MANAGEMENT

KHOA QUẢN TRỊ KINH DOANH

Module 4. ORGANIZING

2
 Learning Objective

• Define what is organizing.

• Describe elements when designing in an

organization.

• Describe the types of organizational structures.

• Explain the elements of the human resource

management.
 KHOA QUẢN TRỊ KINH DOANH

LO1: Define what is organizing.

1. What is organizing?
Establishing task and
authority relationships
that allow people to
work together to
achieve organizational
goals.
 Concept of organizing
• Work organization
what? • Organizational structure

when?

• Division and
how?
coordination of
work flow
 KHOA QUẢN TRỊ KINH DOANH

LO2: Describe six key elements in organizational design

1. Basic issues in organization design

Work Authority and

Span of control
specialization responsibility

Centralization
Chain of Delegation of
vs.
command authority
decentralization
 KHOA QUẢN TRỊ KINH DOANH

LO2: Describe elements when designing an organization

1. Specialization of work

W1

W 1.1 W 1.2 W 1.3

W 1.1.1 W 1.1.2 W 1.1.3 W 1.2.1 W 1.2.2 W 1.2.3 W 1.3.1 W 1.3.2

W 1.2.3.1 W 1.2.3.2
 KHOA QUẢN TRỊ KINH DOANH

Basic issue in organizing

2. Span of control (supervision)
Wide span of control Narrow span of control

Save costs of managerial work

Reduce levels of management Strick control
Over-load of top-up managers causes Smooth information flow between top-up &
trouble of decision making . bottom-down level
Top-up managers lose control. Cost much due to number of managerial levels
Long distance between the top and first-line
managers
 KHOA QUẢN TRỊ KINH DOANH

Span of control = 4 Span of control = 8

Factors influencing span

of control:
- Managerial abilities
- Competence of
subordinates
- Nature of work
- Delegation of Number of managers Number of managers (1-4)
authority (1-6) 1365 585
- Degree of
decentralization Span of control = 4 Span of control = 8
Number of staffs = 4096 Number of staffs = 4096
Number of managers = 1365 Number of managers = 585
 KHOA QUẢN TRỊ KINH DOANH

3. Authority and responsibility

• Direct to others to follow • Be responsible for

• Depend on the position of the
manager, not the individual implementation

• Align with authority

 Formal authority of position

 Subordinate accept authority of the boss

 Manager has ability and traits that create

trust from the subordinates
 KHOA QUẢN TRỊ KINH DOANH

Basic issue in organizing

4. Chain of command

Ability to
Oppression Authority
award

Professional
Relationships
skills
 KHOA QUẢN TRỊ KINH DOANH

Basic issue in organizing

5. Centralization & decentralization

Decentralization
Centralization
 KHOA QUẢN TRỊ KINH DOANH

Basic issue in organizing

6. Delegation of authority

• Top manager • Output >< initial

• Middle manager objective
• First-line • Difficult to
manager control

Advantage Disadvantage

Define the Delegation

Assign tasks Controlling
result of authority
 KHOA QUẢN TRỊ KINH DOANH

LO2: Describe the types of organizational structures

1. What is organizational structures?

What for?

Tasks, workflow, reported

relationships, communication
channels
 LO2: Describe the types of organizational structures
2. What factors will be affected to organizational
structures design ?
 KHOA QUẢN TRỊ KINH DOANH

Organizational structure
Line structure

Functional structure

Hybrid structure

Matrix structure

Product team structure

Division structure
 KHOA QUẢN TRỊ KINH DOANH

Line/vertical/hierarchy structure

Director

Technical
Sale Vice
Vice
Director
Director

Unit 1 Unit 2 Shop 1 Shop 2

Team Team Team Team

1
Team 2 Team 3
4 5 6 … … … …

Fast decision Apply for small enterprises, unchanged High risks, accidents toward
making, simple, environment. directors, low cooperation
flexible, less cost Authority along line managers who between divisions
have responsibility for many functions;
they are independent.
 KHOA QUẢN TRỊ KINH DOANH

Functional/horizon structure

Specialization of Mass production Poor cooperation between division,

division, more Subordinate receive tasks split among divisions, difficult for
efficiency of resource from leader (CEO) and training good managers with vision
usage functional managers
 KHOA QUẢN TRỊ KINH DOANH

Hybrid structure (line – functional combination

structure)

Conflict between line

Create advantages for Apply for larger and functional
cooperation between companies, less organization, low
divisions changed environment responseS
 KHOA QUẢN TRỊ KINH DOANH

Divisional structure

Product Market Geography

divisional divisional divisional
structure structure structure

Large size, diversified product and market

High performance
 KHOA QUẢN TRỊ KINH DOANH

Product divisional structure

CEO

Director
of division

Product Product Product

director A director B director C

A1 A2 B1 B2 C1 C2
 KHOA QUẢN TRỊ KINH DOANH

Market/customer divisional
structure

CEO

Director of
division

Director of Director of
Individual business SME director
customer customer

A1 A2 B1 B2 C1 C2
 KHOA QUẢN TRỊ KINH DOANH

Geography divisional structure

CEO

Director of
division

North Middle South

region region region
director director director

A1 A2 B1 B2 C1 C2
 KHOA QUẢN TRỊ KINH DOANH

Organizational
chart of
McDonald’s
Corporation
 KHOA QUẢN TRỊ KINH DOANH

Matrix structure
Large size, diversified environment CEO
Costly, each employee has to report to
2 bosses Giám đốc
bộ phận

Marketing Tài chính Thiết kế R&D Sản xuất

Nhóm sản
phẩm A

Nhóm sản
phẩm B

Nhóm sản
phẩm C
 KHOA QUẢN TRỊ KINH DOANH
Viacom’s 2001
Product
Structure
Project structure
 Flat structure
Advantage:
IT • Simple
outsourcing • Efficiency (reduce cost due to
management cost reduction)
• Good quality

Disadvantage:
• Difficult to manage, cooperate
IT company • Loose of control

Accounting Design
company company
 Virtual structure – non border
• Mobility immediately
• Voluntary
• Non-principle

Consulting, training, IT, multi-level Social networking

sale
 KHOA QUẢN TRỊ KINH DOANH

LO3: Explain the importance of the HRM

1. What is HRM?

Attraction Development Retention

accomplishment of organizational goals

 KHOA QUẢN TRỊ KINH DOANH

LO3: Explain the importance of the HRM

2. What components does HRM include?

Compensation

Components of a HRM system

 LO3: Explain the importance of the HRM
2.1 What activities in recruitment and selection?
 LO3: Explain the importance of the HRM
2.2 What is the difference b/t training and development?
 LO3: Explain the importance of the HRM
1.3 What is performance appraisal and feedback?

Performance Appraisal Performance Feedback

 LO3: Explain the importance of the HRM
2.4 What is compensation?

Compensation Benefit
 LO3: Explain the importance of the HRM
2.5 What is labor relations?
Labor relations are the activities
managers engage in to ensure that
they have effective working
relationship with labor unions
that represent their employees’
interests.
 KHOA QUẢN TRỊ KINH DOANH

LO3: Explain the importance of the HRM

3. Why is HRM important?

An HRM System