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Chapter 6

The document outlines key principles of organizing, including specialization, functional definition, span of control, and delegation of responsibility, emphasizing the importance of clear authority and communication within an organization. It also discusses various approaches to organizing, types of departmentalization, and different organizational architectures, such as vertical and horizontal differentiation. Additionally, it highlights the significance of flexibility, efficiency, and simplicity in organizational structures.

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13 views67 pages

Chapter 6

The document outlines key principles of organizing, including specialization, functional definition, span of control, and delegation of responsibility, emphasizing the importance of clear authority and communication within an organization. It also discusses various approaches to organizing, types of departmentalization, and different organizational architectures, such as vertical and horizontal differentiation. Additionally, it highlights the significance of flexibility, efficiency, and simplicity in organizational structures.

Uploaded by

heyytalha527
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Principles of Organizing

1) Specialization
2) Functional definition
3) Span of Control
4) Chain of Command
5) Unity of Goals
6) Delegation of Responsibility
7) Flexibility
8) Exception
9) Personal Ability
10) Balance/Coordination
11) Efficiency
12) Simplicity
1) Specialization

• Division of work into


smaller parts on the basis
of skills and abilities

• Can lead to employees


becoming more productive

• But could make the work


boring and employees will
not learn anything
2) Functional Definition

• Clearly define all the functions such


as duties, responsibilities, authority
and relationships in an organization.
3) Span of Control

• It shows the number


of employees under
one person/manager
4) Chain of Command

• There must be clear line of authority


in an organization and who follows
whom must be clearly defined.

• Inversely related to Span of control

• It consists of Unity of Command and


Scaler Chain
• Unity of Command: Employees take
order from only one supervisor.

• Scaler Chain: The supervisor reports


to manager, manager reports to CEO
but in case of emergencies, the line
can be broken.
5. Unity of Objectives

• All organizational activities should be


directed towards one common
objectives.

• There should be communication of


work done among all levels of
management.
6. Delegation of Responsibility

• The top level management cannot do


everything by themselves so they must
pass down some authority and
responsibility to the juniors.
7. Flexibility

• Plans must be changed as per the


need of the environment and activities
must be organized accordingly.
8) Exception

• The managers should not always go by


the book and despite making other
plans, they must organize resources as
per the situation.
9) Personal Ability

• The ability to organize must be


developed with training programs
and development programs.

• It helps to enhance productivity


and worker commitment.
10) Balance

• There must be good communication


and coordination among all levels of
the organization so that balance can
be maintained.
11) Efficiency

• Organizing must be done at minimum


cost and maximum output
12) Simplicity

• Complex is not always good.

• Organizational structure must be simple


that can be understood by everybody.
Approaches to Organizing

• Classical Approach

• Behavioral Approach

• Contingency Approach
2. Behavioral Approach
(Same as studied before)
3. Contingency Approach

• Size of Organization (Larger the size, more difficult to organize)

• Task and technology (More tech, easy to organize)

• Environmental Uncertainty (More uncertain, difficult to manage)

• Individual difference (Eg: An autocratic leader will keep the responsibility or

organizing to himself)
Departmentalization
Types of departmentalization
1) Departmentalization by Function

2) Departmentalization by Product/Service

3) Departmentalization by Customer

4) Departmentalization by Location/Territory

5) Departmentalization by Process

6) Departmentalization by Time/Shift
1) Departmentalization by Function
2) Departmentalization by Product/Service
3) Departmentalization by Customer
4) Departmentalization by Location
5) Departmentalization by Process
6) Departmentalization by Time/Shift
Delegation
of
Authority
(Assigning formal authority
and responsibility to others)
Features of Delegation of Authority

• Authority is not “totally” delegated.

• Managers can only delegate responsibility it has.

• Delegated authority must be followed in the same way it would be done by managers.

• Delegation can only be done for organizational purpose, not for personal benefits.

• Delegation powers can be changed when needed.

• Authority and responsibility must be balanced.

• Top level managers still responsibilities for the action of lower level.
Steps in Delegation of Authority

1) Determination of need for delegation

2) Assignment of Responsibility

3) Give authority so that they can complete responsibility

4) Creation of Accountability

5) Evaluation of Performance
Types of Organizational Architectures
• Vertical Differentiation
- Tall Structure
- Flat Structure

• Horizontal Differentiation
- Functional Structure
- Multidivisional Structure
- Geographic Structure
- Matrix structure

• Modern Organizational Structures


- Team Based Structure
- Network Structure
- 360 Degree Structure
1) Vertical Differentiation
• Tall Structure
- Followed by large organizations
- Followed by mechanistic organizations
- Narrow Span of control
- Greater control, better performance

• Flat Structure
- Wide Span of Control
- Employees motivated, delegation
- Followed by Organic Organizations
- Suitable for smaller organizations
2) Horizontal Differentiation
Functional Structure
Multidivisional Structure
Geographic Structure
Matrix Structure
Modern Organizational Structure
Network/Virtual Structure
• A network/virtual structure is the
one in which more than one
organization combine to produce a
good or provide a service.

• These organizations can either get


into a partnership for a particular
venture, or one organization can
hire others to handle one or more
of its functions (outsourcing), for
example, marketing, production etc.
360 degree Structure
• 360 Degree Feedback is a system or process in which
employees receive confidential, anonymous feedback from
the people who work around them. This typically includes
the employee's manager, peers, and direct reports.

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