1. The Organizing Process
Chapter 2
The Organizing Process

2. Organizing Function is Helpful By:
1. Assuring more efficient use of the organization’s
resources.
2. Improving employee understanding of job duties
and responsibilities.
3. Improving employee morale.
4. Providing a sense of direction for each of the
organization’s functional areas.

3. Organization’s Objectives
Should be written in context of outcomes,
understood and accepted by employees, be
measurable, contain a time reference, and
be challenging but attainable.

4. Refers to the number of subordinates
Span of Control
Refers to the number of subordinates
an individual is able to supervise.

5. Interrelated Functions
Organization’s functions have become so
interrelated that when a problem arises in one
functional area, other related functions are also
likely to be affected.

6. Identifies who reports to whom within
Chain of Command
Identifies who reports to whom within
an organization.

7. States that each employee should be
Unity of Command
States that each employee should be
directly responsible to one supervisor.

8. Authority and Responsibility
States that individuals who are given the
responsibility to undertake a task must also
be given an appropriate amount of authority to
ensure task completion.

9. States that each employee’s work assignments
should be based on his/her special
strengths and talents.

10. States that empowered employees are
Employee Empowerment
States that empowered employees are
encouraged to participate as much as possible in
making decisions that affect all aspects of
their job tasks.

11. Line
Organizational
Structures
Line and Staff
Functional
Product
Committee
Matrix

12. Line Structure Is the oldest and simplest of structures.
Has direct authority flowing vertically
from the top.
Is generally found in small organizations
because support staff is needed once they
begin to grow.

13. Advantages of Line Structure
1. Employees are fully aware of the boundaries of
their jobs.
2. Decision making is expedited.
3. Is a simple structure to understand.
4. Employees can be held directly accountable
when they fail to perform as expected.

14. Disadvantages of Line Structure
1. Fails to provide specialization needed when
organization begins to grow.
2. Line managers need to begin to perform
specialized activities.

15. Line and Staff Structure
Has line authority similar to line structure.
Specialized staff activities are added that
support line activities.
Staff employees assist the line function.

16. Line employees are directly
concerned with the organization’s
primary objectives.
Line Employees
Staff Employees
Staff employees support the
line employees.

17. Advantages of Line and Staff Structure
1. Line employees have time to focus on those
activities directly related to the organization’s
primary objectives.
2. Staff employees can lend their specialized
support.
3. Flexibility of staff units facilitates undertaking
new projects.

18. Disadvantages of Line and Staff Structure
1. Line and staff employees sometimes are
in conflict with one another.
2. Line employees sometimes suppress the
talents of staff employees.

19. Functional Structure
Tends to parallel the departments in many
organizations.
Line managers have both line and
functional authority.

20. Line Managers
Can take disciplinary
action against those for
whom they have line
authority.
Line Managers
Cannot take disciplinary
action against those for
whom they have functional
authority.

21. Advantages of Functional Structure
1. It provides expertise by functional specialists.
2. It prevents employees from slighting
certain specialized areas in the
organization.

22. Disadvantages of Functional Structure
1. Some employees may appear to have two or
more supervisors.
2. Some managers evade those areas for
which they have functional authority.

23. Each major product is given division
Product Structure
Company’s products provide a basis for
its structure.
Each major product is given division
status.
Incorporates line and staff structure into
these divisions.
Each product tends to operate independently
of other divisions.

24. Advantages of Product Structure
1. Enables divisions to develop processes that
best meet their needs.
2. Divisions can coordinate their own
activities without constraint from main
unit.

25. Disadvantages of Product Structure
1. Divisions can “go their own way” to the
extent that they don’t work toward common
goals.
2. Problems of some divisions may eventually
be felt throughout the entire organization.

26. Committee Structure
Is often used in conjunction with line,
line and staff, and functional structures.
Some committees perform important managerial functions; others are advisory.

27. Advantages of Committee Structure
1. Recommendations are often widely accepted.
2. Widely varying views of committee members
broaden the nature of their recommendations.
3. Its use reduces the risk of making an incorrect
decision.

28. Disadvantage of Committee Structure
1. It sometimes takes a long time to function
properly.

29. Matrix Structure Is often used by organizations undertaking
complex projects.
Results in the formation of temporary new units to accommodate the undertaking of a new project.
Involves temporarily borrowing employees
from other areas of the organization and
assigning them to the new temporary unit.

30. Advantages of Matrix Structure
1. Allows companies to assign employees on the
basis of their expertise.
2. Helps companies avoid having to hire new
employees for a project.
3. Enables companies to adapt quickly to new
situations.

31. Disadvantages of Matrix Structure
1. Employees often have two supervisors.
2. Employees may experience job-related
pressures.
3. Managers may have difficulties coordinating
employee activities.

32. Places related activities under
jurisdiction of one individual.
Centralization
Places related activities under
jurisdiction of several
individuals throughout the
organization.
Decentralization

33. Factors That Determine Feasibility of
Centralization
1. Nature of the organization.
2. Size of the organization.
3. Diversification of the organization.
4. Conformity to standardized processes.
5. Quality of personnel.
6. Distribution of operations.
7. Attitude of personnel.

34. The Organization Chart
Identifies lines of authority.
Gives employees a better understanding of the
formal structure of the organization.
Helps identify areas of overlapping
responsibility that should be eliminated.
Identifies promotional opportunities for job
applicants and new employees.
Identifies areas suitable for training and
orientation.

35. Guidelines for Preparing Organization Charts
1. Place individuals/departments in relation to their
hierarchical level.
2. Identify vertical and horizontal authority by
solid lines.
3. Identify functional authority by dotted lines.
4. Use complete titles on the chart.
5. Include on the chart the name of organization and
the date the chart was prepared.

36. Informal Organization Informal Organization
Refers to the
spontaneous personal
and social relationships
that exist within
organizations.
Two Common Elements of
Informal Organization
Informal Groups
Informal Communication Patterns