THE ORGANIZING FUNCTIONChapter 4

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

Organizations ObjectivesMust be clearly defined, understood, andaccepted by each individual concerned with their attainment.

Span of ControlRefers to the number of subordinatesan individual is able to supervisor.

Factors Affecting Span of ControlLeadership styleLatitude extended to subordinates in decision makingNature of interpersonal relationships inherent in each situation

Self-directed teams and the empowerment of employees lessen the amount of direct control supervisors have over their subordinates

Interrelated FunctionsOrganizations functions have become sointerrelated that when a problem arises in onefunctional area, other related functions are alsolikely to be affected.

Chain of CommandIdentifies who reports to whom withinan organization.

Unity of CommandUnity of Command

States that each employee should be directly responsible to one supervisor.

Work AssignmentEach employees work assignments should be based on his/her special strengths and talents.Absence of clearly defined job duties and responsibilities makes it more difficult to hold an employee accountable for unsatisfactory performance.

Commensurate Authority and ResponsibilityStates that individuals who are given theresponsibility to undertake a task must alsobe given an appropriate amount of authority to ensure task completion.

Employee Empowerment

Empowered employees are encouraged to participate as much as possible in making decisions that affect all aspects of their job tasks.

Organizational StructuresDetermines the authority relationships among it employeesCommon structures:LineLine and staffFunctionalProductCommitteeMatrix

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

Line and Staff StructureHas line authority similar to line structure.Staff employees assist the line function.Specialized staff activities are added thatsupport line activities.

Line and Staff Organization

Line EmployeesStaff EmployeesLine employees are directlyconcerned with the organizationsprimary objectives.Staff employees support the line employees.

Functional StructureTends to parallel the departments in many organizations.Line managers have both line andfunctional authority.Most commonly found in small-and medium-sized organizations. It tends to centralize decision making at top levels of the organization.

Product 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.Companys products provide a basis for its structure.

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

Matrix StructureIs often used by organizations undertakingcomplex 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 andassigning them to the new temporary unit.

Matrix Structure

CentralizationDecentralizationPlaces related activities under jurisdiction of one individual.Places related activities underjurisdiction of severalindividuals throughout theorganization.

Factors That Determine Feasibility of CentralizationNature of OrganizationGreater the volume of work and paper processing activities, the more desirable centralization of office activities becomesTwo type of organizations have centralized most of their office activitiesInsurance companiesFinancial companies

The Organization ChartIdentifies 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 jobapplicants and new employees.Identifies areas suitable for training andorientation.

Guidelines for Preparing Organization Charts1. 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 name of organization and its date of preparation.

Informal OrganizationRefers to the spontaneous personaland social relationshipsthat exist within organizations.

Two Common Elements of Informal OrganizationInformal Communication PatternsPowerful?

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