Systems Plus College Foundation

College of Computing and Information Sciences

ORGANIZATIONAL MANAGEMENT
(OMC)

CCSI5B/ CCSI5B/ CCSI5E

WEEK 8
(October 11-12, 2023)

Dorwin M. Rivera, BSA, LLB

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Lecture 5
ORGANIZING FUNCTIONS

OBJECTIVES

At the end of the lesson, the student shall be able to:

 Discuss organizing as a management process;

 Explain how effective organizing process be implemented;
 Give the organization theories;
 Discuss the tools and techniques for effective implementation; and
 Discuss organizing and staffing and its importance in making effective organization.

ORGANIZING AS A MANAGEMENT PROCESS

In the first part of this book, we discussed organization as a system of structure and
relationships. This chapter will focus on organizing as a process in the management of
organization.

Many management professionals will affirm that sound management rest with the proper
organization of people to attain the desired objectives. Many will characterize that proper
organizing activities rest with the selection of people that will file in the boxes in the
organizational structure.

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The organizational design develops mechanism in which people operate accordingly.

Organizations are made up of people who are selected based on their individual
qualifications and skills. They are expected to perform their respective duties and
responsibilities attached to their positions.

Organizing involves finding, placing, and developing people to man the boxes in the
structural ladder. We must find people with the necessary qualification through a more
scientific method of selection process. People must be selected on the basis of their
capabilities to do the job efficiently and effectively. They must be selected on the basis of
fitness rather than personal connections.

While selection process involves qualification for a particular type of work, training
employees is a vital component of effective performance. The company training program
ensures more effective delivery of desired performance. Training develops people and
motivates them to deliver the desired results. It prepares them to higher job performance
and qualifies them for promotion when vacancy occurs in the organizational hierarchy.

The ability to organize man's efforts has increasingly becomes important as the world he
lives become complex with the advancement oft technology. Organizing man’s efforts enable
him to use not only his muscle power but more of his thinking brain in the production of
better goods and services Organizing, therefore as a management process increases the
richness far beyond the dreams with effective use of potent power of human resources,
machines and technology.

THE UNIVERSAL COMPONENT OF ORGANIZING PROCESS

Improvements and innovations that surface in recent times improved immensely the
organization of people. Productive forms have persisted and refined in use. The following
universal principles improve the organizing process:

1. Division of Labor. This principle specifies that related work must be grouped together
to pool the efforts of people towards the effective delivery of better products or
service. Purposeful work activities must be divided accordingly so that duplication
and work overlap are avoided. It is the determination and grouping of the various
activities into related tasks towards the attainment of specific group goals or
objectives.

2. Delegation of Authority and Accountability. Individuals in their organize efforts must

be delegated with the necessary authority to perform their task effectively. Managers
must have the inherent right to manage, supervise, and control the people under

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them to command compliance. Line supervisors must be delegated corresponding

power to organize their work system, supervise subordinates, and evaluate
performance. The authority carries with it an equal amount of responsibility. Unless
there is a direct authority and accountability each one will do what he wants and
does it when he wants. Integrated efforts and consistent attainment of desired goals
and objectives are only attained with proper delegation of authority and
accountability.

3. Definition of Relationships. The vertical and horizontal lines in the organize structure
define the working relationship of people in the workplace. This integral authority
relation establishes the rules for teamwork. It defines decision making authority and
establishes the working harmony of team managers in the performance of their
assigned tasks. It is clearly defined in job description and job specifications. It is the
manager who sets up rules and regulations for effective teamwork. These set of rules
will form a pattern for which people can be trained and developed.

To effectively implement organizing management process, the following should be

undertaken by the management team:

1. Establish clear objectives.

2. Formulate policies and procedure to carry out objectives;
3. Identify and classify the activities necessary to carry out objectives;
4. Group activities in the light of human and material resources;
5. Delegate authority to line executives and define accountability;
6. Define the vertical and horizontal relationships; and
7. Develop effective coordination and reporting system of accomplishments.

THEORIES OF ORGANIZING

It may be important to note that organizing comes from different theories that many
organizations today come into being. These theories came as an upshot of many studies on
how organization can be effective instruments to gain profit and acceptability to its various
stakeholders. These are:

1. The Classical Theory. It puts emphasis on rational, efficiency, work accomplishment,

and balance in the size of its department. Under this concept division of labor is
emphasized. Mastery of skills was given importance in the work environment. Labor
becomes mechanical and activities are carefully defined.

2. The Neoclassical Theory. The concentration of this theory is attention to human

relation, individual and group behavior, recognition of informal group and

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improvement of intergroup relationship. It recognizes human worth and dignity

through effective communication. This gain wide acceptance in most organizations. It
nevertheless requires managerial skills in human behavior and improvements in
technology application.

3. The Fusion Theory. It stresses the importance of improved organizational climate

through the process of socialization. These are mostly found in formal and informal
organizations. Rewards and recognitions are given to good work performance and
sanctions for utter disregard and violation of group policies and norms.

4. The System Theory. It views organizing as a system of variables that are dependent
upon one another. The basic components are individuals in the normal organization,
its reciprocal patterns of behavior, organizational goals and objectives, and its effect
on the physical environment. The system extends within and outside the
organizational structure. Good communication system is maintained, as it links
harmoniously with the different public.

5. The Quantitative Theory. This covers a limited aspect of the management process
that should be quantified which directly affects the work of organizing. Its emphasis
is on quantified decisions of managers and supervisors in terms of amount of work
performed and their accomplishments on a periodic basis. It excludes leadership,
informal relationships, work environment, and communication linkages they are not
easily quantifiable.

ORGANIZING STRATEGIES

Organizations must develop specific strategic action plans in order to exist in the complex
world of business. These strategies must have timelines to meet your target goals. It could
be micro or macro levels or in long- and short-time basis. These have to be identified in the
following:

1. Organizational Expansion. It refers to the pace of expansion in terms of profit and market
penetration. It may be in terms of profit against investments, or share of the market
niche.

2. Investment. Organizational existence depends on the peso available for its operation or
to finance its expansion projects. There must be available money when it is required
either through financing institutions, or resources of the stockholders.

3. Structural Reforms. These pertain to the structural reforms that may be adapted.
Changes in organizational design that defines the authority and responsibility and the
role relationships that help people accomplish their assig task. This may be to centralize
or decentralize the decision-making process.

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4. Human Resources. They are the very components of the organization. These include the
organizational design of selection, placement and training of people in the organizational
matrix. These will also involve proper wages and compensation of workers and other
incentives that make them motivated to deliver the desired performance. The appraisal
system must be reflective of individual contributions in terms of profitability and growth.
Unionism could be a contributory factor to its survival or its death.

5. Community and Client Relations. They must be designed in the light of its philosophy and
the type of business. Consumer goods would need good public exposure. Service
agencies must develop an effective system of acceptance among its clients and
customers. This strategy is dependent on how the organization is perceived by the
different public. It is susceptible to government regulations like pollution and other
hazards.

6. Customer Patronage. The business organization exists to provide products or service to

satisfy people's needs and wants. It determines what the business is all about. It reflects
the extent of customer patronage and the share Customer's business of the markets and
the determinants must be the of strategy profit and to keep growth the business afloat.

7. Strategic Marketing System. Marketing is complex system in the delivery of product or

service. It needs proper product conceptualization, marketing mix, and develops
customer patronage on a long-term basis. We have to determine the following:

a) The need and want of the potential customers;

b) The strategy to produce and sell the product;
c) The competitors and strategy to overcome them;
d) Pricing and marketing strategy to earn more profit and market share; and
e) Customer satisfaction and long-term patronage.

EFFECTIVE IMPLEMENTATION OF STRATEGIES

1. Communicate strategies to all key decision-making managers. Meaningful strategies should

cascade down the line managers who are in the position to take actions on plans and
programs design to implement them. Instruction must be clear to all receivers, and better
still if they are in written form. It should be direct and easy to understand.

2. Develop and communicate planning premises. Managers must develop and understand
premises critical to plans and decisions. It must follow the chain of command. It must include
key assumptions on the prevailing conditions of the working environment and the resources
available. It must be directed to the organizational goals rather personal assumptions.

3. Ensure that action plans reflect major objectives and strategies. They are operational
programs and decision that take place in all aspects of business. All of this must be directed
towards company profit motives and managers must make sure that they contribute
efficiently and effectively towards that end. It should be consistent with the overall direction
of its vision and mission.

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4. Review strategies regularly. Company programs and objectives should pass a thorough
review from time to time to take care of the prevailing changes in business condition.
Organizational system requires evaluation of the external and internal environment for new
opportunities and threats, notwithstanding internal strengths and weaknesses.

5. Develop contingency and alternative strategies and programs. Contingency approach should
be readily available when there appear changes in external and internal environment. Plan B
or C may be formulated to avoid unnecessary loss in profit margin and customers. Managers
must always be in the look-out for negative or positive environmental conditions and prepare
alternative approaches. Contingency plans definitely provide a certain degree of preparation
and require coordinated efforts of all concerned.

6. Create an organize climate of mutual trust and confidence among managers. Trust and
confidence develop managers to think and plan effectively. Creative thinking is developed
when managers are given the necessary elbow room to make decisions. It must, however
carry with it the accountability for effective performance.

TOOLS AND TECHNIQUES FOR EFFECTIVE MPLEMENTATION

An organized system needs to use tools and techniques to ascertain that results are carried out
according to plans and programs. Tools are anything used in doing things to produce results
requiring some degrees of accuracy and precession. It must measure what it intends to measure.
Performance evaluation reports of supervisors and managers could be an effective tool of
managers to measure the degree of performance. Technique on the other hand, is the way or
process of doing things or methods of accomplishing the desired results. Manual of operation
provide the step-by-step procedure of work system.

The following are some tools and techniques:

1. Organizational Data Base. An organized system must keep records and data in hard copy
or in computerized system. It provides vital information for analysis and review of
existing operation.

2. Accomplishment Reports. These contain data and information on the day-to-day

operation of the organization. These contains status reports of the operating
departments and may be required daily, weekly or on quarterly basis and compiled as
annual reports to top executives and eventually the stockholders.

3. Communication Flow Chart. The organization chart indicates the flow of communication
among the different line and staff. It specifies the line of authority and accountability of
all managers. As a tool, managers must understand the scope of their functional
operation.

4. Manual of Operation and Policy Guidelines. These are written documents that contain
full instructions and information on how operation should be done. These serve as a
guide in decision making and for evaluating compliance with specific instructions. These
are used to create product quality standards and performance appraisal system.

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PARTICIPATION OF EMPLOYEE IN AN ORGANIZED SYSTEM

The organization exists because of the people that compose it. Participation provides excellent
potential for building teams. Manager's role in employee participation will develop better results
in team spirit. Teams are developed through proper consultation. Decisions are better
implemented when employees are consulted.

1. Participation is defined as mental and emotional involvement of persons in group

situations that encourage them to contribute to group goals and share responsibility for
its accomplishments. Organized efforts of participations have the following
characteristics:

2. Psychological Involvement. All involvements are mental and emotional. The people are
involved psychologically and they are using their mental capability to contribute to the
group activity. Ego involvement requires managerial skill of human relations and
consultations. Meetings and inter group discussions will develop people initiative and
greater motive for effective participation.

3. Personal Motives and Interest. Individual motives are developed when they are given the
opportunity to release their own resources of initiatives and creativity towards the
desired objectives. People are not generally without ideas. Managers have to give them
the opportunity to explore their intellectual horizon and recognize their inner talents. It
is the psychological process of social relationships of building greater value to people
initiative and imagination.

4. Acceptance of Responsibility. Some people accept responsibility just because they are
paid for what they are supposed to do. The result is meager performance. Acceptance of
responsibility requires total individual involvement. It is a social process where people
become self-involved because of the importance given to them through the process of
group consultation. People work effectively if the ideas are their OWN, as develop by
managerial manipulations of group interactions. The WANTS of working create better
performance.

Employees' participation must satisfy the following requirements:

1. There must be time to participate before the required action to take place.
2. Participants must have the intelligence and knowledge about the topic at hand.
3. They must have the ability to participate actively in group discussions.
4. The topic must be relevant to the interest of the employees.
5. The decision of the group must be carried out and check according to its intent and purpose.
6. The time frame must not interfere with the regular work load and its cost should not exceed
its value.

ORGANIZING AND STAFFING

Organizing is staffing the structure with the qualified people who run the management of the
organization. Staffing is the science of putting the right people with the right qualifications and
attitude to perform their assigned tasks.

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A careful analysis of the functional chart will reveal the positions that will be required, It should be
broken into specific job titles that will complement the toll system. Written job descriptions must be
prepared to properly identify the duties and responsibilities of the employees involve in total
accomplishment of the organization goals and objectives.

The individual who will be hired to the position must have the necessary skills, knowledge,
abilities, and the right working attitude. The success and failure of the organization rest with the
kind of people that will perform the duties and responsibility of the position.

DETERMINANTS OF MANAGERIAL STAFFING

Hiring managerial positions is like choosing a driver for a certain type of vehicle. A jeep driver
would know only the direction of his assigned route. He must know the fare required for a
certain distance. He must know the proper change for fare given him. A tractor driver must have
varied skills to maneuver the vehicle. It involves more levers and technical operation.

In the same way the type of organization determines also the kind of managerial positions
required to drive it successfully to pre-determine destination. The more complex the
organization becomes the greater qualification is required. A small organization may need only
managers with simple knowledge of human relations and technical operations. A big and more
complex organization would need managers with a broad knowledge of the conceptual, human
and technical skills.

The design of the vehicle must fit the people who drive it. Much the same way the design of the
organizational structure must match the people who run it. It should not however be designed to
match the individual personality but along the objectives of the organization.

QUALITIES FOR MANAGERIAL POSITIONS

1. Above Average Intelligence. Since managerial position requires high level of thinking and
conceptualizing activities they must be of higher intellectual capacity.

2. Integrity and Industry. Managerial integrity is the way to respect and trust. He must have
a good working knowledge of management and its relations to effective organization.

3. Maturity and Aggressiveness. He must be capable of giving sound advice that will be in
the best interest of his employer and his subordinates.

4. Effective Communication Skills. He must be able to communicate in writing and speaking.

Effective communication is the bridge to better understanding.

5. Human Relations. Managers deals with people in all levels in the structure. Knowledge of
psychology and social relations is a great asset to effective coordination.

6. Pleasing Personality. It is the total characteristic of the individual. It refers to how he

projects himself in the total environment. He must enjoy working with people,
approachable yet firm in his decision.

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7. Higher Level of Education. It refers to how he improved himself intellectually. It may be

in the formal system of education or through attending seminars and workshop related
to his position. Many companies are hiring managers who are Masters' degree holders in
the field of business administration. Training develops people to be more effective.

ORGANIZING THE HUMAN RESOURCE

Human resources are crucial to the long-term survival of the organization. We define value of
human resources not only in terms of profit generation but also on the context of employee
growth and satisfaction. It is people who are link to the formal structure. They are the vital
components that deliver quality goods and services. The development of a well-organized system
hinges on the proper selection, placement, development and utilization of the manpower
resources. Maintaining and rewarding them are organization task.

Personnel Selection. Selection is the process of determining who among the applicants meet the
job requirements. It is matching the individual qualification against the requirements of the
position as stated in the job descriptions. The job specification tells what is required of the
position.

The employee selection requirements may emphasize skills and knowledge that are not easily
learned. While good attitudes and personal values are assets of employee, it must however be
added with knowledge and skills in the delivery of work output.

The following selection procedure will help get the right employee:

1. Establish selection procedure.

2. Identify and choose selection criteria, predictors and instruments suited to determine
the right applicant.

3. Gather and evaluate all relevant information about the applicant through interview and
reference checks.

4. Subject applicant to various tests including mental and physical examinations.

Training and Development. It is not enough that we hire the right applicant for the job.
Employees have to be inducted into the position for him to be an effective instrument in the
delivery of organizational objectives and goals.

Training is the process of acquiring new knowledge and skills imminent for effective and efficient
performance of assigned tasks. It is a planned system of indoctrination of job-related
competencies that include knowledge, skills, work attitudes and new set of organizational values.

The Challenges in Organizing the Human Resources

These challenges can be identified in the following areas:

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1. The Challenge of the Global Community. Business operates in the global environment.
They need to compete and defend their products locally and also in the global market.

2. The Challenge of Increase Productivity. Higher productivity requires reconfiguration of

employees work design due to the introduction of more modern technology in the
production of goods. It must allow the technology to interact with the training of a new
breed of human resources.

3. The Stockholders and Other Stakeholders. Stockholders must have return on their
investment and develop a more diversified organization. Customers should be satisfied
with the organization’s product and services for continued patronage.

EFFECTIVE ORGANIZING TIPS THAT DELIVER RESULTS

1. Keep a Visible Plan of Action. An organizer or the software with clear and precise
activities will remind you what to do on daily or weekly basis. Write things down or else
you forget.

2. List Items and Schedules. Timetables drawn in graphs and charts will serve as reminders.
Daily planning in the early morning or before office take off will provide a clear insight of
what to do next.

3. Develop Happy People at Work. Make your office a happy environment where people
work as if playing. It improves work output and develops team spirit.

4. Organize Your Files and Other Items. Keep files in proper order. Keep your office store
neat and organize. Keep it in the usual place so you avoid hunting them when you need
it.

5. Religiously Comply with your Commitment. Clients and customers will appreciate a well-
organized business. Pay your bills and suppliers on time and adhere to promises.

6. Keep in Touch. Communicate with people you serve and work with. Keep them posted
on what is going on in your business. Linkages develop better relations.

It may be said that the more organize you are, daily operation will flow smoothly. It will leave you
more time to concentrate on important business details that require more attention and time.

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OFFICIAL SFPC LECTURE DISCLAIMER

It is not the intention of the author nor the publisher of this lecture to have monetary gain
in using the textual information, imageries, and other references used in its production.
This lecture is only for the exclusive use of a bonafide student of System Plus College
Foundation.

In addition, this lecture or no part of it thereof may be reproduced, stored in a retrieval

system, or transmitted, in any form or by any means, electronic, mechanical,
photocopying, and/or otherwise, without the prior permission of Dorwin Rivera.

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