Professional Documents
Culture Documents
ACTIVITIES
Organizing Defined
Organizing is a management function
which refers to the the structuring of
resources and activities to accomplish
objectives in an efficient and effective
manner.
Concerns to be Addressed in
Structuring Organization
1.
2.
3.
4.
5.
Division of labor
Delegation of authority
Departmentation
Span of Control
Coordination
INFORMAL GROUPS
There are instances when members of an organization spontaneously
form a group with friendship as a principal reason for belonging. This
group is called an informal group. It is not part of the formal
organization and it does not have a formal performance purpose.
Informal groups are oftentimes very useful; in the accomplishment of
major tasks, especially ifthese tasks conform to the expectations of
the members of the informal group.
The informal organization, useful as it is, is vulnerable to expediency,
manipulation, and opportunism, according to Valentine. Its low
visibility, Valentine added, makes it difficult for management to
detect these perversions and considerable harm can be done to the
company.
TYPES OF ORGANIZATIONAL
STRUCTURES
Functional Organization this is a form of departmentalization in which
everyone engaged in one functional activity, such as engineering or
marketing, is grouped into one unit.
Functional Organization
Functional organization structures are very
effective in smaller firms, especially
single-business firms where key activities revolve
around well-definedskills and areas of
specialization.
Advantages
The groupings of employees who perform a common task permit economies of scale and
efficient resource use.
Since the chain of command converges at the top of the organization, decision-making is
centralized, providing a unified direction from the top.
Communication and coordination among employees within each department are excellent.
The structure promotes high-quality technical problem-solving.
Disadvantages:
Communication and coordination between the departments are often poor.
Advantages
The organization is flexible and is responsive to change.
The organization provides a high concern for customers needs.
The organization provides excellent coordination across
functionaldepartments.
There is easy pinpointing of responsibility for product problems.
There is emphasis on overall product and division goals.
Disadvantages
There is a high possibility of duplication of resources across divisions
There is less technical depth and specialization in divisions.
There is poor coordination across divisions.
There is less top management control.
There is competition forcorporate resources.
Matrix Organization
A matrix, organization, according to Thompson and Strickland, is a
structure with two (or more) channels of command, two lines of
budget authority, and two sources of performance and reward.
Higgins declared that the matrix structure was designed to
keepemployees in a central pool and to allocate them to various
projects in the firm according to length of time they were needed.
Advantages
There is more efficient use of resources than the divisional structure.
There is flexibility and adaptability tochanging environment.
The development of both general and functional management skills
are present.
There is interdisciplinary cooperation and any expertise isavailable to
all divisions.
There are enlarged tasks for employees which motivate them better.
Disadvantages
There is frustration and confusion from dual chain ofcommand.
There is high conflict between divisional and functional interests.
There are many meetings and more discussion than action.
There is a need for human relations training for key employees and
managers.
There is a tendency for power dominance by one side of the matrix.
TYPES OF AUTHORITY
Line authority a managers right to tell subordinates what to do and
then see they do
it.
Staff authority a staff specialists right to give advice to superior.
Functional authority a specialists right tooversee lower level
personnel involved
inthat specialty, regardless of where the
personnel arein the organization.
Purpose of Committees
A committee is a formal group of persons formed for a specific purpose. For
instance, the product planning committee, as described by Millevo, is often
staffed by top executives from marketing, production, research, engineering,
and finance, who work part-time to evaluate and approve product ideas.
Committees are very useful most especially to engineering and
manufacturing firms. When a certain concern, like product development, is
under consideration, a committee is usually formed to provide the necessary
line-up ofexpertise needed to achieve certain objectives.