Organizations are experimenting with different
approaches to organizational structure and design.
Organizational structure can play an important role in an organization’s
success. The process of
ORGANIZING—the second management
functions—is how an organization’s structure is created.
The nature of organization structure
Managers are seeking structural designs that
will best support and allow employees to effectively and
efficiently do their work.
Organizing is the process of creating
an organization’s structure.
is the formal pattern of interactions and
coordination designed by management to
link the tasks of individuals and groups in achieving organizational
organizational structure is
the formal framework by which job tasks are divided, grouped, and
1. This formal pattern designed by management is to be distinguished
informal pattern of interactions that simply emerges within an
2. Organization structure consists primarily of four elements:
a. Job design
c. Vertical coordination
d. Horizontal coordination
3. Organization design
is the process of developing an organization
Organizational design is the process of
developing or changing an organization’s structure. It involves
decisions about six
key elements: work specialization, departmentalization, chain of
command, span of control,
centralization/decentralization, and formalization. We need to take a
closer look at each of these structural
The organization chart
is a line diagram that depicts the broad outlines of
an organization’s structure.
While varying in detail from one organization to another, typically
organization charts show the major
positions or departments in the organization, the way positions are
grouped together, reporting
relationships for lower to higher levels, official channels for
communications, and possibly the titles
associated with major positions in the organization.
1. The organization chart provides a visual map of the
chain of command,
unbroken line of authority that ultimately links each individual with
organizational position thorough a managerial position at each
successive layer in
2. Nearly all organizations having just a few members have an
is the obligation or expectation to perform
and carry out duties and achieve goals related to
is the right inherent in a managerial position
to tell people what to do and to expect them to do
it, right to make decisions and carry out actions to achieve
While part of a manager’s work may be delegated, the manager remains
accountable for results.
is the requirement of being able to answer for
deviations from duties or expected results.
b. The fact that managers remain accountable for delegated work may
them to resist delegation.
Delegation is assignment of part of manager’s work to others along with
responsibility and authority.
1. In addition to issues of accountability, managers may resist
delegation for a
number of reasons.
a. Managers may fear if subordinates fail.
b. Managers may think they lack time to train
c. Managers may want to hold on to their power.
d. Managers may enjoy doing the tasks subordinates could do.
e. Managers may feel threatened by subordinates.
f. Managers may not know how to delegate.
2. Subordinates may resist delegation because of fear of failure or of
3. Failure to delegate may have serious negative consequences for a