Revision for organizing

By Ana Hamilton,2014-10-21 22:38
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Revision for organizing

    Revision for Organizing

    What is organising?

    What are tasks/who is to do the tasks/how tasks will be grouped/ who reports to whom/ who

    makes decisions and how and where the decisions will be made

Organising is influenced by following factors:

    Nature of the organisations operations/organising structure/resources

    The main part of the purposes of organising is to allocate and deploy organizational resources. /because we have to utilize the limited resources to accomplish the organizational goals.

    Organizational design guarantees organizational goals to be achieved in a manner of effectiveness and efficiency. .

    In brief, Organisational design is to determine the best ways of structuring the organisation to address environmental demands and achieve strategic goals, i.e. structure follows strategy or

    structure fits strategy

What is organisation structure?

     the arrangements used to divide work among people and co-ordinate it effectively

     the formal arrangement of jobs within an organisation

Organizational structure elements include

     the set of formal tasks (what people will do)

     assigned to individuals and departments (who will do it)

     Formal reporting relationships (who will direct and supervise whom)

     the design of systems to ensure the effective coordination of employees (how we will

    ensure our organizational task is effectively implemented.)

Six key elements of organisational design

     Formalisation: The degree to which an organization relies on rules and procedures

     De/Centralisation: (De)Concentration of decision-making in (lower)upper management

     Chain of Command: Line of authority and clarifies who reports to whom Span of Control: The number of subordinates a manager can direct efficiently and effectively

     Work specialisation: Tasks are divided into separate jobs(for each individual)

     Departmentalisation: Jobs are grouped to accomplish organizational goals(for an

    organization as a whole)

Centralisation VS decentralisation

    More centralization /more decentralization

     environment is stable/ environment is complex and uncertain

     lower-level managers not as capable/experienced/ lower-level managers are

    capable and experienced

     decisions are significant/ decisions are relatively minor

     1 / 9

     organization is facing a crisis/ corporate culture is open to allowing managers to

    have a say in what happens

     company is geographically concentrated around one place/company is

    geographically dispersed

     effective implementation of company strategies depends on managers retaining

    a say over what happens./ effective implementation of company strategies

    depends on managers having involvement and flexibility

Work specialisation also known as “division of labour”

    Its main focus is that an entire job is broken down into steps and each is completed by a different person. Individuals specialize in doing part of rather than the whole activity.


    Is the basis on which jobs are grouped in order to accomplish organizational goals (whole activity). Every organization will have its own unique way of classifying and grouping work activities.

     Functional: Jobs by functions performed

     Geographic: Jobs by geographic location

     Product: Jobs by product line

     Process: Jobs by product or customer flow

     Customer: Jobs by unique/specific customer

     The divisional approach is used when departments are grouped together based on

    organizational outputs. Example: the University has a divisional structure: Teaching &

    Learning; Research; Ethics; Higher Degrees etc

Job analysis:

    defining the tasks, knowledge, skills and abilities required to perform the job”

Job description:

    a list of duties and capabilities required for the job

Job specification:

    a statement of the skills, experience and education a person should have in order to perform the job

    For example, see lecture PPT Manager Accounts

Functional structure

    Functional Structure - this is the traditional structure where the organisation is divided into functional areas, divisions or departments

    E.g. finance, HR, marketing, operations.


     in-depth skill specialisation and development

     excellent coordination within functions

     efficient use of resources, able to take advantage of economies of scale

     2 / 9

     career progress within the department

     top manager direction and control

     high-quality technical problem solving

     simplifies training


     poor communication among functional departments can occur quite easily

     slow response to external changes

     decisions concentrated at top of hierarchy, creating delays

     responsibility for problems is difficult to pinpoint

     employees have limited view of organisational goals

     limited general management training for employees

Divisional structure

    The divisional approach is used when departments are grouped together based on organisational


    Example: the University has a divisional structure: Teaching & Learning; Research; Ethics; Higher

    Degrees etc

    Diverse departments are brought together to produce a single (with a clear organizational

    purpose) organizational output.


     fast response, flexibility in an unstable environment

     Allows greater coordination across functional departments

     easy pinpointing(finding or describing) of responsibility

     emphasis on overall product and division goals

     development of general management skills


     Increased costs incurred (as a result) through duplication of personnel,

    operations, and investment

     Dysfunctional competition among divisions may detract from corporate


     Difficulty in maintaining uniform corporate image

     Overemphasis on short-term performance

The matrix approach

    combines aspects of both functional and divisional structures simultaneously.

     The matrix has dual lines of authority.

     The functional hierarchy of authority runs vertically.

     The divisional hierarchy runs laterally.


     more efficient use of resources than single hierarchy

     flexibility, adaptability to changing environment

     development of both general and specialist management skills

     interdisciplinary expertise available to all divisions

     3 / 9

     enlarged tasks for employees


     frustration and confusion from dual chain of command

     high conflict between two sides of matrix

     many meetings, more discussion than action

     human relations training needed

     power domination by one side of matrix

The network approach

    divides major functions into separate companies brokered (partly controlled, in a manner a

    broker does business) by a small headquarters organisation.

    It makes it difficult to answer the question ‘Where is the organisation?’

    The network approach is especially appropriate for international operations.

    It is held together with phones, faxes and other electronic technology.


    global competitiveness

    workforce flexibility/challenge

    reduced administrative overhead


    no hands-on control

    can lose organisational part

    employee loyalty weakened

Mechanistic v organic

    Mechanistic design