CHAPTER 8 ORGANIZING PRINCIPLES

MANAGEMENT IN ACTION: ORGANIZING FUNCTION n What Are Managers Organizing? n Formal and Informal Organizational Designs n The Organizing Process n Making a Connection Between the Planning Function and the Organizing Function

THE ORGANIZING PROCESS SYSTEMS MODEL n Defined as u Establishing the orderly use of resources u by assigning tasks u which establish relationships between activities and authority

THE ORGANIZING PROCESS SYSTEMS MODEL n Reviewing Plans and Goals n Determining activities n Classifying and Grouping Activities n Assigning Work and Delegating Authority n Designing a Hierarchy of Relationships

THE ORGANIZING PROCESS SYSTEMS MODEL n Reviewing Plans and Goals u SWOT/Gap/Force Field Analysis u Organizational Mission, Vision, Belief Statements u Strategic-Tactical-Operational Goals and Objective

THE ORGANIZING PROCESS SYSTEMS MODEL n Determining Activities u Specialization and Division of Labor--The Traditional Approach u Cross-Functional Integration The Open Systems Contemporary Approach u The Efficiency-Effectiveness-Specialization- Job Satisfaction Paradox (See Exhibit 7.2 on pg.200)

THE ORGANIZING PROCESS SYSTEMS MODEL n Classifying and Grouping Activities u Functional Departmentalization u Geographical Departmentalization u Product Departmentalization u Customer Departmentalization

THE ORGANIZING PROCESS SYSTEMS MODEL n Assigning Work and Delegating Authority u Responsibility or Authority or Both u Decentralization and Recentralization u Ultimate Accountability

THE ORGANIZING PROCESS SYSTEMS MODEL n Designing a Hierarchy of Relationships u Vertical and Horizontal Reporting Structures u Flat or Bureaucratic Hierarchy u Span of Control/Lines of Authority/Unity of Command Specified u Organizational Charts u Fayol’s Administrative Principles

BENEFITS OF EFFECTIVE ORGANIZATIONAL DESIGN n Clarifies the work environment n Creates a coordinated environment n Achieves unity of direction n Establishes the chain of command

ORGANIZING CONCEPTS, THEORIES, AND PRINCIPLES n Authority u Nature, Sources, and Importance of Authority F formal and legitimate right of make decision, give orders, and allocate resources F functional, positional, charismatic sources of authority u Types of Authority F Line-Staff-Operational/functional u Line and Staff Departments

ORGANIZING CONCEPTS, THEORIES, AND PRINCIPLES n Unity of Command n Power u Legitimate/Positional u Referent/Charismatic u Expert/Functional n Delegation n Span of Control n Centralize or Decentralize

THE INFORMAL ORGANIZATION n The Informal Organization Defined and Compared n How the Informal Organization Emerges n The Structure of the Informal Organization u Primary-Tertiary(Fringe-Out-Status)Group Roles n How To Work With the Informal Organization: Positive/Negative Impact