POSDCORB ORGANIZING By: Alberto D. Pena, PH.D Associate Professor, Ret., University of Connecticut (USA) Member of the Faculty, MDI, Illinois State University (USA)

Organizing is the process of aligning organizational resources for the implementation of the plan. Organizational resources include financial, technological, and human resources. In this context financial resources which was allocated in the budget during the operational planning is released or made available to different organizational units. Each unit and individual employees are equipped with appropriate technology to do their job in the most efficient, effective, and economical way. The users of financial and technological resources is the human resource. POSDCORB-ORGANIZING

That is the reason why the organizing portion of POSDCORB is always identified with the formal structure of authority between different units of the organization, as well the division of work among these units. Although it is given that each unit and employees should be equipped with adequate financial resources and appropriate technology it is always the arrangement of working units that is given emphasis in the organizing part of the POSDCORB. The filling up of these positions by qualified people is discussed in the “staffing” portion of the POSDCORB. POSDCORB-ORGANIZING

Project Organization: Not all organizational models are vertical where there is a clear downward flow of command and upward flow of reports. Some organizational models are of a “round table” type where communication flows around and between equal rank members. This type is more collegial than vertical. This model is common to the Board of Directors or Board of Trustees. POSDCORB-ORGANIZING

This model is also common to different projects under an integrated and coordinative program approach. In this model the chairman of the Board or the overall program coordinator has no administrative supervisory power over the other members of the Board or the different project managers. POSDCORB-ORGANIZING

In this arrangement, the independence and discretion of one Board member or project manager is constraint by his/ her relationship with the other Board member. In the same manner the independence and discretion of a project manager is constrained by his/her relationship with other project managers. The vertical model of project organization is the most common among organizations. In this model the superior has a direct administrative and supervisory relationship with the immediate subordinates. This model is the “organizing” portion of the POSDCORB. POSDCORB-ORGANIZING

It is easy to assume that each model is a stand-alone model. It is not. It is actually a combination of models with one model defining some critical areas. For example even in a vertical model depicting the organizational arrangement of a business corporation or associations, the Board of Directors or Board of Trustees is depicted as one box on top of organizational Chart. While the positions starting with the President is arranged in a vertical model the Board is organized in a round table model. While the President is depicted as having a supervisory power over lower subordinates he engage the consultants in a round- table discussion since these people are not under his/her direct supervision. POSDCORB-ORGANIZING

Organizational Chart: The organizational chart is a structure that defines the relationship between levels of management. It is a pictograph of those management concepts such flow of command, flow of reports, consultation, coordination, levels of responsibility, delegation, and other relationships within the management of an organization. As a pictograph, higher positions are found in the higher portion of the chart and the lower position in the lower position of the chart. POSDCORB-ORGANIZING

Your will also notice that as you go higher in the chart, the position becomes fewer until you reach the pinnacle of the organization. In reading the chart, the higher positions have a supervisory power over the lower positions directly connected to it. Positions in the same level of the chart are coordinative (not supervisory). POSDCORB-ORGANIZING

Organizational chart is normally drawn to depict positions. It normally does not depict the names of the person occupying the positions. Vertical relationship depicts supervision and horizontal relationship depicts coordination. In organizing portion of the POSDCORB, the executive has to determine the roles and functions of each unit in support of the organizational plan. Although some organizational chart appears to stay as “permanent”, in fact it is not. The structure of the organization will change as the strategic plan and operational plan changes. POSDCORB-ORGANIZING

New approach and new activities might trigger restructuring and sometimes re-staffing. Changes in the organizational chart can also be triggered by changes in major positions such as the President or CEO. This concept is easier to implement in a private organizations but it poses a problem in the public sector. POSDCORB-ORGANIZING

In corporations and associations with unionized employees the labor union might oppose re-structuring and re-staffing when the welfare of the employees are at stake. In the public sector re-structuring and re-staffing is constrained by civil service laws and regulations as well as wage and salary classifications. POSDCORB-ORGANIZING

In organizing portion of the POSDCORB, the executive will determine the major functions in support of the operational plan and strategic plan. The major functions are assigned to major units of the organization. The major functions are divided into smaller chunks and subsequently assigned to small units directly under the major unit. This division will continue until the major function is divided into manageable portions. In other words the major function might be divided into a number of sub- functions that will be assigned to a number of sub- units. The sub-functions can still be divided to smaller sub-functions and assigned to smaller sub-units until the major function is divided into a more manageable sizes. POSDCORB-ORGANIZING

An example is a financial department of an association or corporation headed by a Financial Comptroller. Under the financial department are sub-units such as budgeting unit, accounting unit, cash management unit. Under the budget unit could be a financial projection sub- unit, disbursement sub-unit, and related sub-units. Under the accounting unit could be data entry sub-unit, ledgering and data reconciliation sub-unit, and financial documents sub-unit. Under the cash management unit could cash flow management unit, account receivables and account payables sub-unit, bank reconciliation sub-unit. POSDCORB-ORGANIZING

The organizational chart also identifies the so-called Line Positions and Staff Positions. Line positions depicts the units that are directly involved in the production of goods and services of the organization such as in a private corporation. For example, if Corporation A is involved in the production of Widget, all units that directly involved in the production of Widget are considered line units. The other organizational units such as the cost accounting unit, advertising and marketing units can be considered staff units. POSDCORB-ORGANIZING

In the Ministry of Education the line units are different schools and colleges, while the support units such as the planning unit, finance unit, and similar units are staff units. In Associations and NGOs, units that are directly involved in rendering services to its clients and units that solicit funds could be considered line units while other support units such planning, budgeting, accounting can be considered staff units. POSDCORB-ORGANIZING

The organizational chart is also a structure where all the pertinent management principles in POSDCORB flows. Examples of these management principles include command responsibility, unity of command, flow of report and communications, span of control, delegation, and similar management principles embodied in the POSDCORB. POSDCORB-ORGANIZING

Some people claim that there limitations in the organizational chart such as constant reorganizing making the organizational chart to be outdated quickly. It causes confusion among the employees and clients of the organization. The organizational chart is very impersonal. It does not indicate the pattern of social and human relationships in the organization. It other words, it tells nothing of the interaction between human behavior and organizational behavior. This is can be forgiven since the organizational chart is just a pictograph of relationships between positions. POSDCORB-ORGANIZING