Organizing Flashcards
Defined as a process made by any business firm to achieve its own goals or objectives smoothly.
Organizing
Can be defined as a group of individuals who are interacting with each other and working together to attain certain goals or objectives.
Organization
Occurs in large companies when different departments, sections, or branch offices create their own corporate culture within the parent company’s overall structure.
Differentiation
Relates to how the different areas of company coordinate their operations.
Integration
Types of organization structures
- Vertical organization
- Horizontal organization
- Functional structure
- Divisional structure
- Matrix structure
Two main classifications of theories regarding organizational design
Traditional and Modern
Pertains to the usual or old-fashioned ways.
Traditional
Refer to contemporary or new design theories.
Modern
Has a few departments, wide spans of control over a big number of subordinates directly reporting to a manager.
Simple organizational design
Group together similar or related specialties.
Functional organizational design
Made up of separate business units where the parent company acts as an overseeing body that coordinates activities and control functions of various company divisions
Divisional organizational design
Made up of workgroups or teams.
Team organizational design
Refers to an organization where specialists from different departments work on projects that are supervised by a project manager.
Matrix or project organizational design
The design is not defined or limited.
Boundaryless organizational design
Vital for the accomplishment of many organizational tasks.
Delegation
Steps in delegation
- Identify the key task.
- Delegate each task appropriately.
- Explain each task to your new members.
- Develop a plan for each task assigned.
- Monitor the progress.
The organizational structure is often created to achieve a systematic working and efficient utilization of resources.
Formal organizational structure
Advantages of formal organization
- Systematic working
- Achievement of organizational objectives
- No overlapping of work
- Coordination
- Creation of chain of command
- More emphasis on work
Disadvantages of formal organization
- Delay in action
- Ignores social needs of employees
- Emphasis on work only
The individuals interact with each other and develop some social and friendly groups in the organization. This network of social and friendly groups forms another structure in the organization.
Informal organization
Advantages of information organization
- Fast communication
- Fulfills social needs
- Correct feedback
- Strategic use of informal organization
Disadvantages of informal organization
- Spread rumors
- No systematic working
- May bring negative results
- More emphasis on individual interest
Forms of business organizations
- Sole proprietorship
- Partnership
- Corporation
- Cooperative
The simplest business form.
Sole proprietorship
also known as co-op is a type of organization that is both owned and controlled by its members who also happens to use services and products of the cooperative.
Cooperative
Where a separate body consisting of at least 5 individuals is treated by law as a unit.
Corporation
Where an association of two or more persons carry on as co-workers of a business profit.
Partnership
