Part 1.Organizational structure

A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization. Organizations are groups of people, with ideas and resources, working toward common goals. The purpose of the organizing function is to make the best use of the organization's resources to achieve organizational goals. Organizational structure is the formal decision-making framework by which job tasks are divided, grouped, and coordinated.

Formalization is an important aspect of structure. It is the extent to which the units of the organization are explicitly defined and its policies, procedures, and goals are clearly stated. It is the official organizational structure conceived and built by top management.

One widely used classification of an organization is the twofold system (mechanistic versus organic forms of organizational structure). The mechanistic structure is the traditional or classical design, common in many medium- and large-size organizations. The primary form of mechanistic structures is a bureaucratic organization, with its emphasis on the formal chain of command for control and a well-defined hierarchical structure. Bureaucratic organizations are tall consisting of hierarchies with many levels of management. In a tall structure, people become relatively confined to their own area of specialization

On the other hand, the organic structure is more flexible, more adaptable to a participative form of management, and less concerned with a clearly defined structure. The organic organization is open to the environment in order to capitalize upon new opportunities.

Organic organizations have a flat structure with only one or two levels of management. Flat organizations emphasize a decentralized approach to management that encourage high employee involvement in decisions. The purpose of this structure is to create independent small businesses or enterprises that can rapidly respond to customers' needs or changes in the business environment. The supervisor tends to have a more personal relationship with his or her employees.

The informal organization is the network, unrelated to the firm's formal authority structure, of social interactions among its employees. It is the personal and social relationships that arise spontaneously as people associate with one another in the work environment. The supervisor must realize that the informal organization affects the formal organization.

The informal organization can pressure group members to conform to the expectations of the informal group that conflict with those of the formal organization. This can result in the generation of false information or rumors and resistance to change desired by management. The supervisor should recognize the existence of information groups, identify the roles member play within these groups, and use knowledge of the groups to work effectively with them.

 

Part 2.Organizing Function

The organizing function deals with all those activities that result in the formal assignment of tasks and authority and a coordination of effort. The manager staffs the work unit, trains employees, secures resources, and empowers the work group into a productive team. The steps in the organizing process include reviewing plans, listing all tasks to be accomplished, dividing tasks into groups one person can accomplish - a job, grouping related jobs together in a logical and efficient manner, assigning work to individuals and delegating authority to establish relationships between jobs and groups of jobs.

After reviewing the plans, usually the first step in the organizing process is departmentalization. Once jobs have been classified through work specialization, they are grouped so those common tasks can be coordinated. Departmentalization is the basis on which work or individuals are grouped into manageable units

It is impractical for the supervisor to handle all of the work of the department directly. In order to meet the organization's goals, focus on objectives, and ensure that all work is accomplished, managers must delegate authority. Authority is the legitimate power of a supervisor to direct subordinates to take action within the scope of the manager's position. By extension, this power, or a part thereof, is delegated and used in the name of a supervisor.

Delegation is the downward transfer of formal authority from superior to subordinate. The employee is empowered to act for the manager, while the manager remains accountable for the outcome. Delegation of authority is a person-to-person relationship requiring trust, commitment, and contracting between the manager and the employee.

The manager assists in developing employees in order to strengthen the organization. He or she gives up the authority to make decisions that are best made by subordinates. This means that the manager allows subordinates the freedom to make mistakes and learn from them. He or she does not supervise subordinates' decision-making, but allows them the opportunity to develop their own skills. The manager lets subordinates know that he or she is willing to help, but not willing to do their jobs for them. The manager is not convinced that the best way for employees to learn is by telling them how to solve a problem. This results in those subordinates becoming dependent on the manager. The manager allows employees the opportunity to achieve and be credited for it.

An organization's most valuable resource is its people. By empowering employees who perform delegated jobs with the authority to manage those jobs, managers free themselves to manage more effectively. Successfully training future managers means delegating authority. This gives employees the concrete skills, experience, and the resulting confidence to develop themselves for higher positions.

Delegation provides better managers and a higher degree of efficiency. Thus, collective effort, resulting in the organization's growth, is dependent on delegation of authority.