Organizing
Organizing
Group3
Organizing
Advantages : Disadvantages:
Higher degree of specialization. Competing divisions may drive
Concentration on a particular business down to levels of office
market segment. politics.
Self Reliance &Independence. Compartmentalization arising out of
High Adaptability. competing divisions.
Easy access to resources.
Matrix - combination of Functional and
Divisional. Brings together employees
across different levels from
differentdepartments.
Advantages : Disadvantages:
Common culture through out Compartmentalization arising out of
organization. difference of opinions between
Quick decision making. departments.
Transparency of policies. Confusion on reporting.
Better motivated. Overlapping.
Keeps working in sync with the Inter-departmental poaching of
organization goals. resources.
Increased Cross Functional High maintenance (needs resources).
Skills amongst employees. High Work Load & Tough to
Quick response time to external balance.
and internal changes
Team - to accomplish specific tasks.
The team structure in large organizations is
a newer type of organizational structure. A
team should be a group of workers, with
complementary skills
and synergistic efforts, all working toward
a common goal.
Network - departments are independent
providing functions for a central core
breaker. the integration of manybusiness
functions. They rely more on outsourcing
and hiring temporaryservices for their
business.
Advantages : Disadvantages:
Low costs. Heavy reliance on out sourcing &
Flexibility. technology.
Excessive Leadership oriented.
Minimalistic in nature.
Work load due to sharing resources
(no depts.).
Too many parallel short term
activities are conducted
simultaneously.
Organization Theories
Classical theory
the beginning of the systematic study of
the organization.
It deals with the anatomy of formal
organizations.(job-unit/authority,
accountability-responsibility).
Scientific management has been thought of
broadly as the application of the scientific
method of study, analysis, and problem
solving to the organizational problems.
Classical organizational theory espouses
two perspectives:
Scientific management – focusing on the
management of work and workers
Administrative management - addressing
issues concerning how overall organization
should be structured
Major contributors to the Classical
Organizational Theory:
Scientific Management:
• Frederick Taylor
Administrative Management:
• Henri Fayol
• Luther Halsey Gulick
• Max Weber
Key Points of
Scientific Management
1. Scientific Job Analysis – observation, data gathering, and careful
measurement determine “the one best way” to perform each job
2. Selection of Personnel – scientifically select and then train, teach,
and develop workers
3. Management Cooperation – managers should cooperate with
workers to ensure that all work is done in accordance with the
principles of the science that developed the plan
4. Functional Supervising – managers assume planning, organizing,
and decision-making activities, and workers perform jobs
Classic Organizational Theory
Specialization
Unity of direction
Functional specification
Chain of command
Parity between authority and responsibility
Span of control
Bureaucratic Organization Theory
Task should be divided among various
position holder on the criteria of their
abilities.
Position should be organized in a
hierarchical structure of authority.
Official decisions and actions should be
governed by a formally established system
of rules and regulations.
Employment and promotions in the
organization should be based on the
universalistic criterion of abilities.
Modern Structural Organization
Theory
Established objectives through control and
coordination.
There is a “best” structure for any
organization in light of objectives,
environment, products or services and the
technology of the production process.
Specialization and division of labor
increase the quality and quantity of
production.
Organic –More participation, more reliance
on workers and best in dynamic conditions.
Human Relations Organization Theory
Group oriented management
Team work
Voluntary cooperation
Self control
Group decision making
Hierarchical coordination and control
Task specialization
Modern System Theory
Modern systems theory views an organization as a
complex set of dynamically intertwined and
interconnected elements including inputs, processes,
outputs, feedback loops and the environment.
Modern System Theory
Physiological Needs
Safety Needs
Needs of Love
Needs for Esteem
Needs for Self-Actualization
Delegation
Delegation is an administrative process of
getting things done by others by giving
them responsibility.
It is the process managers use to transfer
authority and responsibility to positions
below them.
Elements of Delegation
Assignment of Responsibility