Organising

ORGANISING

Organizing

A process of defining essential relationships among people tasks and activities in such a way that all the organization resources are integrated and coordinated to accomplish its objectives efficiently and effectively.

Process of organizing

Determination of objectives Division of activities Grouping activities Defining authority and responsibility Coordination of activities Reviewing and reorganizing

Organization Chart

The visual representation of organization structure is organization chart

Organization structureFormal system of task and reporting

relationships showing how workers use

resources.

Ways to Structure a Business By function: arranging the business

according to what each section or department does

By product or activity: organising according to the different products made

By area: geographical or regional structure

By customer: where different customer groups have different needs

By process: where products have to go through stages as they are made

Functional Structure An organizational structure composed of all

the departments that an organization requires to produce its goods or services.

Functional structure

Production Marketing Accounts Personnel IT

Board of Directors

Chief Executive

Advantages Encourages learning from others doing

similar jobs. Easy for managers to monitor and evaluate

workers. Allows managers to create the set of

functions they need in order to scan and monitor the competitive environment Disadvantages

Difficult for departments to communicate with others.

Preoccupation with own department and losing sight of organizational goals.

Organisation by Product/Activity

Imaging andPrinting Group

PersonalSystems Group

EnterpriseSystems Group

HP ServicesHP Financial

Services

Hewlett Packard

Divisional StructureManagers create a series of business units to produce a specific kind of product for a specific kind of customer

Other Organisational Structures By Customer:

Wholesale Retail Industrial customer

By ProcessExample, textile business Weaving Dyeing

Product Structure Managers place each distinct product line

or business in its own self-contained division

Divisional managers have the responsibility for devising an appropriate business-level strategy to allow the division to compete effectively in its industry

Market Structure Groups divisions according to the particular

kinds of customers they serve Allows managers to be responsive to the

needs of their customers and act flexibly in making decisions in response to customers’ changing needs

Geographic Structure Divisions are broken down by geographic

location Global geographic structure

Managers locate different divisions in each of the world regions where the organization operates.

Global Product Structure Each product division takes responsibility

for deciding where to manufacture its products and how to market them in foreign countries worldwide

Matrix Structure An organizational structure that

simultaneously groups people and resources by function and product. Results in a complex network of superior-

subordinate reporting relationships. The structure is very flexible and can respond

rapidly to the need for change. Each employee has two bosses (functional

manager and product manager) and possibly cannot satisfy both.

Span of Control

Number of workers that a manager can effectively supervise.

Tall structure: few subordinates, tight control

Flat structure: Wide span of control

Principles of organizing

Unity of objective Organizational efficiency Division of labor Authority-responsibility Principle of delegation Unity of command Unity of direction Span of control