Q1:L11 -12 Organizing

Lesson 1: Nature of Organizing

AFTER PLANNING, organizing follows. The goals and objectives established during planning will all go to waste without effective organizing, through the development of a designed structure of roles for effective performance. 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

What is Organizing

Demands assigning tasks, setting aside funds, and bringing harmonious relations among the individuals and work groups or teams in the organization.

Organization

can be defined as a structured group of individuals who come together with a common purpose, working towards achieving specific goals. 

Differentiation in an organizations involves division of labor and specialization (Bateman and Snell,2008). These necessarily result from the organizations composition-many different units with different kinds of tasks, using different skills and work activities coordinating with one another for a common end.

Division of Labor

involves assigning different tasks to different people in the organization’s different work units.

Specialization

is the process in which different individuals and units perform different tasks.

Integration

is another process in the organization’s internal environment which involves the collaboration and coordination of its different work units or work divisions.

Coordination

refers to the procedures that connect the work activities of the different work divisions/units of the firm in order to achieve its overall goal.

Lesson 2: Types of Organization Structure

What is Organization Structure

is a system made up of tasks to be accomplished, work movements from one work level to other work levels. 

Three types of organization structure:

An 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, and communication passageways that unite the work of different individual persons and groups. The types of organizational structures include:

a. vertical structure

b. horizontal structure

c. network structure

According to Bateman and Snell (2008), a vertical structure clears out issues related to authority rights, responsibilities, and reporting relationships. Authority rights refer to the legitimate rights of individuals, appointed in positions like president, vice president, manager, and the like, to give orders to their subordinates, who in turn, report to them what they have done.

Owners of private business companies are said to have absolute authority, even if other persons are appointed as managers in their companies. In corporations, the owners are the stockholders and they elect a board of directors to manage the organization’s activities. The board has a chairman who acts as the leader, while the members act as the corporation’s authority figures, responsible for making major decisions affecting their organizations, subject to the corporation’s constitution and by-law provisions. Besides the chairman of the board, a chief executive officer (CEO) is appointed to occupy the top post in the organization pyramid and is personally accountable to the members of the board and other owners for the organizational performance.

Below the top-level managers are the middle-level managers in charge of departments who, as earlier mentioned, report to them. Under the middle-level managers are the lower-level managers which include office managers, sales managers, and supervisors who directly report to the former. Employees under the lower-level managers also have reporting relationships with their respective department managers.

A horizontal structure refers to the departmentalization of an organization into smaller work units as tasks become increasingly varied and numerous.

Types of Department:

Line departments – deal directly with the firm’s primary goods and services; responsible for manufacturing, selling, and providing services to clients.

Staff departments – support the activities of the line departments by doing research, attending to legal matters, performing public relations duties, etc. Meanwhile, departmentalization may be done using three approaches:

Functional approach – where the subdivisions are formed based on specialized activities such as marketing, production, financial management, and human resources management.

Divisional approach – where departments are formed based on management of their products, customers, or geographic areas covered.

Matrix approach – is a hybrid form of departmentalization where managers and staff personnel report to the superiors, the functional manager, and the divisional manager.

Finally, a network structure is a collection of independent, usually single function organizations/companies that work together in order to produce a product or service. Such network organizations are each capable of doing their own specialized work activities independently, like producing, distributing, designing, etc., but are capable of working effectively at the same time with other network members.

Often their communication is by electronic means where sharing of information is speedy. This results to their ability to respond at once to their customers’ demands. Organizational structure are needed to keep employees needed, to build a learning organization and to manage global structural problems.