Chapter II – Organizing Objectives: Definition of Organizing Organizational Structure The Process of Building Organizational Structure What the Organizational Structure can Tell Characteristics of the Organization Structure Human Resource Management rrrtsss

I. Foundation of Organizing Definition of Organizing Organizing is the process of arranging resources to carry out the organization’s plans. Organization’s Structure An organization structure is a system or network of communication and authority that links people and groups together to perform important tasks.

III. The process of building an organization structure Step 1: Review plans and objectives Plans and objectives is the starting point of building an organization structure. Plans and objectives dictate the purposes and activities that organizations have or will have. Step 2: Determine work activities Determine what activities are necessary to accomplish the organizational objectives. (Create a list of tasks to be accomplished objectives). Step 3: Classify and group activities Examine each activity identified to determine its general nature (marketing, production, finance, and personnel), group the activities into these areas, and establish the basic department design for the organization structure.

The process of building an organization structure Step 4: Assign the work and delegate authorities The activities now must be designed to individuals who are simultaneously given appropriate authority to accomplish the task. Step 5: Design a hierarchy of relationships Determine the vertical and horizontal operating relationships of the organization as a whole.

Sample Organization Chart

IV. What the organizations chart can tell Organization charts are devices for showing the following things: The division of work and the structure of the organization, by showing the relationships and areas of responsibilities, Which subordinates reports to which manager How many subordinates work for each manager (the span of control) Channels of formal communication The hierarchy of decision making (where a decision maker for a problem is located) Types of authority relationships The type of work done

V. CHARACTERISTICS OF THE ORGANIZATION STRUCTURE Once the organization is developed, there are organizational characteristics be applied by managers to assist the organization in achieving its objectives.  Authority It can be described as the rights to commit resources or the legal right to give orders. There are three types of authority: Line authority: The authority that follow the chain of command established by formal hierarchy. Staff authority: The authority that supports, assists, and advises of line authority. Functional authority: The authority to make decisions on specific activities.

V. CHARACTERISTICS OF THE ORGANIZATION STRUCTURE (Cont..)  Span of Control Span of control refers to the number of subordinates a manager supervises. There is not correct number to be assigned to each manager at the top, middle or bottom level of the organization. Centralization and Decentralization of authority Centralization of authority: The concentration of authority at the top of an organization or department. Decentralization of authority: A high degree of delegated authority throughout an organization or department.

 Delegation Delegation is a concept describing the downward transfer of formal authority from one person to another, when managers choose to delegate a sequence of events is created. Assignment of tasks: specific tasks or duties that are to be undertaken by manager for assignment to the subordinates. Delegation of authority: a guideline for authority should be delegated to the subordinates to the best of one’s ability. The subordinate becomes obligated when the assignment is accepted. Accountability: In accepting an assignment, a person takes on a direct obligation to the manager to complete the job as agreed upon. This is accountability- the requirement to answer to the manager for performance results.

Why Delegate IT GIVE YOU MORE TIME TO DO OTHER MORE IMPORTANT THINGS IT GETS OTHER PEOPLE INVOLVED AND GIVES THEM A FEELING OF BELONGING. YOU GIVE THEM OWNERSHIP. YOU TRAIN OTHER PEOPLE TO BE BECOME LEADERS WHEN YOU DELEGATE PROPERLY AND YOU ARE NOT THERE, THE WORK WILL STILL BE DONE. IT MAKES THE ORGANIZATION MOE RESPONSIVE AND FLEXIBLE

VI. HUMAN RESOURCE MANAGEMENT Human Resource Management is the set of organizational activities directed at attacting, developing , and maintaining an effective workforce. Human Resource Planning forecast future needs for employees in different jobs, forecast the availability of such employees, and then taking steps to match supply and demand. Safety and Health Safety and health are means to reducing potential suffering and keeping healthy.

Job Analysis Job analysis determines the pertinent information relating to the nature of a job. A job analysis is usually made up of two parts. Job description: a list of the duties of a job, its working condition, and the tools, materials and equipment used to perform it. Job Specification: a list of skills, education, experience, abilities, and other credential needed to do a job.

The components of Job Description & Job Specification

VI. HUMAN RESOURCE MANAGEMENT Recruitment is the process of attracting people to apply for jobs with appropriate quality. Selection is the process of choosing from a group of applicants the individual best suited for a particular position. Compensation and Benefit Compensation refers to every types of reward that individuals receive in return for their labor. Benefits Thing of value besides compensation that an organization provides to its worker such as insurance, retirement benefit.