This document discusses organizing as a management principle. It defines organizing as determining what needs to be done, how it will be done, and who will do it. It then discusses types of organizational relationships like charts and chains of command, span of control, line, staff and functional authority, delegation, and centralization vs decentralization. Finally, it outlines types of departmentalization including functional, divisional, geographical, and matrix structures.

1. PRINCIPLE OF
MANAGEMENT

2. CHAPTER 7
ORGANIZING

3. OUR GROUP MEMBER

Nur Rafidah Binti Sahidan

Nor Badariah Binti Zulkifli

Siti Raizliza Binti Muhamed Haizan

Tiffany Junit Binti Louis

4. Definition :
The process of determining what needs to be
done, how it will be done and who is to do it.
Importance of organizing :

Identification of organizational activities

Departmentalization of organizational activities

Classifying authority

Coordination between authority and
responsibility

5. Types of Organizational
Relationship
1) Chart and Chain of Command
2) Span of Control
3) Line, Staff, and Functional Authority
4) Delegation
5) Centralization and Decentralization

6. Chart & Chain of Command

An organization chart is a graphic
representation of a formal organization
structure.

Important tool for analyzing problems in
organization.

7. Organization Chart
PRESIDENT
VP
(MARKETING)
VP
( HR )
SALES
MANAGER
ADVERTISING
MANAGER
STAFFING
MANAGER

8. Organization chart helps managers to
ascertain the following factors :

Level of management

Chains of command

Positions and types of work performed

Departmentalization of division of work

9. Span of control
- known as span of management
- refers to the number of subordinates or employees
that is managed by a manager.
- there are two types of span of control :
1) Narrow span of control
2) Wide span of control

10. Narrow span of control
Requires manager to supervise a small group
of employees
More costly compared to a wide span of
management

11. Wide span of control

Requires a manager to supervise a larger group of
employees

ADVANTAGE:
- Lessoverhead cost of supervision
- Prompt responsefrom employees
- Better communication and coordination
- Suitablefor respetitivejobsor tasks

12. Factors of manager span of control :
Complexity of tasksassigned to subordinates
Similar tasksareperformed repeatedly
Tasksareclosely interconnected and interdependent
Operation takesplacein unstableenviroment

13. Line, Staff and Functional Authority

In many organization , managers apply
authority by dividing it into line , staff , and
functional authority .

There are differ each other depending by the
types of power which they are based on.

14. Line Authority
For those who are directly responsible to achieve
organizational goals , they are in line authority.
 It is represented by standard chain of command that start
with a board of directors and extends downward.
Based on legitimate power.
The activities categorized as line will differ in each
organization.

15. Staff Authority
It is belongs to individual or group in organization who
provide various types of service and advice to line
managers.
Staff provide planning via research , analysis , and option
development.
Staff also assist in policy implementation , monitoring and
control , legal and financial matters and in design and
operation of data- processing systems.
 It is based on expert power .

16. Manager
Human Resource
Manager
Production Manager Finance Manager Sales Manager
Production
Control
Manager
Industrial
Engineering
Manager
Regional
Sales
Manager
Regional
Sales
Manager
Regional
Sales
Manager
Department
Head
Department
Head
Department
Head
Production
Supervisor
Production
Supervisor
Production
Supervisor
Employees
Salespersons

17. Functional Authority
Providing advice and service to line members .
Functional authority is the right to control the
activities of other department which are related to
specific staff responsibilities .
This is common in organizations. It is necessary in
carrying out many organizational activities.
It is based on legitimate and expert power.

18. Delegation
Process of delegating or assigning authority to
another person and accountability of carrying out
specific activity.
Known as empowerment
It is necessary for efficient functioning in
organization as no manager can completely done
everything in the organization.
Manager also hold employees accountable for their
performance.

19. Centralization and Decentralization
Most business must make decisions about general
pattern of authority in an organization . It may be
largely centralized or decentralized.
Centralized organization is the extent to which
authority is retained by upper level management in
an organization .
Decentralization organization appears when the
authority making decision is delegated from one unit
to another.

20. Factors that influence Centralization or
Decentralization :

The philosophy held by top level management
The history of an organization's growth
An organization's geographic location
The quality of managers and their availability of
controls
The process of mergers, acquisitions and joint
ventures

21. TYPES OF ORGANIZATIONAL
STRUCTURES

Are choosen by influences from certain factor:

Nature of an organization

Specialization

Decision-making hierarchy

22. TYPES OF DEPARTMENTALIZATION
Process in which an organization select its
organizational structure.

23. FUNCTIONAL DEPARTMENTALIZATION

The grouping of related work activities according
to function.

ADVANTAGE:

Maintains the power and prestige of the major function

Creates efficiency through the principles of
specialization.

Centralizes an organizations expertise

Permits tighter top level management control of the
function

Reduces duplication of personnel and equipment

25. DIVISIONAL
DEPARTMENTALIZATION
Corporate divisions operate as relatively
autonomous businesses under a larger corporate
umbrella
Can be grouped according to the:

Products

Customer serves

Production process

26.  PRODUCT DEPARTMENTALIZATION

According to product or service available
ADVANTAGE:
1. Increased attention on specific product lines or
service
2. Improved coordination of function at divisional
levels
3. Better placement of profit responsibility
4. Ease in obtaining or developing executive with
broad managerial experience in running an
entire entity

27.  CUSTOMER DEPARMENTALIZATION

Group related work activities according to what
customers are likely to buy in term of an
organizations products or services
 PROCESS DEPARTMENTALIZATION
• Related work activities according to
production process

29. GEOGRAPHICAL
DEPARTMENTALIZATION

Related work activities according to area that
are served by a business.

30. MATRIX DEPARTMENTALIZATION

When teams are formed in which individuals report to two or
more managers

Usually the functional manager and project manager
ADVANTAGE
 Its hierarchy enables open communication and coordination of
activities among relavent functional specialist
 Allows for hierarchy flexibility that enables an organization to
respond rapidly to the need for change
 Can accommodate a wide variety of project orientated business
activities