Download Chapter 6 – Index of Sample Problems

Chapter II – Organizing
Objectives:
I.
Definition of Organizing
II.
Organizational Structure
III. The Process of Building Organizational Structure
IV. What the Organizational Structure can Tell
V.
Characteristics of the Organization Structure
VI. Human Resource Management
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1-1
I. Foundation of Organizing
I.
Definition of Organizing
•
Organizing is the process of arranging resources to carry out
the organization’s plans.
II.
Organization’s Structure
•
An organization structure is a system or network of
communication and authority that links people and groups
together to perform important tasks.
III. The process of building an organization
structure
Step 1: Review plans and objectives
Plans and objectives is the starting point of building an
organization structure. Plans and objectives dictate the
purposes and activities that organizations have or will have.
Step 2: Determine work activities
Determine what activities are necessary to accomplish the
organizational objectives. (Create a list of tasks to be
accomplished objectives).
Step 3: Classify and group activities
Examine each activity identified to determine its general
nature (marketing, production, finance, and personnel),
group the activities into these areas, and establish the basic
department design for the organization structure.
The process of building an organization structure
Step 4: Assign the work and delegate authorities
The activities now must be designed to individuals
who are simultaneously given appropriate authority to
accomplish the task.
Step 5: Design a hierarchy of relationships
Determine the vertical and horizontal operating
relationships of the organization as a whole.
Sample Organization Chart
Executive Director
Admin & Finance
Manager
Staff
Marketing & Sale
Manager
Staff
Staff
Operation
Manager
Staff
Staff
IV. What the organizations chart can tell
Organization charts are devices for showing the following things:
•
The division of work and the structure of the organization, by
showing the relationships and areas of responsibilities,
•
Which subordinates reports to which manager
•
How many subordinates work for each manager (the span of
control)
•
Channels of formal communication
•
The hierarchy of decision making (where a decision maker
for a problem is located)
•
Types of authority relationships
•
The type of work done
V. CHARACTERISTICS OF THE ORGANIZATION
STRUCTURE
Once the organization is developed, there are organizational
characteristics be applied by managers to assist the
organization in achieving its objectives.
 Authority
It can be described as the rights to commit resources or the
legal right to give orders. There are three types of authority:
• Line authority: The authority that follow the chain of command
established by formal hierarchy.
• Staff authority: The authority that supports, assists, and advises
of line authority.
• Functional authority: The authority to make decisions on specific
activities.
V. CHARACTERISTICS OF THE ORGANIZATION
STRUCTURE
(Cont..)
 Span of Control
Span of control refers to the number of subordinates a
manager supervises. There is not correct number to be
assigned to each manager at the top, middle or bottom level of
the organization.
Centralization and Decentralization of authority
• Centralization of authority: The concentration of authority at
the top of an organization or department.
• Decentralization of authority: A high degree of delegated
authority throughout an organization or department.
 Delegation
Delegation is a concept describing the downward transfer of
formal authority from one person to another, when managers
choose to delegate a sequence of events is created.
• Assignment of tasks: specific tasks or duties that are to
be undertaken by manager for assignment to the
subordinates.
• Delegation of authority: a guideline for authority should be
delegated to the subordinates to the best of one’s ability.
The subordinate becomes obligated when the assignment
is accepted.
• Accountability: In accepting an assignment, a person
takes on a direct obligation to the manager to complete the
job as agreed upon. This is accountability- the requirement
to answer to the manager for performance results.
Why Delegate
1.
IT GIVE YOU MORE TIME TO DO OTHER MORE IMPORTANT
THINGS
2.
IT GETS OTHER PEOPLE INVOLVED AND GIVES THEM A
FEELING OF BELONGING. YOU GIVE THEM OWNERSHIP.
3.
YOU TRAIN OTHER PEOPLE TO BE BECOME LEADERS
4.
WHEN YOU DELEGATE PROPERLY AND YOU ARE NOT
THERE, THE WORK WILL STILL BE DONE.
5.
IT MAKES THE ORGANIZATION MOE RESPONSIVE AND
FLEXIBLE
VI. HUMAN RESOURCE MANAGEMENT
Human Resource Management is the set of organizational
activities directed at attacting, developing , and maintaining an
effective workforce.
• Human Resource Planning forecast future needs for
employees in different jobs, forecast the availability of such
employees, and then taking steps to match supply and
demand.
• Safety and Health
Safety and health are means to reducing potential suffering
and keeping healthy.
Job Analysis
Job analysis determines the pertinent information relating to
the nature of a job. A job analysis is usually made up of two
parts.
• Job description: a list of the duties of a job, its working
condition, and the tools, materials and equipment used to
perform it.
• Job Specification: a list of skills, education, experience,
abilities, and other credential needed to do a job.
The components of Job Description & Job
Specification
JOB ANALYSIS
Determining the pertinent
Information relating to
the nature of a job
JOB DESCRIPTION
JOB SPECIFICATION
- Job title & location
- Organizational relationship
- Relation to other job
- Machines, tools and material
- Working conditions
- Education
- Experience, skills Training
- Training, Responsibility
- Judgment
- Decision-Making
VI. HUMAN RESOURCE MANAGEMENT
• Recruitment is the process of attracting people to apply for
jobs with appropriate quality.
• Selection is the process of choosing from a group of
applicants the individual best suited for a particular position.
• Compensation and Benefit
• Compensation refers to every types of reward that
individuals receive in return for their labor.
• Benefits Thing of value besides compensation that an
organization provides to its worker such as insurance,
retirement benefit.