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1. Organizing
-The process of creating an organization’s
structre.
-provides shape and structure to a workplace

2. Some purposes of Organizing
• Divides work to be done into specific
jobs and departments
• Assigns tasks and responsibilities
associated with individual jobs
• Coordinates diverse organizational tasks
• Clusters jobs into units
• Establishes relationships among
individuals, groups and departments
• Establishes formal lines of authority
• Allocates and deploys organizational
resources

3. The Life Cycle of Organizations
Organization is a boundary-maintaining,
goal-directed, and socially constructed
system of human activity.
Birth
Death
Revitalizatio
n
DeclineGrowth
OR

4. Organization and Job Design
 Organizational structure-the
organization’s formal framework by
which job tasks are divided, grouped and
coordinated.
 Organizational design- the developing or
changing of an organization’s structure
- Also a process that involves decisions
about six key elements: work
specialization, departmentalization, chain
of command, span of control,
centralization and decentralization, and
formalization.

6. Organizational Design
 Work Specialization- the degree to which
tasks in an organization are divided into
separate jobs. Also known as division of
labour.
 Departmentalization- the basis on which
jobs are grouped in order to accomplish
organizational goals.
Functional departmentalization- grouping jobs by
functions performed.
Product departmentalization- grouping jobs by
product line

7. Functional
Departmentalization
Manager,
Engineerin
g
Manager,
Accounting
Manager,
Manufacturin
g
Manager,
Purchasin
g
Manager,
Human
Resources
Plant Manager

8. Product Departmentalization
President
Vice-President,
Fuels
Marketing
Planning and
Economics
Supply and
Distribution
Manufacturin
g
Manufacturing
Supply and
Distribution
Planning and
Economics
Marketing
Vice-President,
Lubricants and
Waxes
Manufacturin
g
Supply and
Distribution
Planning and
Economics
Marketing
Vice-President

9. Geographic Departmentalization
Grouping jobs on the basis of territory or
geography.
Sales Director,
Australia
Sales
Manager,
Queensland
and Northern
Territory
Sales
Manager,
New South
Wales
Sales
Manager,
Victoria and
Tasmania
Sales Manager,
South and
Western Australia

10. Process departmentalization
Grouping jobs on the basis of product or customer
flow.
Plant Manager
Planing and
Milling
Department
Manager
Sawing
Departmen
t Manager
Assemblin
g
Departmen
t Manager
Lacquering
and
Sanding
Departmen
t Manager
Finishing
Departmen
t Manager
Inspection
and
Shipping
Departmen
t Manager

11. Customer departmentalization
Grouping jobs on the basis of common
customers.
Director of
Sales
Manager,
Retail
Accounts
Manager,
Wholesale
Accounts
Manager,
Government
Accounts

12.  Chain of Command- The unbroken line
of authority that extends from the upper
levels of the organization to the lowest
levels and clarifies who reports to whom
Authority- The rights inherent in a
managerial position to give orders and to
expect the orders to be obeyed.
Responsibility- The obligation or
expectation to perform.
Unity of command- The management
principle that subordinates should have
only one superior to whom they are
directly responsible.

13.  Span of Control- the number of
subordinates a manager can
supervise efficiently and effectively.
 Centralization and Decentralization
Centralization- The degree to which
decision making in concentrated in the
upper levels of the organization.
Decentralization- The handing down of
decision-making authority to lower levels
in an organization.

14. Factors that influence the amount of
centralization and decentralization
More centralization
• Environment is stable.
• Lower-level managers are not
as capable or experienced at
making decisions as upper-
level managers.
• Lower-level managers do not
want to have say in decisions.
• Decisions are significant
• Organization is facing a crisis
or the risk of company failure.
• Company is large.
• Effective implementation of
company strategies depends
on manager’s retaining say
over what happens.
More decentralization
• Environment is complex,
uncertain.
• Lower-level managers are
capable and experienced at
making decisions.
• Lower-level managers want a
voice in decisions.
• Decisions are relatively minor.
• Corporate culture is open to
allowing managers to have
say in what happens.
• Company is geographically
dispersed.
• Effective implementation of
company strategies depends
on manager’s having
involvement and flexibility to
make decisions.

15.  Formalization- The degree to which
jobs within an organization are
standardized and the extent to which
employee behaviour is guided by rules
and procedures.

16. Applications of Organizational
Design
 Simple Structure- An organizational
design with low departmentalization,
wide spans of control, authority
centralized in a single person and little
formalization.
 Bureaucracy- An organizational
arrangement based on order, logic and
the legitimate use of authority.
Functional structure- an organizational design that
groups similar or related occupational specialties
together.
Divisional structure- an organizational structure
made up of semi-autonomous units or divisions.

17.  Team-based structures –An
organizational structure made up of
work groups or teams that perform the
organization’s work.
*Employee empowerment is crucial
because there is no rigid line of
managerial authority flowing from top
to bottom. Rather, employee teams
are free to design work in the way they
think is best.

18.  Matrix organization- a structural
design that assigns specialists from
different functional departments to
work on one or more projects being
led by a project manager.

19.  Boundaryless Organization- an
organization whose design is not
defined by, or limited to, the horizontal,
vertical or external boundaries
imposed by a predefined structure.
 Learning Organization- An
organization that has developed the
continous capacity to adapt and
change because all members take an
active role in identifying and resolving
work-related issues.

20. Human Resource
Management
“Our people are our most important
asset.”

21.  Self-directed work teams
 Job rotation
 High levels of skills
training
 Problem-solving groups
 Total quality
management
procedures and
processes
 Encouragement of
innovative and creative
behaviour
 Extensive employee
involvement and training
 Implementation of
employee suggestions
 Contingent pay based
on performance
 Coaching and mentoring
 Significant amounts of
information sharing
 Use of employee attitude
surveys
 Cross-functional
entegration
 Comprehensive
employee recruitment
and selection
procedures.
High-performance work practices- human
resource policies and practices that lead to high
levels of performance.
Examples:

22. The Human Resource Management
Process
Affirmative action programs- Programs
that enhance the organizational status
of members of protected groups.

23. Current Issues in Human
Resource Management
 Managing a Diverse and Multicultural
Workforce
 Recruitment- to increase workforce diversity,
managers must widen their recruiting net.
Managers have to look for job applicants in
places where they might not have looked
before.
 Selection- An effort should me made to make
all applicants feel at ease in the organization
and in any interview or testing situation.

24.  Sexual Harassment
◦ sexual harassment is concern because it
intimidates employees, interferes with job
performance and exposes the
organization to liability.
◦ Organization’s policy should then be
reinforced by regular education and
discussion sessions in which managers
are reminded of the rule and carefully
instructed that even the slightest sexual
overture to another employee will not be
tolerated.

25.  Family Concerns
◦ Is it okay for someone to bring his baby to work because of
an emergency crisis with normal childcare arrangements?
◦ Should a boss praise an employee for flying to Japan on
business the day after the employee’s wife gives birth?
Should a boss discipline an employee who refuses to go
for the same reason?
*An organization hires a person who has feelings, a life
outside the office, personal problems and family
commitments.
• Occupational Health and Safety
o An important HRM issue that deserves increased attention is
occupational health and safety.
o The responsibility of management is to ensure that the workplace
is as safe and healthy as possible and that employees are not
exposed to certain hazards in performing their jobs.
o Having a poor safety record may also affect an organization’s
ability to attract staff as well as impacting on the performance of
employees.

26. Managing Change and
Innovation
 Change- An alteration in people, stucture
or technology.
Forces for change:
External Forces
 Government laws and regulations
 Technology
 Labour markets
 Economic changes
Internal Forces
 Strategy
 Workforce
 Employee attitudes

27. The Manager as a Change
Agent
 Change agents- People who act as
catalysts and manage the change
process.
*change agent could be a non-manager
Ex. An internal staff specialist or
outside consultant whose expertise is
in change implementation.

28. 2 Views of the Change
Process
 The calm waters metaphor- views change as
a break in the organization’s equilibrium
state. Organizations are seen as stable and
predictable, disturbed by an occasional crisis.
(change process according to Lewin)
1. Increase the driving forces that direct
behaviour away from the status quo.
2. Decrease the restraining forces that hinder
behaviour away from the status quo.
3. Combine the two approaches.
 The white-water rapids metaphor- views
change as continual and unpredictable.
Managers must deal with ongoing and
almost chaotic change.

29. 6 tactics in dealing with
resistance to change
 Education and communication
-This tactice assumes that the source of
resistance stems from misinformation or poor
communication: if employees receive the full
facts and have their misunderstanding
clarified, they will no longer resist the change.
• Participation
• Facilitation and Support
• Negotiation
• Manipulation and Cooptation
• Coercion

30. Techniques for Managing
Change
 Structure: Work specialization,
departmentalization, chain of
command, span of control,
centralization, formalization, job
redesign
 Technology: Work processes,
methods and equipment
 People: Attitudes, expectations,
perceptions and behaviour

31. Stimulating Innovation
 Creativity versus Innovation
-Creativity refers to the ability to
combine ideas in a unique way or to
make unusual associations between
ideas.
-Innovation is the process of taking a
creative idea and turning it into a
useful product, service or method of
operation.

32. Fostering Innovation
Systems view of innovation
Inputs Transformation Outputs
Creative individuals, Creative process Creative
product(s)
groups, Creative situation
organizations

33. Innovation Variables
Structural variables
•Organic structures
•Abundant resources
•High inter-unit
communication
Cultural variables
•Acceptance of ambiguity
•Tolerance of the impractical
•Low external controls
•Tolerance of risks
•Tolerance of conflict
•Focus on ends
•Open-system focus
Human resource
variables
•High commitment to
training and development
•High job security
•Creative people
Stimulate
Innovatio
n

34. THANK YOU 