3. Acc. To Chester Barnard
function
define the role positions, the jobs related
and the coordination between authority
and responsibility
4. Acc. To Clayton State University:
School of Business
process
creating an organization’s framework
◦ degree of complexity, formalization, and
centralization
5. Acc. To Medina
management function
structuring of resources and activities
accomplish objectives efficiently and
effectively
6. Acc. To Attner & Morgan
management function
establishes relationships between activity
and authority
results to an organization
◦ a system acting in harmony to execute whole
tasks to achieve goals effectively and efficiently
8. Importance of Organizing
Plan implementation
Assignment of
authority,
responsibility, and
accountability
Division of work
Coordinates diverse
organizational tasks
Establish
relationship among
individuals, groups
and departments
Establish formal
lines of authority
Allocation and
deployment of
organizational
resources
23. CENTRALIZATION
DECENTRALIZATIO
N
Environment is stable
Environment is complex,
uncertain
Lower level managers (LLM) are
not as capable or experienced at
making decisions as upper level
mangers
LLM are capable and experienced
a making decisions
LLM do not want to have a say in
decisions
LLM want a voice in decisions
Decisions are significant Decisions are relatively minor
26. Common Elements of Organization
C/D/DC/I/T (c) 2010
HENRY MINTZBERG
McGill University
Organization
• Operating Core
• Strategic Apex
• Middle Line
• Technostructure
• Support Staff
30. Technostructure
Affects certain forms of standardization
Examples:
◦ Time and motion engineers
◦ Job description designers
◦ Systems and procedures analysts
33. The Organizing Process
1 • Consider plans and goals
2 • Determine work activities
3
• Classify and group activities (General Nature,
Work Areas, Departmentalization)
4 • Assign work and delegate authority
5 • Design a hierarchy of relationships
6 • Staffing
34. 1. Consider Plans & Goals
Purposes
Activities
Plans
&
Goals
C/D/DC/I/T (c) 2010
To establish a partnership business
engaged in the production of children’s
shoes
35. 2. Determine Work Activities
Selling
Accounting
Delivery
Quality Control
Advertising
Compensating
Training
Production
Purchasing
Budgeting
Recruitment
Maintaining
Personnel
36. 3. Classify & Group Activities
>Selling
>Advertising
>Delivery
>Production
>Purchasing
>Quality control
>Accounting
>Budgeting
>Compensating
>Recruitment
>Training
>Maintaining
personnel
MARKETING OPERATIONS FINANCE
HUMAN
RESOURCES
38. 6. Staffing
1 • Recruitment
2 • Selection
3 •Hiring
4 • Orientation
5 • Training and Development
6 • Performance Appraisal
39.
40. Organizational Structure
Formal system of tasks, reporting
relationships
Controls, coordinates, motivates
employees
Achieve organization’s goals
41. Purpose of the Structure
Defines relationships between tasks and
authority
Defines formal reporting relationships,
levels of hierarchy, span of control
Defines individual departments
Defines systems that affects the
organization
45. Departmentalization: Geography
C/D/DC/I/T (c) 2010
Chairman
Power
Systems
Group
Electric
Company
(Belgium)
Motor
Company
(Argentina)
Industry and
Defense
Group
Elevator
Company
(Switzerland)
Construction
Products
(Italy)
50. Formal System
Planned structure
Lines of responsibility, authority, and
position
Establish patterned relationships among
components
Can be described through:
◦ Organizational Chart
◦ Policy Manual
◦ Departments
51. Informal System
Based on needs, sentiments, and interests
of people
Vulnerable to expediency, manipulation
and opportunism
More subtle and invisible in the
organizational chart
Can be classified as:
◦ Horizontal = same department or same level
◦ Vertical = different levels
◦ Mixed = combination of both
52. Formal vs Informal Organizations
FORMAL INFORMAL
Have planned
structure
Deliberate attempts
to create patterned
relationships
Usually shown by a
chart
Advocated by
traditional theory
Not formally planned
Arise spontaneously
as a result of
interactions
Not depicted in a
chart
Stressed by human
relation theory
