Organizing (Management Functions)

C/D/DC/I/T (c) 2010

MANAGEMENTFUNCTIONSORGANIZING

MARIANOMARCOSSTATEUNIVERSITY

COLLEGEOFBUSINESSECONOMICSANDACCOUNTANCY

MAY2010

JONAHCALAUSTROVANESSADAMOCHRISTIANDELACRUZSALVEILDEFONSOROMMELTABILI

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Acc. To Chester Barnard

function define the role positions, the jobs related and

the coordination between authority and responsibility

C/D/DC/I/T (c) 2010

Acc. To Clayton State University: School of Business

process creating an organization’s framework

› degree of complexity, formalization, and centralization

C/D/DC/I/T (c) 2010

Acc. To Medina

management function structuring of resources and activities accomplish objectives efficiently and

effectively

C/D/DC/I/T (c) 2010

Acc. To Attner & Morgan

management function establishes relationships between activity

and authority results to an organization

› a system acting in harmony to execute whole tasks to achieve goals effectively and efficiently

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Acc. To Champ Academy

C/D/DC/I/T (c) 2010

Importance of Organizing

Plan implementation Assignment of

authority, responsibility, and accountability

Division of work Coordinates diverse

organizational tasks

Establish relationship among individuals, groups and departments

Establish formal lines of authority

Allocation and deployment of organizational resources

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Division of LaborP

rod

uct

ivit

y

Time

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Division of LaborP

rod

uct

ivit

y

Time

HUMANDISECONOMIESBoredomFatigueStressLow ProductivityPoor QualityIncreased AbsenteeismHigh Turnover

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Unity of Command

Superior

Subordinate

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Chain of Command

A

B

C

RECEIVE REPORTS

GIVE REPORTS

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Chain of Command: Authority

A

B

C

LINE AUTHORITY

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A

B

C

STAFF AUTHORITY

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A

B

C

FUNCTIONAL AUTHORITY

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Chain of Command: Responsibility

Responsibility

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Chain of Command:A-R Models

A R

AUTHORITY < RESPONSIBILITY

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A R

AUTHORITY > RESPONSIBILITY

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A R

AUTHORITY = RESPONSIBILITY

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Span of Control

Span of 8

(Classical)

Span of 4

(Contemporary)

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Classical Viewpoint

SPAN OF 8

Operatives = 4 096

Managers (levels 1-4)

= 585

1

8

64

512

4 096

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Contemporary Viewpoint1

4

16

64

256

1 024

4 096

SPAN OF 4

Operatives = 4 096

Managers (levels 1-6)

= 1 365

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Centralization & Decentralization

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CENTRALIZATION DECENTRALIZATION

Environment is stable Environment is complex, uncertain

Lower level managers (LLM) are not as capable or experienced at making

decisions as upper level mangers

LLM are capable and experienced a making decisions

LLM do not want to have a say in decisions

LLM want a voice in decisions

Decisions are significant Decisions are relatively minor

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CENTRALIZATION DECENTRALIZATION

Organization is facing a crisis or the risk of company failure

Corporate culture is open to allowing managers to have a say in what

happens

Company is large Company is geographically dispersed

Effective implementation of company strategies depends on managers retaining say over what happens

Effective implementation of company strategies depends on managers

having involvement and flexibility to make decisions

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Departmentalization

Putting specialists together Direction of a manager Departmentation

› Process› Setting up and establishing departments

C/D/DC/I/T (c) 2010

Common Elements of Organization

HENRY MINTZBERGMcGill University

Organization

•Operating Core•Strategic Apex•Middle Line•Technostructure•Support Staff

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Operating Core

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Strategic Apex

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Middle Line

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Technostructure

Affects certain forms of standardization Examples:

› Time and motion engineers› Job description designers› Systems and procedures analysts

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Support Staff

Fill staff units Provides indirect support

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Design Configurations

Operating Core

Strategic Apex

Middle Line

Technostructure

Support Staff

PROFESSIONAL BUREAUCRACY

SIMPLE STRUCTURE

DIVISIONAL STRUCTURE

MACHINE BUREAUCRACY

ADHOCRACY

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The Organizing Process

1 •Consider plans and goals

2 •Determine work activities

3

• Classify and group activities (General Nature, Work Areas, Departmentalization)

4 •Assign work and delegate authority

5 •Design a hierarchy of relationships

6 •Staffing

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1. Consider Plans & GoalsPurposes

Activities

Plans & Goals

To establish a partnership business engaged in the production of children’s shoes

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2. Determine Work Activities

Selling

Accounting

Delivery

Quality Control

Advertising

Compensating

Training

Production

Purchasing

Budgeting

Recruitment

Maintaining Personnel

C/D/DC/I/T (c) 2010

3. Classify & Group Activities

>Selling>Advertising>Delivery

>Production>Purchasing>Quality control

>Accounting>Budgeting>Compensating

>Recruitment>Training>Maintaining personnel

MARKETING OPERATIONS FINANCEHUMAN

RESOURCES

Functional Departmentalization

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5. Design hierarchy

General Manager

Operations Manager

Production Head

Administrative Head

Finance Manager

Accounting Head

Budget Section Head

Marketing Manager

Product Division Head

Promotions Head

Human Resources Manager

Recruitment Office Head

Personnel Maintenance Office Head

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6. Staffing

1 •Recruitment

2 •Selection

3 • Hiring

4 •Orientation

5 •Training and Development

6 •Performance Appraisal

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Organizational Structure

Formal system of tasks, reporting relationships

Controls, coordinates, motivates employees Achieve organization’s goals

C/D/DC/I/T (c) 2010

Purpose of the Structure

Defines relationships between tasks and authority

Defines formal reporting relationships, levels of hierarchy, span of control

Defines individual departments Defines systems that affects the organization

C/D/DC/I/T (c) 2010

Departmentalization:Simple Numbers

Datu

North50 warriors

South50 warriors

East30 warriors

West100 warriors

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Departmentalization:Time

Principal

A.M. Adviser P.M. Adviser

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Departmentalization: Function

President

VP Marketing

VP Human Resources

VP Manufacturing VP Finance

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Departmentalization: Geography

Chairman

Power Systems Group

Electric Company (Belgium)

Industry and Defense Group

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Departmentalization: Customer

Director of Sales

Manager Retail Manager Wholesale Manager Government

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Departmentalization:Process

Plant Superintendent

Pattern & Cutting Department

Sewing Department

Finishing Department

Inspection & Packing Department

Shipping Department

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Departmentalization: Product

President

VP Industrial Products

Marketing

VP Home Products

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Formal System

Planned structure Lines of responsibility, authority, and position Establish patterned relationships among

components Can be described through:

› Organizational Chart› Policy Manual› Departments

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Informal System

Based on needs, sentiments, and interests of people

Vulnerable to expediency, manipulation and opportunism

More subtle and invisible in the organizational chart

Can be classified as:› Horizontal = same department or same level› Vertical = different levels› Mixed = combination of both

C/D/DC/I/T (c) 2010

Fo

rmal vs In

form

al O

rgan

ization

s

FO

RM

AL

INF

OR

MA

L

Have planned structure Deliberate attempts to create patterned

relationships Usually shown by a chart Advocated by traditional theory

Not formally planned Arise spontaneously as a result of interactions Not depicted in a chart Stressed by human relation theory

Organizing (Management Functions)

Business

Transcript of Organizing (Management Functions)