This document discusses key concepts in organizational structure and design. It outlines various ways to group activities within an organization, including by function, product, area, client, and other criteria. It also describes the characteristics of organizational structures like hierarchies and span of control. Classical principles of organization are presented, such as unity of command, parity of authority and responsibility, and specialization. The value of formal structures is noted as providing efficiency, clarity, and reducing gaps.

1. Organizing

2.  Process of grouping together of men and establishing
relationships among them , defining the authority and
responsibility of personnel by using the company’s other
basic resources to attain predetermined goals or
objectives.
ORGANIZATION
 the framework or backbone by which the of a business
is performed, that it provides the required
channels, points of origin and flow of management
direction and control.

3. The value of formal
organization structures

4. 1. Efficiency gains from specialization
2. Order arising from the clarity of job
definitions
3. Reduction of unintended gaps or
overlaps in the conduct of the activities
of the institutions

5. Characteristics of an
organization structure

6. 1. HIERARCHICAL
 Organizations are usually multilayered
because of the limitations of a single
person to supervise others.
2. SPAN OF CONTROL
 The number of persons that a manager
supervises.

7. Grouping activities in an
organization

8. 1.GROUPING BY FUNCTION
 It hopes to gain efficiencies through specialization
and to facilitate coordination of similar or related
activities.
2. GROUPING BY PRODUCT
 This method is common in large business
organization. It facilitates the treatment by top
management of these divisions as profit centers by
treating each division as separate business
enterprise.

9. 3. GROUPING BY AREA OR TERRITORY
 This applicable when the geographic scope of a
firm’s operation becomes large and when the
different areas in which a firm operates become very
differentiated in terms of their requirements.
4. GROUPING BY CLIENT
 This is very important when a company serves well-
defined client groups with different characteristics
and requirements in term of products.

10. 5. OTHER CRITERIA FOR GROUPING
ACTIVITIES
a. Simple Numbers – constituted by dividing large
numbers into identical sub-units.
b. Time Group – grouping by time ships such as
morning shift, afternoon and night shift.
6. ORGANIZATION THROUGH A COMBINATION
OF THE VARIOUS CRITERIA

11. Results of Good Organization

12. 1. Establishing the responsibility and preventing “buck
passing.”
2. Providing for easier communication;
3. Eliminating jurisdictional disputes between
individuals;
4.Helping develop executive ability;
5. Aiding in measuring the person’s performance
against his charges and responsibilities.
6. Aiding equitable distribution of work, functions
and/or personnel supervision.
7. Permitting expansion and contraction without
seriously disrupting the structure;

13. 8. Pointing out “dead-end” jobs;
9. Affording movement in the direction of the “ideal”
organization, in times of change;
10. Establishing closer cooperation and higher morale;
11. Delineating avenues of promotion;
12. Preventing of duplication of work;
13. Making growth possible with adequate control and
without literally killing top executives through overwork;
and
14. Aiding in wage and salary administration through
forced job analysis and description.

14. Formal Relationship s in
Organization

15. 1. LINE ORGANIZATION
 It exist when two organizational units are related to
each other by a relationship of direct command.
 Line authority is the power of command that is
exercised by a person over his direct subordinates in
the formal structure, such as power to supervise, direct
and evaluate the work of his subordinates.

16. 2. STAFF ORGANIZATION
 The units in an organization which are
considered staff are those which provide
advice or services to other units of the
organization.
3. FUNCTIONAL AUTHORITY
 This is a limited authority exercised usually by a staff
unit in the organization over another unit.

17. Classical Principles of
Organization

18. 1. PRINCIPLE OF UNITY OF COMMAND
 A person in an organization should have only one direct
supervisor in order to avoid confusion, inaction in the
organization.
2. PARITY OF AUTHORITY AND RESPONSIBILITY
 If a person is responsible for accomplishing a certain
task in the organization, he should be given sufficient
authority to accomplish the task.

19. 3. ABSOLUTENESS OF RESPONSIBILTY
 A superior may delegate a portion of his authority to his
subordinates but he does not reduce his responsibility or
accountability for the performance of the task under his
jurisdiction.
4. CHECKS AND BALANCE
 To check or evaluate the activities of another
organizational unit must not be placed under the control
or supervision of the unit to be evaluated.

20. 5. PRINCIPLE OF SPECIALIZATION
 An organizational becomes more efficient if it
specializes in the performance of a set of similar or
related activities.
6. SPAN OF CONTROL
 Refers to the number of subordinates who report
directly to a higher executive. There are three factors
that affect this principle; the number of the persons
to be supervised; the attention as affected by distance
and the limitation of attention due to time.

21. PRESENTED TO:
Dr. Augusta Rose A. Villamater Jane Alyssa Catalla
Aubrey Anne
Verastigue