HSA 171

CAR
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 the process of establishing the orderly use of
resources by assigning and coordinating
tasks. The organizing process transforms
plans into reality through the purposeful
deployment of people and resources within a
decision‐making framework known as the
organizational structure.
 Organizing requires the manager to determine how he or
she will distribute resources and organize employees
according to a designated plan aimed at some
organizational goal. The manager will need to identify
different roles and responsibilities, assign work, and
coordinate the right amount and mix of employees across
departments to carry out the plan. Each employee must be
aware of his or her responsibilities to avoid frustration,
confusion, and loss of efficiency.
 Managers organize by bringing together physical,
human and financial resources to achieve objectives.
 They identify activities to be accomplished, classify
activities, assign activities to groups or individuals,
create responsibility and delegate authority.
 They then coordinate the relationships of
responsibility and authority.
 Organizational Structure :
 The formal arrangement of jobs within an organization .

 Organizational Design :
◦ A process involving decisions about six key
elements:
 Work specialization
 Departmentalization
 Chain of command
 Span of control
 Centralization and decentralization
 Formalization
 The end result of the organizing process is the
organizational structure, which refers to the type of
framework a company uses to distinguish power and
authority, roles and responsibilities, and the manner
in which information flows through the organization.
Having a suitable organizational structure will allow a
company to implement proper operating procedures
and decision-making processes that will aid the
organization in accomplishing its goals.
 managers create the structure of working relationships between
organizational members that best allows them to work together and
achieve goals. • Managers will group people into departments
according to the tasks performed. – Managers will also lay out lines
of authority and responsibility for members. •

 All organizations have a management structure that determines

relationships between the different activities and the members, and
subdivides and assigns roles, responsibilities, and authority to carry
out different tasks.
 When the structure and design of an
organizational work together, they create a
productive and efficient working environment
where employees are motivated and customers
are satisfied.
 A manager performs organizing function with the help of
following steps:-
 Identification of activities - All the activities which have to be
performed in a concern have to be identified first. For example,
preparation of accounts, making sales, record keeping, quality
control, inventory control, etc. All these activities have to be
grouped and classified into units.
 Departmentally organizing the activities - In this step, the
manager tries to combine and group similar and related activities
into units or departments. This organization of dividing the
whole concern into independent units and departments is called
departmentalization.
 Classifying the authority - Once the departments are made, the
manager likes to classify the powers and its extent to the managers.
This activity of giving a rank in order to the managerial positions is
called hierarchy. The top management is into formulation of
policies, the middle level management into departmental
supervision and lower level management into supervision of
foremen. The clarification of authority help in bringing efficiency in
the running of a concern. This helps in achieving efficiency in the
running of a concern. This helps in avoiding wastage of time,
money, effort, in avoidance of duplication or overlapping of efforts
and this helps in bringing smoothness in a concern’s working.
 Co-ordination between authority and responsibility -
Relationships are established among various groups to
enable smooth interaction toward the achievement of
the organizational goal. Each individual is made aware
of his authority and he/she knows whom they have to
take orders from and to whom they are accountable and
to whom they have to report. A clear organizational
structure is drawn and all the employees are made
aware of it.
 Divides work to be done into specific jobs and departments.
 Assigns tasks and responsibilities associated with individual
jobs.
 Coordinates diverse organizational tasks.
 Establishes relationships among individuals, groups, and
departments.
 Establishes formal lines of authority .
 Allocates organizational resources .
 Cluster jobs in to units .
 Six key elements:
Work Specialization
Departmentalization
Chain of Command
Span of Control
Centralization and Decentralization
Formalization
 The degree to which tasks in the organization

are divided into separate jobs with each step

completed by a different person

 Functional
• Grouping jobs by functions performed

Product
• Grouping jobs by product line

• Grouping jobs on the basis of region or

Geographical geography

Process
• Grouping jobs on the basis of product or
customer flow

Customer
• Grouping jobs by type of customer and
needs
 Hospital Manager

Human
Manufacturing Accounting Marketing Purchasing
Resources
Manager Manager Manager Manager
Manger
+Efficiencies from putting
together similar specialties and
people with common skills, -Poor communication across
knowledge and orientation functional area
+coordination within functional -Limited view of organizational
area goals
+In depth specialization
Vice President for Sales

Sales Sales Sales Sales

Director, Director, Director, Director,
Central Western Southern Eastern
Region Region Region Region
+More effective and
efficient handling of specific -Duplication of functions
regional issues that arise -Can feel isolated from
+Serve needs of unique other organizational area
geographic markets better
 CEO

Car Bus Truck

Division Division Division
+Allows specialization in
particular products and -Duplication of functions
services
-Limited view of
+Managers can become organizational goals
experts in the industry
+Closer to the customer
 Plant Manager

Spinning Dyeing Weaving Finishing

 -can only be use
+More efficient flow
with certain type of
of work activities product
Director of Sales Manager

Wholesale Retail Government

Accounts Accounts Accounts
Manager Manager Manager
+Customers’ needs -Duplication of functions

and problem can be -Limited view of

met by specialists organizational goals
 The continuous line of authority that extends
from upper levels of an organization to the
lowest levels of the organization and clarifies
who reports to whom .
 The Chain of Command is Build on:
 Authority :The rights inherent in a managerial position to tell
people what to do and to expect them to do it

 Responsibility: The obligation or expectation to perform.

Responsibility brings with it accountability (the need to report
and justify work to manager’s superiors)

 Unity of Command :The concept that a person should have

one boss and should report only to that person

 Delegation :The assignment of authority to another person to

carry out specific duties
 The number of employees who can be effectively and efficiently supervised
by a manager .
Width of span is affected by:
 Skills and abilities of the manager and the employees

 Characteristics of the work being done

 Similarity of tasks

 Complexity of tasks

 Physical proximity of subordinates

 Standardization of tasks

 Sophistication of the organization’s information system

 Strength of the organization’s culture

 Preferred style of the manager .

 Centralization:
◦ The degree to which decision making is concentrated at a single
point in the organization
 Organizations in which top managers make all the decisions and lower-
level employees simply carry out those orders

 Decentralization:
◦ The degree to which lower-level employees provide input or
actually make decisions .
◦ Employee Empowerment .
 Increasing the decision-making discretion of employees .
Environment is stable.

Lower level managers are not as capable or

experienced at making decisions as upper level

managers.

Lower level managers don’t want to have a say in

decisions.

Decisions are significant.

Environment is complex.

Lower level managers are capable and experienced at

making decisions.

Lower level managers want a voice in decisions.

Decisions are relatively minor.

 The degree to which jobs within the
organization are standardized and the extent
to which employee behavior is guided by
rules and procedures .
◦ Highly formalized jobs offer little discretion over
what is to be done
◦ Low formalization means fewer constraints on how
employees do their work .