CHAPTER 8

ORGANIZING PRINCIPLESORGANIZING PRINCIPLES

MANAGEMENT IN ACTION: ORGANIZING FUNCTION What Are Managers Organizing?What Are Managers Organizing? Formal and Informal Organizational Formal and Informal Organizational

DesignsDesigns The Organizing ProcessThe Organizing Process Making a Connection Between the Planning Making a Connection Between the Planning

Function and the Organizing FunctionFunction and the Organizing Function

THE ORGANIZING PROCESS SYSTEMS MODEL Defined as Defined as

Establishing the orderly use of resourcesEstablishing the orderly use of resources by assigning tasks by assigning tasks which establish relationships between activities which establish relationships between activities

and authorityand authority

THE ORGANIZING PROCESS SYSTEMS MODEL Reviewing Plans and GoalsReviewing Plans and Goals Determining activitiesDetermining activities Classifying and Grouping ActivitiesClassifying and Grouping Activities Assigning Work and Delegating AuthorityAssigning Work and Delegating Authority Designing a Hierarchy of RelationshipsDesigning a Hierarchy of Relationships

THE ORGANIZING PROCESS SYSTEMS MODEL Reviewing Plans and GoalsReviewing Plans and Goals

SWOT/Gap/Force Field AnalysisSWOT/Gap/Force Field Analysis Organizational Mission, Vision, Belief Organizational Mission, Vision, Belief

StatementsStatements Strategic-Tactical-Operational Goals and Strategic-Tactical-Operational Goals and

ObjectiveObjective

THE ORGANIZING PROCESS SYSTEMS MODEL Determining ActivitiesDetermining Activities

Specialization and Division of Labor--The Specialization and Division of Labor--The Traditional ApproachTraditional Approach

Cross-Functional Integration The Open Cross-Functional Integration The Open Systems Contemporary ApproachSystems Contemporary Approach

The Efficiency-Effectiveness-Specialization-The Efficiency-Effectiveness-Specialization-Job Satisfaction Paradox (See Exhibit 7.2 on Job Satisfaction Paradox (See Exhibit 7.2 on pg.200)pg.200)

THE ORGANIZING PROCESS SYSTEMS MODEL Classifying and Grouping ActivitiesClassifying and Grouping Activities

Functional DepartmentalizationFunctional Departmentalization Geographical DepartmentalizationGeographical Departmentalization Product DepartmentalizationProduct Departmentalization Customer DepartmentalizationCustomer Departmentalization

THE ORGANIZING PROCESS SYSTEMS MODEL Assigning Work and Delegating AuthorityAssigning Work and Delegating Authority

Responsibility or Authority or BothResponsibility or Authority or Both Decentralization and RecentralizationDecentralization and Recentralization Ultimate AccountabilityUltimate Accountability

THE ORGANIZING PROCESS SYSTEMS MODEL Designing a Hierarchy of RelationshipsDesigning a Hierarchy of Relationships

Vertical and Horizontal Reporting StructuresVertical and Horizontal Reporting Structures Flat or Bureaucratic HierarchyFlat or Bureaucratic Hierarchy Span of Control/Lines of Authority/Unity of Span of Control/Lines of Authority/Unity of

Command SpecifiedCommand Specified Organizational ChartsOrganizational Charts Fayol’s Administrative PrinciplesFayol’s Administrative Principles

BENEFITS OF EFFECTIVE ORGANIZATIONAL DESIGN Clarifies the work environmentClarifies the work environment Creates a coordinated environmentCreates a coordinated environment Achieves unity of directionAchieves unity of direction Establishes the chain of commandEstablishes the chain of command

ORGANIZING CONCEPTS, THEORIES, AND PRINCIPLES AuthorityAuthority

Nature, Sources, and Importance of AuthorityNature, Sources, and Importance of Authority formal and legitimate right of make decision, give formal and legitimate right of make decision, give

orders, and allocate resourcesorders, and allocate resources functional, positional, charismatic sources of functional, positional, charismatic sources of

authorityauthority

Types of AuthorityTypes of Authority Line-Staff-Operational/functionalLine-Staff-Operational/functional

Line and Staff DepartmentsLine and Staff Departments

ORGANIZING CONCEPTS, THEORIES, AND PRINCIPLES Unity of CommandUnity of Command PowerPower

Legitimate/PositionalLegitimate/Positional Referent/CharismaticReferent/Charismatic Expert/FunctionalExpert/Functional

DelegationDelegation Span of ControlSpan of Control Centralize or DecentralizeCentralize or Decentralize

THE INFORMAL ORGANIZATION The Informal Organization Defined and The Informal Organization Defined and

ComparedCompared How the Informal Organization EmergesHow the Informal Organization Emerges The Structure of the Informal OrganizationThe Structure of the Informal Organization

Primary-Tertiary(Fringe-Out-Status)Group Primary-Tertiary(Fringe-Out-Status)Group RolesRoles

How To Work With the Informal How To Work With the Informal Organization: Positive/Negative ImpactOrganization: Positive/Negative Impact