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Chapter 4

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Chapter 4

Uploaded by

xyloevergarden
Copyright
© © All Rights Reserved
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Organizing

A management function involving the structuring of resources and


activities to achieve objectives efficiently and effectively.
Structure
The arrangement or relationship of positions within an organization.
Purpose of Structure
1. It defines the relationships between tasks 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 groupings of individuals into departments and
departments into organization.
4. It defines the system to effect coordination of effort in both vertical
(authority) and horizontal (tasks) directions
Division of labor- determining the scope of work and how it is combined in
a job.
Delegation of authority- the process of assigning various degrees of
decision-making authority to subordinates.
Departmentation- the grouping of related jobs, activities, or processes into
major organizational subunits.
Span of control -the number of people who report directly to a given
manager.
Coordination- the linking of activities in the organization that serves to
achieve a common goal or objective.
Formal Organization
 is "the structure that details lines of responsibilities, authority, and
position."
 is "the planned structure."
 "represents the deliberate attempt to establish patterned relationships
among components that will meet the objectives effectively."
Informal Organization
 Formed spontaneously by members, often based on friendship.
 Do not have a formal performance purpose.
 Not part of the formal organization.

ORGANIZATIONAL STRUCTURE
Functional Organization- this is a form of departmentalization in which
everyone engaged in one functional activity, such as engineering or
marketing, is grouped into one unit.
Product or Market Organization- refers to the organization of a company
by divisions that brings together all those involved with a certain type of
product or customer.
Matrix Organization- an organizational structure in which each employee
reports to both a functional or division manager and to a project or group
manager.

TYPES OF AUTORITY
Line Autority- a manager's right to tell subordinates what to do and then
see that they do it.
Staff authority- a staff specialist's right to give advice to a superior.
Functional authority- a specialist's right to oversee lower level personnel
involved in that specialty, regardless of where the personnel are in the
organization.
Line departments focus on the organization's primary goals,like negotiatin
g contracts and managing construction in a construction firm.
Staff departments support line departments with specializedskills, includin
g strategic planning, labor relations, research, accounting, and personnel.
Functional authority is granted to individuals or work groups to make deci
sions based on their expertise, affecting other departments.
Personal staff those individuals assigned to a specific manager to provide
needed staff services.
Specialized staff those individuals providing needed staff services for the
whole organization.
Committee- are formal groups formed for specific purposes.
Committees are particularly useful in engineering and manufacturing firms.
For issues like product development, committees provide the expertise nee
ded to achieve objectives.
Ad hoc committee one created for a short-term purpose and have a
limited life.
Standing committee it is a relatively permanent committee that deals with
issues on an ongoing basis.

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