HSA 171CAR
1436/4/26
the process of establishing the orderly use
of resources by assigning and coordinating
tasks. The organizing process transforms
plans into reality through the purposeful
deployment of people and resources within
a decision‐making framework known as the
organizational structure.
Organizing requires the manager to determine how he or
she will distribute resources and organize employees
according to a designated plan aimed at some
organizational goal. The manager will need to identify
different roles and responsibilities, assign work, and
coordinate the right amount and mix of employees
across departments to carry out the plan. Each
employee must be aware of his or her responsibilities to
avoid frustration, confusion, and loss of efficiency.
Managers organize by bringing together physical,
human and financial resources to achieve
objectives.
They identify activities to be accomplished, classify
activities, assign activities to groups or individuals,
create responsibility and delegate authority.
They then coordinate the relationships of
responsibility and authority.
Organizational Structure : The formal arrangement of jobs within an
organization .
Organizational Design :◦ A process involving decisions about six key
elements: Work specialization Work specialization Departmentalization Departmentalization Chain of command Chain of command Span of control Span of control Centralization and decentralization Centralization and decentralization FormalizationFormalization
The end result of the organizing process is the
organizational structure, which refers to the type of
framework a company uses to distinguish power and
authority, roles and responsibilities, and the manner in
which information flows through the organization.
Having a suitable organizational structure will allow a
company to implement proper operating procedures
and decision-making processes that will aid the
organization in accomplishing its goals.
managers create the structure of working relationships between
organizational members that best allows them to work together
and achieve goals. • Managers will group people into departments
according to the tasks performed. – Managers will also lay out
lines of authority and responsibility for members. •
All organizations have a management structure that determines
relationships between the different activities and the members,
and subdivides and assigns roles, responsibilities, and authority to
carry out different tasks.
When the structure and design of an
organizational work together, they create a
productive and efficient working environment
where employees are motivated and customers
are satisfied.
A manager performs organizing function with the help of following steps:-
Identification of activities - All the activities which have to
be performed in a concern have to be identified first. For
example, preparation of accounts, making sales, record
keeping, quality control, inventory control, etc. All these
activities have to be grouped and classified into units.
Departmentally organizing the activities - In this step, the
manager tries to combine and group similar and related
activities into units or departments. This organization of
dividing the whole concern into independent units and
departments is called departmentalization.
Classifying the authority - Once the departments are made,
the manager likes to classify the powers and its extent to the
managers. This activity of giving a rank in order to the managerial
positions is called hierarchy. The top management is into
formulation of policies, the middle level management into
departmental supervision and lower level management into
supervision of foremen. The clarification of authority help in
bringing efficiency in the running of a concern. This helps in
achieving efficiency in the running of a concern. This helps in
avoiding wastage of time, money, effort, in avoidance of
duplication or overlapping of efforts and this helps in bringing
smoothness in a concern’s working.
Co-ordination between authority and
responsibility - Relationships are established among
various groups to enable smooth interaction toward
the achievement of the organizational goal. Each
individual is made aware of his authority and he/she
knows whom they have to take orders from and to
whom they are accountable and to whom they have to
report. A clear organizational structure is drawn and
all the employees are made aware of it.
Divides work to be done into specific jobs and departments.
Assigns tasks and responsibilities associated with individual
jobs.
Coordinates diverse organizational tasks.
Establishes relationships among individuals, groups, and
departments.
Establishes formal lines of authority .
Allocates organizational resources .
Cluster jobs in to units .
Six key elements:
Work SpecializationWork Specialization
DepartmentalizationDepartmentalization
Chain of CommandChain of Command
Span of ControlSpan of Control
Centralization and DecentralizationCentralization and Decentralization
FormalizationFormalization
The degree to which tasks in the
organization are divided into separate
jobs with each step completed by a
different person
The continuous line of authority that
extends from upper levels of an
organization to the lowest levels of the
organization and clarifies who reports to
whom .
The Chain of Command is Build on:
Authority Authority ::The rights inherent in a managerial position to
tell people what to do and to expect them to do it
Responsibility: Responsibility: The obligation or expectation to perform.
Responsibility brings with it accountability (the need to
report and justify work to manager’s superiors)
Unity of Command Unity of Command :The concept that a person should
have one boss and should report only to that person
Delegation Delegation :The assignment of authority to another
person to carry out specific duties
The number of employees who can be effectively and efficiently
supervised by a manager .Width of span is affected by:
Skills and abilities of the manager and the employees
Characteristics of the work being done
Similarity of tasks
Complexity of tasks
Physical proximity of subordinates
Standardization of tasks
Sophistication of the organization’s information system
Strength of the organization’s culture
Preferred style of the manager .
Centralization:Centralization:
◦ The degree to which decision making is concentrated at a single
point in the organization
Organizations in which top managers make all the decisions and
lower-level employees simply carry out those orders
Decentralization:Decentralization:
◦ The degree to which lower-level employees provide input or
actually make decisions .
◦ Employee Empowerment .
Increasing the decision-making discretion of employees .
Environment is stable.
Lower level managers are not as capable or
experienced at making decisions as upper level
managers.
Lower level managers don’t want to have a say in
decisions.
Decisions are significant.
Environment is complex.
Lower level managers are capable and experienced
at making decisions.
Lower level managers want a voice in decisions.
Decisions are relatively minor.
The degree to which jobs within the
organization are standardized and the
extent to which employee behavior is
guided by rules and procedures .
◦ Highly formalized jobs offer little discretion over
what is to be done
◦ Low formalization means fewer constraints on
how employees do their work .