Slide content created by Joseph B. Mosca, Monmouth University.
Copyright © Houghton Mifflin Company. All rights reserved.
11
Ready Notes
Basic Elements of
Organizing
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or Notes Pages from the print options, with
three slides per page.
SEYAM RAYHAN SHARKAR
Copyright © Houghton Mifflin Company. All rights reserved. 1 - 2
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 3
What Is Organizing?
• Deciding how best to
group organizational
activities and
resources.
• What are the building
blocks of organizing?
– Organization Structure:
• The set of elements that
can be used to configure
an organization.
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Why Do You Have to Organize an
Organization?
• Because all the
structural elements
of the company and
how those elements
work together are
used to manage the
total organization.
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The Importance of Organizing
• Clarifies
• Divides
• Provides
• Establishes
• Develops
• Relates
• Establishes authority
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Organizing Leads to Decision Making
• Decision making is
part of planning that
involves selecting a
course of action.
• When the manager
is organized
activities are
coordinated.
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Organizational Structure
• The building blocks used to form an
organization.
• One of the manager’s jobs is to know
how to put the building blocks together.
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Designing Jobs
• What is one of the
building blocks?
– Job Design:
• The determination of an
individual’s work-related
responsibilities.
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Overall Tasks Are Broken Down By?
• Job Specialization:
– The degree to which
the overall task of
the organization is
broken down and
divided into smaller
component parts.
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The Five Alternatives to Job Specialization:
Job Rotation:
– Involves systematically moving employees
from one job to another.
Job Enlargement:
– Involves increasing the total number of
tasks worker performs.
Job Enrichment:
– Involves increasing both the number of
tasks the worker does and the control the
worker has over the job.
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 11
Alternatives Continued
Job Characteristics
Approach:
– Suggests that jobs should
be diagnosed and
improved along five core
dimensions, taking into
account both the work
system and employee
preferences.
Work Teams:
– Allows an entire group to
design the work system it
will use to perform an
interrelated set of tasks.
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 12
Job Characteristics Approach
• This is an alternative to job specialization.
See Figure 11.1, the job characteristics
approach. This approach suggests that jobs
should be diagnosed and improved along five
core dimensions:
– Skill variety
– Task identity
– Task significance
– Autonomy
– Feedback
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Figure 11.1:
The Job
Characteristics
Approach
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Grouping Jobs: Departmentalization
What is it?
– The process of grouping jobs according to
some logical arrangement.
Functional Departmentalization:
– Grouping jobs involving the same or similar
activities.
Product Departmentalization:
– Grouping activities around products or
product groups.
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 15
Figure 11.2: Bases for Departmentalization:
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 16
Other Forms of Departmentalization:
• Some organizations
group certain
activities by:
– Time.
– Sequence.
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 17
Other Considerations
• Sometimes
departments are
called something
different, such as:
– Division.
– Units.
– Section.
– Bureaus.
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Establishing Reporting Relationships
• What needs to be
clarified?
– Chain of Command:
• Clear and distinct lines
of authority among all
positions in an
organization.
– Span of Management:
What is it?
• The number of people
who report to each
manager.
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 19
Tall Versus Flat Organizations
• What is the difference?
– Flat organizational
structure leads to higher
levels of employee morale
and productivity.
– Tall organizational
structures usually tend to
be more expensive
requiring more managers.
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 20
Figure 11.3: Tall Versus Flat Organizations
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Factors Influencing the Span of Management
• Competence of supervisor
and subordinates.
• Dispersion of subordinates.
• Extent of non-supervisory
work.
• Degree of required
supervision.
• Extent of standard
procedures.
• Similarity of tasks.
• Frequency of new
problems.
• Preferences of supervision.
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 22
Distributing Authority: An Important
Building Block
• Authority:
– Power that has been
legitimized by the
organization.
• Delegation:
– The process by
which managers
assign a portion of
their total workload
to others.
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 23
Figure 11.4: Steps in the Delegation Process
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 24
Decentralization and Centralization
What are the differences?
– Decentralization:
• The process of systematically delegating power
and authority throughout the organization to
middle- and lower-level managers.
– Centralization:
• The process of systematically retaining power
and authority in the hands of upper-level
managers.
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 25
Coordinating Activities
• What is coordination?
– The process of linking
the activities of the
various departments of
the organization.
• Why coordinate?
– Systems must be put into
place to keep the
activities of each
department focused on
organizational goal
attainment.
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 26
Three Major Forms of Interdependence
Pooled Interdependence:
– When units operate with little
interaction; their output is
simply pooled at the
organizational level.
Sequential Interdependence:
– When the output of a unit
comes becomes then input for
another unit.
Reciprocal Interdependence:
– When activities flow both
ways.
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 27
Structural Coordination Techniques
• Managerial hierarchy.
• Rules and
procedures.
• Liaison roles.
• Task force.
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 28
What Is the Difference Between Line and
Staff?
Line Position:
– A position in the direct
chain of command that
is responsible for the
achievement of an
organization’s goals.
Staff Position:
– A position intended to
provide expertise,
advise, and support for
the line position.

Basic elements of organizing

  • 1.
    Slide content createdby Joseph B. Mosca, Monmouth University. Copyright © Houghton Mifflin Company. All rights reserved. 11 Ready Notes Basic Elements of Organizing For in-class note taking, choose Handouts or Notes Pages from the print options, with three slides per page.
  • 2.
    SEYAM RAYHAN SHARKAR Copyright© Houghton Mifflin Company. All rights reserved. 1 - 2
  • 3.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 3 What Is Organizing? • Deciding how best to group organizational activities and resources. • What are the building blocks of organizing? – Organization Structure: • The set of elements that can be used to configure an organization.
  • 4.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 4 Why Do You Have to Organize an Organization? • Because all the structural elements of the company and how those elements work together are used to manage the total organization.
  • 5.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 5 The Importance of Organizing • Clarifies • Divides • Provides • Establishes • Develops • Relates • Establishes authority
  • 6.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 6 Organizing Leads to Decision Making • Decision making is part of planning that involves selecting a course of action. • When the manager is organized activities are coordinated.
  • 7.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 7 Organizational Structure • The building blocks used to form an organization. • One of the manager’s jobs is to know how to put the building blocks together.
  • 8.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 8 Designing Jobs • What is one of the building blocks? – Job Design: • The determination of an individual’s work-related responsibilities.
  • 9.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 9 Overall Tasks Are Broken Down By? • Job Specialization: – The degree to which the overall task of the organization is broken down and divided into smaller component parts.
  • 10.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 10 The Five Alternatives to Job Specialization: Job Rotation: – Involves systematically moving employees from one job to another. Job Enlargement: – Involves increasing the total number of tasks worker performs. Job Enrichment: – Involves increasing both the number of tasks the worker does and the control the worker has over the job.
  • 11.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 11 Alternatives Continued Job Characteristics Approach: – Suggests that jobs should be diagnosed and improved along five core dimensions, taking into account both the work system and employee preferences. Work Teams: – Allows an entire group to design the work system it will use to perform an interrelated set of tasks.
  • 12.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 12 Job Characteristics Approach • This is an alternative to job specialization. See Figure 11.1, the job characteristics approach. This approach suggests that jobs should be diagnosed and improved along five core dimensions: – Skill variety – Task identity – Task significance – Autonomy – Feedback
  • 13.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 13 Figure 11.1: The Job Characteristics Approach
  • 14.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 14 Grouping Jobs: Departmentalization What is it? – The process of grouping jobs according to some logical arrangement. Functional Departmentalization: – Grouping jobs involving the same or similar activities. Product Departmentalization: – Grouping activities around products or product groups.
  • 15.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 15 Figure 11.2: Bases for Departmentalization:
  • 16.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 16 Other Forms of Departmentalization: • Some organizations group certain activities by: – Time. – Sequence.
  • 17.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 17 Other Considerations • Sometimes departments are called something different, such as: – Division. – Units. – Section. – Bureaus.
  • 18.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 18 Establishing Reporting Relationships • What needs to be clarified? – Chain of Command: • Clear and distinct lines of authority among all positions in an organization. – Span of Management: What is it? • The number of people who report to each manager.
  • 19.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 19 Tall Versus Flat Organizations • What is the difference? – Flat organizational structure leads to higher levels of employee morale and productivity. – Tall organizational structures usually tend to be more expensive requiring more managers.
  • 20.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 20 Figure 11.3: Tall Versus Flat Organizations
  • 21.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 21 Factors Influencing the Span of Management • Competence of supervisor and subordinates. • Dispersion of subordinates. • Extent of non-supervisory work. • Degree of required supervision. • Extent of standard procedures. • Similarity of tasks. • Frequency of new problems. • Preferences of supervision.
  • 22.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 22 Distributing Authority: An Important Building Block • Authority: – Power that has been legitimized by the organization. • Delegation: – The process by which managers assign a portion of their total workload to others.
  • 23.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 23 Figure 11.4: Steps in the Delegation Process
  • 24.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 24 Decentralization and Centralization What are the differences? – Decentralization: • The process of systematically delegating power and authority throughout the organization to middle- and lower-level managers. – Centralization: • The process of systematically retaining power and authority in the hands of upper-level managers.
  • 25.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 25 Coordinating Activities • What is coordination? – The process of linking the activities of the various departments of the organization. • Why coordinate? – Systems must be put into place to keep the activities of each department focused on organizational goal attainment.
  • 26.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 26 Three Major Forms of Interdependence Pooled Interdependence: – When units operate with little interaction; their output is simply pooled at the organizational level. Sequential Interdependence: – When the output of a unit comes becomes then input for another unit. Reciprocal Interdependence: – When activities flow both ways.
  • 27.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 27 Structural Coordination Techniques • Managerial hierarchy. • Rules and procedures. • Liaison roles. • Task force.
  • 28.
    Copyright © HoughtonMifflin Company. All rights reserved. 11 - 28 What Is the Difference Between Line and Staff? Line Position: – A position in the direct chain of command that is responsible for the achievement of an organization’s goals. Staff Position: – A position intended to provide expertise, advise, and support for the line position.