. Organizing is that part of managing that involves establishing an organizational structure of roles for people to fill in an organization.

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Presentation transcript:

. Organizing is that part of managing that involves establishing an organizational structure of roles for people to fill in an organization

 It is defined as : 1. The set of formal tasks assigned to individuals and departments. 2. Formal reporting relationships, including lines of authority, decision responsibility, number of hierarchical levels, and span of managers’ control. 3. The design system to ensure effective coordination of employees across departments. The Process of developing organizational structure is referred as organizational design.

 It is a visual representation of an organization's structure.

An organizational chart shows: Major positions or departments in an organization. Way the positions are grouped into specific units. The reporting relationships from lower to higher levels. the official channels for communicating information.

chairman VP Marketing Communication Market Support Field Management VP Operations Insurance Operations Actuarial Information Management System VP HRM HRM Development Health Unit Training & Conference Center VP Finance Internal \Audit Investment Real estate Financial \Analysis ax

 The chain of command is an unbroken line of authority that links all persons in an organization and shows who reports to whom.

 Organization performs different functions. A fundamental principle is that work can be performed more efficiently if employees are allowed to specialize. Work specialization, is the degree to which organizational tasks are sub-divided into separate jobs. Job design The specification of task activities associated with a particular job.

JOB SIMPLIFICATION It is the process of designing jobs so that job holders have only a small number of narrow activities to perform. Worker 1 Worker 2 Worker 3 Task 1 Task 2 Task 3

Worker 2 Worker 3 Worker 1 Task 1 Task 2 Task 3 JOB ROTATION

Worker 1 Worker 2 Worker 3 Task 1,2,3 Task 1,2,3 Task 1,2,3 JOB ENLARGEMENT It is the allocation of a wider variety of similar tasks to a job in order to make it more challenging.

 It is the process of upgrading the job task mix in order to increase significantly the potential for growth, achievement, responsibility and recognition.  Job enrichment increases job depth, the degree to which individuals can plan and control the work involved in their jobs.

 It is adjustment in the normal work schedule rather then in the job contents or activities. FLEXTIME COMPRESSED WORKSHEET COMPRESSED WORKSHEET JOB SHARING

FLEXTIME Flextime is a work schedule that specifies certain hours when individuals are expected to be on the job and then allows flexibility in starting and quitting times as long as individuals work the total number of required hours per day.

COMPRESSED WORKSHEET COMPRESSED WORKSHEET The compressed worksheet is a work schedule whereby employees work more hours per day and working less number of days in a week.

JOB SHARING Job sharing is a work practice in which two or more people share a full time job.

PRESIDENT DIRECTOR MARKETING MANAGER SALES SUPERVISOR SALES OFFICER Vertical coordination is linking of activities at the top of the organization with those at the middle and lower levels in order to achieve organizational goals. Five important means of achieving effective vertical coordination are:

Formalization Centralization vs. decentralization Span of management Line and staff positions Delegation Formalization is the degree to which written policies, rules, procedures. Job descriptions, and other documents specify what actions are/or are not to be taken under given set of circumstances. It is the number of subordinates who report directly to a specific manager. Centralization is the extent to which power and authority are retained at the top level, while decentralization is the extent to which power and authority are delegated to lower levels. The assignment of part of a manger’s work to others, along with both the responsibility and the authority necessary to achieve expected results. A line position is a position that has authority and responsibility for achieving the major goals. A staff position is to provide specialized expertise and assistance to line positions.

Formalization Formalization is the degree to which written policies, rules, procedures. Job descriptions, and other documents specify what actions are/or are not to be taken under given set of circumstances. It brings about vertical coordination by specifying expected behaviors in advance. Without formalization it may become necessary to decide about certain issues every year that could be time consuming and might lead to inequities. Extensive rules and procedures can be stifling and discourage necessary amounts of change and innovation. ADVANTAGES: DISADVANTAGES:

Span of management It is the number of subordinates who report directly to a specific manager. FACTORS INFLUENCING SPAN OF MANAGEMENT Low interaction requirements. High competence levels. Work similarity. low problem frequency and seriousness. Physical proximity. Few non-supervisory duties of manger. Considerable available assistance. High motivational possibilities of work.

Highest Organization levels AB Tall structureFlat structure Levels of managementSpan of control Levels of managementSpan of control Tall organizations raise: administrative overhead. slow communication and decision making. Make it difficult to pinpoint responsibility for various tasks. Company ‘A’ needs 780 more managers

Downsizing is the process of significantly reducing the layers of middle management, increasing the span of control, and shrinking the size of the workforce for the purpose of improving Organizational efficiency and Effectiveness. Downsizing is the process of significantly reducing the layers of middle management, increasing the span of control, and shrinking the size of the workforce for the purpose of improving Organizational efficiency and Effectiveness.

Restructuring is the process of Making a major change in organization Structure that often involves reducing Management levels and possibly changing some major Components of the organization through Divestiture and/or acquisition.

Downsizing is the process of significantly reducing the layers of middle management, increasing the span of control, and shrinking the size of the workforce for the purpose of improving Organizational efficiency and Effectiveness. Restructuring is the process of Making a major change in organization Structure that often involves reducing Management levels and possibly changing some major Components of the organization through Divestiture and/or acquisition.

CENTRALIZATION It can be easier to coordinate the activities of various units and individuals. It can help reduce duplication of efforts and resources. Top managers usually have the most experience and may make better decisions than individuals at lower levels. It promotes strong leadership. DECENTRALIZATION Encouraging decision making at lower levels tends to ease the heavy workload of executives. Enriches the jobs of lower level employees. Faster decision making at lower level. Individuals at lower levels may be closer to the problem and therefore in a better position to make a good decision. Large size. geographic dispersion. technological complexity. Environmental uncertainty. FROM CENTRALIZATION TO DECENTRALIZATION

Delegation The assignment of part of a manger’s work to others, along with both the responsibility and the authority necessary to achieve expected results.

Line and staff positions A line position is a position that has authority and responsibility for achieving the major goals. A staff position is to provide specialized expertise and assistance to line positions. Line Departments have line authority which is authority that follows the chain of command established by the formal hierarchy. Staff departments have functional authority which is authority over others in the organization in matters related directly to their respective functions.

president VP Operations Region 2 Region 1 VP marketing Corporate Retail VP Investments VP Loans Consumer Commercial Loan servicing Staff positions : Information system Human resource. Finance legal Administrative services.