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13 views6 pages

TCM Lecture 1

Uploaded by

altheamaejulve15
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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TCM 125 :PRINCIPLES OF MANAGEMENT

By: NEIL JOHN CONDEZA BAANG

Detailed Lecture on Organizing and Organization Structure

1. Introduction

Organizing and organization structure are critical components of management. Organizing


involves arranging resources, tasks, and people in a structured way to achieve organizational
goals efficiently. The organization structure, on the other hand, defines the framework within
which the organizing process operates, determining roles, responsibilities, and relationships.

This lecture covers the concepts, processes, and types of organizing and organization structure in
detail.

2. What is Organizing?

Definition:

Organizing is the process of identifying and grouping activities, assigning responsibilities, and
allocating resources to achieve objectives effectively and efficiently.

Features of Organizing:

1. Goal-Oriented: Organizing is designed to achieve specific organizational objectives.


2. Coordination: Integrates efforts across different departments or individuals.
3. Specialization: Promotes efficiency by assigning tasks based on expertise.
4. Flexibility: Adapts to changes in internal and external environments.
5. Hierarchy: Establishes clear authority and responsibility relationships.

3. Importance of Organizing

1. Efficient Use of Resources: Optimizes allocation of time, money, and effort.


2. Clarity of Roles: Avoids confusion by defining responsibilities and authority.
3. Adaptability: Responds to changes in technology, competition, and markets.
4. Coordination and Integration: Ensures all parts of the organization work in harmony.
5. Improved Communication: Establishes clear communication channels.
6. Accountability: Defines clear roles to hold individuals accountable for performance.

The Organizing Process

Organizing follows a systematic approach. The steps include:

a. Defining Objectives

• Clearly identify the goals the organization aims to achieve.


• Objectives serve as the foundation for all subsequent organizing activities.

b. Identifying and Classifying Activities

• Determine the tasks required to achieve objectives.


• Group similar tasks into departments or functions (e.g., marketing, HR, production).

c. Assigning Responsibilities

• Assign specific tasks to individuals or teams based on skills, experience, and workload.

d. Delegating Authority

• Empower individuals to make decisions and take actions within their roles.
• Ensure a balance between responsibility and authority to maintain accountability.

e. Establishing Reporting Relationships

• Define the chain of command (who reports to whom).


• Ensure clarity in decision-making authority and communication flow.

f. Coordinating Activities

• Integrate efforts across different functions or departments to avoid duplication and


conflicts.
• Create systems for smooth collaboration and effective communication.

g. Reviewing and Adjusting

• Periodically evaluate the organizing process.


• Make adjustments to align with changing objectives, environments, or resources.
What is Organization Structure?

Definition:

Organization structure refers to the formal arrangement of roles, responsibilities, and authority
within an organization. It determines how tasks are divided, coordinated, and supervised to
achieve goals.

6. Key Elements of Organization Structure

1. Work Specialization:
o Division of work into smaller tasks.
o Increases efficiency but may lead to monotony.
2. Departmentalization:
o Grouping activities into departments based on function, product, geography, or
customer.
o Examples: Marketing, Finance, Operations.
3. Chain of Command:
o The line of authority from top management to lower levels.
o Ensures accountability and proper communication.
4. Span of Control:
o The number of subordinates a manager can effectively supervise.
o Narrow span: More levels of management, closer supervision.
o Wide span: Fewer levels, greater autonomy for employees.
5. Centralization and Decentralization:
o Centralization: Decision-making concentrated at the top level.
o Decentralization: Decision-making distributed across lower levels.
6. Formalization:
o The extent to which rules, procedures, and responsibilities are documented.

7. Types of Organization Structure

a. Functional Structure

• Groups employees based on similar tasks or functions (e.g., HR, Finance).


• Advantages:
o Specialization and expertise.
o Clear chain of command.
• Disadvantages:
o Limited communication between functions.
o Focus on departmental goals over organizational objectives.
b. Divisional Structure

• Divides the organization into semi-autonomous units based on products, services, or


regions.
• Advantages:
o Focus on specific markets or products.
o Faster decision-making.
• Disadvantages:
o Duplication of resources.
o Potential competition between divisions.

c. Matrix Structure

• Combines functional and project-based structures, with dual reporting relationships.


• Advantages:
o Flexibility and dynamic resource allocation.
o Encourages cross-functional collaboration.
• Disadvantages:
o Confusion in authority.
o Potential conflicts between functional and project managers.

d. Flat Structure

• Few management levels, emphasizing a decentralized decision-making process.


• Advantages:
o Faster communication and decision-making.
o Encourages employee empowerment.
• Disadvantages:
o Risk of role ambiguity.
o Potential lack of control.

e. Network Structure

• Relies on outsourcing and partnerships for non-core functions.


• Advantages:
o Flexibility and scalability.
o Focus on core competencies.
• Disadvantages:
o Dependence on external partners.
o Challenges in maintaining control and quality.

Organizational Chart
An organizational chart is a graphical representation of the organization structure. It shows
relationships, responsibilities, and authority within the organization.

Components of an Organizational Chart:

1. Hierarchy: Shows reporting relationships.


2. Functions: Displays roles and functional areas.
3. Authority: Highlights lines of authority and delegation.

Types of Organizational Charts:

• Vertical Chart: Shows a traditional hierarchy with top-down authority.


• Horizontal Chart: Displays a flat structure emphasizing collaboration.
• Matrix Chart: Combines functional and project relationships.

Benefits of Organizational Charts:

• Clarifies roles and responsibilities.


• Improves communication.
• Identifies inefficiencies in structure.
• Acts as a reference for employees.

9. Factors Affecting Organizational Structure

1. Size of the Organization:


o Larger organizations require more complex structures.
2. Nature of Operations:
o Service-oriented organizations may prefer flat structures, while manufacturing
may favor functional ones.
3. Technology:
o Advanced technology may require flexible and adaptive structures.
4. External Environment:
o Dynamic environments favor decentralized and adaptable structures.
5. Strategy:
o Align the structure with strategic goals (e.g., innovation, cost leadership).

10. Trends in Organizational Structure

• Agile Organizations: Focus on flexibility and adaptability.


• Remote and Hybrid Structures: Adjust structures to support remote teams.
• Team-Based Structures: Emphasize cross-functional collaboration.
• Digital Transformation: Utilize technology to streamline workflows and decision-
making.

Conclusion

Organizing and organization structure are vital for the success of any organization. While
organizing provides a systematic approach to align resources with goals, the organization structure
offers the framework for execution. Effective organizing and a well-designed structure lead to
improved efficiency, communication, and adaptability, enabling organizations to achieve their
objectives in a competitive environment.

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