REVIEWER - ORGANIZATION MANAGEMENT.docx

**Integration** - is another process in the organization's internal environment which involves the collaboration and coordination of its different work units or work divisions. **(3) Types of Organizational Structures:** **Vertical Organization Structure** - clears out issues related to authority...

**Integration** - is another process in the organization's internal environment which involves the collaboration and coordination of its different work units or work divisions. **(3) Types of Organizational Structures:** **Vertical Organization Structure** - clears out issues related to authority rights, responsibilities, and reporting relationships. **Horizontal Organization Chart** -- refers to a selection of independent, usually single-function organizations that work together to produce a product or service. **Network Structure** -- is a collection of independent, usually single function organizations/companies that work together in order to produce a product or service. Types of Department: **Line Departments** -- deal directly with the firm's primary goods and services; responsible for manufacturing, selling, and providing services to clients. **Staff departments** -- support the activities of the line departments by doing research, attending to legal matters, performing public relations duties, etc. Meanwhile, departmentalization may be done using (3) approaches: **Functional Approach** -- where the subdivisions are formed based on specialized activities such as marketing, production, financial manage- ment, and human resources management. **Divisional Approach** -- where departments are formed based on management of their products, customers, or geographic areas covered. **Matrix Approach** -- is a hybrid form of departmentalization where managers and staff personnel report to the superiors, the functional manager, and the divisional manager. According to Robbins & Coulter (2009): Traditional pertains to the usual or old-fashioned ways, while Modern refers to contemporary or new design theories. **Organizational Design** -- the manner in which a management achieves the right combination of differentiation and integration of the organization's operations, in response to the level of uncertainty in its external environment. **Traditional Theories** -- are the usual, old fashioned ways. Traditional Organizational Design Theories include: **Simple** - this organizational design has few departments, wide spans of control, or a big number of subordinates directly reporting to a manager; has a centralized authority figure and has very little formalization of work; usually used by companies that start out as entrepreneurial ventures. When applied: **SIMPLE ORGANISATIONAL DESIGN** +-----------------------------------+-----------------------------------+ | - flexible | - risk that overdependence with | | | over-dependence on a single | | - fast decision-making and | person | | results | | | | - no longer appropriate as the | | - clear accountability | company grows | +-----------------------------------+-----------------------------------+ **Functional** - this organizational design groups together similar or related specialties. Generally, functional departmentalization is utilized and put into practice in an entire organization. When applied: **FUNCTIONAL ORGANIZATIONAL DESIGN** +-----------------------------------+-----------------------------------+ | - cost-saving advantages | - managers have little | | | knowledge of other units | | - management is facilitated | functions | | because workers with similar | | | tasks are grouped together | | +-----------------------------------+-----------------------------------+ **Divisional** - this organizational design is made up of separate business divisions or units, where the parent corporation acts as overseer to coordinate and control the different divisions and provide financial and legal support services. When Applied: **DIVISIONAL ORGANIZATIONAL DESIGN** +-----------------------------------+-----------------------------------+ | - focused on results | - possible duplication of | | | activities and resources | | - managers are responsible for | | | what happens to their | - increased cost and reduced | | products and services | efficiency | +-----------------------------------+-----------------------------------+ **Team Design** - the entire organization is made up of work groups or teams. **Advantages** - include empowerment of team members and reduced barriers among functional areas. **Disadvantages** - including a clear chain of command and great pressure on teams to perform. **Matrix Design** - refers to an organization design where specialists from different departments work on projects that are supervised by a project manager. This design results in a double chain of command wherein workers have two managers-their functional area manager and their project manager-who share authority over them. **Advantage**: specialists are involved in the project. **Disadvantage**: task and personality con **Project Design** - refers to an organizational design where employees continuously work on a project. **Advantages**: flexible designs and fast decision-making. **Disadvantages**: complexity of assigning people to projects and tasks and personality conflicts. **Boundary-less Design** - this is another modern organizational design where the design is not defined or limited by vertical, horizontal, and external boundaries. **Virtual Organization Designs** - are often used in this design; small groups of full-time employees and outside specialists are temporarily hired to work on projects. **Advantages** - include being highly flexible and responsive. **Disadvantages** - are lack of control and problems in communication. **LESSON 4** **Delegation** -- refers to assigning in a new or additional task to a subordinate; or getting the work done through others by giving them the right to make decisions or take action. **Authority** -- the right to act legally or officially **Responsibility** -- the state of being answerable legally and morally for the discharge of duty **Accountability** -- is to be liable to be called to explain **Elements of delegation include**: **authority** or the right to set officially or legally. **responsibility** or the state of being answerable legally/morally for the discharge of a duty, and **accountability** is to be liable to be called to explain. **Steps in delegation include:** 1. **Defining the goal clearly.** Managers must clearly explain the task objective and the work or duties someone else is expected to do. 2. **Selecting the person who will be given the task.** The selected subordinate must be competent and must share the manager's task objectives. 3. **Assigning of responsibility** -- Managers must explain that the responsibility assigned to the selected subordinate is an expectation for him or her to perform the assigned tasks well. 4. **Asking the person assigned about his or her planned approaches to accomplish the task objectives.** It is expected that the person chosen to do the task already has a tentative plan of action that may be presented to the manager, to assure him or her that the person assigned could achieve the task objective. 5. **Granting the assigned person the authority to act. If the manager is satisfied with the tentative plan of action presented, granting of the authority to act immediately follows**. Authority is a right to act in ways needed to carry out the assigned task. 6. **Giving the assigned person enough time and resources to do the task, while at the same time emphasizing his or her accountability.** Accountability is the assigned person's willingness to complete the job, as agreed upon. 7. **Checking the task accomplishment progress.** Following up and discussing the task accomplishment progress at regular intervals is necessary. 8. **Making sure that the task objective has been achieved.** The above steps of delegation were given by Weihrich and Krontz (2005). **The Advantages and Disadvantages of Delegation** +-----------------------------------+-----------------------------------+ | **ADVANTAGES** | **DISADVANTAGES** | +===================================+===================================+ | It prevents work overload among | It may cause laziness among | | organization managers. | organization managers. | +-----------------------------------+-----------------------------------+ | It provides opportunities for | It may encourage too much | | employee or subordinates assigned | | | to do the task to fully utilize | independence on others. | | their talents on the job. | | +-----------------------------------+-----------------------------------+ | It leads to empowerment of | It may cause lack of control over | | employees or subordinates | priority management problems. | | assigned to do the task, as it | | | allows them freedom to contribute | | | ideas and to perform their job in | | | the possible way. | | +-----------------------------------+-----------------------------------+ | It increase job satisfaction | It may cause low self-confidence | | among the assigned employees or | among managers. | | subordinates, that may lea to | | | better job performance. | | +-----------------------------------+-----------------------------------+ **LESSON 5** **Formal Organizations** - are characterized by hierarchical and reporting relationships among groups or members. **Informal Organizations** - consist of informal groups born out of the need for social affiliation. *Both formal and informal organizations may exist in the same organization structure.* **Formal Organizations have the following function**: 1. Accomplish goals that require cooperation or collaboration among formal groups in the organization 2. Produce or bring about new and creative ideas and solutions to company problems; 3. Coordinate interdepartmental activities; 4. Implement company rules/regulations and policies; and 5. Orient/train new employees. **Informal Organizations function include the following**: 1. Satisfy the members' need for affiliation; 2. Give the individual members a chance to develop their self-esteem; 3. Give individual members an opportunity to share their ideas; 4. Lessen individual members' insecurities; and 5. Provide a mechanism to solve members' personal and interpersonal problems. ***Advantages and Disadvantages of formal and informal organizations.*** **ADVANTAGES** +-----------------------------------+-----------------------------------+ | **FORMAL** | **INFORMAL** | +===================================+===================================+ | 1. Working systematically | 1\. Fast communication due to | | | the absence of standard | | 2. Established on and for the | operating procedures and | | organization\'s objectives | protocols | | | | | 3\. No duplication or | 2\. Gives importance to the | | overlapping of work | psychological and social needs | | | of employees | +-----------------------------------+-----------------------------------+ | 4\. Efficient coordination among | 3\. Top managers can solicit | | departments | feedback directly from the | | | employees on new policies and | | 5\. Implementation of chain of | plans | | command and professional | | | relationship | | +-----------------------------------+-----------------------------------+ **DISADVANTAGES** +-----------------------------------+-----------------------------------+ | **FORMAL** | **INFORMAL** | +===================================+===================================+ | 1\. Delay in feedback and action | 1\. More susceptible to rumor | | due to the established chain of | mongering | | command. | | | | 2\. There is no systematic | | 2\. Ignores the psychological | workflow in place | | and social needs of employees. | | | | 3\. Difficulty in implementing | | 3\. Emphasis on work only and | new rules and policies. | | overlooks the human relations, | | | talents, and creativity of | 4\. More emphasis on the | | employees. | individual interest of each | | | employee rather than the | | | overall goal of the company. | +-----------------------------------+-----------------------------------+