Topic 5

Organizing

Caoile, Athens C.
Ambrosio, Thaddeus T.
 Table of Contents:
 What is Organizing?
 The Organizing Function
 Organizational Design
 Determinants of Structure
 Nature of the Objectives
 Operative Activities
 Technology
 Sequence of Task
 Limitations of Skill and Working Capacity
 Managerial Functions
 Size and Scope
 Strategy
 Social Needs
 Job Design and Job Characteristics Model
Organizing

 Organizing:
 Organizing, the process of arranging resources to carry out the organization's
plans is the second major function of managers. During the organizing stage, managers
think through all the activities that employees carry out (from programming the
organization's computers to mailing its letters), as well as all the facilities and
equipment employees need to complete those activities. They also give people the ability
to work toward organizational goals by determining who will have the authority to make
decisions, to perform or supervise activities, and to distribute resources.
 According to Henry Fayol “to organize a business is to provide it with everything
useful or it’s functioning i.e. Raw Materials, Tools, Capital and personnel’s”.
 It is the function of management that involves developing an organizational
structure and allocating human resources to ensure the accomplishment of objectives. The
structure of the organization is the framework within which effort is coordinated. The
structure is usually represented by an organization chart, which provides a graphic
representation of the chain of command within an organization. Decisions made about the
structure of an organization are generally referred to as organizational design
decisions.

 The organizing functions:
 The organizing functions:
 The three levels of a corporate hierarchy Top, Middle, Bottom commonly known as the Management Pyramid.


 Top Managers: are the upper-level managers who have the most power and who take overall responsibility
for the organization. Example Chief Executive Officer(CEO)Top managers job is to establish the structure for the
organization as a whole, they also select the people who will fill the rest of the upper level positions, they
are also the one who make long range plans, establish ,major policies and represent the company outside world at
official functions and fund raisers.


 Middle Managers: have similar responsibilities, but usually for just one division or unit. They develop plans for
implementing the broad goals set by top managers, and they coordinate the work of first-line managers. In
traditional organizations, managers at the middle level are plant managers, division managers, branch managers,
and other similar positions—reporting to top-level managers. But in more innovative management structures, middle
managers often function as team leaders who are expected to supervise and lead small groups of employees in a
variety of job functions. Like consultants, they must understand every department's function, not just their own
area of expertise. Furthermore, they are granted decision-making authority previously reserved for only high-
ranking executive.


 First Line Managers: they are at the bottom of the Management Pyramid also known as Supervisory Managers. They
oversee the work of operating employees, and they put into action the plans developed at higher levels. Positions
at this level include supervisor, department head, and office manager.

 Organizational Design:
 Is a step by step method that identifies problematic elements of
workflow,procedures,structures,and systems, realigns them to meet current company
realities/goal, and then creates plans to put new adjustments into action. The
process focuses on improving the technical and people side of the business.
 Sometimes referred to (Organizational Architecture) provides the backbone of the
whole company and the framework for the organization to deliver its core
qualities. Poor Organizational design is to blame for the majority of productivity
and performance problems. Among other things, poor organizational design is the
leading cause of confusion within positions, a lack of coordination between
functions and an inability to communicate ideas. Lackluster organizational design
might prevent a company from performing well even if it has talented employees and
strong management.
 To be effective, the overall organization design must be aligned with the business
strategy and the market environment in which the business operates. It must last
have the right business controls, the right flexibility, the right incentives, the
right people, and the right resources.
On the figure bellow we can see an example of Organizational

structure
Organizational Workflow Design Example:
Determinants of structure:


 Nature of the Objectives: The objectives of an enterprise govern the
selection of persons with appropriate skills and equipment capable of
delivering the goods. The objectives, thus, determine the basis of the
organization structure. For example, an organization structure of an
industrial concern cannot be the same as that of a religious or governmental
institution.
 Operative Activities: An individual in an enterprise may negotiate a sale to
a cus­
tomer; another may be engaged in assembling the parts of a motor car;
and a third may be collecting market data or cost information. The operative
activities and the inter-relations that exist among different tasks have an
important bearing on the structure of an organization.
 Technology: The organization structure of an enterprise depends upon the type
and nature of technological process adopted for the production. Therefore,
technology is a factor for consideration in determining the structure of an
organization.
 Sequence: Of Tasks: The nature of technology often dictates the sequence of tasks to be performed and
human relationships are required to be adjusted according to this sequence of tasks. This sequence of
tasks also acts as a major determinant to influence the structure of the organization.
 Limitations of skill and Working Capacity: Individuals in an enterprise differ in their skills and
abilities. These individual differences affect the tasks to be assigned to an individual and, as such,
the structure is required to be adjusted considering the limita ­
tions of human skill and ability.
 Managerial Functions: The managerial functions at one level or department may be different from that of
other level or department. Therefore, the structure of organization is to be devised to maximize
effective inter-relationships at different management levels so that it can facilitate the attainment
of objectives by the effective efforts of the subordinate emplo ­
yees.
 Size and Scope: The smaller the firm, the more informal and loose becomes the inter ­
personal contacts
and relationships. But they will be otherwise in the case of big concerns. So, the size of the
enterprise and its scope of performance have an effective influence on the organization structure.
 Strategy: After considering the organization structure of various enterprises the management thinkers
have come to the conclusion that the strategy plays a special role in determining the outline of
authority and flow of communication in an organization.
 Social Needs: The social needs of an individual such as—status, recognition, sense of belonging,
opportunity for development of abilities or the satisfaction of ego need—re ­
quire that they should be
given due weight for their fulfilment within the organization. The structure of an organization cannot
ignore these social needs.
 Job Design and Job Characteristics Model:
 Job Design: according to OSH it refers to the way that a set of tasks, or
an entire job, is organized. Job design helps to determine the Following:
 What tasks are done.
 How the tasks are done.
 How many tasks are done.
 In what order the tasks are done.
 It considers all factors which affect the work and organizes the content and tasks
so that the whole job is less likely to be a risk to the employee. Job design
involves administrative areas such as:
 Job rotation
 Job enlargement
 Task/machine pacing
 Work breaks
 Working hours
 A well-designed job will encourage a variety of 'good' body positions, have
reasonable strength requirements, require a reasonable amount of mental activity,
and help foster feelings of achievement and self-esteem.
 How Can Job Design help with the organization of work?
 Job Design can address problems such as:
 Work overload
 Work underload
 Repetitiveness
 Limited control over work
 Isolation
 Shiftwork
 Delays in filling vacant positions
 Excessive working hours
 Limited understanding of the whole job process
 Job design can be used to adapt the abilities and diversity of individuals.
Also considered to help deal with stress in the workplace.
 Job Characteristics Model
 Is a theory that is based on the idea that a task is the key to
the employee’s motivation. In short, a boring and monotonous job
with negative stress is disastrous to an employee’s motivation
whereas a challenging, versatile job has a positive effect on
motivation. The theory specifies five job characteristics that are
predicted to benefit individual’s psychological state and job
results. The theory also encompasses individual variables that may
function as moderators to represent the relationship between the
job characteristics and outcome variables.
Figure bellow shows hackman and Oldham job characteristics
model:
 Five Core Job Characteristics
 Skill Variety: Refers to the degree of which the job requires different skills and talents.
A great way to compare this is by looking at a repetitive job and comparing it to a job
that has a variety of required skills, if employee’s are doing job that requires different
skill they feel that they are doing a much more meaningful job.
 Task Identity: This refers to the degree to which the tasks of the job are clearly
identifiable and have a visible outcome. The theory says that if the employee understands
what needs to be done, understands when they are finished, and can see outcome of what they
achieved at the end, then they will feel that they are doing meaningful work. Example:
Think of two workers who are part of a project to build an airplane. The first worker is
involved only in the initial project planning, whereas the second worker is involved right
from the initial planning through to when the first aircraft rolls off the production line.
The theory states that it is the second worker who will find their work more meaningful.
 Task Significance: Refers to the degree to which the task has impact. Impact can mean a lot
of different things. It could mean that the task has impact within the organization. It
could mean that the task has impact to the bottom line or even to society as a whole.
 Autonomy: Autonomy is the degree of freedom an employee must complete their work. It is the
degree to which the employee is free to choose how to go about doing specific tasks, and
the degree to which they can choose how to schedule their tasks.
 Feedback: Refers to the degree to which the employee is kept informed about how well they
are doing in their role.
 Job Characteristic model can be use to design new roles or to redesign existing role when an
employee’s satisfaction or productivity is low.