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Organizing
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Organization defined:
“To arrange activities so that they systematically contribute to goal accomplishment.”
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Purpose of Organizing Dividing work Assigning tasks
Coordinating diverse organizational tasks Clustering jobs into units Establishing relationships Establishing formal lines of authority Allocating and deploying organizational resources
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Work specialization/Division of Labor
Each worker has a specific task Each task is standardized Work is repetitive Work is broken into manageable steps
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Departmentalization Coordination of tasks Methods of departmentalizing
By function By product By guest need By territory Or any combination of the above
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Authority Comes with title and position Two-way obligation
Expectations Empowerment
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Responsibility “rights” Obligation to perform Performance and outcome
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Chain of command Outlines those with authority from the top down
BOD CEO Vice-president Clearly defined line of authority Everyone knows to whom they are to report
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Span of Control Number of employees a supervisor can efficiently manage Factors Type of work Skill level of employee Level of training Technology available Leadership style Management experience
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Empowerment Giving employees a degree of decision-making authority
Allows employees to be flexible when dealing with difficult situations that do not necessarily require management attention Increase in guest satisfaction
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Centralization v. Decentralization
Decision-making authority lies with top management in a centralized structure Lower management and line authority employees play a role in the decision-making process in a decentralized structure Today’s companies are moving towards centralized structures for cost reasons
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Mechanistic organizations
High specialization rigid departmentalization Narrow spans of control High formalization Limited information network centralized
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Organic organization Low in complexity Low in formalization
Decentralized Division of labor of non-standardized jobs Require few rules Require little supervision
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Contingency factors Organizational structure Size Technology
Degree of environmental uncertainty
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Team-based structure TQM model Front line associates participate
Team makeup Coordination of effort Productivity issues
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Matrix structure Assigns specialists from different departments to work on projects Pool knowledge Communication is key Decision-making tends to move quicker
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Project structure Employee continuously works on projects
Move to another project once completed Members have specific knowledge
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Independent Business Units (IBUs)
Small, independent businesses within a larger corporate structure Approval to implement strategies Assists with exposing employees to revenue and expense issues
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Boundaryless organizations
No pre-defined structure Breakdown of external barriers Eliminates the chain of command Appropriate span of control Replace departments with empowered teams
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Encouraging employee involvement
Teams Self-managed Productive Job rotation Job enlargement Job enrichment
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Trends in Organizing Increased used of scheduling programs
Use of the Internet for recipe access Multitasking More decentralization
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