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ORGANISING
Organizing


A process of defining essential relationships
among people tasks and activities in such a
way that all the organization resources are
integrated and coordinated to accomplish its
objectives efficiently and effectively.
Process of organizing








Determination of objectives
Division of activities
Grouping activities
Defining authority and responsibility
Coordination of activities
Reviewing and reorganizing
Organization Chart


The visual representation of organization
structure is organization chart

Organization structure
Formal system of task and reporting
relationships showing how workers
use
resources.
Ways to Structure a Business
By function: arranging the business
according to what each section or
department does
 By product or activity: organising
according to the different products made
 By area: geographical or regional
structure
 By customer: where different customer
groups have different needs
 By process: where products have to go
through stages as they are made



Functional Structure
 An

organizational structure composed of all the
departments that an organization requires to
produce its goods or services.
Functional structure
Chief Executive

Board of Directors

Production

Marketing

Accounts

Personnel

IT


Advantages
 Encourages



learning from others doing similar

jobs.
 Easy for managers to monitor and evaluate
workers.
 Allows managers to create the set of functions
they need in order to scan and monitor the
Disadvantages
competitive environment
 Difficult for departments to communicate with
others.
 Preoccupation with own department and losing
sight of organizational goals.
Organisation by
Product/Activity

Hewlett Packard

Imaging and
Printing Group

Personal
Systems Group

Enterprise
Systems Group

HP Services

HP Financial
Services
Divisional Structure
Managers create a series of business
units to produce a specific kind of
product for a specific kind of customer
Other Organisational
Structures
By Customer:



Wholesale
 Retail
 Industrial customer


By Process
Example, textile business
 Weaving
 Dyeing


Product Structure
 Managers

place each distinct product line or
business in its own self-contained division
 Divisional managers have the responsibility for
devising an appropriate business-level strategy to
allow the division to compete effectively in its
industry


Market Structure
 Groups

divisions according to the particular kinds
of customers they serve
 Allows managers to be responsive to the needs of
their customers and act flexibly in making
decisions in response to customers’ changing
needs


Geographic Structure
 Divisions



are broken down by geographic location

Global geographic structure
 Managers

locate different divisions in each of the
world regions where the organization operates.


Global Product Structure
 Each

product division takes responsibility for
deciding where to manufacture its products and
how to market them in foreign countries
worldwide


Matrix Structure
 An

organizational structure that simultaneously
groups people and resources by function and
product.
 Results

in a complex network of superiorsubordinate reporting relationships.
 The structure is very flexible and can respond
rapidly to the need for change.
 Each employee has two bosses (functional
manager and product manager) and possibly
cannot satisfy both.
Span of Control
Number of workers that a manager can
effectively supervise.
Tall structure: few subordinates, tight control
Flat structure: Wide span of control

Principles of organizing











Unity of objective
Organizational efficiency
Division of labor
Authority-responsibility
Principle of delegation
Unity of command
Unity of direction
Span of control

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Organising

  • 2. Organizing  A process of defining essential relationships among people tasks and activities in such a way that all the organization resources are integrated and coordinated to accomplish its objectives efficiently and effectively.
  • 3. Process of organizing       Determination of objectives Division of activities Grouping activities Defining authority and responsibility Coordination of activities Reviewing and reorganizing
  • 4. Organization Chart  The visual representation of organization structure is organization chart Organization structure Formal system of task and reporting relationships showing how workers use resources.
  • 5. Ways to Structure a Business By function: arranging the business according to what each section or department does  By product or activity: organising according to the different products made  By area: geographical or regional structure  By customer: where different customer groups have different needs  By process: where products have to go through stages as they are made 
  • 6.  Functional Structure  An organizational structure composed of all the departments that an organization requires to produce its goods or services.
  • 7. Functional structure Chief Executive Board of Directors Production Marketing Accounts Personnel IT
  • 8.  Advantages  Encourages  learning from others doing similar jobs.  Easy for managers to monitor and evaluate workers.  Allows managers to create the set of functions they need in order to scan and monitor the Disadvantages competitive environment  Difficult for departments to communicate with others.  Preoccupation with own department and losing sight of organizational goals.
  • 9. Organisation by Product/Activity Hewlett Packard Imaging and Printing Group Personal Systems Group Enterprise Systems Group HP Services HP Financial Services
  • 10. Divisional Structure Managers create a series of business units to produce a specific kind of product for a specific kind of customer
  • 11. Other Organisational Structures By Customer:  Wholesale  Retail  Industrial customer  By Process Example, textile business  Weaving  Dyeing
  • 12.  Product Structure  Managers place each distinct product line or business in its own self-contained division  Divisional managers have the responsibility for devising an appropriate business-level strategy to allow the division to compete effectively in its industry
  • 13.
  • 14.  Market Structure  Groups divisions according to the particular kinds of customers they serve  Allows managers to be responsive to the needs of their customers and act flexibly in making decisions in response to customers’ changing needs
  • 15.  Geographic Structure  Divisions  are broken down by geographic location Global geographic structure  Managers locate different divisions in each of the world regions where the organization operates.
  • 16.
  • 17.  Global Product Structure  Each product division takes responsibility for deciding where to manufacture its products and how to market them in foreign countries worldwide
  • 18.  Matrix Structure  An organizational structure that simultaneously groups people and resources by function and product.  Results in a complex network of superiorsubordinate reporting relationships.  The structure is very flexible and can respond rapidly to the need for change.  Each employee has two bosses (functional manager and product manager) and possibly cannot satisfy both.
  • 19.
  • 20. Span of Control Number of workers that a manager can effectively supervise. Tall structure: few subordinates, tight control Flat structure: Wide span of control 
  • 21. Principles of organizing         Unity of objective Organizational efficiency Division of labor Authority-responsibility Principle of delegation Unity of command Unity of direction Span of control