Module 6

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Module 6

  1. 1. A Case in Point
  2. 2. Organizing Definedthe process of grouping together menand establishing relationship among them,defining the authority and responsibility ofpersonnel by using the company’s otherbasic sources to attain predetermined goalsand objectivesinvolves determining, grouping andarranging the various activities in theorganization
  3. 3. Four Distinct Activities1. It determines what work activities to be done to accomplish organizational objectives.2. It classifies the type of work needed and groups the work into manageable work units.3. It assigns the work to individuals and delegates the appropriate authority.4. It designs a hierarchy of decision- making.
  4. 4. Importance of Organizing Function1. It provides a clarified work environment2. It creates a coordinated environment3. Everyone knows where to get orders4. A formal decision-making structure is established
  5. 5. Basic Organizational Concepts1. Division of Labor2.Unity of Command3.Chain of Command4.Span of Control5.Centralization and Decentralization6.Departmentalization
  6. 6. Division of Laboralso known as “work specialization” the degree to which organizationaltasks are subdivided into separate jobs employees within each departmentperform only the tasks relevant totheir specialized function
  7. 7. Unity of Commanda subordinate should have only onesuperior to whom he/she is directlyresponsibleAll persons in the organization shouldknow to whom they report as well asthe successive management levels allthe way to the top
  8. 8. Chain of Command is an unbroken line authority thatlinks all persons in an organizationand shows reports to whom
  9. 9. Span of Control also known as “span management” refers to the number of employeesreporting to a supervisor  Generally, when supervisors are closely involved with subordinates, the span should be small; when supervisors need little involvement with subordinates, it can be large
  10. 10. Span of ControlThe average span of control used in anorganization determines whether thestructure is tall or flat 1. tall structure  has an overall narrow span and more hierarchical levels 4. flat structure  Has a wide span, is horizontally dispersed, and has fewer hierarchical levels
  11. 11. Example of a Tall Structure of anInternational Metal Company
  12. 12. Example of a Flat Structure President
  13. 13. Centralization and Decentralization Centralization  decision authority is located near the top of the organization Decentralization  decision authority is pushed down to lower organization levels
  14. 14. Departmentalization the basis on which individuals aregrouped into departments anddepartments into the total organization
  15. 15. The Organizing Processthe process of identifying activitiesneeded to accomplish a goal,subdividing and grouping theseactivities into meaningful units andassigning authority andresponsibility to people for theiraccomplishment
  16. 16. Structurethe result of the organizingprocessit refers to the arrangementor relationships of positionswithin an organization
  17. 17. Purposes of a Structure1. It defines the relationships between task 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 grouping of individuals into departments and departments into organizations;4. It defines the system to effect coordination of effort in both vertical (authority) and horizontal (tasks) directions.
  18. 18. When structuring anorganization, the managermust consider the following:Division of laborDelegation of authorityDepartmentalizationSpan of controlCoordination
  19. 19. Organization Defineda social arrangement todistribute tasks for a collectivegoal
  20. 20. Five Elements of an Organization1. Operating Core2.Strategic Apex3.The Middle Line4.The Technostructure5.The Support Staff
  21. 21. Types ofOrganization
  22. 22. A. Formal Organizationis the “structure that details linesof responsibility, authority andposition”it is the planned structure and itrepresents the deliberate attempt toestablish patterned relationshipsamong components that will meetthe objectives effectively
  23. 23. a diagram of the organization’sofficial position and formal lines ofauthority Exampleprovides written descriptions ofauthority relationships, details thefunctions of major organizational units,and describes job proceduresdescribes the personnel activitiesand company policies
  24. 24. Example of an Organization Chart
  25. 25. B. InformalOrganizationis based on the needs, sentimentsand interests of the people composingit. It is vulnerable to expediency,manipulation and opportunismits low visibility makes it difficult formanagement to detect perversionsand considerable harm can be done tothe company
  26. 26. Organizational Structure Defined the framework in which theorganization defines how tasks aredivided, resources are deployed, anddepartments are coordinatedthe arrangement and interrelationshipsof the component parts and positions of acompanyit indicates the organization’s hierarchy
  27. 27. Types ofOrganizational Structure
  28. 28. 1. Line Organizational Structu the simplest type of structure which refers to a direct straight line responsibility and control from top to middle to the lower level of management  it is present in all types of organization
  29. 29. Advantages:1. Directness2. Fixed responsibility3. Simplicity4.Flexibility5. Discipline6.Development of an all-around executive7. Expeditious decision-making
  30. 30. Disadvantages:1. It becomes too difficult for secure executives, supervisors and workers who have an all- around knowledge and with the ability required.2. Specialization is not taken advantage of.3. Executives are apt to be overloaded with duties and responsibilities.4. Too much reliance is placed on the chief and other executives.5. Spirit of teamwork is lacking.6. Not suitable for big organizations.
  31. 31. 2. Line and Staff Organizational is similar to that of the line organizational structure, only that in line and staff organizational structure, the manager is assisted by specialists or experts  the nature of staff relationship is advisory
  32. 32. Staff Officerspersons trained to provide specializedservices to the line managers oroperating officials Examples: Administrative Assistant  Legal Assistant  Financial Consultant
  33. 33. Advantages:1. Combination of the line and staff2. Working relationships between the staff and the line are well defined to avoid friction among various units3. Ability of line officials when the staff officers constantly, feed them with specialized assistance
  34. 34. Disadvantages:1. Staff men are liable to overstep the bounds of their authority and impose their advice or plans2. Line officers will depend on the staff men to do all the thinking about the problems in respective departments
  35. 35. 3. Functional Organizational St  uses the pure services of experts or specialists the most logical and most basic form of departmentalization very effective in smaller firms especially “single-business firms” where key activities revolve around well-defined skills and areas of specialization
  36. 36. Advantages:1. The grouping of employees who perform a common task permit economies of scale and efficient resource use.2. Since the chain of command converges at the top of the organization, decision-making is centralized, providing a unified direction from the top3. Communication and coordination among employees within each department are excellent4. The structure promotes high-quality technical problem-solving5. The organization is provided with in-depth skill specialization and development6. Employees are provided with career progress within functional departments
  37. 37. Disadvantages:1. Communication and coordination between departments are poor2. Decision involving one department pile up at top management level and are often delayed3. Work specialization and division of labor, which is stressed in a functional organization, produce routine, non motivating employee tasks4. It is difficult to identify which section or group is responsible for certain problems5. There is limited view of organizational goals by employees6. There is limited general management training for employees
  38. 38. 4. Product or Market Organizationa a structure which is appropriate for big organizations with many product lines in several related industries its main feature is operating by division
  39. 39. Advantages:1. The organization is flexible and responsive to change2. The organization provides a high concern for customer’s needs3. The organization provides excellent coordination across functional departments4. There is easy pinpointing of responsibility for product problems5. There is emphasis on overall product and division goals6. The opportunity for the development of general management skills is provided
  40. 40. Disadvantages:1. There is high possibility of duplication of resources across divisions2. There is less technical depths and specialization in divisions3. There is poor coordination across divisions4. There is less top management control5. There is competition for corporate
  41. 41. 5. Committee Type of Organizationaalso called “plural type” or “multiple management.”formed for specific purposes
  42. 42. Advantages:1. Fosters cooperation2. Provides balance viewpointDisadvantages:1. Divided responsibility2. Time-consuming3. No clear-cut decisions
  43. 43. 6.Matrix Organizational Structurea structure with two or more channelsof command, two lines of budgetaryauthority, and two sources ofperformance and reward was designed to keep employees at thecentral pool and to allocate them tovarious projects in the firm according tothe length of time they were needed
  44. 44. PM s Engineer Purchasing Contract Specialist Negotiator Purchasing ContractPM X Engineer Specialist Negotiator Purchasing ContractPM Y Engineer Specialist Negotiator Purchasing ContractPM Z Engineer Specialist Negotiator
  45. 45. Advantages:1. There is more efficient use of resources than the divisional structure2. There is flexibility and adaptability to changing environment3. The development of both general and functional management skills are present4. There is interdisciplinary cooperation and any expertise is available to all divisions5. There are enlarged tasks for employees which motivates them better
  46. 46. Disadvantages:1. There is frustration and confusion from dual chain of command2. There is high conflict between divisional and functional interests3. There are many meetings and more discussions than action4. There is a need for human relations training for key employees and managers5. There is a tendency for power dominance by one side of the matrix
  47. 47. Organization Chart Defined the visual representation of an organization’sstructure it shows the relationship among positions asto authority, responsibility and accountabilityand the people who occupy them (Inigo) a diagrammatical form that shows importantaspects of an organization including the majorfunctions and their respective relationships, thechannels of supervision, and the relativeauthority of each employee who is in charge ofeach function
  48. 48. Dimensions of an Organizational Chart 1. Vertical Dimension establishes the chain of command or who reports to whom 2. Horizontal Dimension establishes the division of labor
  49. 49. VerticalDimension Horizontal Dimension
  50. 50. Types of anOrganizational Chart
  51. 51. shows the entire organizational structure. Itis a master plan of the principaldepartments, with lines of authority andresponsibility and the mutual relationshipsof all departments Exampleshows at a glance the functions andactivities of each department/ positions Example shows the departments in the same relative manner as the functional chart instead of listing the functions, the names of the persons are indicated Example
  52. 52. Example of a MasterChart
  53. 53. Example of a Functional chart
  54. 54. Example of a Personnel Chart
  55. 55. How to Draw Organizational Charts1. Gather the necessary information on the following:a. existing positions and/or departmentsb. objectives, functions and activities of positions and/or departmentsc. different top and middle managerial positionsd. lines of authority and responsibility from top to middle managemente. functional relationships between line and staff positions/departmentsf. positions and job titlesg. physical location of each position/department
  56. 56. How to Draw Organizational Charts2. Know the proper arrangements of the different departments, divisions, or sections with respect to line authority and their relationships.2. Draw a temporary chart and check it for accuracy with the managers of the various departments and sections.3. The chart as drawn should be shown to top management for approval and implementation.
  57. 57. Rules in Drawing on Organization Chart1. Boxes or rectangular representing various positions/jobs in the organization should be grouped according to their levels in the organization2. The boxes indicating the organizational functions in the same level should be of the same sizes3. Solid/block lines should connect boxes or rectangles to designate managerial controls or lines of authority. Dotted/broken lines should indicate service in staff relationships
  58. 58. Rules in Drawing on Organization Chart1. When an assistant to the head of an organizational position acts in the capacity of a staff or technical assistant without exercising managerial authority over the line position, it should be drawn to the side of line position, either to the left or to the right2. Staff or service functions are places under the office or unit served, usually to the right by dotted lines. They should be of the same size rectangles
  59. 59. CBEA Organization Chart VP VP PLANNING VP VP ADMINISTRATION RESEARCH & DEVELOPMENT & ACADEMIC AFFAIRS & BUSINESSPLANNING & EXTERNAL LINKAGES EXTENSION DEV’TCOMMITTEE COLLEGEDISCIPLINARY DIRECTOR FOR DIRECTOR FOR BOARD RESEARCH EXTENSION RESEARCHCOMMITTEE UNITSCHOLARSHIP CAS COMMITTEE COLLEGE RESEARCH EXTENSIONRECRUITMENT& PROMOTION SECRETARY BOARD BUSINESS ACCOUNTANCY ECONOMICS ADMINISTRATION DEPARTMENT DEPARTMENT DEPARTMENT CHAIRMAN CHAIRMAN CHAIRMAN FACULTY FACULTY FACULTY GUIDANCE ALUMNI STUDENT ATHLETIC CULTURAL SCHOLARSHIPCOORDINAT COORDINAT AFFAIRS COORDINATO COORDINAT COORDINATOR OR OR COORDINATOR R OR ADMINISTRATIVE SUPPORT
  60. 60. Coca-Cola Company Charles CCE - H. Lynn CCE - Joseph CCE - John CCE - Lischer Oliver Burke DownsVP, Controller, and VP, Tax VP, Retail SVP, PublicPrincipal Accounting Industry Affairs and Officer Communications
  61. 61. Picture 1
  62. 62. Picture 1
  63. 63. Picture 1
  64. 64. BDO Organization Chart
  65. 65. Delegation Defined is the process managers use to transfer authority andresponsibility to positions below them in the hierarchy is the process of assigning various degree of decision-making authority to subordinates
  66. 66. Elements of Delegation
  67. 67. Responsibility refers to the duty to perform the task oractivity an employee has been assigned the work assigned to a position can be delegated
  68. 68. Authority the sum of the powers and rightsentrusted to make possible the performanceof the work delegatedthe right inherent in a managerialposition to give orders and expect theorders to be obeyed can be delegatedExample: The right to hire and fire people
  69. 69. AuthorityTypes of Authority:c.Authority of knowledgeresults from men’s knowledgeb. Authority of position those arising from one’s proximity to thoseline authorityc. Legal Authority an authority conferred by law
  70. 70. AuthorityConcepts of Authority3.Traditional concept according to Henri Fayol, authority is the right tocommand and the power to make oneself obeyedAuthority is the right to give orders and exactobedience7.Behavioral concept authority is conferred by the subordinates on asuperior. Once the delegated function is accepted bythe subordinate, he gets the authority
  71. 71. Responsibility and Authority The ideal model; people with authority will not abuse their position, since they have commensurate responsibility in the exercise of their authority Performing the job is possible but could be difficult since the person will not be able to command others to do the tasks assigned to them When managers have authority exceeding responsibility, they may become dictators which may lead to worthless outcomes
  72. 72. Accountability it means people with authority andresponsibility are subject to reporting andjustifying task outcomes to those abovethem in the chain of command the answerability of the obligation toperform the delegated responsibility and toexercise the authority for the properperformance of the work
  73. 73. Several Degrees of Delegation: Take action- no further contact with me isneeded Look into the problem- let me know what youintend to do, do it unless I say not to Take action- let me know what you did Look into the problem- let me know what youintend to do, delay action until I give myapproval Look into the problem- let me knowalternative actions available with pros and consand recommend one for my approvalLook into the problem- give me all the facts, I
  74. 74. Approaches That Can Help EachManager Delegate More Effectively Delegate the whole task Select the right person Ensure that authority equalsresponsibility Give thorough instruction Maintain feedback Evaluate and reward performance
  75. 75. Mac Vincent Javier Danielle Quidilla Charmaine Zeny RasosPRESENTED BY:
  76. 76. THE STAFFING PROCEDUREHR PLANNING THE PLANNED OUTPUT OF ANY ORGANIZATION WILLREQUIRE A SYSTEMATIC DEPLOYMENT OF HUMAN RESOURCESAT VARIOUS LEVELS. TO BE ABLE TO DO THIS, THE MANAGERWILL HAVE TO INVOLVE HIMSELF WITH HUMAN RESOURCESPLANNING. HUMAN RESOURCE PLANNING MAY INVOLVETHREES ACTIVITIES;FORECASTING – WHICH IS AN ASSESSMENT OF FUTURE HUMAN RESOURCENEEDS IN RELATION TO THE CURRENT CAPABILITIES OF THE ORGANIZATION.PROGRAMMING – WHICH MEANS TRANSLATING THE FORECASTED HUMAN RESOURCE NEEDS TO PERSONNELOBJECTIVES AND GOALS.EVALUATION AND CONTROL – WHICH REFERS TO MONITORING HUMAN RESOURCE ACTION PLANS ANDEVALUATING THEIR SUCCESS.

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