Module 6

Organizing Defined
the process of grouping together men
and establishing relationship among them,
defining the authority and responsibility of
personnel by using the company’s other
basic sources to attain predetermined goals
and objectives

involves determining, grouping and
arranging the various activities in the
organization

Four Distinct Activities

1. It determines what work activities to
be done to accomplish organizational
objectives.
2. It classifies the type of work needed
and groups the work into manageable
work units.
3. It assigns the work to individuals and
delegates the appropriate authority.
4. It designs a hierarchy of decision-
making.

Importance of Organizing
Function

1. It provides a clarified work
environment
2. It creates a coordinated
environment
3. Everyone knows where to get orders
4. A formal decision-making structure
is established

Basic Organizational Concepts

1. Division of Labor
2.Unity of Command
3.Chain of Command
4.Span of Control
5.Centralization and
Decentralization
6.Departmentalization

Division of Labor
also known as “work specialization”
 the degree to which organizational
tasks are subdivided into separate jobs
 employees within each department
perform only the tasks relevant to
their specialized function

Unity of Command
a subordinate should have only one
superior to whom he/she is directly
responsible
All persons in the organization should
know to whom they report as well as
the successive management levels all
the way to the top

Chain of Command
 is an unbroken line authority that
links all persons in an organization
and shows reports to whom

Span of Control
 also known as “span management”
 refers to the number of employees
reporting to a supervisor
 Generally, when supervisors are closely
involved with subordinates, the span
should be small; when supervisors need
little involvement with subordinates, it
can be large

Span of Control
The average span of control used in an
organization determines whether the
structure is tall or flat

1. tall structure
 has an overall narrow span and more
hierarchical levels

4. flat structure
 Has a wide span, is horizontally dispersed,
and has fewer hierarchical levels

Example of a Tall Structure of an
International Metal Company

Example of a Flat Structure

President

Centralization and Decentralization

Centralization
 decision authority is located
near the top of the organization

Decentralization
 decision authority is pushed
down to lower organization levels

Departmentalization

 the basis on which individuals are
grouped into departments and
departments into the total organization

The Organizing Process

the process of identifying activities
needed to accomplish a goal,
subdividing and grouping these
activities into meaningful units and
assigning authority and
responsibility to people for their
accomplishment

Structure
the result of the organizing
process
it refers to the arrangement
or relationships of positions
within an organization

Purposes of a Structure
1. It defines the relationships between task
and authority for individuals and
departments;
2. It defines formal reporting relationships,
the number of levels in the hierarchy of the
organization and the span of control;
3. It defines the grouping of individuals into
departments and departments into
organizations;
4. It defines the system to effect coordination
of effort in both vertical (authority) and
horizontal (tasks) directions.

When structuring an
organization, the manager
must consider the following:
Division of labor
Delegation of authority
Departmentalization
Span of control
Coordination

Organization Defined

a social arrangement to
distribute tasks for a collective
goal

Five Elements of an Organization

1. Operating Core
2.Strategic Apex
3.The Middle Line
4.The Technostructure
5.The Support Staff

A. Formal Organization

is the “structure that details lines
of responsibility, authority and
position”
it is the planned structure and it
represents the deliberate attempt to
establish patterned relationships
among components that will meet
the objectives effectively

a diagram of the organization’s
official position and formal lines of
authority Example

provides written descriptions of
authority relationships, details the
functions of major organizational units,
and describes job procedures

describes the personnel activities
and company policies

Example of an Organization Chart

B. Informal
Organization
is based on the needs, sentiments
and interests of the people composing
it. It is vulnerable to expediency,
manipulation and opportunism
its low visibility makes it difficult for
management to detect perversions
and considerable harm can be done to
the company

Organizational Structure Defined

 the framework in which the
organization defines how tasks are
divided, resources are deployed, and
departments are coordinated
the arrangement and interrelationships
of the component parts and positions of a
company
it indicates the organization’s hierarchy

Types of
Organizational
Structure

1
. Line Organizational Structu

the simplest type of structure which
refers to a direct straight line
responsibility and control from top to
middle to the lower level of
management
 it is present in all types of
organization

Advantages:

1. Directness
2. Fixed responsibility
3. Simplicity
4.Flexibility
5. Discipline
6.Development of an all-around
executive
7. Expeditious decision-making

Disadvantages:
1. It becomes too difficult for secure executives,
supervisors and workers who have an all-
around knowledge and with the ability
required.
2. Specialization is not taken advantage of.
3. Executives are apt to be overloaded with
duties and responsibilities.
4. Too much reliance is placed on the chief and
other executives.
5. Spirit of teamwork is lacking.
6. Not suitable for big organizations.

2. Line and Staff Organizational

is similar to that of the line
organizational structure, only that
in line and staff organizational
structure, the manager is assisted
by specialists or experts
 the nature of staff relationship
is advisory

Staff Officers
persons trained to provide specialized
services to the line managers or
operating officials

Examples:

Administrative Assistant
 Legal Assistant
 Financial Consultant

Advantages:
1. Combination of the line and staff
2. Working relationships between the staff
and the line are well defined to avoid
friction among various units
3. Ability of line officials when the staff
officers constantly, feed them with
specialized assistance

Disadvantages:
1. Staff men are liable to overstep the
bounds of their authority and impose
their advice or plans
2. Line officers will depend on the staff men
to do all the thinking about the problems
in respective departments

3. Functional Organizational St

 uses the pure services of experts or
specialists
the most logical and most basic form of
departmentalization
very effective in smaller firms especially
“single-business firms” where key
activities revolve around well-defined
skills and areas of specialization

Advantages:
1. The grouping of employees who perform a common
task permit economies of scale and efficient resource
use.
2. Since the chain of command converges at the top of the
organization, decision-making is centralized, providing
a unified direction from the top
3. Communication and coordination among employees
within each department are excellent
4. The structure promotes high-quality technical
problem-solving
5. The organization is provided with in-depth skill
specialization and development
6. Employees are provided with career progress within
functional departments

Disadvantages:
1. Communication and coordination between
departments are poor
2. Decision involving one department pile up at top
management level and are often delayed
3. Work specialization and division of labor, which is
stressed in a functional organization, produce
routine, non motivating employee tasks
4. It is difficult to identify which section or group is
responsible for certain problems
5. There is limited view of organizational goals by
employees
6. There is limited general management training for
employees

4. Product or Market Organizationa

a structure which is appropriate for
big organizations with many product
lines in several related industries
its main feature is operating by
division

Advantages:
1. The organization is flexible and responsive
to change
2. The organization provides a high concern for
customer’s needs
3. The organization provides excellent
coordination across functional departments
4. There is easy pinpointing of responsibility
for product problems
5. There is emphasis on overall product and
division goals
6. The opportunity for the development of
general management skills is provided

Disadvantages:

1. There is high possibility of duplication
of resources across divisions
2. There is less technical depths and
specialization in divisions
3. There is poor coordination across
divisions
4. There is less top management control
5. There is competition for corporate

5. Committee Type of Organizationa

also called “plural type” or “multiple management.”
formed for specific purposes

Advantages:
1. Fosters cooperation
2. Provides balance viewpoint

Disadvantages:
1. Divided responsibility
2. Time-consuming
3. No clear-cut decisions

6.
Matrix Organizational Structure
a structure with two or more channels
of command, two lines of budgetary
authority, and two sources of
performance and reward
 was designed to keep employees at the
central pool and to allocate them to
various projects in the firm according to
the length of time they were needed

PM s Engineer Purchasing Contract
Specialist Negotiator

Purchasing Contract
PM X Engineer Specialist Negotiator

Purchasing Contract
PM Y Engineer Specialist Negotiator

Purchasing Contract
PM Z Engineer Specialist Negotiator

Advantages:
1. There is more efficient use of resources than
the divisional structure
2. There is flexibility and adaptability to
changing environment
3. The development of both general and
functional management skills are present
4. There is interdisciplinary cooperation and
any expertise is available to all divisions
5. There are enlarged tasks for employees
which motivates them better

Disadvantages:
1. There is frustration and confusion from dual
chain of command
2. There is high conflict between divisional and
functional interests
3. There are many meetings and more
discussions than action
4. There is a need for human relations training
for key employees and managers
5. There is a tendency for power dominance by
one side of the matrix

Organization Chart Defined
 the visual representation of an organization’s
structure
 it shows the relationship among positions as
to authority, responsibility and accountability
and the people who occupy them (Inigo)
 a diagrammatical form that shows important
aspects of an organization including the major
functions and their respective relationships, the
channels of supervision, and the relative
authority of each employee who is in charge of
each function

Dimensions of an Organizational
Chart

1. Vertical Dimension
establishes the chain of command
or who reports to whom

2. Horizontal Dimension
establishes the division of labor

Vertical
Dimension

Horizontal Dimension

Types of an
Organizational
Chart

shows the entire organizational structure. It
is a master plan of the principal
departments, with lines of authority and
responsibility and the mutual relationships
of all departments Example

shows at a glance the functions and
activities of each department/ positions
Example

shows the departments in the same relative
manner as the functional chart
instead of listing the functions, the names
of the persons are indicated Example

How to Draw Organizational Charts

1. Gather the necessary information on the following:

a. existing positions and/or departments
b. objectives, functions and activities of positions and/or
departments
c. different top and middle managerial positions
d. lines of authority and responsibility from top to middle
management
e. functional relationships between line and staff
positions/departments
f. positions and job titles
g. physical location of each position/department

How to Draw Organizational Charts

2. Know the proper arrangements of the different departments,
divisions, or sections with respect to line authority and their
relationships.
2. Draw a temporary chart and check it for accuracy with the
managers of the various departments and sections.
3. The chart as drawn should be shown to top management for
approval and implementation.

Rules in Drawing on Organization Chart
1. Boxes or rectangular representing various positions/jobs in the
organization should be grouped according to their levels in the
organization
2. The boxes indicating the organizational functions in the same level
should be of the same sizes
3. Solid/block lines should connect boxes or rectangles to designate
managerial controls or lines of authority. Dotted/broken lines should
indicate service in staff relationships

Rules in Drawing on Organization Chart
1. When an assistant to the head of an organizational position acts
in the capacity of a staff or technical assistant without exercising
managerial authority over the line position, it should be drawn
to the side of line position, either to the left or to the right
2. Staff or service functions are places under the office or unit
served, usually to the right by dotted lines. They should be of
the same size rectangles

CBEA Organization Chart

VP
VP
PLANNING VP VP ADMINISTRATION
RESEARCH &
DEVELOPMENT & ACADEMIC AFFAIRS & BUSINESS
PLANNING &
EXTERNAL LINKAGES EXTENSION
DEV’T
COMMITTEE
COLLEGE
DISCIPLINARY DIRECTOR FOR DIRECTOR FOR
BOARD RESEARCH EXTENSION
RESEARCH
COMMITTEE
UNIT
SCHOLARSHIP CAS
COMMITTEE
COLLEGE RESEARCH EXTENSION
RECRUITMENT
& PROMOTION SECRETARY
BOARD
BUSINESS
ACCOUNTANCY ECONOMICS
ADMINISTRATION
DEPARTMENT DEPARTMENT
DEPARTMENT

CHAIRMAN CHAIRMAN CHAIRMAN

FACULTY FACULTY FACULTY
GUIDANCE ALUMNI STUDENT ATHLETIC CULTURAL
SCHOLARSHIP
COORDINAT COORDINAT AFFAIRS COORDINATO COORDINAT COORDINATOR
OR OR COORDINATOR R OR
ADMINISTRATIVE
SUPPORT

Coca-Cola Company

Charles CCE - H. Lynn CCE - Joseph CCE - John CCE -
Lischer Oliver Burke Downs
VP, Controller, and VP, Tax VP, Retail SVP, Public
Principal Accounting Industry Affairs and
Officer Communications

Delegation Defined
 is the process managers use to transfer authority and
responsibility to positions below them in the hierarchy
 is the process of assigning various degree of decision-
making authority to subordinates

Responsibility
 refers to the duty to perform the task or
activity an employee has been assigned
 the work assigned to a position
 can be delegated

Authority
 the sum of the powers and rights
entrusted to make possible the performance
of the work delegated
the right inherent in a managerial
position to give orders and expect the
orders to be obeyed
 can be delegated

Example:
The right to hire and fire people

Authority
Types of Authority:

c.Authority of knowledge
results from men’s knowledge

b. Authority of position
 those arising from one’s proximity to those
line authority

c. Legal Authority
 an authority conferred by law

Authority
Concepts of Authority

3.Traditional concept
 according to Henri Fayol, authority is the right to
command and the power to make oneself obeyed
Authority is the right to give orders and exact
obedience

7.Behavioral concept
 authority is conferred by the subordinates on a
superior. Once the delegated function is accepted by
the subordinate, he gets the authority

Responsibility and Authority
The ideal model; people with
authority will not abuse their
position, since they have
commensurate responsibility in the
exercise of their authority

Performing the job is possible but
could be difficult since the person will
not be able to command others to do
the tasks assigned to them

When managers have authority
exceeding responsibility, they may
become dictators which may lead to
worthless outcomes

Accountability
 it means people with authority and
responsibility are subject to reporting and
justifying task outcomes to those above
them in the chain of command
 the answerability of the obligation to
perform the delegated responsibility and to
exercise the authority for the proper
performance of the work

Several Degrees of Delegation:
 Take action- no further contact with me is
needed
 Look into the problem- let me know what you
intend to do, do it unless I say not to
 Take action- let me know what you did
 Look into the problem- let me know what you
intend to do, delay action until I give my
approval
 Look into the problem- let me know
alternative actions available with pros and cons
and recommend one for my approval
Look into the problem- give me all the facts, I

Approaches That Can Help Each
Manager Delegate More Effectively

 Delegate the whole task
 Select the right person
 Ensure that authority equals
responsibility
 Give thorough instruction
 Maintain feedback
 Evaluate and reward performance

Mac Vincent Javier
Danielle Quidilla
Charmaine Zeny Rasos

PRESENTED BY:

THE STAFFING PROCEDURE
HR PLANNING
THE PLANNED OUTPUT OF ANY ORGANIZATION WILL
REQUIRE A SYSTEMATIC DEPLOYMENT OF HUMAN RESOURCES
AT VARIOUS LEVELS. TO BE ABLE TO DO THIS, THE MANAGER
WILL HAVE TO INVOLVE HIMSELF WITH HUMAN RESOURCES
PLANNING. HUMAN RESOURCE PLANNING MAY INVOLVE
THREES ACTIVITIES;

FORECASTING – WHICH IS AN ASSESSMENT OF FUTURE HUMAN RESOURCE
NEEDS IN RELATION TO THE CURRENT CAPABILITIES OF THE ORGANIZATION.
PROGRAMMING – WHICH MEANS TRANSLATING THE FORECASTED HUMAN RESOURCE NEEDS TO PERSONNEL
OBJECTIVES AND GOALS.
EVALUATION AND CONTROL – WHICH REFERS TO MONITORING HUMAN RESOURCE ACTION PLANS AND
EVALUATING THEIR SUCCESS.

Module 6

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Module 6