CHAPTER 3

3.1:
Organizing
 LEARNING OUTLINE
On successful completion of this chapter, student should be able to:-

Explain the importance of

01 04 Discuss on delegation.
organizing.

Explain key aspects of Compare centralization and

organizing functions 02 05 decentralization.

Explain authority, responsibility Describe each of the five forms

and the types of power. 03 06 of departmentalization

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 ORGANIZING
A formal
The manager’s
organization is a
Organizing job is to make When a sports
group of people
Organizing is the means to employees do manager
working
second function structure or work together organizes,
together toward
of management. arrange the harmoniously, he/she takes
common
Manager relationship and that steps that will
objectives with
organize four between common goals enable the
clearly
resources – people, the and objectives organization,
established lines
human, physical, work to be done are achieved division or
of authority,
financial and and the facilities through working department to
responsibility,
informational so that goals are within the reach its
accountability
achieved. established objective.
and
hierarchy.
communication.
 “The process of determining Organizing is a managerial
the tasks to be done, who effort to assign work and
will do them, and how those allocate resources; then,
tasks will be managed and arrange the work and
coordinated ” resources in such an orderly
way that a group’s effort
Lewis, Goodman & Fandt, generates the desired result
2001 in the most efficient manner
possible.”
Bridges & Roquemore, 1993
DEFINITIONS
OF
“The process of arranging and
allocating work, authority, and
resources among an

ORGANIZING organization’s members so they

can achieve the organization’s
goal”
Stoner, Freeman and Gilbert,
1995
Importance and benefits of organizing in
sports organizations
 THE IMPORTANCE OF ORGANIZING
A major reason for Good organizing
To achieved desire Organization leads
organizing is to specify considers interpersonal
organizational to the proper use the duties and relationships, the work
objectives requires of resources responsibilities of environment, and the
efforts of many (human, physical, individual employees. control of results. Its is
employees. financial and Doing this eliminates well accepted that the
Organizations should informational) so doubt about any majority of workers
fully utilize employees’ that over time employee’s purpose and perform best when their
knowledge and skills, the value of relationship to other job skills and knowledge
so that it can give end result greater work being performed. are right for the job and
Lines of authority and working conditions are
positive impact to the than the combined
accountability are pleasant.
organization's starting values of defined and clarified.
performance. resources.

Generating effective Synergizing Identifying Facilitating implementing

group action Resources responsibilities and control function
 THEORIES OF ORGANIZING
Classical Theory
▪ Classical theory relates to the early work of Taylor, Fayol and others.
▪ Important is placed on organization structure or the hierarchy.
▪ Principles of organization have been developed to provide guidance to
practicing managers.
▪ The main elements of classical organization are the division of labor, the
functional management process, organization structure, and the concept
of span of management.

Neoclassical Theory
▪ An effort to offset some of the shortcomings of the classical theory by
expanding into the behavioral sciences.
▪ The neoclassical approach focuses on problem such as employee
monotony (boredom), fatigue, isolation insignificance which (results
from specialization of work).
▪ Neoclassical theory stresses subjects such as motivation, coordination and
leadership as responsibilities of managers.

Modern Organization Theory

▪ The uniqueness of this theory is that it studies the organization as a system.
▪ Modern theorists consider the organization to be a system composed of the
following strategic parts: the individual; the formal structure; the informal
organization; status and role patterns; and the physical environment of work.
 ORGANIZATIONAL DESIGN
Key Aspects of the Organizing Function
 Organization structure shows the
flow of interactions within the
Span of
organization- who decides what, Unity of management/span of
who report whom, who responds
Chain of
command and control
and who performs that work. direction command (flat and tall
organizations)
 This organization structure will
specify its division of work
activities and shows how different Division of
functions of activities are linked as labour Coordination Delegation
well as level of specialization of (specialization)
work activities.
 Effective managers know that
organizing their team’s resources
carefully in achieving objectives. Flexibility Departmentalization Integration
 ORGANIZING FUNCTION

ii. Chain of Command iii. Span of Management

i. Unity of Command and
▪ The span of management
Unity of Direction ▪ Chain of command, also (also called the span of
▪ Unity of command known as the scalar control) has to do with how
means concept that principle, is the clear many employees report
each employee should line of authority from directly to a manager.
reports to only one the organization’s top ▪ The number of employees
boss. to its bottom. who can be effectively and
▪ Everyone in a company efficiently supervised by a
need to understand the manager.
▪ Unity of direction chain of command, ▪ There was no consensus on a
means that all activities that is whom they specific number, but early
are directed toward the report to and who
writers favored small spans
same objectives. of less than six to maintain
reports to them. close control.
III . SPAN OF MANAGEMENT

Factors Width of span is Flat and Tall

determining organization:
affected by:
the number of
• Skills and abilities
subordinates of the manager. Flat organization
➢ The type of work. have fewer layers
• Employee
➢ The location in the characteristics. of management
organization with wide spans of
structure. • Characteristics of
the work being control.
➢ The ability of the
manager. done - similarity
➢ The amount and of tasks, Tall organizations
type of complexity of have many layers
communication tasks and a of management
required among standardization of with narrow
members.
tasks. spans of control.
CONTRASTING SPANS OF CONTROL
ORGANIZING FUNCTION
iv. Division of Labour v. Coordination

➢ Division of labor occurs when jobs are ➢ Coordination is about departments and
organized by specialty—for example in individuals in an organization working
sports center accounts work in the together to accomplish strategic and
accounting unit, sales and coaches work operational objectives. Coordination is
in the technical department etc. the process of integrating tasks and
➢ Managers usually performs less resources to meet objectives.
specialized functions as they move up
the management ladder.

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 vi. Delegation
ORGANIZING FUNCTION
❑ Delegation has to do with assigning ❑ Four (4) steps of delegating to ensure that the
responsibility and authority for accomplishing job will get done and done right.
objectives.
1. Assign Responsibility
❑ Responsibility and authority are delegated
down the chain of command. – a person/group is told exactly what to do
verbally or in writing or both.
❑ When involve in delegating, manager must
2. Assign Authority
assign the person responsibility for
accomplishing a task and give him or her the –a person/group is given the power needed to
authority to do what is needed. get the job done.
3. Assign a Time Standard
❑ Directing people to do work that is part of their
job description is not delegating. – a person/group is told exactly when the job
or task is to be completed.
❑ Delegating is about giving employees tasks that
4. Assign Accountability
are not part of their regular job.
– a person/group must accept the job or task,
❑ The delegated task may eventually become a and report to the manager on progress and
part of their job, or it may be a one-time task. problems.

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 Authority, Responsibility and Power
Types of Power 26

Coercive power is the power that rests on the leader’s Authority

Coercive power ability to punish or control. Power based on fear such as ❑ The rights inherent
penalty, rejection in a managerial
position to give
Power based on the ability to distribute something that orders and expect
Reward power
others value. Reward power is the power to give positive them to be obeyed.
benefit or rewards such as promotion, status
Power
Legitimate power Power based on one’s position in the formal hierarchy
such as president, supervisor ❑ An individual’s
capacity to influence
Expert power Power based on one’s expertise, special skill, or decisions.
knowledge.
Power based on identification with a person who has Responsibility
Referent power desirable resources or personal traits. Reference power is ❑ An obligation to
the power that arises because of a person’s desirable perform assigned
resources or personal traits such as physical appearance, activities.
money
 Formal and Informal Authority
❑ Formal authority is the specified relationships among
Levels of Authority
employees and the sanctioned way of getting the job done. 1) Inform 2) Recommend
❑ Formal authority specifies relationships among employees. Authority Authority
It is the sanctioned way of getting the job done. The • Team members can • Team members
inform their group generate alternative
organization chart outlines the lines of formal authority in leader of possible actions, analyze them
the company. alternatives. and recommend action
– group leader make
• Group leader then
analyzes the decision.
❑ Informal authority is patterns of relationships and alternatives and make
the decision.
communication among employees and the unofficial way of
getting the job done.
❑ If you note that someone is competent, dependable, and 3) Report 4) Full Authority
Authority • Your boss may be
continually comes up with strategies that get the job done, coming to you for
• Each person in the
you (and others) are very likely to turn to that person for group has the authority advice because you
to select a course of have deep knowledge
leadership—this is informal authority. It can be as powerful action and carry it out. in that area, and he/she
as formal authority—indeed, many times it is more • They routine report of trust your judgement.
action to the leader.
powerful.

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 Centralized and
Line and Staff Authority Decentralized Authority
❑ The major difference between centralized and
❑ Line authority is the responsibility to make decentralized authority is who makes the important
decisions and issue orders down the chain decisions.
of command.
❑ With centralized authority, top managers make
❑ Staff authority is the responsibility to advise important decisions lower-level employees simply
and assist other personnel. carry out those orders .

❑ With decentralized authority, middle- and first-level

managers make important decisions. Decentralization
is the degree to which lower-level employees provide
input or make decisions.

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 Vii: Flexibility
▪ Flexibility has to do with understanding that
there are often exceptions to the rule.

Functional
Viii: Departmentalization
▪ It is the basis by which jobs are grouped together. For
instance, every organization has its own specific way of
classifying and grouping work activities. Customer Product

An Organization Chart Departmentalization

▪ An organization chart lays out the organization’s
management hierarchy and departments and their
working relationships.
▪ It shows the level of management hierarchy, chain of
command, Process Geographical
▪ the division and type of work, and departments.
▪ There are five common forms of departmentalization.

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 1) The division of work
Each box represents an individual responsible for a
given part of the organization’s workload.
IX: Integration:
Five aspects that can be illustrated

2) Managers and subordinates

(who is whose boss) Integration is about
by an organization chart

The solid lines indicate the chain of command

coordinating
3) The type of work being performed departmental
(nature of the work)
Labels for the boxed indicate the organization’s activities to
different work tasks
accomplish
4) The grouping of work segments
objectives in
The entire chart indicates on what base the organization’s
activities have been divided – functional/product/ organizations.
geographical.

5) The levels of management

The chart shows the entire management hierarchy. All
people who report to the same individual are on the same
management level