Organization and Management Module 4

1. ORGANIZING
LESSON 1
NATURE OF
ORGANIZATIONS
ORGANIZATION AND MANAGEMENT/
CHAPTER 4

2. Organizing
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 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

3. Two Essential nature regarding
organizing
Organization
as a process
The concept if organizing can be considered as a process
because a large number of events or activities are done
under the process of organizing with a view to accomplish
the present goals in an appropriate way.
Organizing involves:
Division of work
Determination of activities
Grouping of activities,
Delegation of authority and the establishment of proper
coordination and balance among various departments of
individuals toward the attainment of predetermined goals.

4. Two Essential nature regarding
organizing
Organization
as a
Structure of
Relationship
Organization refers to a structure of relationship
due to the involvement of a large number of
groups. in fact, under the process of organizing
the relationship of departments to departments,
groups to groups, and individuals to individuals
are analyzed carefully through the process of a
communication system with a view to establishing
proper unity and coordination among them.

5. TYPES OF ORGANIZATION
STRUCTURES
An organization structure is a system made up of tasks to be
accomplished, work movement from one level to other work
levels in a system, reporting relationships and communication
passageways that unite the work of different individual persons
and groups.
The types of organizational structures include:
a. Vertical structure
b. Horizontal structure
c. Network structure

6. TYPES OF ORGANIZATION
STRUCTURES
Vertical Organization Structure- a vertical structure
clears out issues related to authority rights,
responsibilities, and reporting relationships.
Authority rights- refer to the legitimate rights of
individuals, appointed in positions.
Ex. President , vice president, manager

7. ORGANIZATIONAL CHART WITH VERTICAL
STRUCTURE
TOP
MANAGER
MIDDLE MANAGER MIDDLE MANAGER
MANAGER MANAGER MANAGER MANAGER
SPECIALIST SPECIALIST SPECIALIST SPECIALIST
SPECIALIST

8. TYPES OF ORGANIZATION
STRUCTURES
Horizontal Organization Chart- refers to a selection of
independent, usually single-function organizations that
work together to produce a product or service.
A horizontal structure- refers to the departmentalization
of an organization into a smaller work units as tasks
become increasingly varied and numerous.

9. TYPES OF DEPARTMENTS
• LINE DEPARTMENT- Deal directly with the firm’s
primary goods and services; responsible for
manufacturing, selling , and providing services.
• STAFF DEPARTMENT – support the activities of
the line departments by doing research
attending to legal matters, performing public
relations duties.

10. THREE APPROACHES
A. FUNCTIONAL APPROACH- where the subdivisions are formed
based on specialized activities such as marketing, production,
financial management, and human resources management.
B. DIVISIONAL APPROACH- where departments are formed based
on the management of their product, customer, or geographic
areas covered.
C. MATRIX APPROACH- is a hybrid form of departmentalization
where managers and staff personnel report to the superiors, the
functional manager and the divisional manager.

11. TYPES OF ORGANIZATION
STRUCTURES
NETWORK STRUCTURE- is a collection of
independent, usually single function organization /
companies that work together in order to produce
a product or services.

12. ORGANIZATION
THEORIES AND
APPLICATIONS
ORGANIZATION AND MANAGEMENT/
CHAPTER 4

13. DEFINITION OF TERM
ORGANIZATION DESIGN- the manner in which a
management achieves the right combination of
differentiation and integration of the organization’s
operations, in response to the level of uncertainly in its
external environment.
TRADITIONAL THEORIES- are the usual old fashioned
ways.
MODERN THEORIES- are contemporary or new design
theories.

14. Traditional Organizational Design
Theories
Simple
01 Functional
02
Divisional
03
ORGANIZATION THEORIES AND APPLICATIONS

15. WEAKNESSES
STRENGTHS
Traditional Organizational Design
Theories
This organizational design has a few departments, wide spans of control, or a large number of
subordinates directly reporting to a manager: has a centralized authority figure and has very little
formalization of work: usually used by companies that start as entrepreneurial ventures.
SIMPLE
01
ORGANIZATION THEORIES AND APPLICATIONS
• The risk of overdependence with
over-dependence on a single
person
• No longer appropriate as the
company grows
• Flexible
• Fast decision-making and result
• Clear accountability

17. WEAKNESSES
STRENGTHS
Traditional Organizational Design
Theories
This organizational design groups together similar or related specialties. Jobs are grouped
into departments with the specified skills and/or business functions.
FUNCTIONAL
02
ORGANIZATION THEORIES AND APPLICATIONS
• Managers have little knowledge of
other units’ functions.
• Cost-saving advantages
• Management is facilitated because workers
with similar tasks are grouped.

19. WEAKNESSES
STRENGTHS
Traditional Organizational Design
Theories
This organizational design is made up of separate business divisions or units, where the
parent corporation acts as overseer to coordinate and control the different divisions and
provide financial and legal support services.
DIVISIONAL
03
ORGANIZATION THEORIES AND APPLICATIONS
• Possible duplication of activities and
resources
• Increased cost and reduced efficiency
• Focused on results.
• Managers are responsible for what happens to
their products and services.

21. TEAM DESIGN
MODERN Organizational Design Theories
Matrix-Project
Design
01
Project Design
02
BOUNDARY LESS
DESIGN
03
ORGANIZATION THEORIES AND APPLICATIONS
04

22. WEAKNESSES
STRENGTHS
MODERN Organizational Design Theories
This organizational design is made up of workgroups or teams. They define team structures
such as roles and responsibilities, and they collaboratively identify working arrangements that
allow their team to deliver on their purpose and goals.
TEAM DESIGN
01
ORGANIZATION THEORIES AND APPLICATIONS
• Potential conflict
• Some people are not team players.
• Underperforming employees hide behind the
team.
• Better Communication
• Teams Resolve Problems Quicker
• Flexible and Empowered Workforce
• Empowerment of team members and reduced barriers
among functional areas

24. WEAKNESSES
STRENGTHS
MODERN Organizational Design Theories
This refers to an organization design where specialists from different departments work on
projects that are supervised by a project manager. This design results in a double chain of
command wherein workers have two managers - their functional area manager and their project
manager share authority over them.
Matrix-Project
Design
02
ORGANIZATION THEORIES AND APPLICATIONS
• Task and personality conflicts
• The potential conflict between managers and projects
• Authority confusion
• Reduced employees effectiveness
• Increased management overhead costs
• A specialist is involved in the project.
• Increased communication efficiency
• Improved employee motivation
• Increased teamwork
• Maximize resource usage.
• Increase professional development.

26. WEAKNESSES
STRENGTHS
MODERN Organizational Design Theories
It refers to an organizational design where employees continuously work on a
project.
Project Design
03
ORGANIZATION THEORIES AND APPLICATIONS
• Task and personality conflict
• Flexible designs
• Fast decision making

27. WEAKNESSES
STRENGTHS
MODERN Organizational Design Theories
This refers to an organization design where the design is not defined or limited by vertical, horizontal,
and external boundaries. There are no hierarchical levels that separate employees, no
departmentalization, and no boundaries that separate the organization from customers, suppliers, and
other stakeholders. The key to this design is electronic communication, where information is shared with
the member enterprise with distinct competencies.
Boundary-less
Design
04
ORGANIZATION THEORIES AND APPLICATIONS
• Lack of control
• Present communication difficulties.
• Highly flexible
• Responsive and draws on talent where it is found.

28. DEFINITION OF TERMS
DELEGATIO
N
AUTHORITY
DELEGATION
Delegation refers to assigning a new or traditional task to a subordinate, it may also
refer to getting work done through others by giving them the right to make decisions
and take action
The right to act legally or officially
RESPONSIBILIT
Y
The state of being answerable legally and morally for the discharge of duty

29. DEFINITION OF TERMS
ACCOUNTABILI
TY
DELEGATION
Is to be liable to be called to explain.

30. STEP IN DELEGATION
Defining the goal clearly
DELEGATION
Managers must clearly explain the task objective and the work or duties
someone else is expected to do.
01
02
Selecting the person who will be given
the task
The selected subordinate must be competent and must share the
manager’s task objectives.

31. STEP IN DELEGATION
Assigning of responsibility
DELEGATION
Managers must explain that the responsibility assigned to the selected
subordinate is an expectation for him or her to perform the assigned
tasks well.
03
04
Asking the person assigned about his or her planned
approaches to accomplish the task objectives.
It is expected that the person chosen to do the task already has a
tentative plan of action that may be presented to the manager, to assure
him or her that the person assigned could achieve the task objective.

32. STEP IN DELEGATION
Granting the assigned person, the authority to
act
DELEGATION
If the manager is satisfied with the tentative plan of action presented,
granting of the authority to act immediately follows.
05
06
Giving the assigned person enough time and resources to do
the task, while the same time emphasizing his or her
accountability.
Accountability is the assigned person’s willingness to complete the job,
as agreed upon.

33. STEP IN DELEGATION
Checking the task accomplishment progress
DELEGATION
Following up and discussing the task accomplishment progress at
regular intervals is necessary.
07
08
Making sure that the task objective has been
achieved
The above steps of delegation were given

34. ADVANTAGES
It prevents work overload among
organization managers.
It may cause laziness among organization
managers.
It provides opportunities for employee or
subordinates assigned to do the task to fully
utilize their talents on the job.
It may encourage too much dependence on
others.
It leads to the empowerment of employees
or subordinates assigned to do the task, as it
allows them the freedom to contribute ideas
and to perform their jobs in the best
possible way.
It may cause lack of control over priority
management problems.
It increases job satisfaction among the
assigned employees or subordinates, that
may lead to better job performance.
It may cause low self-confidence among
managers.
DELEGATION Advantages and Disadvantages
DISADVANTA
GES

35. FORMAL AND INFORMAL ORGANIZATIONS
FORMAL ORGANIZATION INFORMAL ORGANIZATION
Refer to organizations formed by
the company owner or manager
to help the firm accomplish its
goal; made up to formal
groups(work group/project
team/ committee similarly
formed by company authorities
to support their activities and
achieve their objectives.
Refers to organizations that exist
because of friendship or common
interest; made up of informal
groups which exist for the
members’ need for social
affiliation.

36. THANK YOU!
Prepare by: MARIA IVY S. BONIFACIO
Subject Teacher/ORGANIZATION AND MANAGEMENT