Organizing as a Managerial

Function

Jedd
3PTC
Irvin
 Organizing as a Managerial function
• Purpose
– to make the best use of the organization's resources
to achieve organizational goals
• The process of:
– Grouping necessary responsibilities & activities into
workable units
– Determining line of authority & communication and
conscious development of role structures of superior
& subordinate
– Developing patterns of coordination
 Premises from which organizational
process stems:
• There is a Common goal toward which work is directed
• The goal is spelled out in Detailed plan
• there is a need for Clear authority – responsibility
relationships.
• Power & authority elements must be reconciled so that
individual interaction within the organization are productive and
goal oriented
• Conflict is inevitable but may be reduced through clarity of
organizational relationships
• Individual needs must be reconciled with and subordinated
Organizational needs
• Unity of command must prevail
• Authority must be delegated
 Organizational structure
• The formal decision-making framework by
which job tasks are divided, grouped, and
coordinated
– Formalization
• It is the extent to which the units of the organization
are explicitly defined and its policies, procedures, and
goals are clearly stated
• It is the official organizational structure conceived and
built by top management
• Can be seen and represented in chart form
 Process of Organizing
• 1. Goal recognition & statement
• 2. Review of org environment
• 3. Determination of structure needed to reach
the goal
• 4. Determination of authority relationships
• 5. Development of organizational chart
• 6. Development of job descriptions & related
support documents
 Process of Organizing
• Goal recognition & statement
– Type of service provided?
– Focus of the program?
• Review of org environment
– Type of prevailing leadership?
– Reporting structure?
– How much control to be delegated?
 Process of Organizing
• Determination of structure needed to reach the
goal
– Identification, classification & grouping of activities =
departmentation
– Decentralization
– Division of labor
– Areas of specialization
– Pattern of departmentation
– Assessment of interdepartmental & intradepartmental
workflow systems
– Use of commitees
 Process of Organizing
• Conduct a workflow analysis to examine how
work creates or adds value to the ongoing
processes in an organization
– Looks at how work moves from the customer or
the demand source through the organization to
the point at which the work leaves the
organization as a product or service to meet
customer demand
– Used to tighten the connection between
employees’ work and customers’ needs
 Process of Organizing
• Determination of authority relationships
– Assignment of each grouping to a manager
• Development of organizational chart
– Tying together of groups through authority
relationships and information flows
• Development of job descriptions & related
support documents
 Bureaucratic characteristics of
organizing
• Clear division of labor
• Org functions arranged in hierarchical manner
• Actions of employees are governed by rules &
procedures
• “Impersonal” application of rules &
procedures
• Objective selection criteria
 Organization Design
• involves choosing an organizational structure
that will enable the company to most
effectively achieve its goals.
• Results in the creation of an organization's
structure
– Functional
– Divisional
– matrix
 Functional organization
• Functional structures group similar or related
occupational specialties or processes together
under the familiar headings
– Finance, manufacturing, marketing, accounts
receivable, research, surgery
• authority is determined by the relationships
between group functions and activities
– Encourages specialization
– Departments may prioritize own departmental goals
 Divisional organization
• Divisional structures are made up of self-
contained strategic business units that each
produces a single product
• A central headquarters, focusing on results,
coordinates and controls the activities, and
provides support services between divisions
– Functional departments accomplish division goals
– A weakness however, is the tendency to duplicate
activities among division
 Matrix structures
• utilize functional and divisional chains of
command simultaneously in the same part of the
organization, commonly for one-of-a-kind project
• Superimposes a project structure upon the
functional structure
• teams are formed and team members report to
two or more managers
• assigns specialists from different functional
departments to work on one or more projects
being led by project managers
 Fundamental concepts
• Formal organizations are highly structured
– Arrangement of individuals into graded series of
superior and subordinate relationships
• Chain of command
– Scalar principle
• Chain of direct authority from superior to subordinate
– Unity of command
• Uninterrupted line of authority
• Each individual reports to only one superior
 Fundamental concepts
• Delegation of authority
– Principle of parity
• Authority of delegated must be equal to responsibility
assigned
• Ensures duties are carried out without provoking
conflict over the right to do so
– Principle of absoluteness of responsibility
• Authority may be delegated but ultimate responsibility
is retained by manager
– Command responsibility
 Fundamental concepts
• Division of labor or work specialization
– Increases proficiency & efficiency in performance
of duties
• In order to maximize productivity, supervisors match
employee skill level with task requirements
– Negative consequences
• May lead to boredom
• Difficulty in communication
• Become too insular
 Fundamental Concepts
• Departmentation
– Grouping of similar functions
• Facilitates coordination process
– Basic patterns of departmentation:
• Function
– All related activities, focus on one major activity, takes advantage
of specialization
• Product
– All activities in the development, production and marketing of
one product
• Time
– Use of shifts
 Fundamental Concepts
– Basic patterns of departmentation:
• Territory (geographical region)
– Specific catchment areas, foster efficient movement of
personnel to client locations
• Customer
– Groups jobs on the basis of a common set of needs or
problems of specific customers
– Based on client needs = specialty clinics
– Allows development of cross functional teams
» Group is chosen from different functions to work together
across various departments to interdependently create
new products or services
 Fundamental Concepts
– Basic patterns of departmentation:
• Process
– Groups jobs on the basis of product or customer flow
– Each process requires particular skills and offers a basis for
homogenous categorizing of work activities
– Technological considerations and specialized equipment usage
• Number
– Assigning duties to undifferentiated workers under specific
supervision
 Fundamental Concepts
– Concerns due to departmentation
• Splintered authority
– When authority of a single manager is not sufficient for
unilateral decision making
– Need for coordination of functions
– Due to inherent limits of authority

– Resolved by:
» Pooling of authority – Concurring Authority
» Referral to higher level
» recognition
 Fundamental Concepts
• Span of management
– Span of control/supervision/authority
– Number of subordinate who report to any one
manager
• Coordination and control of activities
• Limits: 4-5 in higher levels
• 8-12 in lower levels
 Fundamental concepts
– Modifying factors for span of management:
• Type of work
• Degree of training of workers
• Supervisor’s qualifications
• Flow of work
• Organizational stability
• Geographical location
• Availability of staff specialists
• Value system of the organization
 Organizational chart
• chart which represents the structure of an
organization in terms of rank.
• shows the managers and sub-workers who
make up an organization.
• shows relationships between staff in the
organization
 Organizational relationships
• Vertical Line – direct relationship between superior
and subordinate
• Lateral – relationship between different departments
on the same hierarchical level
• Staff – relationship between a managerial assistant and
other areas. The assistant will be able to offer advice a
line manager. However, they have no authority over
the line manager actions
• Functional – relationships between specialist positions
and other areas. The specialist will normally have
authority to insist that a line manager implements any
of their instructions
 Line & Staff relationships
Line of Authority
• Line position Chain of Command

– Direct responsibility for President

Employee
 Line & Staff relationships
• Staff position Staff Authority

– Helps the line units

Vice
President
 Functional authority
• Right to exercise limited authority over
specialized functions
• Usually delegated over limited time period
 Limitations of an organizational chart
• It only shows “formal relationships” and tells
nothing of the pattern of human (social)
relationships which develop.
• It shows nothing about the managerial style
adopted (autocratic or democratic)
• It very quickly becomes out-of-date, especially
in large organizations who change their staff
regularly
 Types of organization charts
• Heirarchical
– Pyramidal structure
– Lateral
– Circular

• Matrix
Hierarchical – Pyramidal Structure
Hierarchical – Lateral Structure
Hierarchical – Circular Structure
 Matrix structures
• facilitates working on concurrent projects by
creating a dual chain of command,
– The project (program, systems, or product)
manager
• Have authority over activities geared toward achieving
project or program objectives
– The functional manager
• have authority over promotion decisions and
performance reviews
 Matrix structures
• used to develop a new product,
• to ensure the continuing success of a product
to which several departments directly
contribute,
• to solve a difficult problem
 Matrix structures
• Appealing to firms that want to speed up the
decision-making process
• But may not allow long-term working
relationships to develop
• Using multiple managers for one employee
may result in confusion as to manager
evaluation and accountability
 Categories of charts
• Master chart
– Depicts entire organization
– Shows all departments and major positions of
authority
• Supplementary chart
– Depicts a section or unit including specific details of its
org pattern
– Reflects the master chart & shows direct chain of
command from highest authority
– Shows each job title & number of positions in each
section
 Preparation of the org chart
• List major functions
• Group jobs according to function
• Tabulate the following information for each
job:
– Job title
– Reporting line
– Line or staff position
– Develop the final chart using general conventions
General Conventions for development
of organizational charts
• Rectangle – represents a person, position, or department
– Box size is relative to the authority level of the position
• Solid lines depict a formal and direct relationship between
positions
• Double linked rectangle might indicate a situation with co-
supervisors
• Dashed line indicates an advisory or indirect relationship
between positions
• Arrows indicate the flow of communication
• Divided box indicate job sharing or dual responsibilities
• A dashed border surrounding a rectangle, or a box containing
either TBH (To be hired )or TBD (to be determined) represents an
open position
 Job description
• Written objective statement defining duties
and functions attached to a job
• Includes
– Job responsibilities,
– Experience required,
– organizational relationships,
– working conditions,
– other essential factors of the position
Preparation of the job description
• Job analysis
– Done to complete the data on the content &
requirements of each job to establish objective
standards
– Methods used:
• Observation
• Interviews
• Questionnaire
• Checklist
• Daily log
 Format for the Job Description

• Job title
• Job relationship
– Immediate supervisor/subordinates
• Job summary
– General description of responsibilities
– Description of job setting & conditions (working hours, break
periods, etc)
– Indicate degree of supervision required or given
• Job duties
– Specific tasks attached to the job
• Job specifications
– Required qualification such as educational attainment, previous
experience, special skills, other physical or mental demands
 Uses for the Job Description
• Compliance with legal or accrediting
requirements
• Basis for job rating, classification, wage &
salary administration
• Guide for Recruitment & Selection process
• Basis for orientation & training programs
during initial time of employment
• Basis for performance evaluation, retraining
requirements & grievance determination