Chapter-4 Organizing - Course material by ahmed sabbir PDF

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103 Principles of Management Chapter: Organizing Definition people are born with power. Others, who might not have as much power, need to come together to build collective power in order to make things happen. This is Organizing is deciding how best to group organizational activities and resources. ...

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Course-MKT 103 Principles

Chapter: Orga Definition “Some people are born with power. Others, who might not have as much power, need power in order to make things happen. This is organizing.” Organizing is deciding how best to group organiza "Organizing is the process of identifying and g defining and delegating responsibility and author the purpose of enabling people to work most e objectives." Importance of Organizing 

Plan Implementation



Assignment of authority, responsibility and Di i i

fl b

3. Creating a hierarchy -

Establishing reporting relationships among of command and span of Management.

4. Distributing Authority: -

Distributing authority starts with delegation the manager assigns a portion of his or her the power that has been legitimized (approv

5. Coordinating Activities -

Coordination is the process of linking the ac the organization.

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Primary reason for coordination is that interdependent – they depend on each oth perform their respective activities.

6. Differentiating Position -

The last element is distinguishing between l

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A line position is a position in the direct cha the achievement of an organization's goals expertise, advice, and support for line posit

Organization Design -

The overall set of structural elements elements used to manage the total organiza

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A means to implement strategies and plans

Job Design -

Job design is the determination of an individ

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Job design is the systematic and purposef contents, method, and relationships of jobs) to organization to perform the organizationa effective manner.

Job Specialization -

The degree to which the overall task of the o divided into smaller component parts.

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Job specification evolved from the concept o

Benefits of Specialization 

Workers can become proficient at a task.

Alternatives to Job specialization 1. Job Rotation -

Systematically moving employees from on

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Most frequent use today is as a training dev

2. Job Enlargement -

An increase in the total number of tasks w

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Job enlargement also known as horizont related task in a job.

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Designed to allow the worker to perform a job boredom or dissatisfaction

3. Job Enrichment -

Increasing both the number of tasks the wo has over the job.

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It increases responsibility, autonomy and co

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To implement job enrichment, managers rem delegate more authority to employees and s natural units.

4. Work team - Work Team allows an entire group to de perform an interrelated set of tasks.

Advantages 

Skill Development

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Economies of Scale

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Good Coordination

Disadvantages 

Lack of Communication

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Employees Identify with Department

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Slow Response to External Demands

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Narrow Specialists

Common base of departmentalization i)

By function:

Finance

ii)

By Product:

Functional Departmentalization - Functional Departmentalization groups activities (e.g., organizational functions su etc.) - It is Most common in smaller organizations; Advantages: 

Each department can be staffed by experts i

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Supervision is facilitated in that managers o set of skills.

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Coordinating activities inside each departm

Disadvantages 

Decision making becomes slow and bureau

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Employees narrow their focus to the dep organizational system.



Accountability and performance are difficul

Product Departmentalization - The grouping of activities around products

Disadvantages 

Managers in each department may focus on to the exclusion of the rest of the organizatio



Administrative costs may increase due t functional-area experts.

Customer Departmentalization - Grouping activities to respond to and in customer groups. - For example, customers can be classified u foreign customers, inland or domestic cust customers, retail customers, etc Advantage 

Major advantage is that the organization is a with unique customers or customer groups.

Disadvantage 

A large administrative staff is needed departments.

Establishing Reporting Relationships Chain of Command: - A clear and distinct line of authority among 

Unity of Command: Each person w clear reporting relationship to one an



Scalar Principle: A clear and unbroke the bottom to the top of the organizat

Span of Management - Another part of establishing reporting rela people will report to each manager, i.e., th particular manager. - Sometimes called the span of control. - In other words, it is number of people super - There is no ideal or optimal span of manage

Tall versus Flat Organizations

Flat Organizations - In flat organization, the span of control is wi levels. -

Flat structure is an organizational structure hierarchy/Short chain of command

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Flat structures seem to lead to higher levels of e

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Create more administrative responsibility for th

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Create more supervisory responsibility for man

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In Flat Organization Structure, there is a lo

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subordinates Flat Organization Structure is less costly becau

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In Flat Organization, communication will no there are few levels of management.

Tall Organization - In Tall Organization, the span of control management levels. - Tall structure is an organizational structure chain of command. - In tall structures, several layers of ma employees and upper management.

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Decentralization is the extent to w management levels.

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Centralization –

The process of systematically retaini of higher-level managers.

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Centralization is the extent to which management levels.

Factors Determining the Choice of Centralization  The complexity and uncertainty of the exter - Usually, the greater the complexity and unc greater is the tendency to decentralize  The history of the organization.  The nature (cost and risk) of the decisions to - The costlier and riskier the decisions, the mo

Functional Organization -

The functional design is an arrangement b departmentalization. This design has been termed the U-form (for un

Figure-Functional Orga

Matrix: Matrix is a rectangular array of number wr a11

a12

a13…………………….a1n

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The matrix creates a multiple command str to both departmental and project managers

Figure-Matrix Organizatio Advantages

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They enhance flexibility because teams can as needed. As they assume a major role in decision mak highly motivated and committed to the orga

Question: 1. a) Define organizing. What are the importa b) Identify the basic elements of organizati 2. a) What is job specialization? What are it specialization? b) Write down the alternatives to Job speci 3. a) Define departmentalization? Write down b) With neat figure, briefly discuss the base c) Write-down the advantage and disadvan and geographic departmentalization. 4. a) How reporting authority can be establi organization. b) Define the term “Centralization” & “De an organization’s position on the decentrali 5. Define Matrix Organization. Diagrammatic...