1. CSC350: Learning Management Systems
COMSATS Institute of Information Technology (Virtual Campus)

2. Lecture # 8 Fundamentals of Organizing

3. Review of the Previous Lecture
Definitions of strategic planning
Main aspects of the strategic management process
Key components of environmental analysis
Role of organizational direction in strategic management
Primary aspects of strategy formulation
Importance of strategic control
Coordination of tactical planning & strategic planning
Competitive dynamics & organization’s financial performance

4. Topics of Discussion An understanding of the organizing function
Benefits and costs of bureaucracy
Advantages and disadvantages of division of labor
Complexities of determining appropriate organizational structure
Advantages and disadvantages of departmentalization

5. DEFINITIONS OF ORGANIZING AND ORGANIZATION SKILL
Process of establishing orderly uses for resources within the management system
Organizing Skill
Creating a network of people throughout the organization who can help solve implementation problems as they occur
Organization
End result of organizing process

6. Fayol’s Organizing Guidelines

7. Organizing Process

8. CLASSICAL ORGANIZING THEORY
Weber’s Bureaucratic Model:
Detailed procedures and rules
Clearly outlined organizational hierarchy
Impersonal relationships among organization members

9. CLASSICAL ORGANIZING THEORY
Division of Labor:
Assigning various portions of a task among a number of organization members
Advantages:
Specialized skills – Only one job to do – Efficiency
Disadvantages:
Overlooks human variable – Boring – Decreased production

10. Division of Labor & Coordination
Orderly arrangement of group effort
Unity of action
Synchronized order of tasks
Mary Parker Follett Guidelines:
Peer discussion resolves problems
Planned by managers
Maintaining is continuing process

11. STRUCTURE Designated relationships among organizational resources
Two basic types of structure:
Formal
Represented on organization chart
Informal
Evolves naturally, spontaneously

12. Formal Structure Organization Chart
Graphic illustration of firm’s organization structure
Pyramid form
Boxes are jobs/positions
Lines designate formal communication lines

13. Vertical Dimensioning
Scalar Relationships
Chain of Command
Unity of Command
Employee reports to only one manager
Span of Management
Number of employees one manager can effectively manage
Height of Organization Chart

14. Horizontal Dimensioning
Lateral subdivisions or specialties
Departments
Unique group of resources established by management to perform organizational tasks

15. TYPES OF DEPARTMENTALIZATION

16. Functional Departmentalization

17. Product/Service Departmentalization

18. Geography Departmentalization

19. Customer Departmentalization

20. Matrix Departmentalization

21. Forces Influencing Formal Structure
Managerial Forces
Task Forces
Environmental Forces
Subordinate Forces

22. Fayol’s Chain of Command Rationale

23. Informal Structure Mechanistic Structures Organic Structures
Formal organizational structures
Suited for large companies in stable industries
Organic Structures
Less formal
Represent loosely coupled worker networks
Suited for smaller companies in volatile industries

24. Thank You