Basic elements of Organizing
Chapter-11
Chapter outline
• Designing Jobs
• Grouping Jobs
• Establishing reporting relationship
• Distributing Authority
• Coordinating activities
• Differentiating between positions
Designing jobs
Designing job is the determination of an
individual’s work-related responsibility.
•Job specialization: The degree of which
the over-all task of the organization is
broken down and divided into smaller
component parts.
Alternatives to specialization
•Job Rotation
•Job enlargement
•Job enrichment
•Work team
Grouping jobs: Departmentalization
The process of grouping jobs according to
some logical arrangement.
Common bases for
departmentalization
•Functional departmentalization
•Product departmentalization
•Customer departmentalization
•Location departmentalization
Establishing reporting relationships
Third basic element of organizing of
reporting relationships among employees.
•Chain of command
•Span of management
Tall vs. Flat organization
•Tall Organization: It involves many
managers & narrow span of management.
•Flat Organization: It involves limited
managers & wide span of management
which may lead to employee productivity
as well as increased managerial
responsibility.
Distributing Authority
Authority is power that has been legitimized
by the organization.
Two specific issues that managers must
address when distributing authority:
•Delegation
•Decentralization
Coordinating activities
Coordination is the process of linking the
activities of the various departments of the
organization.
The need & forms of coordination
•Pooled interdependence