This document discusses key concepts related to organizing and organization structures. It begins by defining organizing as developing an organizational structure and allocating resources to achieve objectives. Common organization structures include functional, divisional, and matrix structures. The document then examines theories of organization design such as simple, functional, and divisional structures. Modern theories include team design, matrix design, and boundaryless design. Other topics covered include delegation, centralization vs decentralization, and the roles of formal and informal organizations.

1. OBJECTIVES:
1.Nature of organizing
2.Types of organization structures
3.Organization theories and application
4.Delegation
5.Formal & informal organizations

2. Organizing

3. Organizing
-Is the function of management that involves
developing an organizational structure and
allocating human resources to ensure the
accomplishment of objectives.
- Determining what tasks are to be done, who
is to do them, how the tasks are to be
grouped, who reports to whom, and where
decisions are to be made..

4. Organization Structure
-A set of formal tasks assigned to individuals and
departments.
-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.

5. The set of formal tasks and formal
reporting relationships provides a
framework for vertical control of the
organization. The characteristics of
vertical structure are portrayed in
the organization chart, which is the
visual representation of an
organization’s structure.

7. Features of
Organization Structure

8. Features of Organization Structure
1. Work specialization
 Work specialization (also called division of labor or
job specialization) is the degree to which
organizational tasks are sub-divided into individual
jobs. It may increase the efficiency of workers,
but with too much specialization, employees may
feel isolated and bored. Many organizations
enlarge jobs or rotate assigned tasks to provide
greater challenges.

9. Features of Organization Structure
2. Chain of command
The chain of command (can also be called “hierarchy of
authority”) is an unbroken line of authority that links all
persons in an organization and shows who reports to
whom. It is associated with two underlying principles:
 Unity of Command – means that each employee is held
accountable to only one supervisor.
 Scalar Principle – refers to a clearly defined line of
authority in the organization that includes all
employees

10. Authority is a manager's formal and legitimate
right to make decisions, issue orders, and
allocate resources to achieve organizationally
desired outcomes and it is distinguished by
three characteristics:
Authority is vested in organizational positions,
not people.
Authority is accepted by subordinates.
Authority flows down the vertical hierarchy.

11. Responsibility means an
employee's duty to perform
assigned task or activities.
Accountability means that those
with authority and responsibility must
report and justify task outcomes to
those above them in the chain of
command.

12. Features of Organization Structure
3. Span of management – sometimes called
the span of control; the number of
employees reporting to a supervisor
Categories:
a.Direct single relationship.
b.Direct group relationships.
c.Cross relationship.

13. Types of Organization Structures
1.According to Bateman and Snell (2008), a
vertical structure clears out issues related to
authority rights, responsibilities, and reporting
relationships.
Authority rights – refer to the legitimate rights of
individuals, appointed in a position like president,
vice-president, manager, and the like, to give
orders to their subordinates, who in turn, report to
them what they have done.

14. Types of Organization Structures
2. A horizontal structure refers to the
departmentalization of an organization
into smaller work units as tasks
become increasingly varied and
numerous.

15. Types of Department
1.Line Departments – deal directly with the
firm’s primary goods and services;
responsible for manufacturing, selling, and
providing services to clients.
2.Staff departments – support the activities
of the line departments by doing research,
attending to legal matters, performing
public relations duties

16. Departmentalization may be done using
three approaches:
1. Functional approach – where the subdivisions are formed
based on specialized activities such as marketing, production,
financial management, and the human resources management

17. Departmentalization may be done using
three approaches:
2. Divisional approach – where the departments are formed based
on management of their products, customers, or geographic areas
covered

18. BASIS FOR COMPARISON FUNCTIONAL STRUCTURE DIVISIONAL STRUCTURE
Meaning Functional Structure is one in
which the reporting
relationships of the
organization are bifurcated
according to their functional
area.
An organizational structure
wherein the organizational
functions are classified into
divisions as per product or
service lines , market, is
called Divisional Structure.
Basis Functional areas Specialized divisions
Responsibility Difficult to fix responsibility
on a particular department.
Easy to fix responsibility
for performance.
Autonomy of decisions Managers do not have
autonomy of decisions.
Managers have autonomy
of decisions.
Cost Economical, as the functions
are not repeated.
Expensive as it involves
repetition of resources.
Appropriate for Small and simple
organizations.
Large and dynamic
organizations.

19. Departmentalization may be done using
three approaches:
3. Matrix approach – is a hybrid form of departmentalization where
managers and staff personnel report to the superiors, the functional
manager, and the divisional manager.

20. Types of Organization Structures
3. A network structure is a
collection of independent, usually
single function
organizations/companies that work
together in order to produce a
product or service

21. ORGANIZATIONAL THEORIES
AND APPLICATIONS

22. ORGANIZATIONAL THEORIES AND APPLICATIONS
There are two main classifications of theories
regarding organizational design (Robbins and
Coulter, 2009)
a.Traditional – pertains to the usual or old-
fashioned ways
b.Modern – refers to contemporary or new
design theories

23. Traditional organizational design theories
include:
1. Simple – this organizational design has few
departments, wide spans of control, or a big
number of subordinates directly reporting to a
manager
- has a centralized authority figure and has very
little formalization of work
- usually used by companies that start out as
entrepreneurial ventures

24. SIMPLE ORGANIZATIONAL DESIGN
Strengths
 Flexible
 Fast decision-
making and results
 Clear
accountability
Weaknesses
 Risk that
overdependence on
a single person
 No longer
appropriate as the
company grows

25. Traditional organizational design theories
include:
2.Functional – this organizational design groups
together similar or related specialties
- Generally, functional departmentalization is
utilized and put into practice in an entire
organization

26. FUNCTIONAL ORGANIZATIONAL DESIGN
Strengths
 Cost-saving
advantages
 Management is
facilitated because
workers with
similar tasks are
grouped together
Weaknesses
 Managers have
little knowledge of
other units’
function

27. Traditional organizational design theories
include:
3. Divisional – this organizational design is made
up of separate business divisions or units, where
the parent corporation acts as overseer to
coordinate and control the different divisions and
provide financial and legal support services.

28. DIVISIONAL ORGANIZATIONAL DESIGN
Strengths
 Focused on results
 Managers are
responsible for
what happens to
their products and
services
Weaknesses
 Possible duplication
of activities and
resources
 Increased cost and
reduced efficiency

29. Modern organizational design theories
include:
1. Team Design – in here, the entire
organization is made up of work
groups or teams.

30. TEAM ORGANIZATIONAL DESIGN
Strengths
 Reduced barriers
among departments,
increased compromise
 Shorter response time,
quicker decisions
 Better morale,
enthusiasm from
employee involvement
Weaknesses
Dual loyalties and
conflict
Time and
resources spent
on meetings
Unplanned
decentralization

31. Modern organizational design theories
include:
2. Matrix-Project Design – this refers to an
organization design where specialist from
different departments work on projects that are
supervised by a project manager
Project design – refers to an organization design
where employees continuously work on a project

32. MATRIX-PROJECT ORGANIZATIONAL DESIGN
Strengths
 More efficient use of
resources than single
hierarchy
 Flexibility,
adaptability to
changing environment
 Interdisciplinary
cooperation, expertise
available to all
division
Weaknesses
 Frustration and
confusion from dual
chain of command
 High conflict
between two sides
of the matrix
 Many meetings,
more discussion
than action

33. Modern organizational design theories
include:
3. Boundary-less Design (Virtual Network Design)– this
organization design is not defined or limited by vertical,
horizontal, and external boundaries. In other words,
there are no hierarchical levels that separate
employees, no departmentalization, and no boundaries
that separate the organization from customers,
suppliers, and other stakeholders.
Small groups of full-time employees and outside
specialists are temporarily hired to work on projects
(outsourcing).

34. BOUNDARY-LESS ORGANIZATIONAL DESIGN
Strengths
Can draw on
expertise
worldwide
Highly flexible
and responsive
Reduced
overhead costs
Weaknesses
Lack of control;
weak boundaries
Greater demands
on managers
Employee loyalty
weakened

35. DELEGATION
- is the assignment of any
responsibility or authority to
another person to carry out
specific activities.

36. Priming Activity:
Are you a positive delegator?
Positive delegation is the way an
organization implements decentralization.
Do you help or hinder the decentralization
process? Answer yes or no to the following
questions.
)

37. YES NO
• I tend to be a perfectionist. ____ ___
• My boss expects me to know all the details of my job. ____ ___
• I don’t have the time to explain clearly and
concisely how a task should be accomplished. ___ ___
• I often end up doing tasks myself. ___ ___
• My subordinates typically are not as committed as I am.___ ___
• I get upset when other people don’t do the task right. ___ ___
• I really enjoy doing the details of my job to the best
of my ability. ___ ___
• I like to be in control of task outcomes. ___ ___

39. How to Delegate?
1.Choose appropriate task -defining the goal clearly.
2.Choose appropriate person -select the right person.
3.Set clear objectives and plan -ensure that authority
equals responsibility.
4.Implement -give thorough instruction.
5.Monitor –check the task accomplishment progress.
6.Evaluate or review -evaluate and reward
performance. Make sure the task has been
achieved.

40. Advantages of Delegation
a. It prevents work overload among
organization managers.
b. It provides opportunities for employee
or subordinates assigned to do the task
to fully utilize their talents on the job.
c. It leads to empowerment of employees
or subordinates assigned to do the
task, as it allows them freedom to
contribute ideas and to perform their
job in the best possible way.
d. It increases job satisfaction among the
assigned employees or subordinates,
that may lead to better job
performance.
Disadvantages of Delegation
a. It may cause laziness among
organization managers.
b.It may encourage too much
dependence on others.
c. It may cause lack of control
over priority management
problems.
d.It may cause low self-
confidence among
managers.

41. Centralization and Decentralization pertains to the
hierarchical level at which decisions are made.

42. Formal and Informal Organizations
Formal Organizations – composed of the recognized
and formalized lines of communication, authority and
control. This system is usually pictured in the official
organization chart.
– are characterized by hierarchical and reporting
relationships among groups or members.
Informal Organizations – consist of informal groups
born out of the need for social affiliation
- is much more subtle and invisible in the organization
chart.

43. Functions of Formal Organization
1.Accomplish goals that require cooperation or
collaboration among formal groups in the
organization.
2.Produce or bring about new and creative ideas and
solutions to company problems.
3.Coordinate interdepartmental activities.
4.Implement company rules/regulations and
policies.
5.Orient/train new employees.

44. Functions of Informal Organization
1.Satisfy the members’ need for affiliation.
2.Give the individual members a chance to develop
their self-esteem.
3.Give individual members an opportunity to share
their ideas.
4.Lessen individual members’ insecurity.
5.Provide a mechanism to solve members’ personal
and interpersonal problems.

45. TALL VS. FLAT ORGANIZATIONAL STRUCTURE
Tall Organizational Structure – consist of several layers
of management…. These employees report to the next
layer, or the first layer of management…. Each layer of
manager reports to the next layer of manager which
culminates with the president of the company.
Flat Organizational Structure – with few or no levels of
management between management at staff level
employees. The flat organization supervises employees
less while promoting their increased involvement in the
decision-making process

47. THANK YOU
and
GODBLESS…..