OrgMan - Organizational Structures

Organizing

Is the process by which a manager establishes the structure of working relationships among employees for the efficient and effective achievement of the organizational goals.

Plans

are activated by the organizing process.

Influence

is exerted through a line of authority and responsibility.

Organization

an open and social system that transforms inputs from the environment to product outputs. Also known as an Enterprise

Organizing as a Process

1.Formulating objectives, policies, and

2.  Identifying and classifying tasks

3.Grouping task

4. Delegating authority

5.  Coordinating authority

Enterprise

• is a workplace for people working together  to achieve a common purpose.

• It is a structure of roles where the roles of people are defined such that required activities to accomplish a common purpose are done by them smoothly, efficiently and effectively.

Organizational Structure

is defined as the system of how tasks are to be allocated, who reports to whom, who has the authority, and what are the coordinating mechanisms and interaction patterns to ensure that work is done

Organizational structure and Coordination mechanism

• Division of labor

• Span of management

• Chain of command or scalar relationships

• Authority

• Line authority

• Staff authority

• Responsibility

Division of labor

tasks are classified into different jobs according to specialization.

Span of management

refers to the number of employees that are under the jurisdiction of the manager.

Chain of command or scalar relationships

refers to the positioning of individuals within the organizational structure.

Authority

is the right to perform or command is exercised by a manager over those who reports to him in order to get thing done.

Line authority

is the formal authority exercised by a manager over subordinates.

Staff authority

consist of the right to advise those in line authority according to one’s area of expertise.

Responsibility

is the obligation to perform assigned tasks.

Department

is a unique group of people formed by the manager so that common tasks can be performed and coordinated.

Departmentalization

is the act by which task and responsibilities are assigned to departments.

Types of Organizational Structure

• Functional structure

• Divisional structure

• Matrix structure

• Team structure

• Network structure

• Virtual structure

Functional Structure

is a structure set by functions. These are members with similar skills that are grouped together into functional departments such as production, marketing, finance, and human resource.

Divisional Structure

these are members of the organization that are group together, work on the same product, service, process, or serve similar customers.

Types of divisional structures

• Product structure

• Geographical structure

• Customer structure

• Process structure

Product Structure

grouping of members and job is by product or service.

Geographical Structure

grouping of members and jobs is by location of activity

Customer Structure

groupings of members and job is by customers served

Process Structure

groupings of members and jobs is by related work process

Matrix Structure

Two bosses, it combines the functional and divisional structures.

Team Structure

Is created to complete projects, to solve problems, or to accomplish daily tasks.

Network structure

Formed by having a core of full-time employees working together with outside partners who provide support or supply services

Virtual

Eliminates the boundaries among units that composed the organization by using information technology (IT) and the internet to communicate with members and accomplish specific objectives.

Formal Organization

means when the relationship is based on a structure of roles that aims to achieve organizational goals consciously and deliberately.

Three Features or Characteristics of Formal Organization

• Formalization

• Complexity

• Centralization

Formalization

pertains to the degree to which the work tasks of jobs are standardized.

Complexity

pertains to the degree of differentiation between the unit based on the tasks they perform.

Centralization

pertains to the degree to which decision-making is concentrated in one area within the organization.

Informal Organization

contributes to the attainment of organizational objectives through relationships among people that extend beyond those established by management.

Management Theories

• Contingency Theory

• Resource-based Theory

• Stakeholder Theory

Contingency Theory

• It implies that there is no one best way to manage things in the workplace

• It also emphasizes flexibility in management given the dynamic changes in the environment

Resource-based Theory

it tells that the resources within a firm that are considered rare and which cannot be easily copied, duplicated, or substituted provide the sustainable competitive advantage for the firm

Stakeholder

is a person or entity who interacts with business

Stakeholder Theory

integration among its different stakeholders

Corporate Social Responsibility

• Economic Responsibility

• Legal Responsibility

• Ethical Responsibility

• Discretionary Responsibility

Economic Responsibility

profitability, employment that increase buying power

Philantrophic Responsibility

Discretionary Responsibility, improving the quality of life

Legal Responsibility

compliance to legal/government procedures and regulations

Ethical Responsibility

doing what’s right and wrong