Page 1 of 3 Organization: An organization consists of people whose specialized tasks are coordinate to contribute to the organization goals.

Organizing: Organizing is arranging and structuring work to accomplish the organizations goals. Determining what task to be done grouping of activities how to do it who is to do what who is to report to whom who is accountable to whom. Organizational Structure: !he formal arrangement of "obs within an organization. Organizational Design: A process that involves decisions about si# ke$ elements.

Organizational Design

(ork +pecialization Departmentalization .hain of .ommand +pan of .ontrol

.entralization / Decentralization

%igure&1' Organization Design %ormalization Work Specialization Division of labor. (ork specialization to describe dividing work activities in an organization into separate "ob tasks. !he essence of work specialization is that an entire work activit$ is not done b$ one individual but instead is broken down into tasks with each task completed b$ a different person. )ndividuals emplo$ees *+pecialize, is doing part of an activit$ rather than the entire activit$. Departmentalization !he basis b$ which "obs are grouped together is called departmentalization. -ver$ organization will have its own specific wa$ of classif$ing and grouping "obs. )t has the five common forms.

Page 0 of 3 Departmentalization

%unctional Departmentalization Product Departmentalization

1eographical Departmentalization Process Departmentalization %igure&0' %orms of Departmentalization

.ustomer Departmentalization Functional Departmentalization: 1roups "obs b$ functions performed. !his approach can be used in all t$pes of organizations. Product Departmentalization: 1roups "obs b$ product line. Avon products has three main products line such as beaut$ 2.osmetic skin care toiletries3 beaut$ plus 2fashion "ewelr$ watches apparel and accessories3 and be$ond beaut$ 2home product gift3. Geographical Departmentalization: 1roups "obs on the basis of geographical region such as southern 4idwestern or northwestern region. Process Departmentalization: 1roups "obs on the basis of product or customer flow. )n this approach work activities follow a natural processing flow of products or even of customers. Customer Departmentalization: 1roups "obs on the basis of specific and uni5ue customers who have common needs or problems that can best be met b$ having specialties for each. Chain of Command )t refers to organization hierarch$. !he line of authorit$ e#tending from upper organizational level to the lowest level which clarifies who report to whom. !here are three important elements of chain of command.

.hain of .ommand

Authorit$ 6esponsibilit$

%igure&3' -lements of .hain of .ommand

7nit$ of .ommand

Page 3 of 3 Authority: 6efer to the rights inherent in a managerial position to tell people what to do and to e#pect them to do it. esponsi!ility: !his obligation or e#pectation to perform is known responsibilit$. "nity of Command: )t state that a person should report to onl$ one manager. (ithout unit$ of command conflicting demands and priorities from multiple bosses can create problems. Span of Control !he number of emplo$ees a manager can efficientl$ and effectivel$ manage. Factor Determining Span of Control: +pan of control recognizes that man$ factors influence the appropriate number of emplo$ees that a manager can efficientl$ and effectivel$ manage. ##!he skills and abilities of the manager. ##!he skills and abilities of emplo$ees. ##!he characteristics of the work being done. 88+imilarit$ of emplo$ee tasks. 88!he comple#it$ of those tasks. 88!he ph$sical pro#imit$ of subordinates. 88!he degree to which standardized procedures are in place. 88!he sophistication of the organizations information s$stem. 88!he strength of the organizations culture and 88!he preferred st$le of the manager. Centralization and Decentralization )n some organizations top manager make all the decisions and lower level managers and emplo$ees simpl$ carr$ out their orders. At other e#treme are organizations in which decision making is pushed down to the managers who are closest t the action. !he former organizations are centralized and the latter are decentralized. Centralization: !he degree to which decision making is concentrated at upper level of the organization. Decentralization: !he degrees to which lower level emplo$ees provide input or actuall$ make decisions. $mployee $mpo%erment: 1iving emplo$ees more authorit$ 2power3 to make decisions. Formalization 9ow standardized an organizations "obs are and the e#tent to which emplo$ee behavior is guided b$ rules and procedures.