Divides work to be into specific jobs
and departments.
Assigns tasks and responsibilities
associated with individual jobs.
Coordinates diverse organizational
tasks.
Cluster jobs into units.
Establishes relationships among
individuals, groups, and departments.
Establishes formal lines of authority.
Allocates and deploys organizational
resources.
It is the structuring of resources and
activities to accomplish objectives in
an efficient and effective manner.
(Medina)
The process of creating an
organization’s structure. (Robins)
The organization’s
formal framework
by which job tasks
are divided,
grouped, and
coordinated.
1.It defines relationship between task
and authorities.
2.It defines formal reporting
relationships, the levels in the
hierarchy, and the span of control.
3.It defines the groupings of
individuals into departments and
departments into organization.
4.It defines the system to effect
coordination of effort in both vertical
and horizontal directions.
1.Division of labor (work specialization)
2.Delegation of authority
3.Departmentalization
4.Span of control
5.coordination
The formal structure is described
through:
1.Organizational chart
2.Organizational manual
3.Policy manual
Functional Departmentalization
A form of departmentalization in
which everyone engaged in one
functional activity is grouped into one
unit.
President
Vice President
Government Accounts
Marketing
Construction
Finance
Vice President
Industrial
Account
Marketing
Construction
Finance
Vice President
Residential
Account
Marketing
Construction
Finance
Product/Market
Departmentalization
The organization of the company by
divisions that brings together all those
involved with a certain type of product
or customer.
Matrix Departmentalization
An organizational structure in which
employee reports to both a functional
or division manager and to a project
or group manager.
Geographic
Departmentalization
A structure which groups people or
job on the basis of territory or
geography.
Process Departmentalization
A structure which groups job on the
basis of product or customer flow.
An unbroken line of authority that
extends from the upper levels of the
organization to the lowest levels and
clarifies who reports to whom.
Authority
◦The rights inherent in a managerial position
to give orders and to expect the orders to be
obeyed.
Responsibility
◦The obligation or expectation to perform.
Unity of command
◦The management principle that a subordinate
should have one and only one superior to
whom he or she is directly responsible.
The number of subordinates a
manager can supervise efficiently and
effectively.
Two types:
1.Centralization
2.Decentralization
A formal group of persons formed for
specific purpose.
Classification:
1.Ad hoc committee
2.Standing committee