Scribd
Upload
4 views26 pages

Week 6 Organizing & Delegation

The document outlines the concepts of organizing and delegation within business management, emphasizing the importance of organizing in defining roles, coordinating tasks, and establishing authority. It discusses the organizing process, principles, and various organizational structures, including functional, product, and matrix structures, along with their advantages and disadvantages. Additionally, the document highlights the significance of staffing in matching jobs with individuals and improving organizational efficiency.

Uploaded by

tinashed913
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
4 views26 pages

Week 6 Organizing & Delegation

The document outlines the concepts of organizing and delegation within business management, emphasizing the importance of organizing in defining roles, coordinating tasks, and establishing authority. It discusses the organizing process, principles, and various organizational structures, including functional, product, and matrix structures, along with their advantages and disadvantages. Additionally, the document highlights the significance of staffing in matching jobs with individuals and improving organizational efficiency.

Uploaded by

tinashed913
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 26

Business Management 2

(B6-BM2-13)
ORGANIZING AND DELEGATION
Objectives
By the end of the session, students should
be able to:
• Define organizing
• Outline the importance of organizing
• Describe the process and principles of organizing
• Discuss the concept of staffing and its importance
in an organization.
• Explain the advantages and disadvantages of
different organizational structures.
ORGANIZING AND DELEGATION

• Organizing is the function of management


which follows planning.
• According to Chester Barnard, Organizing is a
function by which the concern is to be able to
define the role positions, the jobs related and
the coordination between authority and
responsibility.
• Hence, a manager always has to organize in
order to get the desired results.
ORGANIZING AND DELEGATION

Importance of organizing
a) Divides work to be done into specific jobs and
departments: Marketing, IT, Finance and Human
Resources.
b) Assigns task and responsibility associated with
individual jobs, for example, General Manager,
Marketing.
c) Coordinates diverse organisational task (vision
and mission cascading down the organisational
hierarchy).
ORGANIZING AND DELEGATION

d) Establishes relationships among individuals,


groups and departments(Marketing Director>IT
Director<>HR Director<>Production Director).
e) Establishes formal lines of authority, (GM
Marketing>Senior Manager,
Marketing>Marketing Manager).
f) Allocates and deploys organisational
resources (how much should each
division/department get?)
ORGANIZING AND
DELEGATION
Steps in the Organizing process
• Identifying the activities required for achieving
objectives.
• Classifying these activities into convenient groups
• Assigning the group of activities to appropriate
persons.
• Delegating authority and assigning responsibilities.
• Coordinating authority- responsibility relationship
throughout the enterprise.
ORGANIZING AND DELEGATION

Principles of Organizing
Division of Labor and Departmentalization
• Division of labor, or work specialization – refers to the degree to
which tasks are subdivided into separate jobs
• Departmentalization – grouping of related activities into units
Chain of Command
• Line of authority from the top to the bottom of the organization,
which is shown in an organization chart.
Span of Management
• Refers to the number of employees reporting to a manager. Too
narrow a span of control may mean that managers are
underutilized resulting in “tall” organizational structures. (Wider
span of control?)
ORGANIZING AND DELEGATION

Centralized and Decentralized Authority


• With centralized authority, top managers make
important decisions.
• With decentralized authority, middle and first-line
managers make important decisions where the
action is.
Coordination
• With the division of labor and departmentalization
comes the need to coordinate the work of all
departments.
ORGANIZING AND DELEGATION

Responsibility, authority and accountability

• Responsibility is the obligation to achieve the


organization’s goals by performing the
required activities.
• Authority is the right to give orders, make
decisions and use resources.
• Accountability is how well the individuals meet
their responsibility.
ORGANIZING AND DELEGATION

Power -The ability to influence the behaviour


of others in an organization.
Types of power
• Legitimate power
• Reward power
• Coercive power
• Referent power
• Expert power
ORGANIZING AND DELEGATION
Staffing
• It is concerned with the human resources of
the enterprise.
• It is concerned with acquiring, developing,
utilizing, and maintaining human resources.
• It is a process of matching jobs with
individuals to ensure the right person for the
right job.
ORGANIZING AND DELEGATION

Importance of staffing
• It helps in discovering and obtaining competent
employees for various job.
• It improves the quantity and quality of output by
putting the right person at the right job.
• It improves job satisfaction of employees
• It reduces the cost of personnel by avoiding
wastage of human resources.
• It facilitates the growth and diversification of the
organization.
ORGANIZING AND DELEGATION

Organizational Design

• This refers to the arrangement of positions


into work units or departments within an
organization.
• Departmentalization can be described as
the grouping of activities which are related
into units or departments.
ORGANIZING AND DELEGATION

Types of organizational structures


1. Functional structure: This is the simplest,
an inexpensive structure in which the
activities in each management function are
grouped together.
ORGANIZING AND
DELEGATION
Example of a functional structure
Managing
Director

Purchasing Human
IT Manager and Supply Resources
Manager Manager
ORGANIZING AND DELEGATION
Advantages of a functional structure
• Simple and inexpensive.
• Results in specialization.
• Requires little interpersonal skills since employees are
experts.
• Operational clarity in terms of task and responsibility.
• Efficiency and productivity as a result of
specialization.

Disadvantages
• May take time to decide since major decisions have to
be made at the central head office.
ORGANIZING AND DELEGATION

• Employees may focus on their functional area at


the
expense of the overall organizational
objectives.
• Conflicts may arise between the functional
managers as a result of the need to share the
needed resources.
• Discussion: In your own view, what are the
benefits and limitations of a functional structure?
ORGANIZING AND DELEGATION

Product departmentalization
• This refers to a structure in which all the
activities which are related to the
manufacturing of a product or group of
products are grouped together.
ORGANIZING AND DELEGATION

Example of a product structure

Plant
Manager

Produce Meat Deli Dairy


Manager Manager Manager Manager
ORGANIZING AND DELEGATION

Advantages of a product structure


• Specialized knowledge of employees is fully utilized
• Faster decision making
• Performance of each group can be easily measured.

Disadvantages
• Managers in one section may concentrate on their
product at the expense of the wider organizational
objectives
• Duplication of costs: each section has its own
functional
ORGANIZING AND DELEGATION

specialists.
• Lack of control over each separate division.

MATRIX STRUCTURES
• This structure is a combination of both the
functional and product structure, employees
report to two bosses, dual reporting.
• (Diagram?)
ORGANIZING AND DELEGATION

Advantages
• There is flexibility: employees can be
organized temporarily for a project.
• Efficient information exchange since experts
team up for a specific project
• Motivates employees upon completion of the
project.
• Resource maximization in the firm.
ORGANIZING AND DELEGATION

Disadvantages
• Violates the unity of command principle since
employees report to two bosses.
• Coordination can be difficult.
• Requires high interpersonal skills.
• The structure is expensive to maintain.
• Competition for scarce resources can result in
internal conflict.
Blackboard Questions
1) Outline the benefits of organizing to a company
of your choice in Botswana/Lesotho/Namibia.
2) Briefly outline the steps involved in the
organizing process
3) Explain your understanding of staffing,
highlighting the stages in the staffing process.
4) Discuss the merits and demerits of the various
organizational structures.
Thank you!

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy