How is the Organizing Function helpful?
Chapter 2
The Organizing Process
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Organization’s Objectives
• Should be written in context of outcomes,
understood and accepted by employees, be
measurable, contain a time reference, and
be challenging but attainable.
• Ex. The word processing center will
increase output by 5% between January 1
and June 30.
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1. Assuring more efficient use of the organization’s
resources.
2. Improving employee understanding of job duties
and responsibilities.
3. Improving employee morale.
4. Providing a sense of direction for each of the
organization’s functional areas.
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Class Exercise
• Write a personal goal for what you plan to
accomplish at York Tech this semester.
• Make sure your goal:
– Is Measurable
– Contains a time reference
– Is Challenging but attainable
– Is written in the context of outcomes
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 Span of Control
Wide Span of Control

Supervisor

Refers to the number of subordinates

an individual is able to supervise.

1 2 3 4 5 6 7 8 9 10 11 12

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Narrow Span of Control Span of Control

• Would the span of control be wide or
Supervisor narrow if the employees are well trained?
• Would the span of control be wide or
narrow if the supervisor has many
responsibilities in addition to supervising
employees?
1 2 3

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 Interrelated Functions
Organization’s functions have become so
interrelated that when a problem arises in one
functional area, other related functions are also
likely to be affected.
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Unity of Command
States that each employee should be
directly responsible to one supervisor.
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Chain of Command
Identifies who reports to whom within
an organization.
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Authority and Responsibility
• States that individuals who are given the
responsibility to undertake a task must also
be given an appropriate amount of authority
to ensure task completion.
– Authority: Ability to inform others of what
you expect someone to do and to expect it will
be done
– Responsibility: Obligation to do something
that has been asked
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 Work Assignment Employee Empowerment

States that each employee’s work assignments States that empowered employees are
should be based on his/her special encouraged to participate as much as possible in
strengths and talents. making decisions that affect all aspects of
their job tasks.

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Line Structure

Line
Is the oldest and simplest of structures.
Line and Staff
Functional Organizational
Structures Has direct authority flowing vertically
Product from the top.
Committee
Matrix Is generally found in small organizations
because support staff is needed once they
begin to grow.
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 Line Structure
Owner
Advantages of Line Structure

Manager

1. Employees are fully aware of the boundaries of

Assistant Manager
their jobs.

Employee
2. Decision making is expedited.
3. Is a simple structure to understand.
Employee 4. Employees can be held directly accountable
when they fail to perform as expected.
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Disadvantages of Line Structure Line and Staff Structure

1. Fails to provide specialization needed when Has line authority similar to line structure.
organization begins to grow.
2. Line managers need to begin to perform Specialized staff activities are added that
specialized activities. support line activities.

Staff employees assist the line function.

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 Line employees are directly
concerned with the organization’s
Line and Staff Structure Example
Line Employees
primary objectives. President

Assistant
to the
President

VP VP VP VP
Production Sales Finance Corp. Affairs

Staff Employees Staff employees support the

Sales
line employees. Purchasing Foreman
Manager
Advertising Comptroller Auditing HR

Supervisors

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Advantages of Line and Staff Structure Disadvantages of Line and Staff Structure

1. Line employees have time to focus on those

1. Line and staff employees sometimes are
activities directly related to the organization’s
in conflict with one another.
primary objectives.
2. Staff employees can lend their specialized 2. Line employees sometimes suppress the
support. talents of staff employees.
3. Flexibility of staff units facilitates undertaking
new projects.
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 Functional Structure
Line Managers Can take disciplinary
action against those for
whom they have line
Tends to parallel the departments in many
authority.
organizations.

Line managers have both line and Line Managers Cannot take disciplinary
functional authority. action against those for
whom they have functional
authority.
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Functional Structure Advantages of Functional Structure

President

VP VP Sales VP Finance VP Corp 1. It provides expertise by functional specialists.

Production Affairs

Human Office 2. It prevents employees from slighting

Resources Services
certain specialized areas in the
Office
organization.
Office Office Office
Workers Workers Workers Workers

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 Disadvantages of Functional Structure Product Structure

Company’s products provide a basis for

its structure.
1. Some employees may appear to have two or
more supervisors. Each major product is given division
status.
2. Some managers evade those areas for
which they have functional authority. Incorporates line and staff structure into
these divisions.
Each product tends to operate independently
of other divisions.
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Product Layout Advantages of Product Structure

President

1. Enables divisions to develop processes that

best meet their needs.
VP VP VP
Trucks Cars Hybrids 2. Divisions can coordinate their own
activities without constraint from main
unit.
Production Sales Production Sales
Production Sales

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 Disadvantages of Product Structure Committee Structure

1. Divisions can “go their own way” to the Is often used in conjunction with line,
extent that they don’t work toward common line and staff, and functional structures.
goals.
Some committees perform important
2. Problems of some divisions may eventually managerial functions; others are
be felt throughout the entire organization. advisory.

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Advantages of Committee Structure Disadvantage of Committee Structure

1. Recommendations are often widely accepted. 1. It sometimes takes a long time to function
properly.
2. Widely varying views of committee members
broaden the nature of their recommendations.
3. Its use reduces the risk of making an incorrect
decision.

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 Matrix Structure Matrix Structure
VP VP VP
Is often used by organizations undertaking Manufacturing Finance Sales
complex projects.
Project A
Results in the formation of temporary Manager
new units to accommodate the
undertaking of a new project.
Involves temporarily borrowing employees Project B
from other areas of the organization and Manager
assigning them to the new temporary unit.
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Advantages of Matrix Structure Disadvantages of Matrix Structure

1. Allows companies to assign employees on the 1. Employees often have two supervisors.
basis of their expertise.
2. Employees may experience job-related
2. Helps companies avoid having to hire new pressures.
employees for a project.
3. Enables companies to adapt quickly to new 3. Managers may have difficulties coordinating
situations. employee activities.

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 Places related activities under Factors That Determine Feasibility of
Centralization Centralization
jurisdiction of one individual.

1. Nature of the organization.

Places related activities under 2. Size of the organization.
Decentralization jurisdiction of several 3. Diversification of the organization.
individuals throughout the 4. Conformity to standardized processes.
organization. 5. Quality of personnel.
6. Distribution of operations.
7. Attitude of personnel.
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The Organization Chart Guidelines for Preparing Organization Charts

Identifies lines of authority. 1. Place individuals/departments in relation to their
Gives employees a better understanding of the hierarchical level.
formal structure of the organization. 2. Identify vertical and horizontal authority by
Helps identify areas of overlapping solid lines.
responsibility that should be eliminated. 3. Identify functional authority by dotted lines.
Identifies promotional opportunities for job 4. Use complete titles on the chart.
applicants and new employees.
Identifies areas suitable for training and 5. Include on the chart the name of organization and
orientation. the date the chart was prepared.
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 Informal Organization Refers to the
Example Chain of Command spontaneous personal
and social relationships
that exist within
organizations.
Two Common Elements of
Informal Organization

Informal Groups
Informal Communication Patterns
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Group Activity
• Drawing an Organization Chart
• Davis County Blood Service is a nonprofit organization that operates
three offices in the county for blood donations. Davis Blood Services has three
office loactaions. Each office has three laboratory technicians and seven
donation technicians (phlebotomists.) The Montgomery office employs a full-
time secretary. A hospital liaison officer (staff) works out of the Rocky
Springs Office and reports to the Executive Director. Draw an organization
chart including the positions given above and below. Unless noted, all
positions are line positions.

• General Manager Jackson Office

• Laboratory Supervisor Rocky Springs Office
• Donations Manager Jackson Office
• Executive Director
• Donations Manager Rocky Springs Office
• Laboratory Supervisory Jackson Office
• Donations Manager Montgomery Office
• Development Manager, reporting to Executive Director (staff position)
• General Manager Montgomery Office
• Laboratory Supervisor Montgomery Office
• General Manager Rocky Springs Office
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