1. Reorganization Reorganization is the process by which an
existing organization undergoes change in thesize and shape of the
organization structure. The change may range from simple to
complex.
2. Division manager Dept. Engineerin Manufacturi Marketin Heads
R&D g ng gProjectManagerProject AProject BProject CProject
D
3. In Figure 4.5 the organization is structured along two
dimensions. In one dimension, the structure shows basic functional
departments such as Research and Development, Engineering,
Manufacturing and Marketing. The Department Head in each of these
functional areas plans and controls the dimension, a Project
Director plans and controls the efforts for all projects currently
in that phase of development. In the other dimension, a Project
Director plans and controls an entire project currently in that
phase development. In the other dimension, a Project Director plans
and controls an entire project through all the function areas
necessary to its completion by placing personnel from each of the
appropriate functional departments. Thus, two hierarchal
structures
4. DepartmentationDepartmentation results from the grouping of
work, the desire to obtain organization unitsof manageable size,
and to utilize managerial ability An organization structure and
design are shaped significantly by the Departmentation followed. It
seems quite apparent that if the stated goals and objectives of an
organization are to be attained , certain activities have to be
performed. And it would also seem that the organizing function of a
manager would involve grouping the functions and activities
necessary to attain the goals of an enterprise.
5. Managing DirectorProducti Personn Marketing Finance Legal R
& D on el Manager Manager Adviser DirectorManager Manager
Figure 4.6 Departmentation by function
6. After the primary functions are identified, the next step is
to identify secondary functions and group them accordingly, At the
next step, each of these secondary functions may be further
subdivided into narrower work areas. This narrow division of
function helps to achieve the advantage of specialization by
function. Departmentation by the product involves grouping the
activities and functions on the basis of products manufactured by
the company.
8. Each of these divisions may be further divided into
departments based on the components of these products or by
functions performed. Likewise, a service organization may structure
its work by the service it offers. According to Dale, and
industrial engineer, grouping by product or service has the
advantage of bringing together and coordinating in one place major
activities required to make a particular product. In some
organization the grouping of activities is done on the basis of the
nature of work being done, that is by process.
9. Managing DirectorRecei Separati Weavin Bleachi Inspe shipin
Spining Dyeingving ng g ng ct ing g Figure 4.8 Departmentation by
process
10. Finally, the grouping may be done on the basis of
geographical location. In this method, the entire service area of
the organization is divided into geographical locations or
territories. In many instances, It may be particular geographical
location, or any of the other methods discussed. Managing Director
MINDANA NCR LUZON VISAYAS O Figure 4.9 Departmentation by
geographical location
11. RESULTS OF GOOD ORGANIZATIONA good organization would
result in the following:1.Establishing responsibility and
preventing buck passing2.Providing for easier
communication;3.Eliminating jurisdictional disputes between
individuals;4.Helping develop executive ability;5.Aiding in
measuring a persons performance against his charges and
responsibilities;6.Aiding in equitable distribution of work,
functions, and/or personnel supervision;7. Permitting expansion and
contraction without seriously disrupting the structure;8. Pointing
out dead-end jobs;9. Affording movement in the direction of the
ideal organization, in times of change;10. Establishing closer
cooperation and higher morale;11. Delineating avenues of
promotion;12. Preventing duplication of work;13. Making growth
possible with adequate control and without literally killing top
executives through overwork; and14. Aiding in wage and salary
administration through forced job analysis
12. THE ELEMENTS OF DELEGATION Delegation is the process of
entrusting and transferring responsibility and authority by the top
management to the lowest level. The elements of delegation are the
following:1. Responsibility This is the work or duty assigned to a
particular position. Responsibility involves mental and physical
activities which must be performed to carry out a task or duty.
This can be delegated.
13. 2.AuthorityIt refers to the power or the right to be
obeyed. It is also the sum of the powers and rights entrusted to
make possible the performance the work delegated. Authority
includes such rights and powers with regard to receipt and
disbursement of money, and hiring and dismissing of employees.3.
AccountabilityThis is the answerability of the obligation to
perform the delegated responsibility and to exercise the authority
for the proper performance of the work.
14. THE ART OF DELEGATION Delegation is considered an art and a
science. It is an art because it is a skill that the manager
performs effectively if he practice it. Delegation should first and
foremost be tackled before the establishment of goals and
objectives and a clear definition of responsibility and authority
has been made.THE EXCEPTION PRINCIPLE The exception principle (also
known as management by exception) is closely related to the parity
principle. The exception principle states that managers should
concentrate their efforts on matters that deviate significantly
from the normal and let
15. The key concept of Bureaucracy is Hierarchy the ranking of
individuals according to the amount of rational-legal authority
they can exercise when they are fulfilling the responsibilities of
their positions. When an individual comes into the organization,
she is assigned a particular position.FORMAL AND INFORMAL
ORGANIZATIONS Every organization structure has two systems of
operation: the formal and informal. The formal system is composed
of the recognized and formalized lines of communication, authority,
and control.
17. FORMAL INFORMAL.have planned structure - not formally
planned.deliberate attempts to create
18. Figure 4.11 org. chart PRESIDENT Vice president Vice
president in Vice president in 4 in charge of charge of charge of
finance production marketing Personnel Purchasin Chief Chief
manager g agent engineer inspector Plant 3 manager Foreman Foreman
Foreman Foreman assembly plating packing paint dept. dept. dept.
dept. w w w w w w w w w w w w w w w w1
19. CENTRALIZED AND DECENTRALIZEDORGANIZATIONS One of the most
important questions that a companymust answer as it whether or not
to continuemanagement that is centralized in one person, or
todecentralize management by delegating some of itsauthority to
subordinates.
20. Conduct research & AnalysisProvide an Objective
Identity Options to Viewpoint Solve Problems Make
CommunicateRecommendation THE MANY Management s for Future
FUNCTIONS Decisions toCourses of Action OF STAFF Subordinates
Submit Regular Monitor Specific Advisory Reports Operations Alert
Management to Potential Trouble Sports Figure 4.12 The many
functions of staff
21. In a centralized management organization, major decisions
are made by a few top executives, subordinates exercise little (if
any) initiate in decision making. Even when there are multiple
branches, most decisions are made at the main office rather than at
the local branch.CENTRALIZED DECENTRALIZEDControl by few because
men Control by many becauseat the top believe they are men at the
top believe thatindispensable. Dont trust participation
22. As a result of the above As aresult of the above attitude,
decisions are made attitude,decisions are made by the top
management throughout theorganization The drawback is potential
Thedrawback may be paralysis of decision makingcontrolled by
many
23. THE NATURE OF LINE AND STAFF RELATIONSHIP Another way to
improve coordination is to distinguish clearly between line and
staff positions so that organization members clearly recognize the
degree of responsibility associated with each organizational
position. As defined Previously, line personnel are those who
contribute directly to the accomplishment of organizational
objectives.
25. FLAT and TALL STRUCTURES As the span of supervision or
control increases (the number of subordinates being supervised),
the organization develops a flat structure. See Figure 4.13 and
4.14 In the diagram, both organizational structures have ten
subordinates under a top person. END!!!
