Organizing is the management function that creates the organization’s structure. When
managers 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 decisions
will 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 because
it 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 burdens
Responsibility
: 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 effectively
supervise
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)-
Centralization
is the degree to which decision-making takes place at upper levels of
the organization.
5)-
Decentralization
is the degree to which lower-level managers provide input or
actually make decisions.
6)-
Formalization
refers to how standardized an organization’s jobs are and the extent
to which employee behavior is guided by rules and procedures.
