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    Samuel C. Certo Modern Management, 12th Edition: Fundamentals of Organizing

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    Optimistic Ridit
    This chapter discusses the fundamentals of organizing, including defining the organizing function and examining approaches to organizational structure. It covers classical organizing theory, with a focus on key elements like division of labor, span of management, and scalar relationships. Factors that influence appropriate span of management are explored. The chapter also discusses horizontal and vertical dimensioning in organizational design, including different ways to organize work through departments based on function, product, geography, customer, and matrix structures.

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    Samuel C. Certo Modern Management, 12th Edition: Fundamentals of Organizing

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    Optimistic Ridit
    233 views34 pages
    This chapter discusses the fundamentals of organizing, including defining the organizing function and examining approaches to organizational structure. It covers classical organizing theory, with a focus on key elements like division of labor, span of management, and scalar relationships. Factors that influence appropriate span of management are explored. The chapter also discusses horizontal and vertical dimensioning in organizational design, including different ways to organize work through departments based on function, product, geography, customer, and matrix structures.

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    This chapter discusses the fundamentals of organizing, including defining the organizing function and examining approaches to organizational structure. It covers classical organizing theory, with a focus on key elements like division of labor, span of management, and scalar relationships. Factors that influence appropriate span of management are explored. The chapter also discusses horizontal and vertical dimensioning in organizational design, including different ways to organize work through departments based on function, product, geography, customer, and matrix structures.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    233 views34 pages

    Samuel C. Certo Modern Management, 12th Edition: Fundamentals of Organizing

    Uploaded by

    Optimistic Ridit
    This chapter discusses the fundamentals of organizing, including defining the organizing function and examining approaches to organizational structure. It covers classical organizing theory, with a focus on key elements like division of labor, span of management, and scalar relationships. Factors that influence appropriate span of management are explored. The chapter also discusses horizontal and vertical dimensioning in organizational design, including different ways to organize work through departments based on function, product, geography, customer, and matrix structures.

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    At a glance
    Powered by AI
    The key takeaways are about organizing as a management function, factors that influence span of management, types of departmentalization, and forces that influence formal organizational structure.

    According to the passage, the main factors that influence the span of management are similarity of functions, geographic continuity, complexity of functions, coordination, and planning.

    The main types of departmentalization mentioned are departments by function, product, geography, customer, and matrix.

    Samuel C.

    Certo
    Modern Management, 12th Edition

    11
    chapter

    Fundamentals of Organizing
    Student Learning Objectives
    From studying this chapter, I will attempt to acquire:
    ✓ An understanding of the organizing function.

    ✓ An appreciation for the complexities of determining

    appropriate organizational structure.

    ✓ Insights on the advantages and disadvantages of

    division of labor.

    ✓ A working knowledge of the relationship between

    division of labor and coordination.


    Student Learning Objectives
    From studying this chapter, I will attempt to acquire:

    ✓An understanding of span of management and the


    factors that influence its appropriateness.

    ✓An understanding of scalar relationships.


    Organizing
    Organizing is the process of establishing
    orderly uses for all the organization’s
    resources.

    A primary focus of organizing includes


    determining both what individual will do in an
    organization and how their individual efforts
    should best be combined to contribute to the
    attainment of the organizational objectives.
    Henri Fayol developed sixteen general
    guidelines for organizing resources:
     Judiciously prepare and execute the operating plan.
     Organize the human and material components so that
    they are consistent with objectives, resources, and
    requirements of the concern.
     Establish a single, competent, energetic, guiding
    authority (formal management structure)
     Coordinate all activities and efforts.
     Formulate clear, distinct, and precise decisions.
    Cont.
     Arrange for efficient selection so that each department
    is headed by a competent, energetic manager and each
    employee is placed where she or he can render the
    greatest service.
     Define duties.
     Encourage initiative and responsibility.
     Offer fair and suitable rewards for services rendered.
     Make use of sanctions against faults and errors.
    Cont.
     Maintain discipline.
     Ensure that individual interests are consistent with the
    general interest of the organization.
     Recognize the unity of command.
     Promote both material and human coordination.
     Institute and effect controls.
     Avoid regulations, red tape, and paperwork.
    The importance of Organizing
     The organizing function is extremely
    important to the management system, beacuse
    it is the primary mechanism with which
    manageres activate plans.
     Organizing creates and maintains relationships
    between all organizational resources by
    indicating which resources are to be used for
    specified activities and when, where, and how
    they are to be used.
    The Organizing Process
    The Five Main Steps of the Organizing Process

    STEP 1
    FEEDBACK Reflect on STEP 2
    plans and Establish
    objectives major tasks

    STEP 5
    Evaluate STEP 3
    results of Divide major
    organizing tasks into
    strategy subtasks
    STEP 4
    Allocate
    resources and
    directives for
    subtasks
    Relationships Between Overall Management System
    and Organizing Subsystem
    OVERALL
    MANAGEMENT
    SYSTEM ORGANIZING
    SUBSYSTEM

    Input Input

    Process
    Process

    Output Output
    Organizing Subsystem
    INPUT
    A portion of the organization’s:
    1. People
    2. Money
    3. Raw materials
    4. Machines

    PROCESS
    (ORGANIZING PROCESS)
    1. Reflecting on plans and objectives
    2. Establishing major tasks
    3. Dividing major tasks into subtasks
    4. Allocating resources and directives
    for subtasks
    5. Evaluating results of organizing strategy

    OUTPUT
    Organization
    CLASSICAL ORGANIZING THEORY
     Represents the cumulative insights of early
    management writers on how organizational resources
    can best be used to enhance goal attainment.
     According to Max Weber, the main components of an
    organizing effort include detailed procedures and
    rules, a clearly outlined organizational hierarchy, and
    mainly impersonal relationships between organization
    members.
     Bureaucracy is the term referring to this management
    system.
    Main considerations of classical
    organizing theory
    1. Structure
    2. Division of labour
    3. Span of management
    4. Scalar relationships
    Structure
     Refers to designated relationships among resources of
    the management system.
     Structure seeks to facilitate resource use, both
    individually and collectively, as the management
    system seeks to attain its objectives.
     The organization chart is a graphic representation of
    organizational structure.
    Authority and Responsibility
     The location of a person's position on the organization
    chart emphasizes his/her authority and responsibility.
    The farther away the position from the top the less
    authority and responsibility that person possesses.
    Structure and Gender
     Organizational structure tends to be hierarchal in
    nature. Women are not comfortable with this
    structure, and they tend to create webs of authority to
    better fit their relational type leadership styles.
    Formal and Informal Structure
     Formal structure shows the relationships among
    organizational resources as outlined by management.

     Informal structure shows the patterns of relationships


    that develop because of the informal activities of
    organization members.
    Division of Labor
     Division of labor is the assignment of
    various portions of a particular task
    among a number of organizational
    members.
    Advantages and Disadvantages of Division
    of Labor
     Since workers specialize in a particular task, their task
    performance skills tend to increase.
     Workers do not lose valuable time in moving from one
    task to another.
     Because workers concentrate on performing only one
    job, they naturally try to make their job easier and
    more efficient.
     Division of labor creates a situation where workers
    only need to know how to perform their part of the
    work task, rather than the process for the entire
    product.
    Division of Labor and Coordination

    Coordination is the orderly arrangement of group


    effort to provide unity of action in the pursuit of a
    common purpose.
    Follett's Guidelines on Coordination
     Provide direct horizontal relationships and personal
    communications.
     Coordination should be a discussion topic throughout
    the planning process.
     Maintaining coordination is a continuing process and
    should be treated as such.
     The importance of the human element and the
    communication process should be considered in any
    attempt to encourage coordination.
    Vertical Dimensioning
     Vertical Dimensioning Vertical dimensioning refers
    to the extent to which an organization uses vertical
    levels to separate job responsibilities. Vertical
    dimensioning is directly related to the concept of the
    scalar relationship—that is, the chain of command.
    Every organization is built on the premise that the
    individual at the top possesses the most authority and
    that other individuals’ authority is scaled downward
    according to their relative position on the organization
    chart. The lower a person’s position on the
    organization chart, then, the less authority that person
    possesses.
    Scalar Relationships
     Scalar relationships refer to the chain of command
    positioning of individuals on an organization chart.
     Unity of command is a management principle stating
    that an individual should have only one boss.
     A gangplank refers to a "bridge", or communication
    channel from one organizational division to another
    but not shown in the formal organizational chart. It
    eliminates time and expense in contacting people
    necessary for information.
    Span of Management
    Span of management refers
    to the number of individuals
    a manager supervises.
    Designing Span of Management: A
    Contingency Viewpoint
    According to Koontz, several factors influence the
    appropriateness of the size of an individual's span of
    management:
     Similarity of functions
     Geographic continuity
     Complexity of functions
     Coordination
     Planning
    Graicunas’ Formula
    Graicunas’ formula is a formula that makes the span-of-
    management point that as the number of a manager’s
    subordinates increases arithmetically, the number of possible
    relation-ships among the manager and the subordinates
    increases geometrically. Graicunas’s formula is as follows:

    C is the total number of possible relationships between


    manager and subordinates, and n is the known number of
    subordinates.
    Horizontal Dimensioning
     The horizontal dimensioning of an organization refers to the
    extent to which firms use lateral subdivisions or specialties
    within an organization. Overall, to build organizations
    horizontally, organizations establish departments.
     A department is a unique group of resources established by
    management to perform some organizational task.
    Departmentalizing is the process of establishing departments
    within the management system.
     Department creation is typically based on the:
     Work functions being performed
     Product being assembled, territory being covered
     Target customer
     Process designed to manufacture the product
    Departments by function
    Departments by product
    Departments by geography
    Departments by customer
    Departments by Matrix
     A matrix organization is one in which a project
    manager(s) borrows workers from various parts of the
    organization to complete some specific project. For
    this reason, matrix organizations are also called project
    organizations. The project itself may be either long
    term or short term, and once finished, the employees
    borrowed to complete it return to their original jobs.
    Within a matrix structure, the workers are responsible
    for their original activities along with project activities.
    Because of the importance of matrix structure
    projects, project managers generally report directly to
    the company CEO.
    A Typical Matrix departments
    Forces Influencing Formal
    Structure
    Shetty and Carlisle focus on four primary forces:
     Forces in the manager
     Forces in the task
     Forces in the environment
     Forces in the subordinates

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