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THE ORGANIZING FUNCTION Chapter 4  MEANING Organizing - is a management function that involves arranging human and non-human (physical) resources to help attain organizational objectives. The organizing function is concerned with developing a framework where the total wor...

THE ORGANIZING FUNCTION Chapter 4  MEANING Organizing - is a management function that involves arranging human and non-human (physical) resources to help attain organizational objectives. The organizing function is concerned with developing a framework where the total work is divided into manageable components in order to facilitate the accomplishment of objectives. 2 Organizing… It forces us to address several basic questions: What specific tasks are required to implement our plans? How many organizational positions are needed to perform all the required tasks? How should these positions be grouped? How many managerial (Organizational levels) are needed to coordinate them? How many people should a manager supervise directly?/how should the span of control be like? 3  Basic Concepts A. Division of Labor Dividing tasks into narrow specialties. Helps to: the development of skill or dexterity : saving of movement time : invention of machines/tools due to specialization 4 B. Departmentation  Formal structure of an organization composed of various departments and managerial positions and their relationship to each other.  It is a process of grouping of people and specialized activities in a logical manner.  Facilitates: communication, coordination and control/supervision 5 Bases for Departmentation The most common bases are A. By Product B. By Function: C. By Territory/ Geography D. By Customer: market-oriented grouping E. By Process F. By Time G. Martix: combination of different departmentation 6 Schermerhorn - Chapter 4 7 Schermerhorn - Chapter 4 8 Schermerhorn - Chapter 4 9 Schermerhorn - Chapter 4 10 Schermerhorn - Chapter 4 11 Schermerhorn - Chapter 4 12 Schermerhorn - Chapter 4 13 C.–Centralization and Decentralization Centralization - is the extent to which power and authority are systematically retained by top managers – Decentralization - is the extent to which power and authority are systematically dispersed / delegated throughout the organization to middle and lower level managers 14 D. Span of Management/control Number of subordinates who report directly to a manger, or who will be directly supervised by a manager. Wider: many subordinates/flat structure Narrow: fewer subordinates/tall structure 15  E. Delegation of Authority The process of transferring responsibility to another employee/direct team member. Schermerhorn - Chapter 4 16  Types of Authority 1. Legal authority: rank/position 2. Traditional: social order 3. Charismatic authority: personality and personal traits 4. Acceptance theory: belief of subordinates of advantage of the command 5. Competency theory/technical : acceptance based on skill and expertise Schermerhorn - Chapter 4 17  Source of Power 1. Legitimate: official position 2. Coercive: ability to create fear 3. Reward: ability to grant rewards 4. Expert: skill, knowledge, expertise 5. Referent: admire Schermerhorn - Chapter 4 18  Barriers to Delegation A. Reluctance of Executive Belief of “I do better than subordinates” Lack of confidence and trust Lack of ability to direct Sense of insecurity/fear of loss of power Fear of being known as “lazy” Schermerhorn - Chapter 4 19 Barriers… B. Reluctance of Subordinates Fear of making mistakes Lack of motivation Lack of self-confidence  lack of necessary information and adequate resource Unclear delegation/broad expectation Schermerhorn - Chapter 4 20 Types of organizational structure 1. Line organization: simple and common, direct flow of authority from top to lower level Schermerhorn - Chapter 4 21 2. Line and staff organization: store manager and quality assurance coordinator Schermerhorn - Chapter 4 22 3. Functional organization: division of activities Schermerhorn - Chapter 4 23  Types of Organization  There are two types of organizations: A. Formal organization  Intentional, deliberate or rational structures of roles in a formally organized enterprise.  Well-defined authority - reporting relationships, job titles, policies, procedures, specific job duties and a host of other factors necessary to accomplish its respective goals.  Represented by a printed chart that appears in organizational manuals and other formal company documents called organization chart.  24  Types of Organization(cont..) B. Informal organization  Network of personal and social relationships that arises spontaneously as people associate with one another in a work environment. 25 Discussion from previous chapter Explain PESTEC ANALYSIS AND GIVE EXAMPLE FOR EACH AREA Schermerhorn - Chapter 4 26