HSA 171 CAR

1436/4/26

 the process of establishing the orderly use of resources by assigning and coordinating tasks. The organizing process transforms plans into reality through the purposeful deployment of people and resources within a decision‐making framework known as the organizational structure.

 Organizing requires the manager to determine how he or she will distribute resources and organize employees according to a designated plan aimed at some organizational goal. The manager will need to identify different roles and responsibilities, assign work, and coordinate the right amount and mix of employees across departments to carry out the plan. Each employee must be aware of his or her responsibilities to avoid frustration, confusion, and loss of efficiency.

 Managers organize by bringing together physical, human and financial resources to achieve objectives.  They identify activities to be accomplished, classify activities, assign activities to groups or individuals, create responsibility and delegate authority.  They then coordinate the relationships of responsibility and authority.

 Organizational Structure :  The formal arrangement of jobs within an organization.  Organizational Design : ◦ A process involving decisions about six key elements:  Work specialization  Departmentalization  Chain of command  Span of control  Centralization and decentralization  Formalization

 The end result of the organizing process is the organizational structure, which refers to the type of framework a company uses to distinguish power and authority, roles and responsibilities, and the manner in which information flows through the organization. Having a suitable organizational structure will allow a company to implement proper operating procedures and decision-making processes that will aid the organization in accomplishing its goals.

 managers create the structure of working relationships between organizational members that best allows them to work together and achieve goals. Managers will group people into departments according to the tasks performed. – Managers will also lay out lines of authority and responsibility for members.  All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks.managementstructure relationshipsactivitiesmembersassignsrolesresponsibilitiesauthoritytasks

 When the structure and design of an organizational work together, they create a productive and efficient working environment where employees are motivated and customers are satisfied.

 A manager performs organizing function with the help of following steps:-  Identification of activities - All the activities which have to be performed in a concern have to be identified first. For example, preparation of accounts, making sales, record keeping, quality control, inventory control, etc. All these activities have to be grouped and classified into units.  Departmentally organizing the activities - In this step, the manager tries to combine and group similar and related activities into units or departments. This organization of dividing the whole concern into independent units and departments is called departmentalization.

 Classifying the authority - Once the departments are made, the manager likes to classify the powers and its extent to the managers. This activity of giving a rank in order to the managerial positions is called hierarchy. The top management is into formulation of policies, the middle level management into departmental supervision and lower level management into supervision of foremen. The clarification of authority help in bringing efficiency in the running of a concern. This helps in achieving efficiency in the running of a concern. This helps in avoiding wastage of time, money, effort, in avoidance of duplication or overlapping of efforts and this helps in bringing smoothness in a concern’s working.

 Co-ordination between authority and responsibility - Relationships are established among various groups to enable smooth interaction toward the achievement of the organizational goal. Each individual is made aware of his authority and he/she knows whom they have to take orders from and to whom they are accountable and to whom they have to report. A clear organizational structure is drawn and all the employees are made aware of it.

 Divides work to be done into specific jobs and departments.  Assigns tasks and responsibilities associated with individual jobs.  Coordinates diverse organizational tasks.  Establishes relationships among individuals, groups, and departments.  Establishes formal lines of authority.  Allocates organizational resources.  Cluster jobs in to units.

 Six key elements:  Work Specialization  Departmentalization  Chain of Command  Span of Control  Centralization and Decentralization  Formalization

 The degree to which tasks in the organization are divided into separate jobs with each step completed by a different person

Grouping jobs by functions performed Functional Grouping jobs by product line Product Grouping jobs on the basis of region or geography Geographical Grouping jobs on the basis of product or customer flow Process Grouping jobs by type of customer and needs Customer

Hospital Manager Manufacturing Manager Accounting Manager Human Resources Manger Marketing Manager Purchasing Manag Purchasing Manager

+Efficiencies from putting together similar specialties and people with common skills, knowledge and orientation +coordination within functional area +In depth specialization -Poor communication across functional area -Limited view of organizational goals

Vice President for Ses Vice President for Sales Sales Director, Central Region Sales Director, Western Region Sales Director, Southern Region Sales Director, Eastern Region

+More effective and efficient handling of specific regional issues that arise +Serve needs of unique geographic markets better -Duplication of functions -Can feel isolated from other organizational area

CEO Car Division Bus Division Truck Division

+ Allows specialization in particular products and services +Managers can become experts in the industry +Closer to the customer - Duplication of functions -Limited view of organizational goals

Plant Manager SpinningDyeingWeavingFinishing

+More efficient flow of work activities -can only be use with certain type of product

Director of Sales Manager Wholesale Accounts Manager Retail Accounts Manager Government Accounts Manager

+Customers’ needs and problem can be met by specialists -Duplication of functions -Limited view of organizational goals

 The continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization and clarifies who reports to whom.

 The Chain of Command is Build on: Authority : Authority :The rights inherent in a managerial position to tell people what to do and to expect them to do it Responsibility: Responsibility: The obligation or expectation to perform. Responsibility brings with it accountability (the need to report and justify work to manager’s superiors) Unity of Command Unity of Command :The concept that a person should have one boss and should report only to that person Delegation Delegation :The assignment of authority to another person to carry out specific duties

 The number of employees who can be effectively and efficiently supervised by a manager. Width of span is affected by:  Skills and abilities of the manager and the employees  Characteristics of the work being done  Similarity of tasks  Complexity of tasks  Physical proximity of subordinates  Standardization of tasks  Sophistication of the organization’s information system  Strength of the organization’s culture  Preferred style of the manager.

 Centralization: ◦ The degree to which decision making is concentrated at a single point in the organization  Organizations in which top managers make all the decisions and lower- level employees simply carry out those orders  Decentralization: ◦ The degree to which lower-level employees provide input or actually make decisions. ◦ Employee Empowerment.  Increasing the decision-making discretion of employees.

 Environment is stable.  Lower level managers are not as capable or experienced at making decisions as upper level managers.  Lower level managers don’t want to have a say in decisions.  Decisions are significant.

 Environment is complex.  Lower level managers are capable and experienced at making decisions.  Lower level managers want a voice in decisions.  Decisions are relatively minor.

 The degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures. ◦ Highly formalized jobs offer little discretion over what is to be done ◦ Low formalization means fewer constraints on how employees do their work.