ORGANIZING

ORGMAN

decisions (centralized) are

ORGANIZATION mostly made from the top
● are applicable to stable
companies with uniform
● Is a social group that has
customers and operations
well-coordinated processes and
Organic Structure
activities for the purpose of
● Organization is decentralized
achieving its objectives and is
and less formal and employees
connected to the environment
are given broader
where it exists
responsibilities
● To ensure the achievement of
objectives, there should be Types of organizational
proper structuring and structure
grouping of jobs and assigning 1. Simple
of qualified and competent ● Ideal for small businesses and
personnel most basic structure
● Organizing process as part of ● Majority of the power and
management function allows decision-making rests on the
human, physical, and financial owner
resources to be integrated to 2. Functional
related jobs and positions ● Groups together similar
● The organizing process also functions
ensure that the authority and ● Tasks and operations are
responsibility are well-defined controlled through vertical
and internally coordinated in hierarchy
the organization ● Groups employees with similar
● The manager performs the skills under units/departments
organizing function 3. Divisional
Organizing process: ● Organizes a company into
- Identification of divisions based on:
activities - products/services
- Departmentalization - Geography (branches or
- Definition of authority offices)
- Integration of authority 4. Multi-Focused
and responsibility ● Combines functional and
● Organization structure is the divisional structures in
framework that shows how organizing larger companies
each component of the ● Project within a matrix are
company related to each other usually assigned specific time
frames, Hence, can quickly
Mechanistic Structure respond to a market or
● Flow of communication customer demand because of
(vertical) and job the time frame allotted for the
responsibilities as well as project

1
ORGANIZING
ORGMAN

5. Team-based (Horizontal) 2. Machine

● Eliminates complexities of ● Decision making is centralized
hierarchies and divisions ● Tasks are routine and highly
● Employees are organized into specialized
general core processes or 3. Diversified
operations and all departments ● Central admin is called
in the company work together headquarters
in all tasks ● Consists of semi autonomous
● Promotes teamwork and units under a central admin
collaboration as well as broader 4. Professional
view ● Standardized products and
● Employees work together in services with routine work
accomplishing tasks, seeking ● Depends on skills and
solutions, identifying and knowledge of professional staff
engaging business 5. Innovative
opportunities ● Modern org with no planning
● Productivity is increased due to and control system
a common goal 6. Missionary
● May not recognize individual ● Mission is clear, distinct and
contributions and needs inspiring that motivates
frequent communication and employees to work and achieve
meetings the company’s mission
6. Virtual Network FORMAL VS INFORMAL ORGS
● Latest approach to 1. Formal organization
organizational design and takes ● Rests on authority and
advantage of the latest responsibility
advances in information and ● Rules and regulations
communication technology 2. Informal organization
● Technology is used in sharing ● Personal relationships
information, completion of established by the employees
tasks, and communication (or Organization theories
through electronic means) ● refers to theories that establish
● Beneficial for small companies standardized approaches in
because of fewer investments, defining the basic structures,
reduces administrative costs processes, components,
and flexible to changing needs objectives and environments of
● Limited direct workforce face to organizations.
face communication Types of organizational theories
Types of Organizations 1. Bureaucracy
1. Entrepreneurial org ● Introduced by Max Weber to
● Power is on the chief executive resolve existing misplaced
● Staff is small and informal power, authority and loyalty

2
ORGANIZING
ORGMAN

● Emphasized formal rigid Delegation

structure and legitimate ● Allocation of tasks to
authority in organizations employees
2. Scientific management ● Delegation of authority allows
● Frederick taylor particularly subordinates to do tasks or
time and motion studies responsibilities outside their
● This increase the efficiency and regular work which enables
productivity of the workflow them to exercise a certain level
through specialized equipment of authority beyond their
and training this conserves position
energy and eliminates waste ● Involves mutual trust as
● Allows manager to distinguish managers entrusts to
essential tasks from employees their external task
unproductive tasks through the same way as their regular
analysis of jobs task
● Careful selection, training and ● Process:
development of employees who - Duties
are suited for particular jobs in - Authority
the organization - Responsibility
3. Systems theory Why delegate?
● Karl Bertalanffy and Kenneth ● Empowers employees
Boulding laid the foundation of ● Develop a greater sense of
systems theory. It emphasized participation, commitment, and
that a system is a collection of ownership over their work
parts that are coordinated in ● Saves time
accomplishing a goal ● Opens paths for career
● The internal and external development and succession
environment of a company planning
where it operates can be
integrated as a whole system Smarter Indicators
4. Contingency theory ● Specific - clear instructions
● Recognizes that there is no best ● Measurable - clear quantitative
way of managing an and qualitative indicators
organization ● Attainable - consider skills and
● Situational differences are capabilities of subordinates
given consideration and ● Realistic - within the bounds of
different managerial principles organization environment and
are applied depending on the resource
tasks, the size of the firn, and ● Time-bounded - specific
the nature of the environment accomplishment dates
● Crucial role of the managers in ● Ethical - delegation not used to
terms of adaptability in dealing abuse power
with business situations

3
ORGANIZING
ORGMAN

● Recorded - documentation of 4. Performing - handling complex

every move situations and maturing
Three elements of delegation 5. Adjourning - complete task and
1. Assignment of duties group break up
● For a manager to delegate
properly,the duties should be The Nature of Staffing
expressed in writing Staffing or Human resource
● Each employee is bound by the management
duties expressed in the ● Involves acquiring and
functions and objectives of the developing human resources
organization that wil carry out and perform
2. Grant of authority the various activities of the
● The manager’s authority over organization
his subordinates should be ● includes :
clearly defined - Recruiting
● Subordinates follow without - Selecting
hesitation if there is a formal - Training
and official institution of - Developing people in the
authority on manages organization
3. Obligation ● Utilizes various tools and
● Subordinates accept their techniques to promote
responsibilities - Employee loyalty
● Employees know their - Satisfaction
obligations clearly and exert - Personal growth
effort to accomplish it ● Continuous process
Release ● helps the company achieve its
● Capability of manager to goals and maximize
delegate task to subordinate productivity
● Conquer fears; being replaced;
or failure of delegatee Human Resource Department (HRD)
Types of teams ● tasked with implementing
1. Functional - performs specific human resource management
tasks ● responsible for ensuring
2. Lead - gives direction compliance with workplace
3. Advisor - analyze problems and safety standards, and labor and
recommend solutions employment laws
Stages of team development The Staffing Process
1. Forming - getting to know and Planning and job analysis
cautious ● Identify the right number of
2. Storming - arguing, competing, people for the organization
adjusting ● Determine the tasks required
3. Norming - establishing norms ● Job specification
and cooperativeness Human resource Planning (HRP)

4
ORGANIZING
ORGMAN

● Identifies people with he right ● Company employees who are

skills and assigns them considered for promotion to
corresponding tasks in the higher positions
company 2. External
● Critical component in ● Individuals who are recruited
determining manpower by the company o directly apply
complement to join the company
● Process involves ● Options
- Environmental scanning - Traditional means
- forecasting and - Job fairs and trade
estimating the firm’s events
manpower complement - Referrals
- Gap analysis - Walk-in applicants
Job Analysis - Manpower agency
● Specific tasks and activities - Internet
● Required behavior on the job Equal Employment Opportunity
● Required job standards ● Ensure that an applicant is not
● Knowledge, tools, and discriminated against because
equipment used of his/her age, color, race,
● Work conditions religion, civil status, or gender
● Personal characteristics and Selection Process
requirements ● Preliminary scanning
Process ● Preliminary interview and
● Formulation of objectives psychological testing
● Selection of jobs ● Interview with requisitioning
● Application of job analysis department
● Actual conduct ● Background check
● Preparation of job description ● Final selection
and specifications ● Job offer
Job Description ● Briefing about the position,
● Job title or position responsibilities and starting
● Reporting relationships salary
● Job classification Placement
● General description of the job ● Last part of the hiring process
● Specific duties and ● Submission of pre-employment
responsibilities requirements
● Job specification ● Medical examination
Recruitment ● Signing of employment contract
● Process of attracting qualified ● Status of employment
applicants - Contractual employees
Sources of Applicants and project-based
1. Internal employees
- Probationary employees

5
ORGANIZING
ORGMAN

● Confidentiality of individual
Training and development salaries
1. Training Common modes of payment
● Short-term 1. Payment for time worked
● Focuses on helping the ● Monthly or daily-paid
employees improve their skills employees
2. Development ● Basis of adjustments:
● Long-term across-the-board increase,
● Enhancement of the merit increase,COLA, seniority
competencies of the employees pay
New Employee Orientation Program 2. Flat rates
● Initial training of newly-hired 3. Compensation through
employees incentives
Training process 4. Payment based on skills
● Pre-training adjustment 5. Executive payment
● Designing the training program 6. Special payment
● Training implementation Employee Benefits
● Training evaluation ● SSS/GSIS
Criteria for training evaluation ● Employee’s compensation (EC)
● Reaction program
● Results ● Pag-ibig
● Recall ● Philhealth
● Retrieval ● Service Incentive
Compensation ● Maternity leave
● Any tangible equivalent ot ● Paternity leave
reward for services rendered or ● Special leave for women
for the performance of a task Reward Systems
Compensation guidelines ● Individual Contingent Pay
● Compensation decisions - - Pay for performance
influenced by the nature and scheme
environment of a particular - Pay for competency
industry - Pay for contribution
● Government imposed - Pay for skills
regulation and restrictions on - Pay for service
salaries of employees ● Group Contingence Pay
● Compensation - usually - Team based pay
time-based - Organization-wide pay
- Salary - monthly or Performance Appraisal
semi-monthly basis ● Process where employee
- Wage - weekly or daily performance is documented
● Base pay or basic pay - fixed and evaluated
part of pay

6
ORGANIZING
ORGMAN

● Also known as performance - Retirement

review or performance Employee Relations
evaluation ● Drive for commitment
● Done periodically ● Harmonization of terms and
Purpose of Performance Appraisal conditions of employment
● Needs assessment ● Emphasis on mutuality
● Employee movement ● Policies and practices for
● Basis for merit increase (based communication
on performance) Labor Unions and Collective
● Legal concerns Bargaining
● Development ● Labor unions
● Channel of communication - Formed fort the purpose
● Source of motivation of collective bargaining
Performance Appraisal Methods ot mutual ai, interest,
1. Objective Method cooperation and
● Measures of actual output protection
● Performance test - Classified as either
2. Judgmental Methods public sector unions or
● Ranking technique private sector unions
● Rating technique - DOLE
- Behaviorally anchored Employee Code of Conduct
rating scale (bars) ● Defines the acceptable
- 360-degree feedback behavior of employees within a
3. Employee movements workplace
● Often the result of evaluation or Due Process
structural changes within an ● Ensures that the disciplinary
organization process is conducted in a fair
● Can be vertical or horizontal and impartial manner with due
● Promotion - movement to a regard to the rights of the
higher level or position employee
● Tenure - number of years in ● upholds the right of the
service management to address any
● Meritorious performance - disciplinary issue involving its
excellent or outstanding employees and employ
performance of employee whatever corrective action they
● Demotion see fit
● Transfer Leading
● Separation Leadership and Management
- Resignation ● Leading is a management
- Separation with function that combines 2
authorized cause significant concepts - directing
- Separation with just and leadership
cause

7
ORGANIZING
ORGMAN

● Management is transactional in ● These needs are described

nature according to a hierarchy and
● Directing lower level needs must be met
- Process by which first and progress to the upper
managers instruct, level needs (basic needs >
guide, and monitor the physiological needs >
performance of self-fulfillment needs)
employees ● The hierarchy of needs theory
- Continuous process states that a certain universal
- Entails imposing needs are the most pressing,
protocols and measures while more "acquired" emotions
● Leadership are of secondary importance
- Process of social ● Abraham Maslow's theory
influence that enables a requires managers to ensure
person to encourage the essential needs of their
others and enlist their workers to be met in the
aid and support in the workplace to guarantee their
performance of tasks maximum performance
and in achieving a 2. Alderfer’s ERG Theory
particular goal ● Developed by Clayton Alderfer
- Defined by cooperation, in 1969
mutual trust, and esteem ● ERG (existence, relatedness,
Motivation growth)
● Psychological process of ● Integrated the level of Maslow's
directing behavior Hierarchy of needs and
● Determines the willingness of a identified 3 major types of
person to use their ability to the needs;
utmost in performing a task ● States that a person can satisfy
● Three elements the needs from several levels at
- Motive - arouses or the same time
induces an individual to 3. McClelland’s Learned Needs
behave in a certain way; Theory
internal or external ● David McClelland 1960
- Behavior ● Also known as achievement
- Goal - achievement of motivation theory
motive ● Learned needs (achievement,
Theories of Motivation affiliation, power) have an
1. Maslow's Hierarchy of needs impact on management styles
● Developed by Abraham Maslow and behavior
● ​Abraham Maslow argued that ● Can also be applied to
individual behavior is primarily employees
influenced by certain needs 4. Herzberg’s Two-Factor Theory
● Frederick Herzberg

8
ORGANIZING
ORGMAN

● States that employee ● Thoman Carlyle

satisfaction is defined by 2 ● Leaders are born with innate
important factors; motivators qualities, and renowned leaders
and hygiene are destined to lead
● Managers must both focus on ● Leadership is greatly influenced
increasing the factors that by status
result in satisfaction and ● Discounted the role of the lower
eliminate the factors that bring classes and women in history
dissatisfaction 2. Trait Theory
● Hygiene/maintenance - ● Ralph Stogdill
low-order needs ● Focuses on innate attributes
● Motivational - higher-order and characteristics that a
needs person possesses
5. Adam’s Equity Theory ● Believes that leaders possess
● John Stacey Adams certain positive traits
● Proposes that employees 3. Primary traits
become motivated when they ● Emotional stability
feel they are treated fairly ● Ability to admit error
● Employees seek to maintain ● Good interpersonal skills
equity or fairness regarding ● Intellectual breadth
their personal job inputs and 4. Leadership Grid
outputs in comparison to other ● Robert Blake and Jan Mouton
employees 5 Leadership Styles
● Managers should be aware of ● Authoritarian Leader (high
the work environment result, low people) -
6. Vroom’s Expectancy Theory task-management,
● Victor Vroom task-oriented, turnover rate
● Employees are motivated to increases
work when they expect to ● Country Club Leaders (low
achieve something from their result, high people) - focuses
jobs more on the people’s needs
● Managers should determine the ● Impoverished Leaders (low
outcomes that employees value result, low people) - no
and ensure that all desired guidance to their employees, no
levels of performance can be involvement of leader to
attained employee, work-related only
● Expectations must be realistic ● Team Leaders (high result, high
● Proper outcomes or rewards people) - concerned with both
should be given to avoid the people and productivity
frustrations and ● Middle of the Road Leaders
disappointment (medium result, medium
Leadership Theories and Styles people) - expectations of the
1. Great Man Theory

9
ORGANIZING
ORGMAN

company, will not put their best

effort, mediocre

10