The Nature and Purpose of Organizing-Revised

8/6/2019 The Nature and Purpose of Organizing-Revised

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� Division of Work and Specialization

� Coordination

� Plurality of Persons� Common Objectives

� Well-defined Authority and Responsibility

�

Organization is a Structure of Relationship� Organization is a Machine of Management

� Organization is a Universal Process

� Organization is a Dynamic Process



� the process of arranging and allocating work,

authority, and resources among an

organizations members so they can achievethe organizations goals



� Helps to achieve organizational goal

� Optimum use of resources

� To perform managerial function� Facilitates growth and diversification

� Human treatment of employees



� Effective administration

� Growth and diversification

�

Sense of security� Scope for new changes

� Co-ordination

� Clarifies authority

� Well defined jobs



� Principle of Specialization

� Principle of Functional Definition

� Principles of Span of Control/Supervision� Principle of Scalar Chain

� Principle of Unity of Command



� Six steps in organizing:1. Establishment of enterprise objectives.

2. Formulation of supporting objectives,policies and plans.3. Identification and classification of activities

necessary to accomplish these

4. Grouping of these activities in the light of human and material resources available andthe best way, under the circumstances, of using them



5. Delegation to the head of each group the

authority necessary tom perform the

activities6. Tying together of the groups horizontally and

vertically, through authority relationshipsand information flows



� Division of Work

� Departmentalization

� Hierarchy� Coordination



� breakdown of a complex task into

components so that individuals are

responsible for a limited set of activityinstead of the task a whole

� fosters specialization, wherein each personbecomes expert in a certain job



� grouping into departments of work activities

that are similar and logically connected



� pattern of multiple levels of an organizational

structure, at the top of which is the senior-

ranking managers and lower-rankingmangers are located down various levels of

organization



� Also known as span of control

� It refers to the number of subordinates that

can be handled effectively by a superior in anorganization.

� And it signifies how the relations are plannedbetween superior and subordinates in an

organization.



� Narrow span - a single manager or supervisor

oversees few subordinates, which gives rise

to a tall organizational structure.

� Wide span - a single manager or supervisoroversees a large number of subordinates,

whiich gives rise to a flat organizationalstructure.





� Close supervision

� Close control

� Fast communication between subordinatesand superiors

� more growth opportunities for a subordinateas the number of levels is more



� Superiors tend to get too involved in

subordinates work

� Many levels of management� High costs due to many levels

� Excessive distance between lowest level andtop level



Wide Spans



� Superiors are forced to delegate

� Clear policies must be made

� Subordinates must be carefully selected



� Tendency of overloaded superiors to become

decision bottlenecks

� Danger of superiors loss of control� Requires exceptional quality of managers



� Levels are expensive.

� They complicate communication.

� They complicate planning and control.



� there is a limit to the number of subordinates

a manager can effectively supervise, but the

exact number will depend on the impact of underlying factors.



1. Subordinate Training2. Clarity of Delegation of Authority

3. Clarity of Plans4. Use of Objective Standards5. Rate of Change6. Communication Techniques7. Amount of Personal Contact Needed8. Variation by Organizational Level



� Either widen or narrow spans depending on

their limitations



� process of integrating the activities of

separate departments in order to pursue

organizational goals effectively� there are three basic coordinating

mechanisms: mutual adjustment, directsupervision, and standardization (of which

there are three types: of work processes, of work outputs, and of worker skills)





� the framework, typically hierarchical, within

which an organization arranges its lines of

authority and communications, and allocatesrights and duties

� determines the manner and extent to whichroles, power, and responsibilities are

delegated, controlled, and coordinated, andhow information flows between levels of

management



� Functional Organization

� Product/Market Organization

� Matrix Organization



� brings together in one department everyone

engaged in one activity or several related

activities that are called functions� makes efficient use of specialized resources

and makes supervision easier



VICEPRESIDENTProduction

VICEPRESIDENTMarketing

VICEPRESIDENTFinance

VICEPRESIDENTHuman Resource

PRESIDENT



� referred to as organization by division

� brings together in one work unit all those

involved in the production and marketing of aproduct or related group of products, all

those in a certain geographic area or all thosedealing with a certain type of customer



� Division by product

� Division by geography

� Division by customer



VICEPRESIDENTProduction

VICEPRESIDENTMarketing

VICEPRESIDENTFinance

VICEPRESIDENTHuman Resource

PRESIDENT

GENERALMANAGERPharmaceutical

Products

GENERALMANAGERPropriety

Products

GENERALMANAGERPersonal-care

Products



� referred as multiple command system

� a hybrid that attempts to combine the

benefits of both types while avoiding theirdrawbacks



� involves breaking down a task to its lowest

level and designing jobs around each part

which creates specialization, expertise, andimproved quality.

� Benefits:learning and speed of production

happen fasterreduces quality control costs and

improves production efficiency



� people can only do one task for they are not

trained to multitask or handle multiple areas

of a workplace� workers under job specialization dont have a

wide array of applicable skills, so it becomeshard for them to adapt to a new function or

need in the organization



� most fundamental authority within an

organization, reflects existing superior-

subordinate relationships.� consists of the right to make decisions and to

give order concerning the production, salesor finance related behaviour of subordinates

� line authority gives an individual a certaindegree of power relating to the performance

of an organizational task



(1) line authority does not ensure effectiveperformance

(2) line authority is not restricted to linepersonnel.

- The head of a staff department has line

authority over her employees by virtue of authority relationships between thedepartment head and her directly-reportingemployees.



- the right to advise or counsel those with line

authority

- gives staff personnel the right to offer advicein an effort to improve line operations



� key aspect of leadership and a vital skill for

team leaders

�

Meaning(book)

� "I not only use all the brains I have, but all Ican borrow." - W oodrow W ilson



Positive aspects of delegation include:

�Higher efficiency

�

Increased motivation�Develops the skills of your team

�Better distribution of work through the group



� Identify a suitable person for the task.� Prepare the person. Explain the task clearly.

Make sure that you are understood. Leave roomin the task description for ingenuity / initiative.

� Make sure the person has the necessaryauthority to do the job properly.

� Keep in touch with the person for support andmonitoring progress. Do not get to close.Acceptalternative approaches.

� Praise /Acknowledge a job well done.



After delegating:

�Plan - goals, meeting, tasks

�

Direct - your team, keep them on track�Encourage - boost morale



Job Design- involves systematic attempts to organize

tasks, duties and responsibilities into a unit of work to achieve certain objectives.

- integrates the work content andqualifications required for each job that

meets the needs of employee and theorganization



Staffing- concerned with acquiring, developing,

employing, appraising, renumerating andretaining people so that right type of people

are available at right positions and at righttime in the organisation.

- In the simplest terms, staffing is puttingpeople to jobs.



Importance of staffing:

� Filling the Organisational positions

�

Developing competencies to challanges� Retaining personnel - professionalism

� Optimum utilisation of the human resources



� the transfer of authority and responsibility for

public functions from the central government

to subordinate or quasi-independentgovernment organizations and/or the private

sectoris a complex multifaceted concept



1. the gradual appearing of a new distribution

of responsibilities among the national,

regional and local levels of governmentthrough the process of deconcentration (an

initial and limited form of decentralization);

2. the disengagement of the state andeconomic liberalization, which favored a

new wave of decentralization through

devolution;



3. increased involvement of local jurisdictions

and civil society in the management of theiraffairs, with new forms of participation,

consultation, and partnerships.



� describes the process of defining a job

position salary cost relative to the employer

organization, industry, and location.

� the result of this work and analysis tends tobe determining pay ranges for job

classifications to remain competitive but toalso control labor costs as well.



� Miscommunication/Workrelationships/Interpersonal problems andpersonality conflicts

� Alienation-the absence of a sense of control.� -too wide a span may mean that managers are

overextended and employees are receiving too littleguidance or control

� When this happens, managers may be pressured toignore or condone serious errors.

� Too narrow a span is inefficient because managersare underutilized.



� Narrow spans of management create tall

hierarchies with many levels between the

highest and lowest managers. In theseorganizations, along chain of command slows

decision making, a disadvantage in a rapidlychanging environment.



� Differentiation

Perspective

Time orientation Interpersonal styles

Formality

Documents

The Nature and Purpose of Organizing-Revised