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Lesson 2

The document discusses organizing as a management function including determining tasks, assigning responsibilities, and coordinating resources. It describes organizational structures like functional, product, and geographical structures and their advantages and disadvantages. Organizing allows managers to divide work, pool resources, and build continuity and synergy within a department.

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16 views

Lesson 2

The document discusses organizing as a management function including determining tasks, assigning responsibilities, and coordinating resources. It describes organizational structures like functional, product, and geographical structures and their advantages and disadvantages. Organizing allows managers to divide work, pool resources, and build continuity and synergy within a department.

Uploaded by

jessafesalazar
Copyright
© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
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Grade 12 (ABM) “PREFINALS”

Organization and Management Topic: Organizing


LESSON
2
What is Organizing?
Managers have to organize the activities they want to perform for the following reasons:
– So that they can divide the work according to the nature & similarity of tasks.
– So that they can pool resources & increase the efforts which lead to efficiency.
– So that they can build continuity & synergy.
A manager who wants to organize his/her department must address these issues:
– Determine what is to be done
– Assigning tasks
– Decide how to achieve coordination
– Decide on a span of management
– Decide how much authority you should designate
– Draw an organizational chart

The Process of Organization


1. Aligning with company’s vision and mission 4. Coordinating resources
2. Determining tasks, duties, and responsibilities 5. Monitoring and feedback
3. Grouping into logical units and sub-units

Organizational Structure
• Definition:
– The formal representation of working relationship that defines tasks by position and unit and indicates how they will
be coordinated.
– Diagram that illustrates the relation of reporting relationships, functions, departments, divisions and even individual
position within organizations
– ‘skeleton’ representation of organizational structure

Division of work/labor (work specialization)


• Definition:
– Dividing duties into simpler, more specialized task
– Managers and employees are assigned and perform duties based on specialization and personal expertise

Advantages vs Disadvantages of work specialization


• Advantages
– Increase productivity
– Foster specialization – simplify task, easily understood and completed quickly
– Assign task based on individual talent, interest and position
• Disadvantages
– Lower sense of control by managers
– Create dissatisfaction and boredom – esp. routine and specialized task

Organization Structure (Departmentalization)


• Departmentalization is a process of grouping jobs into separate unit activities or tasks that are proposed.
• There are six (6) types of Departmentalization/Organizational Structure:-
Functional structure Geographical structure Customer structure
Product structure Matrix structure Network structure

FUNCTIONAL STRUCTURE
• Used mainly by smaller firms that offer a limited line of products because it makes efficient use of specialize resources
• This method eliminate overlapping in the execution of organizational activities
Advantages:
• Staffed by experts of each functions
• Easier supervision
• Easy to coordinate activities
Disadvantages:
• Difficult to get quick decisions or actions on a problem or situation
• Difficult to monitor performance, especially among individual

PRODUCT STRUCTURE
• Grouping the activities and functions on a basis of products manufactured by the company
Advantages:
• Activities can be easily focuses and coordinated
• Enhance speed and effectiveness of decision making
• Easy to assess performance and identify accountability/liability
Disadvantages
• Focus only on own products
• Increase the administrative costs

GEOGRAPHICAL STRUCTURE
• A company or a part of it is organized around the places where operations are located.
• It is commonly found in sales or manufacturing operations.
Advantages:
• It offers better services at low cost.
• It places emphasis on local markets & problems.
Organization and Management – Grade 12 page 2 Lesson 2 - Prefinals
• It offers better face to face communication with local interests.
Disadvantages:
• It requires more staff with general manager abilities.
Organization and Management – Grade 12 page 3 Lesson 2 - Prefinals
• Authority
– The formal right inherent in an organizational position to make decisions.
• Formal authority
– Authority inherent in an organizational position.
• Informal authority
– Ability to influence others that is based on personal characteristics or skills.
• Responsibility

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