This document discusses key concepts related to organizations including:
- The nature of organizations and types of organizational structures such as vertical, horizontal, and network structures.
- Organization theories including traditional theories like simple, functional, and divisional theories as well as modern theories like team design and matrix project design.
- The concept of delegation including defining goals, selecting people, assigning responsibility, and granting authority.
- Differences between formal organizations defined by hierarchy and reporting relationships versus informal organizations formed through social affiliation.
This document discusses key concepts related to organizations including:
- The nature of organizations and types of organizational structures such as vertical, horizontal, and network structures.
- Organization theories including traditional theories like simple, functional, and divisional theories as well as modern theories like team design and matrix project design.
- The concept of delegation including defining goals, selecting people, assigning responsibility, and granting authority.
- Differences between formal organizations defined by hierarchy and reporting relationships versus informal organizations formed through social affiliation.
This document discusses key concepts related to organizations including:
- The nature of organizations and types of organizational structures such as vertical, horizontal, and network structures.
- Organization theories including traditional theories like simple, functional, and divisional theories as well as modern theories like team design and matrix project design.
- The concept of delegation including defining goals, selecting people, assigning responsibility, and granting authority.
- Differences between formal organizations defined by hierarchy and reporting relationships versus informal organizations formed through social affiliation.
• Analyze the nature of an organization and types of an organization structure Specifically, you are expected to: • Discuss the nature of an organization; • Enumerate the types of organizational structures; • Apply organization theories and their application; • Identify the different elements of delegation; • Compare and contrast formal and informal organization. ORGANIZATION VS ORGANIZING • Organization - is collection of • Organizing - refers to put constant people working together under relationships between different jobs, that foster cooperation a division of labor and a between individuals and groups hierarchy of authority to inside the organization in order to achieve a common goal. achieve the common goals and objectives of the organization. NATURE OF AN ORGANIZATION NATURE OF ORGANIZATION AND TYPES OF ORGANIZATION STRUCTURE NATURE OF AN ORGANIZATION • Differentiation in an organizations involves division of labor and specialization (Bateman and Snell,2008). • These necessarily result from the organizations composition-many different units with different kinds of tasks, using different skills and work activities coordinating with one another for a common end. NATURE OF AN ORGANIZATION DIVISION OF LABOR SPECIALIZATION • Involves assigning different tasks to • The process in which different different people in the organization’s individuals and units perform different work units. different tasks. INTEGRATION OF WORK UNITS INTEGRATION OF WORK UNITS • Integration is another process in the organization’s internal environment which involves the collaboration and coordination of its different work units or work divisions. • Coordination refers to the procedures that connect the work activities of the different work divisions/units of the firm in order to achieve its overall goal. TYPE OF AN ORGANIZATION NATURE OF ORGANIZATION AND TYPES OF ORGANIZATION STRUCTURE TYPE OF AN ORGANIZATION An organization structure is a system made up of tasks to be accomplished, work movements from one work level to other work levels in the system. There are three types of organizational structure. These are; A. Vertical structure B. Horizontal structure C. Network structure A. VERTICAL STRUCTURE • Bateman and Snell (2008), a vertical structure clears out issues related to authority rights, responsibilities, and reporting relationships authority rights refer to the legitimate rights of individuals, appointed in positions like president, vice president, manager, and the like to give orders to their subordinates, who in turn, report to them what they have done. VERTICAL STRUCTURE B. HORIZONTAL STRUCTURE • Horizontal structure - refers to the departmentalization of an organization into smaller work units as tasks become increasingly varied and numerous. Types of Department • Line departments – deal directly with the firm's primary goods and services responsible for manufacturing, selling and providing services to clients. • Staff departments - support the activities of the line departments by doing research, attending to legal matters, performing public relations duties, etc. • Functional approach – where the subdivisions are formed based on management and, and human resources management. • Divisional approach – where departments are formed based on management of their products, customers, or geographic covered. • Matrix approach – Is a hybrid form of departmentalization where managers and staff personnel report to the superiors, the functional manager, and the divisional manager. HORIZONTAL STRUCTURE C. NETWORK STRUCTURE
• Network Structure is a collection of independent, usually single
function organizations/companies that work together in order to produce a product or service. NETWORK STRUCTURE ORGANIZATION THEORIES AND APPLICATIONS NATURE OF ORGANIZATION AND TYPES OF ORGANIZATION STRUCTURE ORGANIZATION THEORIES AND APPLICATIONS
• There are two main classification of theories regarding
organizational design according to Robbins and Coulier (2009) these are: • Traditional - pertains to the usual old fashioned ways. • Modern - refers to contemporary or new design theories. TRADITIONAL THEORIES
• There are several kinds of traditional theories applied in an organization.
1. SIMPLE THEORY • It has few departments, wide span of control or a big number of subordinates directly reporting to a manager; it has a centralized authority figure and has very little formalization of work. • Usually used by companies that start out as entrepreneurial ventures. 2. FUNCTIONAL THEORY • This design groups together similar or related specialties. • Generally, functional departmentalization is utilized and put into practice in an entire organization. 3. DIVISIONAL THEORY • This design is made up of separate business divisions or units, where the parent corporation acts as overseer to coordinate and control the different divisions and provide financial and legal support services. MODERN THEORIES 1. TEAM DESIGN • In team design, the entire organization is made up of work groups or teams. • Its advantages include empowerment of team members and reduced barriers among functional areas. • It also has disadvantages, including a clear chain of command and great pressure on teams to perform. 2. MATRIX PROJECT DESIGN • It refers to an organization design where specialist from different departments work on projects that are supervised by a project manager. 3.BOUNDARY-LESS DESIGN • Another modern organizational design where the design is not defined or limited by vertical, horizontal, and external boundaries. • In other words, there a re no hierarchical level that separate employees, no departmentalization, and no boundaries that separate organization from customers, suppliers, and other stakeholders. DELEGATION NATURE OF ORGANIZATION AND TYPES OF ORGANIZATION STRUCTURE DELEGATION
• It refers to assigning a new or additional task to a subordinate; it
may also refer to getting work done through others by giving them the right to make decisions and take action. STEPS IN DELEGATION INCLUDE • Defining the goal clearly. Managers must explain the task objective and the work or duties someone else is expected to do. • Selecting the person who will be given task. The selected subordinate must be competent and must have the manager’s task objectives. • Assigning of responsibility. Managers must explain that the responsibility assigned to the selected subordinate is an expectation for him or her to perform the assigned tasks as well. STEPS IN DELEGATION INCLUDE • Asking the person assigned about his or her planned approaches to accomplish the task objectives. It is expected that the person chosen to do the task already has a tentative plan of action that may be presented to the manager, to assure him or her that the person assigned could achieve the task objective. • Granting the assigned person the authority to act. If the manager is satisfied with the tentative plan of action presented, granting of the authority to act immediately follows. FORMAL AND INFORMAL ORGANIZATIONS NATURE OF ORGANIZATION AND TYPES OF ORGANIZATION STRUCTURE FORMAL AND INFORMAL ORGANIZATIONS • Whether an organization is formal or informal is determined by the kind of relationships that prevail in each organizational type. • Formal organizations - are characterized by hierarchical and reporting relationships among groups or members. • Informal organization - consists of informal groups born out of the need of social affiliation.