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Organizing (1)

PhD, Eng., Katarzyna Piórkowska

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Learning outcomes

1. Explain „Organization”,

„Organizing”.

2. Explain organization design and

structure.

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Grouping tasks into jobs.

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Learning outcomes

4. Summarizing the effect of a

strategy, human resources, a
technology and environment on
an organization structure.

5. Describing the elements of an

organization structure.

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Organization as a system

System that is composed of interrelated

subsystems.

The survival or failure of the system is

dependent on the interrelations of
subsystems and their contribution to the
overall purpose of the system.

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Organization_Value Chain Approach

The set of activities an organization
performs to create and distribute its goods
and services including

direct activities

and

indirect activities

.

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Organization_Value Chain Approach

Primary activities

– they directly concerns

creating and delivering a product.

Support activities

– they are not directly

involved in production; may increase
effectiveness of efficiency.

It is rare for a business to undertake all
primary and support activities.

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Organization_Value Chain Approach

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Organizing

The process by managers establish working
relationships among employees to achieve
goals.

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Organization structure and design

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Organizational bonds

Hierarchic

Functional

Technical

Informational

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Job Design

Grouping tasks into specific jobs.

Job design helps determine:

what tasks are done,

how the tasks are done,

how many tasks are done,

in what order the tasks are done.

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Job Design

Job simplification

Job enlargment: increasing the number of different
tasks in a given job by changing the division of labor.

Job enrichment: increasing the degree of
responsibility.

Job rotation

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Good Job Design

allows for an employee input

gives employees a sense of

accomplishment

includes training so employees know

what tasks to do and how to do them
properly

provides good work/rest schedules

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Job Characteristics Model

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Factors Affecting Organizational Design

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(1) Work Specialization

a job is broken down into a number of

steps

each step is completed by a separate

individual

makes the efficient use of the diversity of

skills that workers have

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Economies and diseconomies of work
specialization

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(2) The Chain of Command…

… is the continuous line of authority that
extends from the highest level in an
organization to the lowest level and
clarifies who reports to whom.

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The Chain of Command…

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(3) Span of Control (connected with a
hierarchy)

a number of employees that a manager

can manage effectively

increased over the last several years

contingency variables impact the number

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(4) Authority versus responsibility

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Line Authority

a level of authority that entitles a

manager to direct the work of an
employee

contributes directly to the achievement

of organizational objectives

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(5) Centralized versus decentralized

CENTRALIZATION

: a function of how much

decision-making authority is pushed down
into lower levels in a organization.

DECENTRALIZATION

: pushing down

decision-making authority to the lowest
levels of an organization.

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The degree of centralization

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(6) Five ways to departmentalize

1. FUNCTION

2. PRODUCT

3. CUSTOMER

4. GEOGRAPHY

5. PROCESS

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(7) Formalization

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Thank You !!!