Organizing

Mizan-Tepi university
College of health science and medicine
School of public health
Department of public health

By Mr. Temesgen G. (BSc, MPH in HSM)

10/19/2023 Temesgen g. (MTU) 1

10/19/2023 2
10/19/2023 3
Organizing

– It is the second key function of management

– It is a process of identifying and grouping activities, assigning

duties, delegating authorities and allocating resource to the
member of organization to accomplish their objectives.

– Organizing includes developing a structure for the people,

positions, departments, and activities within the
firm/organization.

– A key issue in:

• accomplishing the goals identified in the planning process

• structuring the work of the organization.

10/19/2023 4
 Benefits of organizing
• Assuring more efficient use of the organization’s
resources
• Improving employee understanding of job
duties & responsibilities
• Improving employee morale
• Providing a sense of direction for each of the
organization’s functional areas.
10/19/2023 6
The steps in the organizing process include
1. Reviewing plan

2. Determining work activities

3. Classifying & grouping activities

4. Assigning work & delegating authority

5. Designing hierarchy of relationships (defining

line of communication)

10/19/2023 7
 Organization

 When two or more people work together in a structured way

to achieve a specific goal

 A pattern of relationship through which people, under the

direction of managers , pursue to achieve their common
goals.

 Are groups of people, with ideas and resources, working

toward common goals.

 Could be formal or informal

10/19/2023 8
 Formal organization

• Formal organization is an organization that is

deliberately and rationally designed and
approved by management through organizing
process to achieve organizational goals/
objectives.

10/19/2023 9
 Common characteristics of formal organization are
– Consciously designed: Formal organization are purposefully designed

and established to attain certain end results.

– Based on delegated authority: In a formal organization each employee

has delimited authority; therefore there is superior-subordinate

relationship.

– Organizational chart is drawn: Organizational chart shows jobs &

departments, and it is the most tangible picture of an organizational

structure.

– Deliberately impersonal: Positions in an organization are not personal

properties. They are always open to someone who fit the position.
10/19/2023 10
 Informal organization
• Informal organization refers to people in-group
associations, but these associations are not specified in the
structure of the formal organization.
• They are not included or established deliberately/officially
in the formal organization channel but formed adjacent to
the formal organization.
• They are natural grouping of people in the work situation
based on their behavioural patterns; interests; beliefs;
objectives; etc

10/19/2023 11
Reasons for the formation of informal
organization are:
– Mutual benefit

– Friendship

– The need to fulfil social needs

– Administrative practice

10/19/2023 12
Organizational Structure
 The specific pattern of relationships or a framework that
managers create to divide, organize, & coordinate an
organization’s activities

A clear organizational structure

Clarifies the work environment,

Creates a coordination,

Achieves a unity of direction, and

Establishes a chain of command

10/19/2023 13
unclear or lack of an organizational structure or

Without an organizational framework and lines of

reporting, there would be:

• Frustration

• Limited ability to pursue a strategy

• Loss of productivity

10/19/2023 14
 The Organization Chart

• An organization chart displays the organizational

structure

• And it shows:
– job titles

– relationships between departments

– Identifies lines of authority.

10/19/2023 15
10/19/2023 16
The Organization Chart…

– Gives employees a better understanding of the

formal structure of the organization.

– Helps to identify areas of overlapping and

responsibility that should be eliminated.

– Identifies promotional opportunities for job

applicants and new employees.

– Identifies areas suitable for training & orientation.

10/19/2023 17
 Dimensions of Organization charts

• Organization charts have dimensions representing:

– vertical hierarchy and

– horizontal specialization.

• Vertical hierarchy is the chain of command.

• Horizontal specialization involves the division of labor.

10/19/2023 18
Organizational Design

 It is the decision making process by which managers

choose or determine the organizational structure

 Focuses on the overall allocation of power & authority,

information processing & decision – making roles
within the organization

 Show how individual work groups, departments or

divisions are themselves linked together
10/19/2023 19
The four building blocks of organizational
designs are:
1. Division of work

2. Departmentalization

3. Hierarchy

4. Coordination

10/19/2023 20
1. Division of work / Division of labor/ work specialization
• Is the degree to which tasks in an
organization are divided into separate jobs.
• Is breaking of a complex task into
components
• Individuals are responsible for a limited set
of activities instead of the entire task.
• In order to maximize productivity,
supervisors match employee skill level with
task requirements.

10/19/2023 21
2. Departmentalization

• The grouping of similar and logically connected work

activities in to departments .

• An organization chart shows the formal relationship of

the departments

 It is the basis on which work or individuals are grouped into

manageable units.

10/19/2023 22
The five basic departmentalization formats
 Functional
 Product-service,
 Geographic location,
 Customer classification, and
 Work flow process departmentalization

• Each departmentalization format has their own

advantages and disadvantages.

10/19/2023 23
• Functional departmentalization is the most
commonly used approach

• Organizes by the functions to be performed.

• Advantage
• This type of grouping helps to obtain efficiencies
from consolidating similar specialties and

• People with common skills, knowledge and

orientations together in common units.

10/19/2023 24
Departmentalization by function Departmentalization by geographical location

Departmentalization by product

10/19/2023 25
10/19/2023 26
3. Hierarchy
• A pattern of multiple levels of an organizational
structure, at the top which is the senior ranking
manager (or managers) responsible for the
operations of the entire organization ;

• Other, low ranking managers are located down the

various levels of the organization .

• Concept is how many could be effectively handled

10/19/2023 27
Span of control or span of management

The number of people/departments directly

reporting to a given manager.

It affects an organizational design

Smaller spans of control (narrow) produce tall
organizational design

Large spans of control(wider) produce flat organizational

design.

Span of management/control determines the working

relationships in a given organization.
10/19/2023 28
1) Too wide (large spans of control):
– Create flat hierarchies
– Fewer management levels between the top & the bottom
– Overburdened manager
– Little guidance or control of employee
Company A

10/19/2023 29
2) Too narrow (small spans of control):
• Create tall hierarchies
• Many levels between the highest and lowest managers
 Managers are underutilized
 Such span of management control can affect the speed of decision
making in a given organization
Company D

10/19/2023 30
 Chain of command

 The plan that specifies who reports to whom

 It is done after work is divided, departments

created and span of control chosen decide on
chain of command.

10/19/2023 31
 4. coordination

 The integration of activities of separate parts of an

organization for accomplishing the organizational goals.

 Integration: the degree to which various departments work in

a unified/combined manner.

 The degree of coordination depends on

• Nature of task

• Degree of interdependence of people in the various units

10/19/2023 32
High degree of coordination is needed:

 When communication between units is important

 For non-routine and unpredictable works

 When organizations are challenged with unstable

environment

 When there is high interdependence between units

 When the organization has set high performance objectives

10/19/2023 33
Purpose of coordination
 Used to integrate the different activities

 Ensures smooth flow of resources, information, and

activities

 Resolves conflicts between individuals and organizational

goals

 Brings unity of action and direction

10/19/2023 34
 Principles of coordination

1. Early stage
 It should begin from planning process, Policy formulation
& setting objectives

2. Self coordination
 Unit or one department should first be coordinated to
coordinate the other or to create pooled coordination

3. Direct contact
 Personal contacts brings about agreement on methods,
actions, and ultimate achievement of objective.
10/19/2023 35
4. Reciprocal relationship

 All parts influence the other & are influenced by the other.

5. Principle of continuity

 It is a continuous process

10/19/2023 36
 Authority, Power and Delegation

• Managers rely upon authority and power to ensure that

employees get things done.

Authority
– the right given to a manager to achieve the objectives of the
organization.
– It is a right to get the things done through others.
– It is a right to take decisions.
– It is a right to give orders to the subordinates and to get
obedience from them.
– A manager cannot do his work without authority.

38
Three forms of authority
 line authority,
 staff authority, and
 team authority.

1. Line authority
• Authority flows in a direct chain of command from the top of
the organization to the bottom.
• It helps employees know to whom they are accountable, and
whom to go to with a problem.

10/19/2023 39
• Unity of command: states that each person in an
organization should take orders from and reports to only
one person.
• This helps prevent conflicting demands being placed on
employees by more than one manager.

10/19/2023 40
 2. Staff authority

 It is more limited authority

 It is authority that is based on expertise and which usually

involves advising line managers.

 Staff members are advisers and counsellors who aid line

departments in making decisions but do not have the

authority to make final decisions.

10/19/2023 41
3. Team authority

 is granted to committees or work teams involved in an

organization's daily operations.

 are groups of operating employees empowered to plan and

organize their own work and to perform that work with a

minimum of supervision.

10/19/2023 42
Power
– is the ability to exert influence in the organization.

– is the ability to do something

– Types of power
1. Expert power

2. Referent power

3. Legitimate power

4. Reward power

5. Coercive power
10/19/2023 43
 Delegation

• It is impractical for the supervisor to handle all of the work

of the department directly.

• In order to meet the organization's goals, focus on

objectives, and ensure that all work is accomplished,
mangers must delegate authority

 Authority by extension, a part, is delegated and used in the

name of a manager.

10/19/2023 44
• Delegation is the downward transfer of formal authority
from superior to subordinate.
• The employee is empowered to act for the manager, while
the supervisor remains accountable for the outcome.
• This gives employees the concrete skills, experience,
and the resulting confidence to develop themselves for
higher positions.

10/19/2023 45
Advantages of delegation
♦ Effective delegation speeds up better decisions making

♦ Gives employees the concrete skills, experience, and the resulting

confidence to develop themselves for higher positions

♦ The manager assists in developing employees in order to strengthen

the organization.

♦ The manager does not supervise subordinates’ decision making, but

allows them the opportunity to develop their own skills.

♦ The more tasks managers are able to delegate , the more

opportunities they have to seek and accept increased
responsibilities from higher level managers

10/19/2023 46
 Quiz (5 point)
1. List two basic departmentalization
formats/types
2. List two principles of coordination
3. List at least two building blocks of
organizational designs
4. List the three forms of authority
5. List two types of power

10/19/2023 48
10/19/2023 49