[PT10118] [1T1S] [3] Managerial Function: Organizing

“The establishment of authority relationships with provisions for coordination between them, both vertically and horizontally in the enterprise structure”

Organizing

Six key elements of organizational design

1. Departmentalization

2. Work specialization

3. Chain of command

4. Span of control

5. Centralization and Decentralization

6. Formalization

Five kinds of Departmentalization

1. Functional

2. Product

3. Geographical

4. Process

5. Customer

DEPARTMENTALIZATION

• Groups jobs based on specialized functions

• Each team focuses on its specific therapeutic discipline

Functional departmentalization

DEPARTMENTALIZATION

• Groups based on services or treatment types

Product departmentalization

DEPARTMENTALIZATION

• Organized departments by location or region

Geographical departmentalization

DEPARTMENTALIZATION

• Groups jobs on the basis of product or customer flow

Process departmentalization

DEPARTMENTALIZATION

• Groups jobs based on a common set of needs or problems of specific customers

Customer departmentalization

DEPARTMENTALIZATION

What type of departmentalization has the following benefits:

• Efficiencies from putting together similar specialties and people with common skills, knowledge, and orientations

• Coordination within functional area

• In-depth specialization

Functional departmentalization

DEPARTMENTALIZATION

What type of departmentalization has the following cons:

• Poor communication across functional areas

• Limited view of organizational goals

Functional departmentalization

DEPARTMENTALIZATION

What type of departmentalization has the following benefits:

• Allows specialization in particular products and services

• Managers can become experts in their industry

• Closer to customers

Product departmentalization

DEPARTMENTALIZATION

What type of departmentalization has the following cons:

• Duplication of functions

• Limited view of organizational goals

Product departmentalization

DEPARTMENTALIZATION

What type of departmentalization has the following benefits:

• More effective and efficient handling of specific regional issues that arise

• Serve needs of unique geographic markets better

Geographical departmentalization

DEPARTMENTALIZATION

What type of departmentalization has the following cons:

• Duplication of functions

• Can feel isolated from other organizational areas

Geographical departmentalization

DEPARTMENTALIZATION

What type of departmentalization has the following benefit:

• More efficient flow of work activities

Process departmentalization

DEPARTMENTALIZATION

What type of departmentalization has the following con:

• Can only be used with certain types of products

Process departmentalization

DEPARTMENTALIZATION

What type of departmentalization has the following benefit:

• Customers’ needs and problems can be met by specialists

Customer departmentalization

DEPARTMENTALIZATION

What type of departmentalization has the following cons:

• Duplication of functions

• Limited view of organizational goals

Customer departmentalization

Degree to which tasks in an organization are divided into separate jobs

Work specialization

This increases proficiency and efficiency in the performance of duties

Work specialization

The line of authority extends from upper organizational levels to lower levels

Chain of command

Three concepts under Chain of Command

1. Authority

2. Responsibility

3. Unity of command

CHAIN OF COMMAND

• The power and right

• Formal and legitimate mind of the manager to make the decision and issue the orders to achieve organizational desired outcomes

Authority

CHAIN OF COMMAND

• The duty

• The employees oblige with the assigned tasks/duties expected of them

Responsibility

CHAIN OF COMMAND

• Report to only one manager

• Without this, conflicting demands from multiple bosses may create problems

Unity of command

The number of employees a manager can efficiently and effectively manage

Span of control

SPAN OF CONTROL

(Narrow/Wide) span of management

• ADVANTAGES:

  • Closer supervision

  • Faster & more effective communication

  • Promote closer relations

  • Close control

Narrow span of management

SPAN OF CONTROL

(Narrow/Wide) span of management

• DISADVANTAGES:

  • More expensive

  • More complicated coordination

  • More gap

  • Slower decision making

  • Less employee autonomy

  • Less responsiveness to customers

  • Strict control

Narrow span of management

SPAN OF CONTROL

(Narrow/Wide) span of management

• ADVANTAGES:

  • Increased efficiency

  • Quicker decision making

  • Delegation of authority

  • Effective communication

  • Promotes innovative abilities of the top management

Wide span of management

SPAN OF CONTROL

(Narrow/Wide) span of management

• DISADVANTAGES:

  • Less control of supervisor

  • More difficult coordination

  • Lack of familiarity

  • Requires highly qualified managers

  • Managers may be overburdened & become decision bottleneck

Wide span of management

SPAN OF CONTROL

This is also known as Close Supervision

Narrow span of management

SPAN OF CONTROL

This is also known as Autonomy

Wide span of management

Degree to which decision making takes place at upper levels of the organization

Centralization

The more that lower-level employees provide input or actually make decisions

Decentralization

How standardized an organization’s jobs are and the extent to which employee behavior is guided by rules and procedures

Formalization

True or False: As an intern, you can go straight to the highest ranking official of your assigned clinic to ask for any inquiries regarding your clinical rotation

False: You cannot bypass the authority flow. If done so, you can get demerits

Eight importances of Organizing

1. Specialization

2. Well defined jobs

3. Clarifies authority

4. Coordination

5. Effective administration

6. Growth and diversification

7. Sense of security

8. Scope of new changes

Three organizational structures

1. Simple structure

2. Functional structure

3. Divisional structure

ORGANIZATIONAL STRUCTURE

What organizational structure is described:

• An organizational design that groups similar or related occupational specialties together

Simple OR Functional Structures

ORGANIZATIONAL STRUCTURE

What organizational structure is described:

• Made up of separate business units or divisions

Divisional structure

ORGANIZATIONAL STRUCTURE

What organizational structure is described:

• STRENGTHS

  • Fast, flexible, inexpensive to maintain, clear accountability

• WEAKNESSES

  • Not appropriate as organization grows, reliance on one person is risky

Simple structure

ORGANIZATIONAL STRUCTURE

What organizational structure is described:

• STRENGTHS

  • Cost-saving from specialization, employees are grouped with others who have similar tasks

• WEAKNESSES

  • Pursuit of functional goals can cause managers to lose sight of what’s best for the overall organization;

  • Functional specialists become insulated and have little understanding of what other units are doing

Functional structure

ORGANIZATIONAL STRUCTURE

What organizational structure is described:

• STRENGTHS

  • Focuses on results

• WEAKNESSES

  • Duplication of activities and resources increases costs and reduces efficiency

Divisional structure

Represents the structure of an organizational design in terms of rank and shows relationships between staff

Organizational chart

Two categories of organizational charts

1. Master chart

2. Supplementary chart

CATEGORIES OF CHARTS

• Depicts entire organization

• Shows all departments & major positions of authority

Master chart

CATEGORIES OF CHARTS

• Depicts a section or unit including specific details or its org pattern

• Reflects the master chart and shows direct chain of command from the highest authority

• Shows each job title & number of positions in each section

Supplementary chart

CATEGORIES OF CHARTS

(Master/Supplementary) UST Organizational Chart

Master chart

CATEGORIES OF CHARTS

(Master/Supplementary) CRS Organizational Chart

Supplementary chart

Three kinds of organizational relationships

1. Vertical

2. Horizontal (left to right)

3. Circular

ORGANIZATIONAL RELATIONSHIPS

• Direct relationship between superior and subordinate

Vertical

ORGANIZATIONAL RELATIONSHIPS

• Highest positions are put on the left side and those with diminishing authority move toward the right

Horizontal (Left to Right)

ORGANIZATIONAL RELATIONSHIPS

• The center of the circle represents the position of supreme authority, and the functions radiate in all directions from the center

Circular

Five types of organization charts

1. Hierarchical chart

2. Functional chart

3. Divisional chart

4. Matrix chart

5. Circular chart

TYPES OF ORGANIZATIONAL CHARTS

• Contains a direct chain of command from top of organization to the bottom

• From top passed down to the bottom

Hierarchical chart

TYPES OF ORGANIZATION CHARTS

• Business structure that groups similar employees by especially, skill, or related roles

• Works best for larger companies that employ multiple people with similar roles

Functional chart

TYPES OF ORGANIZATION CHARTS

• Divided by market, service, product, or geographic region

Divisional chart

TYPES OF ORGANIZATION CHARTS

• Not common

• Promotes more inclusive and team-oriented culture

• Reduces visual of hierarchy

Circular chart

TYPES OF ORGANIZATION CHARTS

• Facilitates working on concurrent projects by creating a dual chain of command

• Utilize functional and divisional chains of command simultaneously in the same part of the organization, commonly for one-of-a-kind project

Matrix structures

TYPES OF ORGANIZATION CHARTS

• Superimposes a project structure upon the functional structure

• Teams are formed

• Assigns specialists from different functional departments

Matrix structures

TYPES OF ORGANIZATION CHARTS

Matrix structures consist of two main managers, which are?

1. The project (program, systems or product) manager

2. The functional manager

TYPES OF ORGANIZATION CHARTS

What type of manager is described below:

• Have authority over activities geared toward achieving project or program objectives

The project manager

TYPES OF ORGANIZATION CHARTS

What type of manager is described below:

• Have the authority over promotion decisions and performance reviews

The functional manager

Three limitations of an organizational chart

1. Shows only “formal relationships”

2. Does not show

   • Pattern of social relationships

   • Managerial style adopted

3. Quickly becomes out-of-date

Four steps in preparing an organizational chart

1. List major functions

2. Group jobs according to function

3. Tabulate the following information for each job

   1. Job title

   2. Reporting line

   3. Line or staff position

4. Develop the final chart using general conventions

Seven general conventions for development of organizational charts

1. Rectangle

2. Solid lines

3. Double linked rectangle

4. Dashed line

5. Arrows

6. Divided box

7. A dashed border surrounding a rectangle