ORGANIZING

CHAPTER 3
PRE-FINAL
Organizing
• is the process of arranging resources
(people, tasks, finances, materials)
systematically to achieve the organization's
objectives effectively and efficiently.
• It is one of the five key functions of
management, alongside planning, staffing,
directing, and controlling.
Organizing
• is the process of identifying and grouping
the work to be performed, defining and
delegating responsibility and authority, and
establishing relationships to enable people
to work most effectively together in
accomplishing objectives.
1. Key Elements of Organizing:
1. Identification of Activities
2. Departmentalization
3. Assignment of Duties
4. Delegation of Authority
5. Establishing Relationships
Identification of Activities
• Determine what tasks need to be done
(e.g., marketing, production, finance).

Departmentalization
• Grouping similar tasks into
departments (e.g., HR, Sales,
Operations).
Assignment of Duties
• Allocating tasks to individuals based on skills and
roles.

Delegation of Authority
• Giving subordinates the authority needed to
complete assigned tasks.

Establishing Relationships
• Defining who reports to whom; creating a clear
chain of command.
Importance of Organizing:
• Efficient resource use
• Ensures people and materials are used
wisely.
• Clarity in roles and responsibilities
• Reduces confusion and overlaps.
Importance of Organizing:
• Improved communication and coordination
• Makes it easier to manage teams and projects.
• Facilitates growth and expansion
• A well-organized structure can scale up with the
business.
• Supports delegation and accountability
• Everyone knows their duties and who they report
to.
Nature of Organization
• the fundamental characteristics,
structure, and functioning of how
tasks, roles, and responsibilities are
systematically arranged and
coordinated to achieve organizational
goals efficiently.
1. Goal-Oriented
• Every organization exists to achieve
defined objectives (e.g., profit, service,
growth).

• Management aligns resources and people

toward these goals.
2. Structured System
• An organization has a formal structure
with defined roles, responsibilities,
departments, and reporting lines.

• Structure is guided by principles like

division of work, unity of command,
and scalar chain.
3. Social System
• It involves people working together.
• Human behavior, teamwork, and
motivation are central.

• Management must build positive

relationships and foster team spirit
4. Division of Work
• Tasks are divided and assigned based
on specialization and efficiency.
• This improves productivity and
accountability.
5. Coordination of Efforts
• All departments and individuals must
work in harmony.
• Managers coordinate activities to
ensure the whole organization moves
in the same direction.
6. Hierarchy of Authority
• There is a chain of command, from top
management to frontline workers.
“Authority flows downward,
responsibility flows upward”
7. Flexibility and Adaptability
• Organizations are dynamic; they must
adapt to changes in the external
environment (e.g., market trends,
technology).
• Flexible structures and open
communication help this.
8. Continuous Process
• Organizing is not one-time—it evolves
with changes in goals, growth, or
strategy.
• Management continuously reviews and
adjusts the organization’s setup.
Organizational Structures
• An organizational structure outlines
how responsibilities and roles are
assigned and grouped throughout
an organization.
Types of Organizational
Structures
1.Hierarchical Organization
structure
2. Line Organization
3.Line and Staff Organization
4.Functional Organization
5.Divisional Organization
6.Matrix Organization
Line Organization
• A simple structure Key Features:
where authority flows • Clear chain of command
in a direct line from • Authority and
top management to responsibility are well
lower levels. defined
• Suitable for small
businesses
 Line Organization

Example:
• A small hotel where the General Manager
supervises all department heads directly.
 Line and Staff Organization
• A combination of Key Features:
line managers and • Line managers
staff specialists who make decisions
advise but do not
• Staff experts
command.
provide support and
guidance
• Balances control
and expertise
Line and Staff Organization
Example:
• A hotel with a General Manager supported
by HR, Legal, and IT advisors (staff).
 Functional Organization
• Structure based on Key Features:
specific functions • Specialization by
like marketing, function
finance, operations,
• Employees report
etc.
to functional
heads
• Efficient for large
and complex
organizations
Functional Organization
Example:
• A resort company with separate
departments for Food & Beverage, Guest
Services, Finance, etc.
Divisional Organization
• Organization Key Features:
divided based on • Each division
product lines, operates semi-
geographical areas, independently
or customer
• Focuses on specific
segments.
market needs
• Common in large
companiesal
operations.
Divisional Organization
• Example:
• A hotel chain with separate divisions for
domestic and international operations.
Matrix Organization
• Employees report to Key Features:
more than one • Combines functional
manager – usually a and project-based
functional manager approaches
and a project or
• Promotes flexibility and
product manager.
collaboration
• Dual authority may
cause confusion
Matrix Organization
Example:
• An event management company where an
employee reports to the marketing
manager and a specific event project
leader.
Project-Based Organization
Structure revolves Key Features:
around projects; teams • Highly flexible
are formed temporarily
and disbanded after • Suitable for creative
completion. and construction
industries
• Promotes innovation
and speed
Project-Based Organization
Example:
• A hospitality design firm that forms new
teams for each hotel renovation project.
Organizational
Theories & Their
Application
1. Classical Organization Theory
Focus: Structure, efficiency, hierarchy

Application in Hospitality:
Clear hierarchy in hotels: General Manager
→ Department Heads → Supervisors →
Frontline staff
1. Classical Organization Theory

• Standard Operating Procedures (SOPs) for

consistent service delivery (e.g.,
housekeeping checklists, front desk
protocols)
• Division of labor: Specific roles like chef,
concierge, room attendant
1. Classical Organization Theory
Benefits:
• Smooth operations
• Predictable service standards
• Strong control in large hotel chains
2. Neoclassical Theory (Human
Relations)
Focus: Employee motivation, communication,
informal relationships

Application in Hospitality:
• Employee engagement programs to improve
morale (e.g., recognition, rewards)
• Encouraging teamwork in service delivery (e.g.,
front desk + housekeeping coordination)
• Open-door policies and internal communication
platforms
2. Neoclassical Theory (Human
Relations)
Benefits:
• Lower staff turnover
• Higher customer satisfaction from
motivated employees
• Stronger service culture
3. Systems Theory
Focus: Organization as an interconnected system

Application in Hospitality:
• Hotels seen as systems: inputs (guests, supplies)
→ processes (check-in, room service) → outputs
(customer satisfaction)
• Cross-functional integration: sales, reservations,
housekeeping, F&B all aligned
• Use of feedback loops (e.g., guest surveys) for
continuous improvement
3. Systems Theory
Benefits:
• Improved coordination between
departments
• Better service consistency
• Data-driven improvements
4. Contingency Theory
Focus: "Best fit" based on situation

Application in Hospitality:
• Adapting leadership styles: autocratic in
emergencies (fire drill), participative during team
planning
• Flexible structures: resorts may decentralize
decision-making to each outlet (restaurant, spa,
activities)
• Tailoring service strategies to guest types (business
4. Contingency Theory
Benefits:
• Responsive to change and customer
needs
• Improved problem-solving on the spot
• Better alignment with market
conditions
5. Modern/Contemporary Theories
Focus: Learning, innovation, adaptability

Application in Hospitality:
• Learning organizations: Ongoing staff
training, upskilling, and feedback systems
• Use of technology: CRM, AI concierge, digital
check-in
• Promoting employee empowerment to solve
guest problems without delay
5. Modern/Contemporary Theories
Benefits:
• Enhanced guest experience
• Competitive advantage
• Agile response to trends (e.g.,
sustainable tourism, digital
transformation)
 Summary Table: Theories in Hospitality

Theory Key Focus Hospitality Example

SOPs, hierarchy, role
Classical Structure & Efficiency clarity in hotel
departments
Staff engagement,
Neoclassical People & Motivation teamwork, open
communication
Department
Interconnected
Systems coordination, guest
Processes
feedback systems
 Summary Table: Theories in Hospitality

Theory Key Focus Hospitality Example

Adapting service &
Contingency Situational Flexibility leadership style per
guest or context
Tech integration, staff
Modern Learning & Innovation training, empowerment
culture