Topic 3: ORGANIZING Flashcards
It is the establishment of authority relationships with provisions for coordination between them, both vertically and horizontally in the enterprise structure
Organizing
6 key elements of organizational design
○ Departmentalization
○ Work specialization
○ Chain of command
○ Span of control
○ Centralization and Decentralizaiton
○ Formalization
The first step in the organzing process
Departmentalization
All related activities, focus on one major activity, take advantage of specialization
Functional Departmentalization
All activities in the development, production, and marketing of one product
Product Departmentalization
Specific catchment areas, foster efficient movement of personnel to client locations.
Geographical Departmentalization
Groups jobs on the basis of product or customer flow
Process Departmentalization
Groups jobs based on a common set of needs or problems of specific customers
Customer Departmentalization
Degree to which tasks in an organization are divided into separate jobs.
Work specialization
Individual employees specialized in doing a part of the activity rather than doing the entire activity
Division of Labor
The line of authority extends from upper organizational levels to lower levels.
Chain of Command
he power and right. Formal and legitimal tride of the manager to make the decision, issue the orders, and allocate resources to achieve organizational desired outcome.
Authority
he power and right. Formal and legitimal tride of the manager to make the decision, issue the orders, and allocate resources to achieve organizational desired outcome.
Authority
Obligation that’s expected to perform assigned duties.
Responsibility
Report to only one manager
Unity of Command
The number of employees a manager can efficiently and effectively manage.
Span of Control
Degree to which decision making takes place at upper levels of the organization.
Centralization
The more that lower-level employees provide input or actually make decisions.
Decentralization
How standardized an organization’s jobs are and the extent to which employee behavior is guided by rules and procedures.
Formalization
If the formalization is HIGH, employees have ______ discretion over how they to their work.
LESS
The work is divided into units and departments
Specialization
Putting the right men on the right job.
Well-defined jobs
It helps clarifying the roles and position to every manager
Clarifies authority
Creates clear relationships among position and ensures mutual cooperation among individuals
Coordination
Very helpful in defining job position; the roles to be performed by different managers are clarified.
Effective administration
Totally dependent on how efficiently and smoothly a concern work
Growth & Diversification
Roles assigned to every manager is clear, coordination is possible, therefore clarity of power helps automatically in increasing mental satisfaction and thereby, a sense of security in a concern.
Sense of Security
A manager will get ready for taking independent decision which can be a path to adaptation of new techniques of production.
Scope of new changes
Chart which represents the structure of an organization in terms of rank
Organizational chart
Depicts entire organization. Shows all departments & major positions of authority.
Master Chart
Depicts a section or unit including specific details or its org pattern
Supplementary Chart
Direct relationship between superior and subordinate
Vertical organizational relationship
Highest positions are put on the left side and those with diminishing authority move toward the right
Horizontal / Left to Right organizational relationship
The center of the circle represents the position of supreme authority, and the functions radiate in all directions
Circular organizational relationship
Two types of organizational charts
Hierarchal and Matrix
Facilitates working on concurrent projects by creating a dual chain of command
Matrix structure
Have authority over activities geared toward achieving project or program objectives
Project manager
Have the authority over promotion decisions and performance reviews
Functional manager
Limitations of an organizational chart
Show only formal relationships
Does not show pattern of social relationships and managerial style adopted
Quickly becomes out-of-date
Preparation of the organization chart
● List major functions
● Group jobs according to function
● Tabulate the following information for each job:
○ Job title
○ Reporting line
○ Line or staff position
● Develop the final chart using general conventions
