ORGANIZING

ORGANIZING

• It is the second function of management.

• It is the process of arranging people and other resources
to wirk together to accomplish predetermined goals.
• It involves dividing work to be performed and
coordinating resources to achieve a common purpose.
 Objectives of organizing
• It structures and allocates resources and activities to accomplish objectives
in an effective and efficient manner.
• It facilitates the implementation of plans.
• It facilitates division of labor.
• It involves assignment of tasks, authority, responsibility, and accountability
to key individuals.
• It coordinates tasks and resources and enables them to work together to
achieve a common purpose.
 Nature of Organization

• An organization is a group of people, structured mechanisms, and processes

that are designed to accomplish a common goal in an altering environment.
• According to S.A. Sharkelar and V.S. Sherlekar, “Organization is a
mechanism or a basic framework enabling the person to work together
effectively and achieve the set goals through integrated group effort."
• Moreover, W.J Duncan stated also “Organization is a collection of
interacting and interdependent individuals who work toward common goals
and whose relationship are determined according to a certain structure.”
 ORGANIZING

• It deals with the process of arranging people and

other resources to work together to accomplish
goals .
• It involves coordinating the efforts of those
involved, dividing up the work to be done, and
coordinating results to achieve common purpose.
 ORGANIZATIONAL STRUCTURE

• It is the way in which various parts of an organization

are formally arranged.
• It shows the authority and responsibility relationships
between the various positions in the organization and
also shows who reports to whom and who has authority
over and responsibility for whom.
 Types of Organizational Structure

• Line Structure
• Functional Structure
• Line-Staff Structure
• Divisional Structure
• Matrix Structure
• Team Structure
• Network Structure
• Boundaryless Structure
 Line Structure
• A plain type of organizational structure where there is a specific line of
command.
• The direct flow of orders and approvals comes from top to bottom in this
type of structure.
• Each staff and line function exercises line authority over its subordinates.
• This structure has fewer departments, which makes it a more
decentralized one. This is the reason why commonly the small size
businesses use this structure in their organization
 ADVANTAGES DISADVANTAGES
 It has a direct hold of responsibility,  Administrative decisions are delayed because
functions, and accountability. of an extended chain of command.
 Members and staff know their place in the  Because of its easy decision-making, it is
organization. very informal.
 Because of its simple structure, it is easy to  Since there are basic line functions, it
maintain and control each individual in prevents the development of specialization
the organization. It is also easy to which is needed to maximize the capacity of
facilitate discipline if a conflict arises the line officer.
within the organization.  Too much reliance on the chief and other
 it is easy to adapt quick adjustment and Assistant officers may cause them overloaded
respond to the changing conditions of its with duties and responsibilities.
organizational environment.
 Functional Structure
• According to Frederick Taylor, functional structure applies the
principles of specialization and division.
• For the organization to be effective, members and staff of the
organization should be divided into smaller groups based on
their specialization, such as marketing, finance, Human
Resource Management, IT, etc.
• An expert from these different functional areas is hired instead
of all-around men.
 ADVANTAGES DISADVANTAGES
 It supports the highest degree of  Since departments have their particular
specialization functions and have some jobs to do in each
 Members and staff are more functional task assigned to them, this may sometimes
since they are assigned to their areas of cause a lack of coordination and
specialization communication among staff and members.
 Functions are executed effectively since  There's a lax attitude toward discipline
there is a simplified control because members have minimum supervision.
 There is minimal supervision since staff  Low morale is most likely to be low because
and members are assigned based on their of a lax attitude toward discipline.
line of specialization  Responsibility executed effectively in
practice. However, "buck-passing" becomes
an issue when there is a wrong action
happening within the organization.
 Line Staff Structure
• Line Staff Organization is commonly used in the largest and complex
organizations.
• This is the combination of the best characteristics of both Line and
functional organization.
• Both the advantages of line and functional are considered in a line-staff
organization and the disadvantages of each are both eliminated. Conflict
sometimes arises when it comes to the decision-making process because
of too much formality involved and different layers and guidelines that
need to follow.
 ADVANTAGES DISADVANTAGES
 It promotes skill development among  Since staff executives are more on advice,
employees they are apt to insist their suggestions that
 Line Officers are free from carrying out may lead to confusion as to whom the
functions that do not relate to their job workers should obey; the command of
specification their immediate superior or the dictate of
 It provides greater flexibility since there the staff executive.
is an addition of staff.  Line officers are dependent too much on
 Line officers are empowered to act and staff executive advice.
establish stronger decisions.  If the staff and line executive does not
understand their powers and relationship,
this will cause administrative problems
among them.
 Divisional Structure
• This is commonly used in a complex and diverse organization.
• This type of structure focuses on dividing each function
according to its products or geographies.
• Each division/branch contains all the necessary support like
material and manpower resources (for example, its marketing,
purchasing, IT, and finance, and the like.)
 ADVANTAG ES DISADVANTAG ES

 Fa ilure o f o ne d ivisio n d o e s no t a ffe c t  The re a re inc re a se d o p e ra tio na l c o sts

the o the r d ivisio n a nd ta x im p lic a tio ns
 Va rio us a c tivitie s o rg a nize d b y o ne  Se p a ra ting sp e c ia lize d func tio ns m a y
d ivisio n a re ha nd le d b y o ne a utho rity c a use o p e ra tio na l ine ffic ie nc ie s.
o nly.
 De c isio ns a re le ft to a uto no m o us
d ivisio ns
 The re is a g re a te r o p e ra tio na l fle xib ility
 Matrix Structure
• This type of structure combines the characteristics of both
functional and divisional organizational structures.
• This is fitted in a company’s where they can justify the
increased complexity.
• Common organizational perspective in this type of
organizational structure includes function and product, function
and region, or region and product.
 ADVANTAGES DISADVANTAGES

allow each member to share There is increased complexity

information voluntarily in the chain of command due
across their restrictions. to a higher manager-to-worker
Functions of the members ratio.
are organized according to It may cause disloyalties
their specializations and among employees.
project needs May create "gridlock" in
decision-making if a manager
disagrees with the other
manager.
 Team Structure

• This type of organizational structure works with

teams to complete their special projects while
working on their tasks.
• It used temporary and permanent teams to
supplement a product-based design on an
existing function-based design.
 ADVANTAGES DISADVANTAGES
 Teams resolve the problem  personality conflicts among
quickly because communication members can negatively influence
is free-flowing among members the performance and unity of the
 Have flexible structures and less team
hierarchical  Not all members are opted to work
 Since it is a project-based team, it with teams, and they are best at
is easy to facilitate because working individually.
members are specifically picked  Some members may rely on the
up to be part of the special team to cover up their lack of
project. effort.
 Network Structure

• This type of organizational structure has more

than one organization that works to provide a
good service.
• This type of structure used outsourcing or
strategic alliance for a particular venture.
 ADVANTAGES DISADVANTAGES
 It has a clearer focus because its  This can lead to a complicated
concentration focuses only on its relationship in the organization
core competency.  Less clear lines of accountability
 Have lower cost because it only  Reduce organization control over
has an essential its operation
components/function of the
business
 the flow of decisions comes freely
 Boundaryless Structure
• According to Jack Welch, former chairman of General Electric, the
criteria of a boundaryless organization are adaptability and
flexibility.
• He formulated this type of structure just to break down the walls
or borders that occurred in different parts of the business.
• It is also formed to supplement the needs and demands of the
business or environment.
 ADVANTAGES DISADVANTAGES
 Since it is boundaryless structure  At some point, boundaryless needs
and less hierarchical, there is a certain boundary for them to
little supervision and free flow of build a highly focused team that
decisions works on a specific project.
 Members are self-motivated and  There’s a communication difficulty
independent thinkers. due to personality and cultural
 Since members know their part differences
and what is expected of them,  Conflict in control
they have a full responsibility to  Loss of autonomy and security
use their methods
 It develops strong work ethics
among members
 Organizational Charts
• It is a diagrammatical or pictographic representation of the important
aspects of the organization by showing principal lines of authority, the
interplay of various functions and relationships, the channels of
communication, and the chain of command and span of control within the
company.
 Advantages of organizational charts
• An organizational chart gives a clear picture of the organizational structure
and the relationships that exist in an organization.
• It shows at a glance the lines of authority and responsibility.
• With the help of an organizational chart, outsiders can easily know the
persons who have to approach in connection with their queries and concerns.
• It serves as a valuable guide for new personnel in understanding the
organization and who the key persons are in the organization for the purpose
of their training.
 Performance task No. 1
CHARTS, CHARTS, CHARTS
• Purpose
This activity aims to enable you to study actual organizational charts
of existing organizations or companies.

Activity outcome
At the end of this activity, you should be able to learn to prepare
organizational chart and interpret the hierarchical and reporting relationships
included therein.
 Instructions
• Using actual observations, office visits, books, magazines, periodicals, internet
and other literature, get a copy of the organization or company of your choice for
each type of organizational structure.
• Once you obtained these organizational charts, replicate each of them as a visual
aid. Compare and contrast each chart by answering the following questions.
1. What type of organizational structure is represented by these charts?
2. Who are involved in top-, middle-, and first level management?
3. Who has the highest authority in the organization based on the chart?
4. What hierarchical or reporting relationships may be observed from the chart?
5. Can you observe any inconsistencies, or duplication of duties based on the
charts?