(4) OT10210: Organizing Function

• Follows planning 

• Reflects how organization tries to accomplish plan

• Involves assignment of:

  • tasks into departments 

  • authority and allocation of resources across organization 

  • Integration of activities

What is the function of organizing?

Organization

is the deployment of resources to achieve strategic goals.

• Division of labor into specific departments & jobs

• Formal lines of authority 

• Mechanisms for coordinating diverse organizational tasks

Organizing is reflected in? (3)

Organizational Structure

• Defines how tasks are divided, resources are deployed, and departments are coordinated 

• Set of formal tasks assigned 

• The design of systems to ensure effective coordination of employees across department 

• Formal reporting relationships

Organizational Charts

How do we best show an organizational structure?

The Organizational Chart

• Visual representation of how the different positions, key roles, key tasks in the company or organization

  • It gives you an idea of who is at the top, who would be working on certain departments, who would answer to who, how would the communication line would look like 

• Set of formal tasks

• Framework for vertical control 

• Formal reporting relationships

Work Specialization

• Tasks are subdivided into individual jobs 

• Employees perform only the tasks relevant to their specialized function 

• Jobs tend to be small, but they can be performed efficiently

Chain of Command

• Unbroken line of authority that links all persons in an organization

• Shows who reports to whom (subordinates)

• Could also show you the inverse of the relationship 

• Associated with two underlying principles

1. Unity of Command

2. Scalar Principle

Under chain of command, what are the two underlying principles?

1. Authority

2. Responsibility

3. Accountability

4. Delegation

4 concepts under Chain of Command?

Authority

• Formal and legitimate right of a manager to make decisions and issue orders

  • When you have an organization, people mostly at the top would have that position of _____

• Allocate resources to achieve organizationally desired outcomes

• vested in position, not people

• accepted by subordinates

• flows in VERTICAL HIERARCHY

Authority is distinguished by 3 characteristics

Responsibility

• The duty to perform the task or activity an employee has been assigned.

• Managers are assigned authority commensurate with _______

Delegation

• Process managers use to transfer authority and responsibility 

• Organizations encourage managers to ______ authority to lowest possible level

1. Give thorough instructions to individuals

2. Maintain feedback

3. Evaluate and reward performance

4. Select the right person

5. Ensure that authority = responsibility

6. Delegate WHOLE task. (to have team delegate amongst themselves)

Techniques for delegation? 6

Line Authority

• Individuals in management positions have the formal power to direct and control immediate subordinates 

• Usually seen in an organizational structure

Staff Authority

• Granted to staff specialists in their area of expertise

• May not be in a certain position per se but they are identified as the experts

• Number of employees who report to a supervisor 

  Supervisor Involvement

SPAN OF MANAGEMENT/SPAN OF CONTROL?

7

How many subordinates per manager? Traditional view

30+

How many subordinates per manager? Lean organizations today

small

[Supervisor Involvement] If closely involved with subordinates span should be?

large

[Supervisor Involvement] If little involvement with subordinates span should be?

1. Work is stable and routine

2. Subordinates perform similar work tasks

3. Subordinates are concentrated in a single location

4. Subordinates are highly trained

5. Rules and procedure defining task activities are available

6. Support systems and personnel are available for the manager

7. Little time is required in nonsupervisory activities

8. Managers’ preferences and styles favor a large span

FACTORS ASSOCIATED WITH LESS SUPERVISOR INVOLVEMENT? (8) [sta,sim,loc,tra,ru,su,li,ma]

Span of Control

_________ used in an organization determines whether the structure is tall or flat

Tall structure

• has a narrow span and more hierarchical levels 

  • You’ll see who’s the boss and who the subordinates are under this person

Flat structure

has a wide span, is horizontally dispersed and fewer hierarchical levels

CENTRALIZATION

looking at who is really assigned/given the direct power or authority to make these decisions

DECENTRALIZATION

distributing this power right, not relying on one person

decentralization

Greater change and uncertainty in the environment are usually associated with _________ (decent or cen)?

• walang masyadong makikitang point person basically

centralized

• In times of crisis or risk of company failure, authority may be ______ at the top

  • there is someone holding that power and making those decisions

DEPARTMENTALIZATION

The basis on which individuals are grouped into departments (depends on the function of the organization)

1. Vertical functional approach

2. Divisional approach

3. Horizontal matrix approach

4. Team-based approach

5. Network Approach

6. Virtual Approach

6 Approaches under departmentalization?

Virtual Approach

What approach is seen more because of the pandemic?

VERTICAL FUNCTION

there is someone on top then there are people answering and then there would be people under them

DIVISIONAL FUNCTION

wider span; a little bit more horizontal; product divisions then different positions under them

1. Vertical Functional Approach

2. Divisional Structure

3. Horizontal Matrix

4. Team Approach

5. Network Approach

FIVE APPROACHES TO STRUCTURAL DESIGN (VeDiHoTeNe)

VERTICAL FUNCTION APPROACH

• Grouping of positions into departments based on similar skills, expertise, and resource use 

  • Information flows up and down

    • you have people under then submits to the boss then provide feedback to the subordinates

  • Chain of command converges at the top 

    • most organizations are like this; there is a single person on top that answers to a lot of these tasks and goals

  • Managers and employees are compatible because of similar training and expertise 

    • you’ll see that whoever is your boss you have same set of skills

    • Ex: accounting, accountancy lang or OT department, lahat OTs lang 

Rules and procedures governing duties and responsibilities are seen or more delineate

Divisional Structure

Advantages: Efficient use of resources

Divisional Structure

Advantages: Skill specialization development

Divisional Structure

Advantages: Top management control

Divisional Structure

Advantages: Excellent coordination

Divisional Structure

Advantages: Quality technical problem solving

Divisional Structure

Disadvantages: Poor communications

Divisional Structure

Disadvantages: Slow response to external changes

Divisional Structure

Disadvantages: Decisions concentrated at top

Divisional Structure

Disadvantages: Pin pointing responsibility is difficult

Divisional Structure

Disadvantages: Limited view of organizational goals by employees

Horizontal Matrix

Advantages: More efficient use of resources than single hierarchy

• Multiple individuals oversee specific responsibilities, not solely

Horizontal Matrix

Advantages: Adaptable to changing environments

Horizontal Matrix

Advantages: Development of both general and specialist management skills

• Enhanced visibility of line authority and staff authority

Horizontal Matrix

Advantages: Expertise accessible to all divisions

Horizontal Matrix

Advantages: Enlarged tasks for employees

Dual Authority Structure

Under Horizontal matrix, what is the structure?

2

How many bosses under dual authority structure?

Horizontal Matrix

Disadvantages: Dual chain of command

Horizontal Matrix

Disadvantages: High conflict between two sides of the matrix

Horizontal Matrix

Disadvantages: Coordination challenges

Horizontal Matrix

Disadvantages: Need for human relations training

Horizontal Matrix

Disadvantages: Power domination by one side of the matrix

Team Approach

Advantages: Reduced barriers among departments

Team Approach

Advantages:  Quicker response time

Team Approach

Advantages: Better morale

Team Approach

Advantages: Reduced administrative overhead

Team Approach

Disadvantages: Dual loyalties and conflict

Team Approach

Disadvantages: Time and resources spent on meetings

Team Approach

Disadvantages: Unplanned decentralization

Team Approach

Disadvantages: Difficult to identify roles and responsibilities

Network Approach

Advantages: Global competitiveness

Network Approach

Advantages: Workforce flexibility

Network Approach

Advantages: Outcome-based approach

Network Approach

Advantages: Reduced administrative overhead

Network Approach

Disadvantages: No hands-on control

Network Approach

Disadvantages: Impact of the loss of one part of the organization

Network Approach

Disadvantages: Weakened employee loyalty

Network Approach

Disadvantages: Reduced opportunity to build relationships with remote employees

Human Resource Management

• _______ has shed its old personnel image and gained recognition as a vital player in corporate strategy 

  • Before, you need a specific department to handle different affairs because you are handling certain individuals under the company

    • Attached to the company

  • Now, ____ has a role in planning stage because the trend of building human capital

    • Important for companies to project that image that they care for the people that work for them

• Higher employee productivity 

• Stronger financial results 

• Achieve organization’s strategic goals 

• Key players on management team

• Involved in the strategic / planning phase

• Creating plans to ensure that these persons are integrated well, be happy and contribute well in the company 

Role of HRM? 6

Human Resource Management

• The philosophy, policies, procedures and practices related to the management of people within an organization is done by the ____

Strategic Management

• deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of firms in their external environments

1. Determine a company’s need for skills and employees

2. Becoming more competitive globally 

3. Improving quality, productivity, & customer service

4. Managing mergers & acquisitions

5. Applying new information technology for e-business

CURRENT STRATEGIC ISSUES of HRM? (5)

1. Human Resource Planning

2. Identifying Job and Work Design

   Staffing

3. Training and Development

4. Strategies for training

5. Performance Appraisal and Review

6. Compensation and Reward

7. salary, benefits

8. Protection and Representation

9. Organization Improvement

MAJOR PROCESSES IN HRM (8)

1. ATTRACT an effective workforce

2. DEVELOP an effective workforce

3. MAINTAIN  an effective workforce

Human R3sources Management Goals?

1. HRM planning

2. Job Analysis

3. Forecasting

4. Recruiting

5. Selecting 

ATTRACT an effective workforce? (5)

HRM planning

What positions are needed?

Job Analysis

What jobs are going to be done?

Forecasting

How many persons are needed for these particular jobs?

Recruiting

Announce/advertise the needed positions

Selecting

Selecting the persons

• TRAINING

• DEVELOPMENT

• APPRAISAL

DEVELOP an effective workforce (3)

• Wage and salary

• Benefits

• Labor relations

• Terminations

MAINTAIN  an effective workforce (4) [WBLT]

• Competitive Strategy 

  • Building Human Capital 

  • Information Technology 

    • Looking at other means of how to do communication, coordination

• National Legislation

ENVIRONMENTAL INFLUENCES ON HRM

1. Human Capital

2. Information Technology

3. Global Strategies

THREE WAYS HR IS CHANGING

Human Capital

• economic value of the knowledge, experience, skills, and capabilities of employees

  • If you look at the company and who makes up the company that is the human capital

  • Sort if investing in the people that work for/with you in your company 

Information Technology

• Human resource information technology 

  • An integrated computer system designed to provide data and information used in HR planning and decision making 

• Traditional HR to e-HR significantly affected every area of human resource management

Traditional HR

could have certain trainings you do and would take up many days

e-HR

• you have certain trainings you recorded already/available in a certain system & people would have to go thru them

  • Loss of people approach or person-to-person touch

1. Discrimination

2. Affirmative Action

NATIONAL LEGISLATION under HRM?

Discrimination

• hiring or promoting of applicants based on criteria that are not job relevant 

• Ex: engineer but was not hired because he was deaf; was discriminated because of the disability and was not able to get the job

  • Not related to the job, but since the person has a disability, not seen as a member of that organization, not hired. 

• Ex: Or maybe they are in the organization but not hired as manager because of a particular disability

Affirmative action

• policy requiring employers to take positive steps to guarantee equal employment opportunities for people within protected groups 

• Because of the national legislation, you can have in your company this particular policy that would have/would ensure that they would have equal employment opportunities

• Equal Opportunity/Discrimination Laws 

• Compensation/Benefits Laws 

• Health/Safety Laws

MAJOR NATIONAL LAWS - HRM