‘mechanics and assistants were recruited. By the end of 1983 cac unit basa personne complement ofS mechanie and 6 aaistants, ‘ven with current developments, the ld method of purchasing as ot improved. Purchase requests started {o pileup. Mechanics and drivers began complaining to the VP for Operations aboot dolays in the delivery of needed parts ‘The VP for Operations immediately sent a note to Engineer Indoctivo ordering that the problem should be resolved immediatly. Engineer Induetivo was bard resed and be could not ofr an mediate solution. The fest da, Engineer Indutivo informed the VP for Opera ‘ons that he requesting forthe approval of his appli Cation fo retirement ase i already 62 years od ‘The VP forwarded the request tothe President with fan endorsement justifying the request. On the ‘ey the request fr retirement was approved. The ‘ay, Engineer Anchetareoived hi appointment papers promoting hte to Manage, ‘One ofthe it things Engineer Ancheta did was to Sngpect Une storage room fr parts He found out thatthe oom was fll of an uneven supply of parts. Some parts swore of eacesiv quantition, while some important ence ‘rer inadequately stoked. Acormer ofthe rom contains {hig volume of eboolete parts ‘At the end ofthe day, Engineer Acheta was informed bythe VP that the company wil be fading am aditionl ‘50 now bases within 30 day. This will mean that by next ‘month, about 100 buses willbe servicing the various ‘outer sbsgned to Motorbus Company giner Ancheta i now malting over how be wil rake the operation of is department as eficent and ‘Aective as poosle. "eam ORGANIZING TECHNICAL ACTIVITIES Reasons tor Orpaniing organi Oetine ‘The Purpose of he sructure ‘The Forma! Organization Intomet Groups ‘Types of Organizational ucts ype of Autry ‘The Purpose of ComminsChapter 4 ANIZING TECHNICAL ‘The engineer manager needs to acquire various ‘klein management, sncluding thooe for organizing technical tivities. In this highly cmpetitive environ: ‘ent the unaaled manager will ot be able to bring hie Uni, or his company, asthe ease may be, to socess. ‘Thevaloe ofa superior ngaizaional suphas been proven dramatically during the Seed World War when ‘rmaller American naval free confronted the formidable ‘epanese navy at Midway: Military historians indicated that the Americans emerged vicarious because of the ‘perce srpanizatonal silt of Uhr leader ‘Bven today, kills in organizing contribute largely to the accomplishment of the objectives of many organiea: tions, whether they ae private businesses or otherwise, ‘he postive ffecta of business sucess becomes more pronnunced when they como a a result of international bperaions. International businesses, however, cannot hope to make hage profits unless they are properly organied to implement thie plans! ‘The opportunites offered by iif nganiing are too important forthe engineer manager to ignore. Thin ‘haptar i intended to provid him with some Background fad insights in organizing REASONS FOR ORGANIZING ‘Organising is undertaken to falitate the imple- ‘apres nt San ran Merge Te doug a entation of plant ln elbtive otganising,eape are Undertaken to breakdown the tal jb ato more man: ‘ageable manic job. Doing thee will make it pou {assign particle tasks to particular persons In tara, ‘thoes will help faite the assignment of authority, ‘responsibly, and aveountablity for certain functions ‘nd tanks, ganization, the engineer1. Division olabor— determining the cope of work tnd how it combined in ob “9 eae. Sete {ng vaio degree of decision-making nator {ty to mberdinten 4 Departentation —the grouping of elated oh, {citer or proce tata major organizational shunt 4. Span of control — the number of people who epor dre to a given manager 8. Coordination — the linking of activites in the ‘ryaizaton ut serve toate a comm gal recive. THE FORMAL ORGANIZATION ‘After a plan is adapted, management wil proceed to fermen rpnetn tery at hn cin nied Tt detail ‘What ie ‘epicted inthe cepanzaton hart i the formal organi {ton Iir-th planned stractre” ait -represents the ‘atberate attempt to estab patterned relationships Song components that will meet the ehjectivesefect- aie nt Be pa ad a ie oe ‘The ra Scale te : teen ‘The policy manual describes personnel activities and company polices. INFORMAL GROUPS ormal organisations require the formation of frmal coupe which wil be asiged to perform speci tank “Timed at acicving organizational objectives. The formal [troup i part ofthe organization stroctae, Informal groups are ofenties very uefa in the accomplahment of taj tak, especialy if the tasks ‘Snform with the expetations of the members ofthe ‘ntormal gos na aiaterimeanees co ia emigre, ‘hanes it sdificul for management to detect these ‘perversions, ad considerable arm can be done t the ‘ompany” ‘The engineer manager it, therefore, warned that be most be on the loakovt forthe possible dificstes that Sees enema maethe informal groupe may do tothe organization. Iwill be tohia bet intrert fhe cold make the informal groupe work for the organization, ‘TYPES OF ORGANIZATIONAL ‘STRUCTURES: Belore the commencement fats, the deison- rakers in an enganiation wil have to dcide on what structure to adapt. Depending onthe size and type of fperations, «certain sructorl type may best ft the ‘Organizations may be lasidinto thre types. They are the following 1 anetional organization — thsi a frm of do- partinentaliznton in which everyone engaged {none fuetional activity, such au eagineering oF marketing is grouped into one unit. 2 Product or market organization — this refers to the organization of eompaay by divisions tbat beings together al howe involved with certain typeof predator customer. 3. Matrix organization — an organizational strve- ture in which each employee reports to both a Tancioal ee division manager and to = projet ‘er group manager. ‘The diferent types of organization, with their owe. Alatnctndvantagee and diradvantagen, ar briefly pre sented on the next page Figure 41 Reasons or Factors for Jing or Forming & ‘roupFlue 42 A Typical Functional Organization Chart ot © ‘Constrton Company Fase nes [nara eater) Vea Prater] [Vex Peace] [Von Pease Martino” | [Goreme | |" Poance even neta Til ryote wi a ea eee alec eens ieee Teed ei et sot ce ri ae ep Sate erence ecm Ses ama oe aoe oes feces eee «Reus ont thy problem-solving 5. The organization i provided with in depth skill secilaation and development, see edb eect ee ermal pe darren pene = Sens pe trad erent Peay atin Dine litsopmanagsant retort ain Work specialisation and division of labor, which rested ina fanctona organization, padre ‘outine,noumativating employe tasks. 4, Te dificult to demi which sction or group {i responabl for certain problems, ‘5. Thor a limited view of organizational goals by ‘employees: 6. ‘Tre ilinited general management training for employes. Product or Market Organization ‘The proctor market organization, wit ts fextare of operating by divisions, is “appropriate for a large exporation with may product lines in several related islaetree™ "The advantage of product or market organization ne a lowe |The organization i fable and reapoasive to change. 2 The organization provides high concera for ‘ntomer' needsThe organization provides excellent coordina tion scroa functional depactments 4. Ther is easy pinpointing of respoomibilty for product problem 5. ‘Theretsempbase on overall product and division seals {The opportunity fr the developmant of general management shill in provided ‘The disadvantages of the product or market organi zation are a allows 1. There is high possibility of duplication of ‘resources ws dvsans 2 There i lea technical depth and specialisation fn divisions. 8 There i por coordination across divisions ‘4 Ther is less tp management contro 5. There is competition for corporate reoures. Matrix Organization ‘A matrix organization, scoring to Thompson and Strickland, “va structare with te for moe) channels fcommand, wo line ofbudget author and two sours ‘f performance nnd reward" Higgins decared thatthe ‘marx atructare was designed to keep employees in aon tral poland to allocate them to variour projects in the firm‘acording tothe length of time they were needed" ‘The matrix organization in aforded with the fllow- ing advantages Figure 42 A Typleal roducyMartet Organization for 9 Contrction Company PRESIDENT ee Present Ve Pressont Let ieaears van | conarcion =2 There Nesibility and adaptability to changing 8. The development ofboth general and fnetonal management sks are prevent 4. There is interdscpinary cooperation and any ‘experi is available to all dvsons 5. Thre are enlarged tks for employes which motivate them better ‘The matrix organization has some disadvantages, however. Tey ae the flowing 1. There ig frustration and confusion from dual hain of command, 2 There is high cont between divisional and fanetinal inert 3. There are many mestngs and mote discussion ‘than action, 4. Theresa need for human relations training for ‘ey employees and managers 5. ‘Theresa tendency fr power daminance by one side of the mates ‘TYPES OF AUTHORITY ‘The delegation of authority i a requisite for efet- ive organizing, It consists of three typen, They are as falows™ 1. Line authority — a manager right ttl sakor linates what todo and then ve that they de 2 StufTauthority—a staff speciale ight to give ‘vic to 8 super. eal Spout |3. unetional authority ~ a specialist’ right ‘oversce lower lvel personnel inwsved i that ‘cil rogardles of where the personel re {the organization. Line departments perform tasks that reflect the sr primary gol and aon Ina conatroction frm, the department that nepeiat and yocures c= {rac fr the firm ia line department. The construction ‘division italia Une function. ‘Staff departments inclade all thote that provide specialized Sil in support of ine department, Exam- ‘les of wat department tclodethove which perform. rato planning, labor rations, research, count, fd personne Staff ofcere may be classified into the following 1. Personal staff — thote individuals assigned specific manager to provide needed stat servicen 2 Specialind satt— those individuals providing ewded ta ervon or the whole organization, ‘unctional authority is one given to 8 person oF & workgroup to male decisions related to their expertise (ren f hens decisions concern other departieats, This ‘futhorty te ven to mast bodget officers of oranisa- ‘ong, of well az other alors. ‘THE PURPOSE OF COMMITTEES ‘When certain formal groups are deemed inap-_ propriate to mect expectations, commities are ote: fimes harnessed to achive organizational goals. Many ‘rganiations, large or smal, make uae f eomitten ‘Acommitee isa formal group of persons formed for ‘specific purpone, For istance, the product planning Connmitte, a degcrbad by Mlilevo, i “ote stated by if ua fei