HSA 171CAR

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the process of establishing the orderly use

of resources by assigning and coordinating

tasks. The organizing process transforms

plans into reality through the purposeful

deployment of people and resources within

a decision‐making framework known as the

organizational structure.

Organizing requires the manager to determine how he or

she will distribute resources and organize employees

according to a designated plan aimed at some

organizational goal. The manager will need to identify

different roles and responsibilities, assign work, and

coordinate the right amount and mix of employees

across departments to carry out the plan. Each

employee must be aware of his or her responsibilities to

avoid frustration, confusion, and loss of efficiency.

Managers organize by bringing together physical,

human and financial resources to achieve

objectives.

They identify activities to be accomplished, classify

activities, assign activities to groups or individuals,

create responsibility and delegate authority.

They then coordinate the relationships of

responsibility and authority.

Organizational Structure : The formal arrangement of jobs within an

organization .

Organizational Design :◦ A process involving decisions about six key

elements: Work specialization Work specialization Departmentalization Departmentalization Chain of command Chain of command Span of control Span of control Centralization and decentralization Centralization and decentralization FormalizationFormalization

The end result of the organizing process is the

organizational structure, which refers to the type of

framework a company uses to distinguish power and

authority, roles and responsibilities, and the manner in

which information flows through the organization.

Having a suitable organizational structure will allow a

company to implement proper operating procedures

and decision-making processes that will aid the

organization in accomplishing its goals.

managers create the structure of working relationships between

organizational members that best allows them to work together

and achieve goals. • Managers will group people into departments

according to the tasks performed. – Managers will also lay out

lines of authority and responsibility for members. •

All organizations have a management structure that determines

relationships between the different activities and the members,

and subdivides and assigns roles, responsibilities, and authority to

carry out different tasks.

When the structure and design of an

organizational work together, they create a

productive and efficient working environment

where employees are motivated and customers

are satisfied.

A manager performs organizing function with the help of following steps:-

Identification of activities - All the activities which have to

be performed in a concern have to be identified first. For

example, preparation of accounts, making sales, record

keeping, quality control, inventory control, etc. All these

activities have to be grouped and classified into units.

Departmentally organizing the activities - In this step, the

manager tries to combine and group similar and related

activities into units or departments. This organization of

dividing the whole concern into independent units and

departments is called departmentalization.

Classifying the authority - Once the departments are made,

the manager likes to classify the powers and its extent to the

managers. This activity of giving a rank in order to the managerial

positions is called hierarchy. The top management is into

formulation of policies, the middle level management into

departmental supervision and lower level management into

supervision of foremen. The clarification of authority help in

bringing efficiency in the running of a concern. This helps in

achieving efficiency in the running of a concern. This helps in

avoiding wastage of time, money, effort, in avoidance of

duplication or overlapping of efforts and this helps in bringing

smoothness in a concern’s working.

Co-ordination between authority and

responsibility - Relationships are established among

various groups to enable smooth interaction toward

the achievement of the organizational goal. Each

individual is made aware of his authority and he/she

knows whom they have to take orders from and to

whom they are accountable and to whom they have to

report. A clear organizational structure is drawn and

all the employees are made aware of it.

Divides work to be done into specific jobs and departments.

Assigns tasks and responsibilities associated with individual

jobs.

Coordinates diverse organizational tasks.

Establishes relationships among individuals, groups, and

departments.

Establishes formal lines of authority .

Allocates organizational resources .

Cluster jobs in to units .

Six key elements:

Work SpecializationWork Specialization

DepartmentalizationDepartmentalization

Chain of CommandChain of Command

Span of ControlSpan of Control

Centralization and DecentralizationCentralization and Decentralization

FormalizationFormalization

The degree to which tasks in the

organization are divided into separate

jobs with each step completed by a

different person

The continuous line of authority that

extends from upper levels of an

organization to the lowest levels of the

organization and clarifies who reports to

whom .

The Chain of Command is Build on:

Authority Authority ::The rights inherent in a managerial position to

tell people what to do and to expect them to do it

Responsibility: Responsibility: The obligation or expectation to perform.

Responsibility brings with it accountability (the need to

report and justify work to manager’s superiors)

Unity of Command Unity of Command :The concept that a person should

have one boss and should report only to that person

Delegation Delegation :The assignment of authority to another

person to carry out specific duties

The number of employees who can be effectively and efficiently

supervised by a manager .Width of span is affected by:

Skills and abilities of the manager and the employees

Characteristics of the work being done

Similarity of tasks

Complexity of tasks

Physical proximity of subordinates

Standardization of tasks

Sophistication of the organization’s information system

Strength of the organization’s culture

Preferred style of the manager .

Centralization:Centralization:

◦ The degree to which decision making is concentrated at a single

point in the organization

Organizations in which top managers make all the decisions and

lower-level employees simply carry out those orders

Decentralization:Decentralization:

◦ The degree to which lower-level employees provide input or

actually make decisions .

◦ Employee Empowerment .

Increasing the decision-making discretion of employees .

Environment is stable.

Lower level managers are not as capable or

experienced at making decisions as upper level

managers.

Lower level managers don’t want to have a say in

decisions.

Decisions are significant.

Environment is complex.

Lower level managers are capable and experienced

at making decisions.

Lower level managers want a voice in decisions.

Decisions are relatively minor.

The degree to which jobs within the

organization are standardized and the

extent to which employee behavior is

guided by rules and procedures .

◦ Highly formalized jobs offer little discretion over

what is to be done

◦ Low formalization means fewer constraints on

how employees do their work .