ENGINEERING MANAGEMENT

LESSON 4 INSTRUCTOR: ENGR. NERI BACUÑO

ORGANIZING TECHNICAL ACTIVITIES 3 The Purpose of the Structure

Engineer managers need to develop skills in management, including technical
The structure serves some very useful purposes. They are the following:
organizing, to succeed in a competitive environment, with superior organizational setups
crucial for international operations. 1. It defines the relationships between tasks and authority for individuals and
departments.
2. It defines formal reporting relationships,numbers of levels in hierarchy of the
TOPIC OUTLINE organization and the span of control.
● Reasons for Organizing 3. It defines the groupings of individuals into departments and departments into
● Organizing Defined organization.
● The Purpose of the Structure 4. it defines the system to affect coordination of effort in both vertical (authority)
● The Formal Organization and horizontal (task) direction.
● Informal Groups
● Types of Organizational Structures When structuring an organization, the engineer manager must be
● Types of Authority concerned with the following:
● The Purpose of Committees
1. Division of labor - determining the scope of work and how it is combined in a job.
2. Delegation of authority - process of assigning various degrees of decision-
1 Reasons for Organizing making authority to subordinates
Organizing is undertaken to facilitate the implementation of plans. Effective 3. Departmentation - grouping of related jobs, activities, or processes into a major
organizing breaks down a large job into manageable tasks, assigning authority, organizational subunits
responsibility, and accountability for specific functions and tasks. 4. Coordination - linking of activities in the organization that serves to achieve a
common goal or objective.
2 Organizing Defined
Organizing is a management function that involves structuring resources and 4 The Formal Organization
activities to achieve objectives efficiently and effectively, with the structure being the Management adapts a plan, forming a formal organization to carry out activities. The
result of the organizing process. organization chart depicts the planned structure, establishing patterned relationships
among components to meet objectives effectively.

1 OLAZO, JENNA MAE O. | CAMARINES NORTE STATE COLLEGE

ENGINEERING MANAGEMENT
LESSON 4 INSTRUCTOR: ENGR. NERI BACUÑO

The formal structure is described by management through: decisions, stress on work specialization, difficulty in identifying responsible
1. Organization chart - a diagram of the organization’s official positions and sections, limited employee understanding of organizational goals, and limited
formal lines of authority general management training.
2. Organizational manual - written descriptions of authority relationships, 2. Product or Market Organization - refers to a company's divisions that unite
details the functions and major organizational units.
all stakeholders involved in a specific product or customer.
● Product or market organizations offer flexibility, customer concern, excellent
3. Policy manuals - describes personnel activities and company policies.
coordination, clear responsibility, and opportunities for management skill
development. However, they may face duplication of resources, lack of
5 Informal Groups technical depth, poor coordination, lower top management control, and
Formal organizations have formal groups assigned to specific tasks to achieve competition for corporate resources.
organizational objectives. Informal groups, formed spontaneously with friendship as a 3. Matrix organization - is a structure where each employee reports to both a
primary reason, can be useful for major tasks if they align with the group's expectations.
functional or division manager and a project or group manager.
● The matrix organization offers advantages such as efficient resource use,
However, informal organizations are vulnerable to expediency, manipulation, and
flexibility, and development of management skills. However, it also has
opportunism, making it difficult for management to detect and prevent harm. The
disadvantages like confusion, conflict between divisional and functional
engineer manager must monitor and manage informal groups effectively. interests, frequent meetings, human relations training, and potential power
dominance on one side. Despite these, it provides a better work environment
3 Types of Organizational Structures and motivates employees.
Organizational decision-makers must select the most suitable structure for their
operations, considering factors like size and type, before commencing activities. 3 Types of Authority
The delegation of authority is a requisite for effect- ive organizing. It consists
Organizations may be classified into three types. They are following: of three types. They are as follows:
1. Functional organization - This is a type of departmentalization where individuals 1. Line Authority - Line departments, such as the construction division in a
involved in a single functional activity, like engineering or marketing, are grouped construction firm, are responsible for negotiating and securing contracts.
into a single unit. 2. Staff Authority - Staff departments are specialized teams that offer support to
● Functional organizations offer advantages such as economies of scale, line departments, including strategic planning, labor relations, research,
centralized decision-making, excellent communication and coordination, high- accounting, and personnel. Staff officer can be classified into two:
quality technical problem-solving, in-depth skill specialization, and career ● Personal Staff - individuals assigned to a specific manager to
progression. However, disadvantages include poor communication, delayed provide needed staff services.

2 OLAZO, JENNA MAE O. | CAMARINES NORTE STATE COLLEGE

ENGINEERING MANAGEMENT
LESSON 4 INSTRUCTOR: ENGR. NERI BACUÑO

● Specialized Staff - individuals providing needed staff services for Committees are formal groups formed to achieve organizational goals, often used
the whole organization by large or small organizations. They are useful for engineering and manufacturing firms,
3. Functional Authority - Functional authority allows individuals or work groups to providing a line-up of expertise to address specific concerns like product development.
make decisions based on their expertise, even if they affect other departments, For example, a product planning committee is staffed by top executives from marketing,
and is typically granted to most budget officers. production, research, engineering, and finance.
Committees
may be
classified as
follows:
● Ad hoc

4 The Purpose of Committees committees are short-term, limited-life organizations, such as those responsible
for managing a firm's anniversary festivities.

3 OLAZO, JENNA MAE O. | CAMARINES NORTE STATE COLLEGE

ENGINEERING MANAGEMENT
LESSON 4 INSTRUCTOR: ENGR. NERI BACUÑO

● A standing committee is a permanent body responsible for handling ongoing

issues, such as handling initial complaints from employees within an organization.

4 OLAZO, JENNA MAE O. | CAMARINES NORTE STATE COLLEGE