ORGANIZING CONCEPTS

Chapters 12,13,14,15,16,17, &18

CHAPTER 12

Organizing is based on two principles:

• Authority

• Span of management/span of control/ span of supervision

Authority

• It is the key to the managerial job

• It is the lifeblood of the managerial position

• It gives legitimate power to the manager or supervisor to give directives to subordinates

• It is limited in scope by both internal and external factors

Types of Authority

• Positional

• Functional

• Personal

Span of Management

• It is also called span of control and span of supervision

• It is the number of subordinates that a manager directs and supervises

• The number of subordinates varies• The smaller or narrower the span, the more

levels of management will be required • Some managers are able to supervise more

subordinates than are others

Factors Determining the Span of Supervision

• Competence of the supervisor• Competence and makeup of the subordinates• Amount and availability of help from staff specialists• Nature and importance of the activities performed• The dynamics and complexity of the activity to be

performed• The degree to which a comprehensive set of standards

and procedures are available to guide subordinates• Availability of self-directed teams

CHAPTER 13

Division of Work:

• Tasks are broken down and divided into smaller parts

• It is the process by which tasks and responsibilities are allocated

• It is essential for greater efficiency and higher productivity

Departmentalization

• The process of grouping the activities of an organization into units

• The units are grouped by the following methods:- Functions- Process and equipment- Territory or location- Customer- Time- Product

Mixed Departmentalization

• Uses multiple methods of departmentalization to meet the desired outcome

Matrix organization

• It is an organizational design that combines both functional and product departmentalization

• Several projects can be conducted simultaneously• Employees have two bosses• It violates the unity of command concept • Creates a number of problems such as conflicting

directives from two bosses, roles may not be clearly defined, power struggle between the two bosses, and subordinates may be confused regarding to whom they should report

CHAPTER 14

Delegation of authority:• It makes the organization operative• It gives life to the organization• An organization can only exist if authority has been delegated • Top management must create the mood by preaching and practicing broad

delegation of authority• It is distributed throughout an organization, starts at the top and flows

downward throughout the various levels of management • It follows the principles of chain of command or scalar chain and unity of

command• Frees the time of managers• Increases morale, interest, and enthusiasm for work• Provides a training ground and helps identify up coming leaders• Authority hoarders must be discouraged• Supervisors who carefully delegate authority does not lose status or free

them from their responsibilities

Three steps of the process of delegation

• Assignment of duties and defining the results expected

• Granting of permission (authority)

• Creation of an obligation (responsibility)

In order to make delegation of authority a success, those three steps must blend together

General Supervision

• Permits subordinates to decide how to achieve results within accepted professional standards

• Allows the manager or supervisor to have more time to perform management functions

• Enables subordinates to take great pride in decision-making

• Creates an environment to enhance the performances of team work

Barriers to delegation of authority

• Supervisor’s that are authority hoarders

• Reluctant subordinates to take on authority and responsibility

• The unavailability of suitable subordinates to whom authority can be delegated

Organizing Concepts Contd.-CHAPTERS 15, 16, 17, & 18

CHAPTER 15

Line authority

• Authority is based on superior-subordinate relationships and is managerial in nature

• Authority to give orders to subordinates

• The authority to direct subordinates and require them to comply to decisions, policies, plans, and objectives

• Generally follows the principle of unity of command

Staff Authority

• Authority is based on expertise in specialty areas

• Provides information, counsel, advice, and guidance in specialty areas and is not managerial in nature

• The authority to make recommendations to line organization

• The recommendations can be accepted, rejected, or altered by the line organization

Functional authority

• The CEO or administrator gives a staff member special limited right to command

• The right is based on expertise in a specialized area

• It allows maximum effective use of staff specialists

• It violates the principle of unity of command

CHAPTER 16

Reorganization:• Changes in organizational structures,

departmentalization, assignment of activities, and authority relationships

• It is closely aligned with reengineering• Reorganization occurs because of:

- Changes in priorities and goals- Financial needs- Scientific and technological advances- New developments and practices

Tools used for reorganization

• Job design• Job redesign• Job rotation• Job enlargement• Job enrichment• Work redesign

In order to ensure quality in services or products, supervisors should continuously monitor the processes of reorganization

Reengineering

• The focus is on customer needs

• It is continuous

• Relies heavily on teams of employees that are coordinated by management

• It has the potential to improve quality, customer responsiveness, reduce costs, and streamline operations

Downsizing and Rightsizing

Downsizing:

• Reduction in workforce

• Quickly initiated

• Little or no input from employees

Rightsizing

• Moderate to high cost reduction

• Quickly initiated

• Little or no input from employees

Quality Management

• Continuous service improvements that meet the needs of the organization and customers

• Empowers employees to attain the desired outcomes

CHAPTER 17-Committees as an Organizational Tool

Committees:• A formal group of people who function together to attain a desired organizational goal• Permit a group of people to function collectively in areas that a single individual cannot handle • Group members have regular full-time duties in the organization• Group members devote part of their regular working time to committee activities• Committee members must be carefully selected• Found at all organizational levels• Have line or staff capacity• Can be classified as standing or temporary• Promote coordination and cooperation among various departments in the organization• Produce continuity in the organization• Provide a forum for potential leaders to be identified• Give opportunities for various departments to be heard and get involved in the affairs of the

organization • Must have a mandate; know its scope and function• The degree of authority must be specified• The chair is the most important member of the committee• A well prepared agenda is required with a degree of flexibility

CHAPTER 18

The Informal organization:• It is a social subsystem• It interacts with the formal organization both in negative and positive

ways • It is found in almost all organization and cannot be eliminated• Small groups are the basis for an informal organization• Employees join small groups because of the following:

- Social needs- Sense of satisfaction- Friendship and companionship- Security, support, and collective power- Acceptance- Access to the informal organization (grapevine)- Status

The supervisor and the informal organization

• The informal organization is part of a complex system that interacts with the formal organization

• The supervisor must understand the workings of the informal organization

• The supervisor should approach the informal organization in a positive manner

• The supervisor should utilize the informal organization to achieve departmental objectives

• The supervisor should combine the interests of the formal organization with those of the formal organization