Organizing is the management function that creates the organization’s structure. Whenmanagers develop or change the organization’s structure, they’re engaging in organization design.organization design: which is the process of making decisions about how specialized jobs should be, the rules to guide employees’ behaviors, and the level at which decisionswill be made.1)- Work specialization: is the division of work activities into separate job tasks. Most managers today see work specialization as an important organizing mechanism becauseit helps employees to be more efficient.2)- There are five common forms of departmentalization:A. Functional:groups employees based on work performed.B. Product:groups employees according based on a corporation’s major product areas.C. Customer: groups employees based on customers’ problems and needs. D. Geographic: groups employees based on location served.E. Process:groups employees based on the basis of work or customer flow.Chain of command: the line of authority extending from upper to lower organizational levels.3)- Authority: is a major concept discussed by the early management writers, who viewed it as the glue that held an organization together.Two forms of authority:Line authority: entitles a manager to direct the work of an employee according to the chain of command.Staff authority: functions to support, assist, advise, and generally reduce some of their informational burdensResponsibility: when employees are given rights, they also assume a corresponding obligation to perform and be held accountable for their performance.Unity of command: is a structure in which each employee reports to only one manager.Authority– A right; legitimacy is based on authority figure’s position in the organization.Power– An individual’s capacity to influence decisions.Coercive Power: Power based on fear.Reward Power: Power based on the ability to distribute something that over value.Legitimate Power: Power based on one’s position in the formal hierarchy.Expert Power: Power based on one’s expertise, special skill, or knowledge.Referent Power: Power based on identification with a person who has desirable resources.4)- Span of control – The number of employees a manager can efficiently and effectivelysupervise
Examples of contingency variables:(Employee training and experience, Similarity of tasks and task complexity, Location of employees, Use of standardized procedures, Sophistication of management information system).5)- Centralizationis the degree to which decision-making takes place at upper levels of the organization. 5)- Decentralizationis the degree to which lower-level managers provide input or actually make decisions.6)- Formalizationrefers to how standardized an organization’s jobs are and the extent to which employee behavior is guided by rules and procedures.