ORGANIZATIONAL DEVELOPMENT
Junhel Dalanon, DDM, MAT
Organizing Defined
• The process of grouping and assigning activities and providing the necessary authority to carry out the activities
Types of Organization
Line Organization
– Characteristics• Simplest and oldest type of organization• Direct vertical flow of authority from top to bottom• Common in small enterprises
– Advantages• No problem tracing authority• Promotes rapid decision making
– Disadvantages• Managers perform more duties• Inefficient job results• No provisions to train, develop, and replace leaders
Line & Staff Organization
– Characteristics• Consists of addition of staff specialists• Common in larger enterprises
– Advantages• Brings expert knowledge• Structure directly affects finance, manufacture, or marketing• Allows for more specialization and flexibility
– Disadvantages• Authority and responsibility are not clearly set• Supervisors depend too much on staff
Matrix Organization
– Characteristics• Form teams within line and staff• Temporary pending a specific purpose• Has the capability to evolve
– Advantages• Ability to meet complicated projects
– Disadvantages• Conflict of authority
Principles of Organization
Consideration of Objectives Since the objective of the undertaking does have an important bearing on the organization structure,
the organizer should have clearly in mind what he wants to accomplish
Division of Work The narrowing of the scope of a person’s job to one or a few major functions to enable him to
specialize on these few and to increase his efficiency
Delegation of Authority
The authority to take action should be delegated to individuals who have the necessary knowledge and ability to take intelligent action
Parity of Responsibility and Authority
When a subordinate is made responsible for reaching a given objective, he should be given enough authority to take steps to reach it
Span of Control
Refers to the number of subordinates a manager can effectively manage
Unity of Command Each member of an organization should be accountable to, and receive directions from only one
supervisor, his immediate superior
Short Chain of Command There should be as few levels of supervision between the highest authority and the rank and file as
possible
Coordination
All individual activities of an organization must be synchronized with respect to their amount, time and direction to avoid duplication of work
Efficiency
The objectives can be attained with the lowest possible cost
Separation of Line and Staff Functions
Where separation of functions is possible, no individual or department should be given both line and staff functions
Consideration of Policies, Procedures, and Rules They outline the boundaries within which the objectives must be pursued
Job Groupings Jobs must be logically grouped into sections, sections into departments, and so on until all functions
of the organization are covered
Flexibility
An organization is a dynamic not a static entity
Communication
Design and installation of an honest communication system to help provide the organization with information they need promptly and accurately
Balance
Balance between standardization of operation and flexibility, centralization and decentralization of decisions
Steps in Organizational Development
• Define precisely the new objectives– Precise objectives determine the structure and
permanency– Brings into focus the basic organizational
characteristics
• List down all activities required and group them into units– Required to achieve the objectives– Products, tools, and processes are possible areas
for grouping
• Determine the organizational structure– Consider the principles previously discussed
• Ascertain the availability of personnel– Secure information about work performed,
authority and duty– Consider changes in activities
• Consider the new organization according to resources– This may be a possible source for constraints
• Prepare and implement the organization– Unanimous acceptance of all members must be
attained
• Conduct periodic audits– Check whether goals are attained– Utilizes present personnel to the fullest– Contributes to growth