Management 104

Chapter 4:
ORGANIZING
Prepared by:
JOMAR M. NARVAS
ORGANIZING
After planning, organizing follows. The goals and

objectives established during planning will all go
to waste if effective organizing, through the
development of a designed structure of roles for
effective performance, does not follow. It requires
an interlacing of decision and communication
work units to coordinate efforts toward the
organizational goals and objectives that were set
earlier. To function well, organization structures
and their specific roles must be understood by all
members of the organization. Rules and regulation
principles must also be put into practice. It must
be remembered, however, that organizing
depends on the specific situation of the firm.
ORGANIZING
LESSON 1: NATURE OF ORGANIZATION

ORGANIZING
• Is a management function which involves
assigning tasks, allocating of resources and
coordinating work activities in order to achieve
a common purpose.
ORGANIZATION CHART
• Shows the different job positions in the firm and
its hierarchical arrangement for dividing labor
and providing a picture of the reposting
structure.
ORGANIZATION
• A collection of people or groups of people
working together to achieve a common goal.
ORGANIZING
ORGANIZATION’S INTERNAL ENVIRONMENT
DIVISON OF LABOUR
• Involves assigning different tasks to different
people in the organization’s different work units.
SPECIALIZATION
• Is the process in which different individuals and
work units perform different tasks.
INTEGRATION
• Is another process in the organization’s
environment which involves the collaboration
and coordination of its different work units or
work divisions.
ORGANIZING
LESSON 2: TYPES OF ORGANIZATION STRUCTURE
ORGANIZATION STRUCTURE
• Is a system made up of tasks to be
accomplished, work movements from one work
level to other work levels in the system, reporting
relationships, communication passageways that
unite together the work of different individual
persons and groups.
ORGANIZING
TYPES OF ORGANIZATION STRUCTURE
1. VERTICAL STRUCTURE
• Clears out issues related to authority rights,
responsibilities, and reporting relationships.
2. HORIZONTAL STRUCTURE
• Refers to the departmentalization of an
organization into smaller work units as tasks
become increasingly varied and numerous.
3. NETWORK STRUCTURE
• Is a collection of independent, usually single
function organizations/companies that work
together in order to produce a product or
service.
ORGANIZING
LESSON 3: ORGANIZATION THEORIES & APPLICATION
There are two main classifications of theories

regarding organizational design according to
Robbins and Coulter (2009):
TRADITIONAL DESIGN focuses on performance

improvement of people in firms while the MODERN
DESIGN focuses on team work, flexibility and
problem solving.
ORGANIZING
TRADITIONAL DESIGN THEORIES include:
SIMPLE
This organizational design has few departments,
wide spans of control, and very little formalization
of work.
SIMPLE ORGANIZATIONAL DESIGN

STRENGTHS WEAKNESSES
• Flexible • Risk that overdependence
• Fast decision-making with over-dependence on
and results a single person
• Clear accountability • No longer appropriate as
the company grows.
ORGANIZING
FUNCTIONAL
This organizational design groups together similar or
related specialties
FUNCTIONAL ORGANIZATIONAL DESIGN

• Cost saving advantages • Managers have little
• Management is knowledge of other unit’s
facilitated because functions.
workers with similar tasks
are grouped together
ORGANIZING
DIVISIONAL
This organizational design is made up of separate
business divisions or units, where the parent
corporation acts as overseer to coordinate and
control the different divisions and provide financial
and legal support services.
FUNCTIONAL ORGANIZATIONAL DESIGN
• Focused on results • Possible duplication of
• Managers are activities and resources
responsible for what • Increased cost and
happens to their reduced efficiency.
products and services
ORGANIZING
MODERN ORGANIZATIONAL DESIGN THEORIES

include:
TEAM DESIGN
• The entire organization is made up of work

groups or teams. Its advantages include
empowerment of team members and reduced
barriers among functional areas. It also has
disadvantages, including a clear chain of
command and great pressure on teams to
perform.
ORGANIZING

include:
MATRIX-PROJECT DESIGN
• Matrix design refers to an organization design

where specialists from different departments
work on projects that are supervised by a project
manager.
Project design refers to an organizational design

where employees continuously work on a project.
ORGANIZING

include:
BOUNDARY-LESS DESIGN
• The design is not defined or limited by vertical,

horizontal and external boundaries. In other
words, there are no hierarchical levels that
separate the organization from customers,
suppliers and other stakeholders.
ORGANIZING
LESSON 4: DELEGATION
DELEGATION
• Refers to assigning a new or additional task to a

subordinate. It may also refer to getting work
done through others by giving them the right to
make decisions and take action.
ORGANIZING
STEPS IN DELEGATION include:
1. Defining the goal clearly

2. Selecting the person who will be given the task
3. Assigning the responsibility
4. Asking the person assigned about his or her
planned approaches to accomplish the task
objectives
5. Granting the assigned person the authority to
act
6. Giving the assigned person enough time and
resources to do the task while at the same time
emphasizing his or her accountability
7. Checking the task accomplishment process
8. Making sure that the task objective has been
achieved
ORGANIZING
ADVANTAGES DISADVANTAGES
It prevents work overload among It may cause laziness among
organization managers organization managers
It provides opportunities for
employee or subordinates It may encourage too much
assigned to do the task to fully dependence on others.
utilize their talents on the job
It leads to empowerment of
employees or subordinates
assigned to do the task, as it It may cause lack of control over
allows them freedom to priority management problems.
contribute ideas and to perform
their job in the best possible way
It increases job satisfaction
among the assigned employees It may cause low self-confidence
or subordinates, that may lead to among managers.
better job performance
ORGANIZING
LESSON 5: FORMAL & INFORMAL ORGANIZATIONS
FORMAL ORGANIZATIONS
Are characterized by hierarchical and reporting
relationships among groups or members.
INFORMAL ORGANIZATIONS
Consist of informal groups born out of the need for
social affiliation
Both formal and informal organizations may exist in

the same organization structure.
ORGANIZING
FORMAL INFORMAL
1.Working systematically 1. Fast communication due to
2. Established on and for the the absence of SOP and
organization’s objectives Protocols
ADVANTAGES
3. No duplication or overlapping 2. Gives importance to the

of work psychological and social
4. Efficient coordination among needs of employees
departments 3. Top managers can solicit
5. Implementation of chain of feedback directly from the
command and professional employees on new policies
relationship and plans.
1. Delay in feedback and 1. More susceptible to rumor
action due to the established mongering
DISADVANTAGES
chain of command 2. There is no systematic

2. Ignores the psychological workflow in place
and social needs of 3. Difficulty in implementing
employees new rules and policies
3. Emphasis on work only and 4. More emphasis on the
overlooks the human individual interest of each
relations, talents, and employee rather than the
creativity of employees overall goal of the company

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Chapter 4:

After planning, organizing follows. The goals and

LESSON 1: NATURE OF ORGANIZATION

ORGANIZATION’S INTERNAL ENVIRONMENT

LESSON 2: TYPES OF ORGANIZATION STRUCTURE

TYPES OF ORGANIZATION STRUCTURE

LESSON 3: ORGANIZATION THEORIES & APPLICATION

There are two main classifications of theories

TRADITIONAL DESIGN focuses on performance

TRADITIONAL DESIGN THEORIES include:

SIMPLE ORGANIZATIONAL DESIGN

TRADITIONAL DESIGN THEORIES include:

FUNCTIONAL ORGANIZATIONAL DESIGN

TRADITIONAL DESIGN THEORIES include:

MODERN ORGANIZATIONAL DESIGN THEORIES

• The entire organization is made up of work

MODERN ORGANIZATIONAL DESIGN THEORIES

• Matrix design refers to an organization design

Project design refers to an organizational design

MODERN ORGANIZATIONAL DESIGN THEORIES

• The design is not defined or limited by vertical,

• Refers to assigning a new or additional task to a

STEPS IN DELEGATION include:

1. Defining the goal clearly

LESSON 5: FORMAL & INFORMAL ORGANIZATIONS

Both formal and informal organizations may exist in

3. No duplication or overlapping 2. Gives importance to the

chain of command 2. There is no systematic

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