Chapter 4

• Organizing


  Synchronizes and combines human, physical and financial resources in order to achieve the goals of the organization
• Differentiation


  Dividing the organization into different work units with different kinds of tasks, using different skills and work activities
• Integration


  The collaboration and coordination of the different work units or work divisions
• Organizing process


  Transforms plans into reality through the purposeful deployment of people and resources within a decision making framework known as organizational structure
• Organizational chart


  The visual representation of the organizational structure

  
• Organizational Structure


  The hierarchical arrangement of lines of authority, communications, rights and duties of an organization

  
• Organizational Structure

  Determines how the roles, power and responsibilities are assigned, controlled, and coordinated and how information flows between the different levels of management in the organization
• Functional structure


  • The organization is grouped or divided according to the different functions necessary for its purpose, and based on specialty
  • This is your traditional business with a sales department, marketing department, customer service department, etc.
• Divisional Structure


  • The organization is grouped or divided according to products, market area, geographical area etc.
• Matrix Structure


  • Allows for the benefits of functional and divisional structures to exist in an organization
  • Employees can have multiple bosses and reporting lines, because aside from their functional or divisional managers, they may have project managers for specific projects

  
• Delegation


  • Assigning a new or additional task to a subordinate
  • Getting the work done through others by giving them the right to make decisions or take actions
• Elements of Delegation


  • Authority - the power to make orders or decisions
  • Responsibility - a duty or task that you are required to do
  • Accountability - to be liable to explain actions or decisions
• Steps in Delegation

  1. Define the goal clearly

  2. Select the person to be given the task

  3. Assign the responsibility

  4. Ask the person about his/her planned approaches to accomplish the task

  5. Grant the person the authority to act

  6. Give the person enough time and resources to do the task

  7. Check the task accomplishment progress

  8. Make sure that the goal has been achieved
• Formal organizations


  Organizations formed by the company to help it accomplish its goals
• Formal organizations

  • Work groups
  • Project teams
  • Committees
• Functions of Formal Organizations

  • Accomplish goals that require cooperation or collaboration among members
  • Produce or bring about new and creative ideas to solve company problems
  • Coordinate activities
  • Implement company rules and policies
  • Orient or train new employees
• Informal organizations


  • Organizations that exist because of friendship or common interest
  • Informal groups which are formed because of the members' need for social affiliation
• Functions of Informal Organizations

  • Satisfy the members' need for affiliation
  • Give the individual members a chance to develop their self-esteem
  • Give individual members an opportunity to share their ideas
  • Provide a mechanism to solve members' problems