topic 4 : Organizing
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Organizing involves structuring relationships between people, work, and facilities to achieve goals. An organizational structure establishes the framework for how managers and subordinates operate. Work is divided among members and grouped according to similar activities and specialist workers to achieve objectives. An organization chart illustrates key aspects of structure including division of work, management hierarchy, work nature, work grouping, and management levels. Organizations determine span of management as either wide (flat) or narrow (steep) and departmentalize by function, product, geography, customer, or matrix. Authority refers to the right to make decisions and direct subordinates' work.
topic 4 : Organizing
- 2. DEFINITION • Organizing means to structure / arrange the relationship between people, the work to be done, & the facilities so that goals are achieved.
- 3. • Organizational structure • Is the basic framework within which the manager & his subordinates operate. • The organization enables similar activities to be grouped & assigned to appropriate specialist workers to achieve the objectives of the organization
- 4. • Division of work/labor • Work has to be divided among the members & different jobs related to each other. • It is easy to assign task to individuals based upon the talents, interests & position.
- 5. ORGANIZATION CHART • 5 Major aspects of an organization’s structure illustrated by the organization chart : – The division of work – Managers & subordinates (who is whose boss) – The type of work being performed (nature of work) – The grouping of work segments – The level of management
- 6. SPAN OF MANAGEMENT • Span of management refers to the number of subordinates who report directly to a given manager of supervision. • In any organization, they can structure their organization according to : • A flat organization (WIDE SPAN OF MANAGEMENT) • A steep organization (NARROW SPAN OF MANAGEMENT)
- 9. DEPARTMENTALIZATION • Departmentalization is the process of grouping into separate units’ activities / tasks that are intended. • The organization can be departmentalization as follows • By function • By product • By geography • By customer • By matrix
- 10. BY FUNCTION
- 11. BY PRODUCT
- 12. BY GEOGRAPHY
- 13. BY CUSTOMER
- 14. BY MATRIX
- 15. AUTHORITY • The right to make decisions with respect to work assignments & to require subordinates to perform assigned tasks in accordance with the decision made. • Types of authority : • Line authority • Staff authority
- 17. • Delegation – A concept describing the passing of formal authority to another person – may become necessary when managers are absent from their jobs. • Centralization – Practice of having responsibility & authority concentrated in one place, so that major decisions are made by the central controlling body.
- 18. • Decentralization – Delegating authority to subordinates for many decisions while maintaining control over certain essential matters.