DM 101 -

Organization &
Management
Concepts
Module: 3 Organizing
(Week 5-6)
 Learning Outcomes
• On completion of this module, the student will be able
to:
1. Discuss the nature of organizations,
2. Create an organization chart,
3. Compare and contrast different organizational
structures,
4. Identify various delegation elements
5. Differentiate formal from informal organizations
6. Define organizational culture
 Organization

• is a group of people who systematically

communicates and cooperates with one
another to achieve their common goals and
objectives.
 Organizing

• is the process of distributing tasks to

interconnecting work units or departments
to accomplish tasks significant to achieving
goals and objectives
 Organization structure

• refers to the breaking down of work load,

resources assignment, and inter-unit
coordination of tasks to achieve the
common goals and objectives, avoiding
unnecessary redundancies and overlapping
of roles and responsibilities.
 Organization chart
• refers to the graphic representation of the
organization structure indicating different roles and
arranged according to hierarchy and scope of
authority and control as well as the chain of
command. It is important to:
1. understand company structure, clarity of roles and
responsibilities of an employee.
2. provides incentive for entry-level workers and to give a
clear picture of what they can aspire for as they climb to
the corporate ladder.
3. easily diagnose who to help or coordinate with in case
problems would arise.
Principles of
Organizing
(2)Two types of Organizing
 Authority
• is the official and justifiable right of the manager
to lead in decision-making, issuing orders, and
resources appropriations. It has attributes:
a) Given to positions not specific people.
b) Acknowledged by subordinates.
c) Streams downwards the vertical line of work positions
 Types of Authority
a) Line - typical type of supervisor-subordinate
relationship; makes decisions and gives orders.
b) Staff - the right to advise and assist line
authorities and other workers; evaluate and
analyze improvement of operation
c) Functional - the right to issue orders in a
designated segment of the organization for
specific length of time only.
 Span of Control
• refers to the number of workers reporting
directly to a particular superior for
thorough supervision
Types of Control Structure:
a) Tall - narrow span of authority
but more hierarchical levels
b) Flat - wide span of authority but
less hierarchical levels
Factors Affecting Span of Organizing Process
Control
1. Work stability of 1.Division of Labor
subordinates 2. Labor Clustering or
2. Subordinates’ ability to Departmentation
execute parallel tasks
3. Single location 3. Departments
4. Proper training and minimal Interconnection
supervision 4.Assignment of Duties
5. Rule and procedure-defined
tasks and Responsibilities
6. Managers’ accessibility to 5.Defining Hierarchical
support systems and Structure
personnel care
7. Shortest time required for
nonsupervisory tasks
(6)Six Types of Organizational
Structure
 1. Functional

• The common type where employees are

grouped according to similar skills,
expertise and resources being used.
Strengths Weaknesses
1. same lingo 1. slow and less coordination
2. understandable job context among various departments
3. clear-cut chain of command
2. limited decision-making of
4. enhanced coordination within
same department department heads
5. undoubted accountability and 3. diverse concerns that some
management privileges may go unnoticed
6. develops workers to be expert
specialists
7. easy training and quick problem
solving
8. Increased efficiency due to
shared equipment and resource
 2. Product / Service
Organization
• Units are divided per products and/or services offered by
the company.
Strengths Weaknesses
1. easy pinpoint of product 1. thinner resources
responsibility distribution across product
2. product concentration results lines
to high quality output 2. extra and double effort
3. team spirit for each product leads to higher costs
line 3. clients and retailers to
4. division rivalry can improve coordinate to two or more
business product line divisions
5. autonomous decision- 4. slow to identify the adding,
making dropping or changing
6. faster reply customer appeal products
5. could be stifled one focus
 3. Customer Type

• Focuses on stakeholders and clients

preferences or personal needs
 4. Geographical-Based

• applies for companies whose division

offices are scattered to different places.
Strengths Weaknesses
1.Customers unique needs 1. Less sharing of resources
addressed and served 2. Possible redundant effort
2.Focus on customer’s and infrastructure causing
higher cost
preferences 3. Differences in internal
3.Drop unprofitable product system due to varying
line customer demands
 5. Matrix
Combines both
functional and
divisional structures;
typically with
multinational
companies wherein
employees must
satisfy both local
and international
demands.
Strengths Weaknesses
1. Efficiently maximizing 1. Confusion with many
resources bosses
2. Taking full potential of groups 2. Slower decision-making
3. Opportunity to work for all 3. Managers’ power and
employees to practice resources struggle
expertise and skills 4. Possible work disruption
4. Cooperating managers and and risk in customer service
mellowed down power 5. Subordinates bossing
towards subordinates around each other
6. Team-Based
• employees
carried out tasks
in groups
according to their
duties and
expertise; lower
overhead and
minimal
supervision
Strengths Weaknesses
1. Concentrated on organization 1. Major organizational
for customer’s sake structure overhaul
2. Flatten organizations: less 2. Retain functional expertise
managerial levels 3. Need major, intensive, and
3. Reduced time and money costly trainings
expenses
4. Self-management among
employees
5. Wider individual knowledge
and skill
6. Fast decision-making, more
responsive to clients, reduced
cycle
 Delegation

• Assigning responsibility or authority to

another person to carry out tasks in the
most efficient way; entails trust of
superiors to subordinates.
 Importance of Delegation
1. Effective Management
2. Employees’ Career Growth and Development
3. Employees’ Motivation Booster
4. Company Growth Facilitation
5. Basis of Managerial Structure
6. Better Coordination
7. Reduced Managers’ Workload
8. Basis of Superior - Subordinate Relationship
 Principles in Delegation
1. Match workers’ skills to the tasks
2. Organized and clear communication
3. Transfer of authority and accountability of
specific activities
4. Select the suitable delegation level
 Elements of Delegation

1. Assigning roles and responsibilities

2. Granting authority
3. Creating obligations
 Steps in Successful Delegation
1. Task definition
2. Individual or team selection
3. Skills and training needs evaluation
4. Justify the rationale
5. Resources consideration
6. Deadlines setting
7. Support and communicate
8. Result feedback and review
 Common Challenges in
Delegation
1. Insufficient / unclear task definition.
2. Lack of experience.
3. Powerplay of managers.
4. Perceived time constraints.
5. Low confidence level towards employees.
6. Delegation misconceptions (such as dumping disliked
tasks).
 Formal versus Informal
Organizations
Informal (Non-formal or
Descriptions Formal Grapevine)
Definition Designed when two or System of social and
more persons come personal relationships
and work together to formed while working
achieve common within the formal
goals and objectives organizations
and binded with
established rules and
guideline
Features 1.Formed using 1. Formed to satisfy
standardized personal needs like
friendship or hobbies
organizing principles 2. No efforts need by
2.Target to achieve company rules or
organization goals managers
3.Each with specific job/s 3. No pattern or fixed
4.Each with fixed path flow of forming
4. Unknown information
authority and relations source
5.Creation of scalar- 5. Existence depends
chain of on formal
communication organizations
Advantages 1.Systematic Operations 1. Fast communication
2.Achieving 2. Social needs
fulfillment
Organizational 3. Accurate feedback
Objectives 4. Faster
3.No Work Overlaps accomplishment of
4.Coordination jobs
5.Chain of Command 5. Remove weaknesses
in the formal structure
6.Highlighting the Work 6. Lengthens expensive
span of controls
7. Compensation for
violations of formal
organization
principles
8. Encourages better
management
Disadvantag 1.Action Delays 1.Rumor and
es gossip
2.Ignore
spreading
Employees’ Other
2.Unorganized
Needs operations
3.Work Only 3.Possible
negative results
4.More self-
centric interest
Organizational
Culture
 Culture

• System of such publicly and collectively

accepted meanings operating for a given
group at a given time. This system of terms,
forms, categories, and images interprets a
people's own situation to themselves. -
(Andrew M. Pettigrew : 1979).
 Organizational Culture
• Is the way of life inside the organization formed overtime.
They might be formed based on existing company policies
or long standing traditions that companies enjoy.
• According to Prof. Andrew M. Pettigrew, ​cultures of an
organization are based on the systems that may help to
define how employees take decisions and think. He also
noted the different levels of culture based on the
multifaceted set of beliefs, values and assumptions that
may define ways for organizations to do its business.
 Some Examples of Organizational
Culture Worth Following:
1. The Coffee Bean and Tea Leaf credits an employee with one
free drink for every one day of work.
2. L.L. Bean gives all employees an annual one-on-one meeting
to discuss career advancement and training opportunities.
3. Adobe (maker of Illustrator and Photoshop) gives credit
patents to their employees who developed ideas and given
bonuses and recognition on its annual banquet.
4. Jollibee and McDonald’s provide big discounts for employees
who want to purchase their products