• Organizing is the act of rearranging
elements following one or more rules.
-Anything is commonly considered organized
when it looks like everything has a correct
order of placement.
-But it's only ultimately organized if any
element has no difference on time taken to
• organizing can also be defined as to place
different objects in logical arrangement for
• Organizations are groups of people
frequently trying to organize some
Organized livestock pens and walkways at Chicago's stockyards, ca. 1941.
• The framework in which the organization defines
how tasks are divided, resources are deployed, and
departments are coordinated.
• A set of formal tasks assigned to individuals and
• Formal reporting relationships, including lines of
authority, decision responsibility, number of
hierarchical levels and span of managers control.
• The design of systems to ensure effective
coordination of employees across departments.
• The degree to which organizational tasks are
sub divided into individual jobs; also called
division of labour
• With too much specialization, employees are
isolated and do only a single, tiny, boring
• Many organizations enlarge jobs or rotate
assigned tasks in order to provide greater
Chain of command
• An unbroken line of authority that links all
individuals in the organization and specifies
who reports to whom.
– Unity of Command - one employee is held
accountable to only one supervisor
– Scalar principle - clearly defined line of
authority in the organization that includes
• Authority - formal and legitimate right of a
manager to make decisions, issue orders,
and allocate resources to achieve
organizationally desired outcomes.
• Responsibility - duty to perform the task or
activity an employee has been assigned
• Accountability - the fact that the people with
authority and responsibility are subject to
reporting and justifying task outcomes to
those above them in the chain of command
• The process managers use to transfer
authority and responsibility to positions
below them in the hierarchy
• Organizations today tend to encourage
delegation from highest to lowest possible
• Can improve flexibility to meet customers’
needs and adaptation to competitive
• Managers often find delegation difficult
Types of authority
• Line authority - in which individuals in management positions
have the formal power to direct and control immediate
• Staff authority - granted to staff specialists in their areas of
expertise. Narrower than line authority and includes the right to
advise, recommend, and counsel in the staff specialists' area of
expertise. It is a communication relationship with management.
It has an influence that derives indirectly from line authority at a
• Functional authority - in which individuals in management
positions have formal power over a specific subset of activities.
A legal department, for instance, may have functional authority
to interfere in any activity that could have legal consequences.
Span of management
Factors influencing larger span of management.
Work performed by subordinates is stable and routine.
Subordinates perform similar work tasks.
Subordinates are concentrated in a single location.
Subordinates are highly trained and need little direction in
Rules and procedures defining task activities are available.
Support systems and personnel are available for the managers.
Little time is required in non-supervisory activities such as
coordination with other departments or planning.
Managers' personal preferences and styles favour a large span.
Tall versus flat structure
• Tall - A management structure characterized by an
overall narrow span of management and a relatively
large number of hierarchical levels. Tight control.
• Flat - A management structure characterized by a
wide span of control and relatively few hierarchical
levels. Loose control. Facilitates delegation.
• Centralization - The location of decision making
authority near top organizational levels.
• Decentralization - The location of decision
making authority near lower organizational
• Formalization - The written documentation used
to direct and control employees.
• The basis on which individuals are grouped into
departments and departments into total
• Approach options include;
• Functional - by common skills and work tasks
• Divisional - common product, programme or
• Matrix - combination of Functional and Divisional
• Team - to accomplish specific tasks
• Network - departments are independent providing
functions for a central core breaker
• Organizations are often troubled by
how to organize, particularly when a
new strategy is developed
• Changing market conditions or new
technology requires change
• Organizations seek efficiencies through
improvements in organizing