The Organizing Process

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Chapter 2
The Organizing Process
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Organizing Function is Helpful By
1. Assuring more efficient use of the
organizations resources.
2. Improving employee understanding of job
duties and responsibilities.
3. Improving employee morale.
4. Providing a sense of direction for each of
the organizations functional areas.
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Organizations Objectives
Should be written in context of
outcomes, understood and accepted by employees,
be measurable, contain a time reference, and be
challenging but attainable.
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Span of Control
Refers to the number of subordinates an
individual is able to supervise.
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Interrelated Functions
Organizations functions have become
so interrelated that when a problem arises in
one functional area, other related functions are
also likely to be affected.
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Chain of Command
Identifies who reports to whom within an
organization.
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Unity of Command
States that each employee should be directly
responsible to one supervisor.
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Authority and Responsibility
States that individuals who are given
the responsibility to undertake a task must
also be given an appropriate amount of authority
to ensure task completion.
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Work Assignment
States that each employees work
assignments should be based on his/her special
strengths and talents.
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Employee Empowerment
States that empowered employees are encouraged to
participate as much as possible in making
decisions that affect all aspects of their job
tasks.
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Line
Organizational Structures
Line and Staff
Functional
Product
Committee
Matrix
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Line Structure
Is the oldest and simplest of structures.
Has direct authority flowing vertically from the
top.


Is generally found in small organizations because
support staff is needed once they begin to grow.
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Advantages of Line Structure
1. Employees are fully aware of the boundaries
of their jobs.
2. Decision making is expedited.
3. Is a simple structure to understand.
4. Employees can be held directly accountable
when they fail to perform as expected.
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Disadvantages of Line Structure
1. Fails to provide specialization needed when
organization begins to grow.
2. Line managers need to begin to perform
specialized activities.
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Line and Staff Structure
Has line authority similar to line structure.
Specialized staff activities are added
that support line activities.

Staff employees assist the line function.
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Line employees are directly concerned with the
organizations primary objectives.
Line Employees
Staff Employees
Staff employees support the line employees.
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Advantages of Line and Staff Structure
1. Line employees have time to focus on those
activities directly related to the
organizations primary objectives.
2. Staff employees can lend their specialized
support.
3. Flexibility of staff units facilitates
undertaking new projects.
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Disadvantages of Line and Staff Structure
1. Line and staff employees sometimes are
in conflict with one another.
2. Line employees sometimes suppress the
talents of staff employees.
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Functional Structure
Tends to parallel the departments in
many organizations.
Line managers have both line and functional
authority.

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Line Managers
Can take disciplinary action against those
for whom they have line authority.
Line Managers
Cannot take disciplinary action against those
for whom they have functional authority.
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Advantages of Functional Structure
1. It provides expertise by functional
specialists.
2. It prevents employees from slighting
certain specialized areas in the
organization.
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Disadvantages of Functional Structure
1. Some employees may appear to have two or
more supervisors.
2. Some managers evade those areas for
which they have functional authority.
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Product Structure
Companys products provide a basis for its
structure.
Each major product is given division status.
Incorporates line and staff structure into
these divisions.


Each product tends to operate independently
of other divisions.
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Advantages of Product Structure
1. Enables divisions to develop processes that
best meet their needs.
2. Divisions can coordinate their own
activities without constraint from main unit.
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Disadvantages of Product Structure
1. Divisions can go their own way to the
extent that they dont work toward common
goals.
2. Problems of some divisions may eventually
be felt throughout the entire organization.
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Committee Structure
Is often used in conjunction with line, line and
staff, and functional structures.
Some committees perform important managerial
functions others are advisory.


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Advantages of Committee Structure
1. Recommendations are often widely accepted.
2. Widely varying views of committee members
broaden the nature of their recommendations.
3. Its use reduces the risk of making an
incorrect decision.
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Disadvantage of Committee Structure
1. It sometimes takes a long time to function
properly.
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Matrix Structure
Is often used by organizations undertaking complex
projects.
Results in the formation of temporary new units
to accommodate the undertaking of a new project.


Involves temporarily borrowing employees from
other areas of the organization and assigning
them to the new temporary unit.
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Advantages of Matrix Structure
1. Allows companies to assign employees on the
basis of their expertise.
2. Helps companies avoid having to hire new
employees for a project.
3. Enables companies to adapt quickly to new
situations.
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Disadvantages of Matrix Structure
1. Employees often have two supervisors.
2. Employees may experience job-related
pressures.
3. Managers may have difficulties coordinating
employee activities.
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Places related activities under jurisdiction of
one individual.
Centralization
Places related activities under jurisdiction of
several individuals throughout the organization.
Decentralization
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Factors That Determine Feasibility
of Centralization
1. Nature of the organization.
2. Size of the organization.
3. Diversification of the organization.
4. Conformity to standardized processes.
5. Quality of personnel.
6. Distribution of operations.
7. Attitude of personnel.
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The Organization Chart
Identifies lines of authority.
Gives employees a better understanding of
the formal structure of the organization.
Helps identify areas of overlapping
responsibility that should be eliminated.
Identifies promotional opportunities for
job applicants and new employees.
Identifies areas suitable for training
and orientation.
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Guidelines for Preparing Organization Charts
1. Place individuals/departments in relation to
their hierarchical level.
2. Identify vertical and horizontal authority
by solid lines.
3. Identify functional authority by dotted lines.
4. Use complete titles on the chart.
5. Include on the chart the name of organization
and the date the chart was prepared.

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Refers to the spontaneous personal and social
relationships that exist within organizations.
Informal Organization
Two Common Elements of Informal Organization
Informal Groups
Informal Communication Patterns