapter 5 The Structure of Organizing 1. The meaning of Organizing:- is the process by which the work is arranged and allocated among organizational members so that the goal of the organization can be effectively achieved. It is the detailed arrangement of work and wor...

Chapter 5 The Structure of Organizing 1. The meaning of Organizing:- is the process by which the work is arranged and allocated among organizational members so that the goal of the organization can be effectively achieved. It is the detailed arrangement of work and working conditions in order to perform the assigned activities in an effective manner. The whole work is divided into manageable components in order to facilitate the achievement of objectives or goals. Organizing consists of two elements: 1) Components (parts) as people, tasks, resources, authority, responsibility, procedures and goals. 2) Relationships by which all these components are tied together. Organizing leads to the process of organization structure. It is defined as:- 1) the set of formal tasks assigned to individuals and departments 2) formal reporting relationships, including lines of authority and 3) the design of systems to ensure effective coordination of employees across departments. Organization chart is the visual representation of an organization. 2. Importance of Organizing:- Organization is important because it allows individuals and groups to perform tasks more efficiently. It helps people find information and items faster, and it allows groups to work together without wasting time. It enables them to gain the following advantages: Specialization :- the work is divided into units and departments. This division of work helps in bringing specialization. Well defined jobs :- Organizational structure helps in putting the right person on right job Clarifies authority :- Organizational structure helps in clarifying the powers to every manager and the way he has to exercise those powers. Co-ordination :- Organization is a means of creating co-ordination among different departments of the enterprise. Effective administration :- The organization structure is helpful in defining the roles to be performed by different managers. Sense of security :- clarity of powers helps to increase mental satisfaction and thereby a sense of security in a concern. Scope for new changes :- every person gets independence in his working, this provides enough space to make new changes. A.HOSSAM 3. Formal and Informal Organizations Formal Organizations Informal Organizations  are organizations in which the job of  It is a network of interpersonal each member is clearly defined, whose relationship when people interact with authority, responsibility and each other. accountability are fixed.  In an informal organization, there are  It is a structure that comes into no defined channels of communication, existence when two or more people and so members can interact with come together for a common purpose, other members freely. and there is a legal & formal relationship between them. 4. Work Specialization:- is the degree to which organizational tasks are subdivided into separate jobs. Employees within each department perform only the tasks relevant to their specialized function. Jobs tend to be small, but they can be performed efficiently. Work specialization is sometimes called division of labor. 5. Chain of Command:- It is the clear and distinct lines of authority. The chain of command actually has two components. 1) unity of command, suggests that each person within an organization must have a clear reporting relationship to only one manager. 2) the scalar principle, suggests that 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:- is the number of employees reporting to a supervisor, how many people will report to each manager. The tasks associated by less supervision are when: 1) Work performed by subordinates is stable and routine and perform similar work tasks. 2) Rules and procedures defining task activities are available. 3) Subordinates are experienced, highly trained and need little direction in performing tasks. A.HOSSAM 6. Centralization and Decentralization:- Centralization and decentralization related to the hierarchical level at which decisions are made Centralization decentralization indicates that decision authority is pushed downward to lower organization levels. is the degree to which decision making Decentralization is the degree to which takes place at upper levels of the lower-level managers actually make organization. Centralization means that decisions. Centralization-decentralization decision authority is located near the top process is a matter of degree. No of the organization. organization is completely centralized or completely decentralized. 7. Departmentalization:- The basis for grouping positions into departments in the organization.  There are five approaches to structural design that reflect different uses of departmentalization.  The functional, divisional, and matrix are traditional approaches that rely on the chain of command to define departmental groupings and reporting relationships along the hierarchy.  There are also two innovative approaches which are teams and virtual networks, which have emerged to meet changing organizational needs. 1) Functional Departmentalization  The most common base for departmentalization, especially among smaller organizations, is by function. Functional departmentalization- groups together those jobs involving the same or similar activities, such as finance, production, marketing, and human resource.  This approach has three primary advantages. 1. each department can be staffed by experts in that functional area e.g. marketing experts can be hired to run the marketing function. 2. supervision is facilitated because an individual manager needs to be familiar with only a relatively narrow set of skills. 3. coordinating activities inside each department is easier. 2) Product Departmentalization  Product departmentalization involves grouping and arranging activities around products or product groups.  Product departmentalization some advantages:- 1. all activities associated with one product or product group can be easily integrated. 2. the speed and effectiveness of decision making are enhanced. A.HOSSAM  3) Customer Departmentalization  Under customer departmentalization, the organization structures respond to and interact with specific customers.  The basic advantage of this approach is that the organization is able to use skilled specialists to deal with unique customers or customer groups. 4) Location Departmentalization  Location departmentalization groups jobs on the basis of defined geographic areas.  The primary advantage of location departmentalization is that it enables the organization to respond easily to unique customer and environmental characteristics in the various regions.  On the negative side, a larger administrative staff may be required if the organization must keep track of units in scattered locations. 5) Matrix Approach  The matrix structure is controversial because of the dual chain of command. However, the matrix can be highly effective in a complex, rapidly changing environment 6) Team Approach  The team causes cooperation across departments and improves coordination and cooperation. The team concept also enables the organization to more quickly adapt to customer requests and environmental changes and speeds decision making because decisions need not go to the top. Employees get involved in big projects rather than narrow tasks 7) Virtual Network Approach  is selling its products and services worldwide. A network organization can depend on resources and expertise worldwide to achieve the best quality and price to sell its products and services worldwide.  The virtual network approach is flexible and competitive on a global scale. 8. Guidelines for Effective organizing 1) Each person in the organization should report to only one boss. 2) The lines of authority should be clearly stated 3) The responsibility and authority of each supervisor should be established clearly. 4) The number of levels of authority should be as few as possible. 5) The senior managers are responsible for the acts of their subordinates. 6) Specialization should be applied wherever possible. 7) The span of control should be reasonable and well established. 8) The organization should be simple and flexible. The end of chapter 5 ‫برجاء الدعاء لوالدي بالرحمة والمغفرة‬ A.HOSSAM