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ORGANIZING

PLAN ORGANIZE CONTROL LEAD. ORGANIZING. ORGANIZING IS …. A process of arranging people and other resources to work together to accomplish a goal(s) Organizing involves many more considerations than the common “organizational chart”. continued.

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ORGANIZING

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  1. PLAN ORGANIZE CONTROL LEAD ORGANIZING

  2. ORGANIZING IS … • A process of arranging people and other resources to work together to accomplish a goal(s) • Organizing involves many more considerations than the common “organizational chart”

  3. continued • Organizing is performed once planning is performed and controls are established • Organizing focuses on implementation : • Who does… • What, and … • Whendoes it get done, and… • Where and … • How does it get done.

  4. STRUCTURE • Organizational structure is system of • Tasks, • Workflows, • Reporting relationships, and • Communication channels… • which link together people, processes and varied parts of an organization.

  5. CONSIDERATIONS • 6 considerations for managers when organizing: • Degree of work specialization • Departmentalization • Chain of command • Span of control • Decision authority • Degree of job specialization

  6. 1. WORK SPECIALIZATION • The degree to which tasks are divided into separate jobs; ranges from broad – to – narrow. • Narrow = each step of work process is done by a different person; “specialist.” • Broad = one person does many tasks.

  7. 2. DEPARTMENTALIZATION • How jobs or tasks are grouped together. • Some common approaches: • Functional • Product • Geographic • Process • Customer or Market

  8. 3. CHAIN OF COMMAND • The continuous vertical line of authority linking upper levels to the lower levels of the organization. • Chain of command clarifies reporting relationships. • Each lower level in the chain of command usually has less authority (right to make decision) and less responsibility (goals and tasks they are accountable)

  9. 4. SPAN OF CONTROL • Number of employees a manager can efficiently and effectively manage. • Alternative approaches: • Broad span = few organizational levels, few managers (ex: 1 manager, 10 subordinates) • Narrow span = many organizational levels, more managers (ex: 1 manager, 3 subordinates)

  10. 5. DECISION MAKING • Concept: where are decisions made? • Choices – centralized or decentralized within the structure? • Centralized = top managers make decisions; Decentralized = lower levels make decisions. • Ideal is to make decisions where knowledge resides (not based on ego, power)

  11. 6. FORMALIZATION • The degree which jobs are standardized and employee behavior is guided by rules and procedures. • Highly formalized = minimum discretion permitted. Extensive use of policies, rule, procedures. • Low formalization = job behaviors are relatively unstructured, employees have freedom in how they perform tasks.

  12. More … • Organizational structure follows strategy ! • Boundary-less organizations. • Team structures. • Matrix structures. • “Restructuring” (or, “Reorganizing”) is changing one or more of the six organizing considerations.

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