ORGANIZING-ORG-MAN

Organizing

The deployment of organizational resources to achieve strategic goals.

Organization

A social entity that is goal directed and deliberately structured.

Strategy

A plan of action that prescribes resource allocation and other activities for dealing with the environment, achieving a competitive advantage, and attaining organizational goals.

Structure

A powerful tool for reaching strategic goals and a strategy's success.

Organizational Structure

Set of formal tasks assigned to individuals and departments, formal reporting relationships, and the design of systems to ensure effective coordination of employees across departments.

Organizational Chart

A visual representation of an organization's structure.

Departmentalization

The basis for grouping positions into departments and departments into the total organization.

Vertical Functional Approach

Grouping of positions into departments based on similar skills, expertise, work activities, and resource use.

Divisional Approach

Grouping of departments together based on similar organizational outputs.

Matrix Approach

Combines aspects of both functional and divisional structure simultaneously in the same part of the organization.

Virtual Network Approach

The organization subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization.

Outsourcing

Contracting out selected functions or activities of an organization to other organizations that can do the work more cost efficiently.

Work Specialization

The degree to which organizational tasks are subdivided into separate jobs.

Chain of Command

Unbroken line of authority that links all employees in an organization and shows who reports to whom.

Unity of Command

Each employee is held accountable to only one supervisor.

Authority

The formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes.

Responsibility

The duty to perform the task or activity as assigned.

Accountability

The people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command.

Integration

Relates to how the different areas of the company coordinate their operations.

Delegation

The process managers use to transfer authority and responsibility to positions below them in the hierarchy.

Line Departments

Perform tasks that reflect the organization's primary goal and mission.

Line Authority

People in management positions have formal authority to direct and control immediate subordinates.

Staff Departments

Provide specialized skills in support of line departments and have an advisory relationship with them.

Staff Authority

The right to advise, recommend, and counsel in the staff specialist's area of expertise.

Span of Management

The number of employees reporting to a supervisor and how closely a supervisor can monitor subordinates.

Tall Structures

Characterized by an overall narrow span of management and a relatively large number of hierarchical levels.

Flat Structures

Characterized by an overall larger span of management and a relatively limited number of hierarchical levels.

Centralization

Decision authority is located near the top of the organization.

Decentralization

Decision authority is pushed downward to lower organizational levels.

Formal Organization

Composed of the recognized and formalized lines of communication, authority, and control.

Informal Organization

Normally formed for the purpose of satisfying some social needs and exists within or independently of formal organizations.

Results of Good Organization

Pointing out "dead-end" jobs, helping develop executive ability, establishing responsibility and preventing "buck passing," eliminating jurisdictional disputes between individuals, establishing closer operation and higher morale, delineating avenues of promotion, and preventing duplication of work.