Management

Ricky W. Griffin, 12/E

Chapter-08

Organizing

Md. Mizanur Rahman

Professor of Marketing
Dhaka University
 Chapter Outline

• Organizing
• Principles of organizing
• Organizational architecture
• Accountability
• Authority
• Span of management
• Division of work
• Downsizing
• Rightsizing

Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–2

 Organizing

• The process of
··identifying & grouping activities,
··assigning authority & responsibility, and
··establishing clear coordination mechanisms
--to enable people & resources to work together
towards achieving orgl. goals efficiently & effectively

Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–3

 Organizing Process

• Identify goals & objectives of the org

• Determine required tasks

• Classify similar tasks into departments

• Assign responsibilities based on skills & expertise

• Establish authority relationships

• Allocate resources to various tasks & departments

• Coordinate activities across the org

Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–4
 Principles of Organizing
1. Unity of command
2. Span of control
3. Delegation of authority
4. Departmentalization
5. Division of work
6. Coordination
7. Chain of command
8. Flexibility (adapt orgl. structure)
9. Balance (between orgl. elements)
10. Efficiency
Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–5
 Vertical or Tall Organization

• A traditional hierarchical structure with multiple

layers of MGT & clear lines of authority
Organizational

– Decision-making authority resides at the top

Architecture

– Info flows down through various levels of MGT

Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–6

 Horizontal or Flat Organization

• A type of orgl. structure characterized by having

few or no levels of middle MGT between staff &
executives
Organizational

– This model promotes a more collaborative & less

Architecture

hierarchical approach to MGT

– Fosters faster decision-making, innovation, &

employee engagement

Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–7

 Vertical Vs. Flat Organization
Organizational
Architecture

Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–8

 Matrix Organization

• A hybrid structure that combines elements of

both orgl. structures
– Employees report to both functional managers &
Organizational

project managers
Architecture

– Employees may experience confusion or conflict

due to conflicting priorities & reporting
relationships

Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–9

 Matrix Organization

CE
O

Vice president, Vice president, Vice president, Vice president,

engineering production financ marketin
e g
Organizational

Employee
Projec s
tmanager
Architecture

Projec
m
t anager
B

Projec
m
t anager
C

Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–10

 Job Designs

• Structuring & organizing tasks, responsibilities,

& activities within a job to optimize productivity,
efficiency, & employee satisfaction

• Involves determining:
– Tasks to perform

– How tasks are performed

– Task-role relationships within the org

Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–11

 Methods of Job Designs

• Job Rotation: Rotate employees between tasks/

roles regularly

• Job Enlargement: Add more tasks to a job, expand

employee responsibilities horizontally

• Job Enrichment: Add meaningful tasks &

responsibilities to a job, increasing complexity

• Job Simplification: Break down a job into its

simplest components, focusing on standardization &
specialization
Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–12
 Responsibility

• The obligation or duty of individuals or

teams to
– perform specific tasks
– achieve certain objectives
– uphold particular standards within an org

Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–13

 Accountability

• Obligation to be answerable for the results &

outcomes of assigned responsibilities

• It's a two-way street involving:

– taking ownership

– being answerable

Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–14

 Authority

• The legitimate power or right given to

managers to make decisions, give orders, &
enforce obedience
– Authority ultimately stems from the org's structure
& hierarchy

Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–15

 Authority vs. Responsibility

• Authority is the right to make decisions, give

orders, & enforce obedience

• Responsibility is the obligation to perform

certain tasks or roles & achieve goals

Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–16

 Line Authority vs. Staff Authority

• Line Authority involves direct

decision-making power over tasks &
subordinates

• Staff Authority involves providing support &

expertise to line managers, but doesn't have
direct control over them

Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–17

 Delegation of Authority

• The act of assigning tasks or responsibilities

to someone else along with the power to
make decisions to complete those tasks

Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–18

 Authority Vs. Power
Points Authority Power
Legitimacy Has legitimacy & is May or may not be legitimate or
recognized by the org officially recognized
Source Comes from a formal Can come from various sources
position or role (personal traits, knowledge, or
control of resources)
Accountability Accompanied by Does not necessarily entail
responsibility & responsibility or accountability
accountability
Scope of Confined to the Can be broad & pervasive,
influence boundaries of the transcending formal structures
position or role
Exercise Exercised according Can be exercised in any
to established rules & manner, formal or informal
procedures
Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–19
 Sources of Power

Types Sources of Power

Legitimate Power Formal position or role within an org

Reward Power Ability to offer rewards or incentives

Coercive Power Ability to impose penalties or sanctions

Expert Power Influence based knowledge or skill

Referent Power Personal traits or charisma; derived from
admiration, respect, & likeability
Informational Power Access to & control over valuable info

Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–20

 Span of Supervision

• The number of subordinates directly

managed by a supervisor
– Also known as “span of control” or “span of
MGT”
– Optimal span depends on:
o Task complexity
o Employee skills
o Manager's oversight capacity

Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–21

 Division of Work

• The process of breaking down a job or task

into smaller, specialized tasks that are
assigned to different individuals or groups
– Aims to improve greater efficiency & higher
productivity

Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–22

 Departmentalization

• The process of grouping activities into distinct

units, or departments, within an org

• The units are grouped by:

− Functions
− Products
− Geographic regions
− Customer segments
− Processes
Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–23
 Downsizing

• The process of reducing the number of

employees within an org
− Aims to cut costs, improve efficiency, or adapt to
market changes

− May include layoffs, voluntary retirements, or

restructuring

Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–24

 Rightsizing

• The process of optimizing the size &

structure of an org to achieve the most
efficient & effective operation
− Involves evaluating staffing levels, skills, & roles
to ensure optimal efficiency, productivity, &
agility

Copyright © 2024 by Houghton Mifflin Company. All rights reserved. 8–25

 THANK YOU

Copyright © 2024 by Houghton Mifflin Company. All rights reserved.