Ems 11es Unit 3

UNIT 3:
Organising
Organising
• Organising is classified as the second management function.
• It is conducted in order to achieve the goals developed in the planning phase.
• Resources need to be organised in order to implement the course of action in

the plan developed.
• During this phase, management:
 Determines the internal organisational structure required to achieve the

plan
 Establishes and maintains relationships
 Allocates resources to be used optimally

Organising
An organisation's structure indicates the work to be done
and the connections between the various tasks and
departments.
A structure indicates responsibilities and lines of authority

and communication.
Structures must be dynamic in the sense that they must

change to suit the demands of the environment and the
organisation.
Importance of organising

 Ensures a detailed analysis of work to be done and resources to be used

to reach the set goals – it provides a “picture” of duties, authority and
responsibility procedures to be followed and what resources they can use.
 Promotes the productive allocation and use of resources – related activities
are grouped together to ensure experts in the specific field carry out given
duties.
 Divides the total workload into activities that can comfortably be performed
by an individual or a group
 Related activities and tasks of individuals are grouped together rationally

in specialised departments
 Development of an organisational structure results in a mechanism that co-

ordinates the activities of the whole business into a complete, uniform and
harmonious unit
ORGANISING PROCESS
Determining the activities to be performed to
achieve the objectives of the organisation
Identification of major functions to which these

activities relate
Grouping and sub-dividing the work within each

function
Establishing relationship among individuals and

groups
Determining the activities to be performed to
achieve the objectives of the organisation
• In a manufacturing organisation, production and sales

are the two major activities
• Service organisations provide services such as
transportation to their customers. In carrying out these
major activities, business units have to perform a
number of other activities such as producing, financing,
marketing, accounting, recruiting employees, etc
Identification of major functions to which these
activities relate:
• The next step is to identify the major functions to

which these activities relate.
• In a manufacturing organisation, production, selling,
finance and personnel are the major functions
• Managerial positions will have to be created to
supervise the activities of these departments
Grouping and sub-dividing the work
within each function:
• it is decided how best the activities can be grouped

on the basis of similarity or relatedness
• The activities of a production department, for
example, can be divided into a number of workshops
where production will actually take place.
Establishing relationship among individuals and
groups:
• Managers divide activities to increase efficiency and to

ensure that work is properly done.
• The responsibility, authority and accountability of each
person must be well defined.
• Establishing relationships among individuals and groups is,
therefore, an important aspect of the organising process.
BASIC PRINCIPLES OF
ORGANISING
 Unity of Command & Direction:
 The ‘unity of command’ principle requires that employees report to only one
manager.
 The ‘unity of direction’ principle requires that all tasks are directed towards
the same goals
 Chain of Command: This principle requires that each employee within an
organisation reports to someone higher in the organisation
 Division of Work: Division of work provides for job specialisation. Jobs which
are related are grouped together into a section or department (Smit et al,
2011). Job specialisation provides the advantages of increased productivity,
reduced training costs and reduced transfer time.
 Span of Control: Span of control refers to the optimal number of
subordinates who report to a manager.
BASIC PRINCIPLES OF
ORGANISING
Coordination
 Organising, in dividing and subdividing the overall task of the
organisation
 Presents the manager with the problem of achieving
cooperation between the parts of the organisation.
 Thus, coordination is fundamental to the task of management, in
that the manager must facilitate the integration of the various
tasks performed at different levels so as to ensure that the
organisation achieves its ultimate goal (Smit et al, 2011).
 Mechanisms to assist the manager with coordination include
budgets, objectives, the organisational chart, committees and
policies and procedures
DEPARTMENTALISATION

• The formation of departments within an organisation results from specialisation and

involves the logical grouping of activities
• The method of departmentalisation adopted provides the organisation with a specific
type of structure.
• The forms of organisational structure include the following
 Functional organisational structure
 Product structure
 Geographic structure
 Market structure
 Matrix organisational structure
Functional organisational structure
Functional organisational structure
• Functional organisational structure which comprises all the functional
departments which an organisation requires to produce its products or render its
services
• Typical functional departments include finance, marketing, operations and
human resources.
• An advantage of the functional structure is that the grouping of similar jobs
together provides for specialisation as well as cooperation within a particular
function
Product structure
Product structure
 Product structure which is a divisional structure where each product or business
line is handled by a self contained division within the business
 For example, a manufacturer of home appliances may have a kitchen
appliances division, a television and sound division as well as a gardening
appliances division.
 Within each division there will be functional departments.

Geographic Structure
Geographic structure
• Geographic structure which is also a divisional structure with each region served
by a self contained division
• For example, a supplier of corporate IT services may have a European division,
African division, Australian division and Middle East division.
• Within each division there will be functional departments.
Market structure
Market structure
 Market structure which is divisionally structured according to the kind of
customers the organisation serves
 This structure is also known as a customer structure.
 For example, a computer company could be structured into divisions for large
business companies, small business companies and academic institutions.
Matrix organisational structure
Matrix organisational structure
 Matrix organisational structure which combines the advantages of a functional
and product organisational structure.
 Project managers are appointed to manage each organisational project
 Project managers are provided with the necessary skills from each functional
area (e.g. operations, sales) and from product managers (representing the
organisation’s various product lines)

DELEGATION OF AUTHORITY
Delegation is the downward transfer of formal authority

from superior to subordinate.
It is important to note that the manager remains

accountable.
Delegation empowers employees to perform tasks and

allows managers more time to manage more effectively.
DELEGATION OF AUTHORITY
There are six

principles for • Establish goals • Define authority • Involve
improving and standards and responsibility subordinates
delegation:
• Require • Establish
• Provide training
completed work adequate controls
Guidelines to overcome the barriers of delegation
• Treat delegation as a career-building tool that provides employees with needed experiences to prepare them for
greater responsibility.
• Find the right person for the task and clarify the task.
• Allow your subordinates to participate and be prepared to consider their ideas.
• Determine the acceptable level of performance in a task and then delegate that ask to someone who can achieve
that level.
• Delegate strategically by measuring employees’ success against jointly set goals.
• Let employees establish their own plan of action.
• Make sure that you stay on top of things and hold employees accountable.
• Establish feedback controls.

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UNIT 3:

• Organising is classified as the second management function.

• It is conducted in order to achieve the goals developed in the planning phase.

• Resources need to be organised in order to implement the course of action in

• During this phase, management:

 Determines the internal organisational structure required to achieve the

A structure indicates responsibilities and lines of authority

Structures must be dynamic in the sense that they must

 Ensures a detailed analysis of work to be done and resources to be used

 Related activities and tasks of individuals are grouped together rationally

 Development of an organisational structure results in a mechanism that co-

Identification of major functions to which these

Grouping and sub-dividing the work within each

Establishing relationship among individuals and

• In a manufacturing organisation, production and sales

• The next step is to identify the major functions to

• it is decided how best the activities can be grouped

• Managers divide activities to increase efficiency and to

• The formation of departments within an organisation results from specialisation and

Delegation is the downward transfer of formal authority

It is important to note that the manager remains

Delegation empowers employees to perform tasks and

There are six

• Allow your subordinates to participate and be prepared to consider their ideas.

• Delegate strategically by measuring employees’ success against jointly set goals.

• Let employees establish their own plan of action.

• Establish feedback controls.

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