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CHAPTER 7
ORGANIZING
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LEARNING OBJECTIVES
After studying this chapter, you should be able to:
Define the concept of organizing, and explain the
importance of the organizing function.
Describe the process of organizing.
Describe the types of organizing structures and
organizational relationships.
Explain the types of organizational structures or designs.
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7.1 INTRODUCTION
This chapter will explore organizing as one of the
management functions.
It will also explore the division of work between
people and groups, the work carried out by
managers at different levels, and the coordination of
work produced by these people and groups to
enable the achievement of organizational aims and
objectives.
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7.2 ORGANIZING AND ITS
IMPORTANCE
Identification of organizational activities
Departmentalization of organizational activities
Classifying authority
Coordination between authority and responsibility
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7.3 ORGANIZING PROCESS
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7.4 ORGANIZATIONAL STRUCTURE
AND RELATIONSHIPS
Understanding organizing structure helps us to
understand the different types of organizational
relationships.
Organizational or working relationships that exist
within an organization affect how its activities are
accomplished and coordinated.
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7.4.1 Formal and Informal
Organizations
Formal organization
– A formal organization has a structure comprising of
well-defined jobs; each of which bears a measure of
authority and responsibility.
Informal organization
– An informal organization, has a network of both
personal and social relationships that spontaneously
originates within the formal set up.
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7.4.2 Types of Organizational
Relationships
Chart and chain of command
Span of control
– Complexity of task assigned to subordinate
– Similar task are performed repeatedly
– Task are closely inter-connected and interdependent
– Operation takes place in an unstable environment
Line, staff and functional authority
Delegation
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7.5 TYPES OF ORGANIZATIONAL
STRUCTURES
The types of organizational structures chosen are
influenced by certain factors—nature of an
organization, its specialization and its decision-
making hierarchy.
A successful organization tends to follow a pattern
of structural development as it grows and expands.
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7.5.1 Types of Departmentalization
Functional departmentalization
– the grouping of related work activities according to
functions
Divisional departmentalization
– an organization structure, whereby corporate divisions
operate as relatively autonomous businesses under a
larger corporate umbrella
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7.5.1 Types of Departmentalization
(cont.)
Geographical departmentalization
– the grouping of related work activities according to
areas that are served by a business
Matrix departmentalization
– teams are formed in which individuals report to two or
more managers, usually the functional manager and
project manager
– brings together personnel from several specialties to
complete limited-life tasks
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Divisional Departmentalization
Product departmentalization
– done according to products or services available
Customer departmentalization
– groups related work activities according to what
customers are likely to buy in terms of an organization’s
products or services
Process departmentalization
– groups related work activities according to production
processes
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