ORGANISING

PRINCIPLES OF MANAGEMENT(BBA 112)

JUDY BENARDINE ACKON

LEARNING OBJECTIVES
1. Organization as a group of persons
2. Organization as a structure of relationship
3. Organization as a function of management
4. Organization as a process.
ORGANIZATION AS A GROUP OF PEOPLE
• Organization begins when people combine
efforts for some common purpose.
• An identifiable group of people contributing
their efforts.
ORGANIZING AS A PROCESS
• Organization is the process of establishing
relationship among the members of the
organization.
• Identification and grouping of activities to be
performed.
• Division of labour to achieve organizational
goals.
STEPS IN ORGANIZING
1.Consideration of objectives which serve as guidelines for the
management and workers leading to unity of direction in the
organization.

2.Identification and grouping of activities (division of labor).

3.Assignment of duties

4.Delegation of authority: The role of authority and responsibility.

What is the relationship between authority and responsibility
 AUTHORITY AND RESPONSIBILITY
• Responsibility without authority is an empty
vessel.

•Authority without responsibility is reckless

•Authority and responsibility are delegated to

the subordinates to enhance performance.
 AUTHORITY
• Authority: the line of authority extending from upper
organizational levels to the lowest levels, which
clarifies who reports to whom
• Line authority: authority that entitles a manager to
direct the work of an employee
• Staff authority: positions with some authority that
have been created to support, assist, and advise those
holding line authority (exams office, faculty exams
office, student registration help desks, etc).
 AUTHORITY, POWER AND RESPONSIBILITY
• Authority: the right by which things get done. It is the
right to order or command and is delegated from the
superior to the subordinate to discharge his
responsibilities.

• Power is the capacity or ability to influence the behavior

of other individuals.

• Responsibility is the obligation to perform

 PURPOSE OF ORGANIZING
1. Divides work to be done into specific jobs and
departments.
2. Assigns tasks and responsibilities associated with
individual jobs.
3. Coordinates diverse organizational tasks.
4. Clusters jobs into units.
5. Establishes relationships among individuals, groups, and
departments.
6. Establishes formal lines of authority.
7. Allocates and deploys organizational resources.
 ORGANISATION STRUCTURE,CHART AND
DESIGN
Organizing: management function that involves arranging and
structuring work to accomplish the organization’s goals
• Organizational structure: the formal arrangement of jobs
within an
organization
• Organizational chart: the visual representation of an
organization’s
structure
• Organizational design: creating or changing an
organization’s structure
 ORGANISATION STRUCTURE
• An organization structure shows the authority and
responsibility
relationship between the various positions of the organization
by showing who reports to whom.
• It is a set of planned relationships between groups of related
functions and between physical factors and personnel
required for the
achievement of organizational goal.
• The structure of an organization is generally shown on the
organization chart or a job task pyramid.
 ELEMENTS OF ORGANISATIONAL DESIGN
• WORK SPECIALIZATION
• DEPARTMENTALIZATION
• CHAIN OF COMMAND
• SPAN OF CONTROL
• CENTRALIZATION AND DECENTRALIZATION
• FORMALIZATION
 WORK SPECIALIZATION

Work specialization: dividing work activities

into separate job tasks
 DEPARTMENTALIZATION
Departmentalization: the basis by which jobs are
grouped together
• Functional departmentation/departmentalization.
• Geographical departmentalization
• Product departmentalization
• Process departmentalization
• Customer departmentalization
TODAY’S VIEW OF DEPARTMENTALIZATION
Two trends are:
• Cross-functional teams: a work team
composed of individuals from various functional
specialties. This has become more popular as
tasks become more complex.
• Customer departmentalization: emphasizes
monitoring and responding to customers’ needs
SPAN OF CONTROL

Span of control: the number of employees a

manager can efficiently and effectively
manage
CENTRALIZATION AND DECENTRALIZATION

• Centralization: the degree to which

decision making is concentrated at upper
levels of the organization
• Decentralization: the degree to which
lower-level employees provide input or
actually make decisions
CENTRALIZATION AND DECENTRALIZATION

•Employee empowerment: giving employees

more authority (power) to make decisions
 FORMALIZATION

•Formalization: how standardized an

organization’s jobs are and the extent to
which employee behavior is guided by rules
and procedures
 MECHANISTIC AND ORGANIC STRUCTURE
• Mechanistic organization: an organizational
design that’s rigid and tightly controlled

•Organic organization: an organizational design

that’s highly adaptive and flexible
 MECHANISTIC AND ORGANIC STRUCTURE

MECHANISTIC ORGANIC
• High specialization cross functional teams
• Rigid departmentalization cross hierarchical teams
• Clear chain of command free flow of information
• Narrow span of control wide span of control
• High formalization low formalization
• Centralization decentralization
 STRATEGY AND STRUCTURE

• An organization’s structure should facilitate

goal achievement.
• Because goals are an important part of the
organization’s strategies, it’s only logical that
strategy and structure are closely linked.
SIZE AND STRUCTURE

•There’s considerable evidence that an

organization’s size affects its structure, but
once an organization grows past a certain
size, size has less influence on structure
 TECHNOLOGY AND STRUCTURE
•Unit production: the production of items in
units or small batches (ships, customized
vehicles, private jets, etc.).
• Mass production: the production of items in
large batches(automobile industry)
• Process production: the production of items in
continuous processes (hand lotions, beverages,
etc.)
 ENVIRONMENTAL UNCERTAINTY AND
STRUCTURE
•In stable and simple environments,
mechanistic designs can be more effective.
• The greater the uncertainty, the more an
organization needs flexibility of an organic
design.
 TRADITIONAL ORGANIZATIONAL DESIGN
OPTIONS
•Simple structure: an organizational design with little
departmentalization, wide spans of control,
centralized authority, and little formalization
• Functional structure: an organizational design that
groups together similar or related occupational
specialties
• Divisional structure: an organizational structure
made up of separate, semiautonomous units or
divisions
 CONTEMPORARY ORGANISATIONAL DESIGN
OPTIONS
• Team structure: an organizational structure in
which the entire organization is made up of work
teams
•Matrix structure: an organizational structure
that assigns specialists from different functional
departments to work on one or more projects
• Project structure: an organizational structure
in which employees continuously work on
projects
VIRTUAL ORGANIZATIONS
•Virtual organization: an organization that
consists of a small core of full-time
employees and outside specialists
temporarily hired as needed to work on
projects
• Sometimes called “Network” or “Modular”
organization
FLEXIBLE WORK ARRANGEMENTS

•Telecommuting: a work arrangement in

which employees work at home and are
linked to the workplace by computer
 FLEXIBLE WORK ARRANGEMENTS
•Compressed workweek: a workweek where employees
work longer hours per day but fewer days per week
• Flextime (or flexible work hours): a scheduling system in
which employees are required to work a specific number
of hours a week but are free to vary those hours within
certain limits
• Job sharing: the practice of having two or more people
split a full-time
job
 CONTINGENCY WORKFORCE

•Contingent workers: temporary, freelance,

or contract workers whose employment is
contingent on demand for
their services