CHAPTER 4

ORGANIZING
DIANA DULAY
MAIRA BRUZOLA
ALLYSSA COBALES
CHRISEL BELMONTE
MA JOYCE MARPURI
LEARNING COMPETENCIES…
01 Discuss the nature of organizations;

02 Distinguish the various types of organization structures.

03 Apply organization theories in solving business cases

04 Identify the different elements and delegations; and

05 Differentiate formal from informal organization.

NATURE OF
ORGANIZING
 ORGANIZING
Is a systematic process of structuring, integrating, co-ordinating task goals, and activities to resources in order to attain
objectives.
Provision of
Organizing can be thought of as: commensurate
authority to the
manager so that he
can be able to
The grouping of supervise the group
the activities of activities that has
identified been assigned to him,
1 3 and
5

Identification and The assignment Co-ordination which

classification of
2 of the activities
4 ensures that the
required activities which have been group of activities
necessary for the grouped (each assigned to a
accomplishment of the group of manager has a link
objectives of the activities) to a with other group of
organization; manager activities assigned to
other manager in the
organization.
 ADVANTAGES OF ORGANIZING

Organizing makes it possible The environment, that is, the

to identify who is to do that. internal environment is made
clear

Presence of communication Organizing makes it possible

network. to identify who is responsible
for what result.

It makes it possible for

smooth decision making Removes Obstacles
network.
 WHAT IS
ORGANIZATION?
The term “Organization” is one word that people
use loosely. In one sense, some people look at
the word as including all the behaviours of the
people that work in an establishment.
MULLINS Structure is the pattern of relationships along positions
in the organization and among members of the
(2000) organization.

Purpose:
 division of work among members of the organization,
and the coordination of their activities so they are
directed towards achieving the goals and objectives of
the organization.

The structure defines tasks and responsibilities, work

roles and relationships and channels of communication.
 DRUCKER (1989)
Suggest the organization structure should satisfy three requirements

It must be organized The structure should Organization structure

for business contain the least possible must make possible the
number of management training and testing of
performance.
levels. future top management.
 OBJECTIVES OF
ORGANIZATIONAL STRUCTURE
Knight (1977)
Coordination of different parts of The economic and efficient
organization and different areas of performance of the organization
work. and the level of resource
utilization.

Flexibility in order to respond to

future demands and developments, Monitoring activities of the
and adapt to changing environment organization
influences

The social satisfaction of members Accountability for areas of work

working in the organization undertaken by groups and
individual members of the
organization.
 TYPES OF
ORGANIZATION
STRUCTURE
 FUNCTIONAL ORGANIZATIONAL STRUCTURE

MARKETING MANAGER

SALES ADVERTISING PRODUCT PURCHASING

MANAGER MANAGER MANAGER MANAGER
 PRODUCT / MARKET STRUCTURE

MARKETING MANAGER

GENERAL GENERAL GENERAL GENERAL

MANAGER MANAGER MANAGER MANAGER
FOODS HOUSEHOLD PHARMACEUTICAL PERSONAL
PRODUCTS
CARE
MATRIX STRUCTURE
 DIMENSION OF ORGANIZATIONAL STRUCTURE
Organizational structure can be analyzed along several dimensions.
01
FORMALIZATION
Refers to the amount of
written job description, rules,
policies and procedures that
guide employee behavior.
03
COMPLEXITY
Concerns the number of
distinctly different job titles and
departments in an organization
with many different department
and job titles are more complex
than organizations with only a
few job titles and departments.
02
CENTRALIZATION
Deals with the issue of how
much authority is held at the
various management levels in
the organizational hierarchy.
04
SPECIALIZATION
Means breaking a complex
task into simple parts so that
the individual or group
performing the task can focus
on specific parts of it.
is widely used in modern organization for both managerial and operative jobs
 Advantages and Disadvantages of Specialization of Labor
ADVANTAGES:

Workers became very efficient when doing the same portion of a carped
01 task over and over again.

One manager can supervise large numbers of workers doing identical

02 tasks.

Workers can learn specialized jobs much faster than jobs requiring
03 many

04 Quantity may improve because workers know their job excellently.

The coordination of many specific task may be the only way for the
05 organization to achieve its complex overall goals.
 Advantages and Disadvantages of Specialization of Labor
DISADVANTAGES:

Workers fail to develop any sense of pride for the product and service
01 that they are producing.

Motivation among workers erodes and a sense of alienation from work

02 may develop.

Workers may feel that they are not using valued skills to do their
03 work.

Boredom, absenteeism, and turnover among workers may cause quality

04 to decline

Workers may be unaware of how their area of specialization fits

05 into the overall goal of the organization.
 Composition and Members in the
Organizational Structure
THE STRUCTURE IS IMPORTANT BECAUSE IT SHOWS THE
DUTIES THAT SHOULD BE PERFORMED IN ORDER THAT THE
GOALS AND OBJECTIVES CAN BE REACHED.

BOARD OF DIRECTORS
This is the first layer of a typical business organization.
Members of the board are drawn from the share holders. The
board provides leadership and that is why whoever is going to
be elected or appointed to the board must be matured individual
capable of contributing constructively to the leadership role of
the board.

DETERMINATION OF ORGANIZATIONAL POLICY

It is the responsibility of the board to fashion out what should be the policy
of an organization. The policy is important because it gives a guide to actio
n. It provides the framework through which all other activities are carried.
QUIZ!
Get ¼ sheet of yellow paper
 QUIZ!

A. Formalization 01
B. Centralization It refers to the amount of written job description,
C. Complexity rules, policies and procedures that guide
employee behavior.

A.
A. Formalization
Mullins (2000) 02
B.
B. Centralization
Drucker (1989) It is the pattern of relationships along positions in
C.
C. Complexity
Knight (1977) the organization and among members of the
organization.

A. Centralization 03
B. Formalization It deals with the issue of how much authority is
C. Specialization held at the various management levels in the
organizational hierarchy.
 QUIZ!

04 - 05
Give at least 2 Functional organizational
structure

A. Formalization
B. Centralization
C. Complexity
ANSWER!
01 A. FORMALIZATION

02 A. MULLINS (2000)

03 A. CENTRALIZATION

04 FUNCTIONAL ORGANIZATIONAL STRUCTURE

05 PRODUCT / MARKET STRUCTRE, & MATRIX STRUCTURE