Modern Management
9th edition
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 Objectives
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An understanding of the organizing function
An appreciation for the complexities of determining appropriate
organizational structure
Insights into the advantages and disadvantages of division of labor
A working knowledge of the relationship between division of labor
and coordination
An understanding of span of management and the factors that
influence its appropriateness
An understanding of scalar relationships
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A DEFINITION OF ORGANIZING
Fayol’s Guidelines
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Judiciously prepare and execute the operating plan
Organize the human and material facets
Establish a single competent, energetic guiding authority
Coordinate all activities and efforts
Formulate clear, distinct, and precise decisions
Arrange for efficient selection
Define duties
Encourage initiative and responsibility
Offer fair and suitable rewards for services rendered
Make use of sanctions against faults and errors
Maintain discipline
Ensure that individual interests are consistent
Recognize the unity of command
Promote both material and human coordination
Institute and effect controls
Avoid regulations, red tape, and paperwork
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A DEFINITION OF ORGANIZING
The Importance of Organizing
Typical responsibilities would include developing:
1. Reorganization plans for effective and efficient systems
2. Plans to improve managerial skills
3. An advantageous organizational climate
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A DEFINITION OF ORGANIZING
The Organizing Process
1. Reflect on plans and objectives
2. Establish major tasks
3. Divide major tasks into subtasks
4. Allocate resources and directives
5. Evaluate results
The Organizing Subsystem
Enhance goal attainment
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A DEFINITION OF ORGANIZING
The five main steps of the organizing process
Figure 10.1
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A DEFINITION OF ORGANIZING
Relationships between overall management system
and organizing subsystem
Figure 10.2
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A DEFINITION OF ORGANIZING
Organizing subsystem
Figure 10.3
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CLASSICAL ORGANIZING THEORY
Weber’s Bureaucratic Model
Structure
Authority and Responsibility
Structure and Gender
Formal and Informal Structure
Departmentalization and Formal Structure:
A Contingency Viewpoint
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CLASSICAL ORGANIZING THEORY
Sample organization chart for a small restaurant
Figure 10.4
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CLASSICAL ORGANIZING THEORY
Structure (con’t)
Functional Departmentalization
Product Departmentalization
Geographic Departmentalization
Customer Departmentalization
Manufacturing Process Departmentalization
Forces Influencing Formal Structure
1. Manager
2. Task
3. Environment
4. Subordinates
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CLASSICAL ORGANIZING THEORY
Organization structure based primarily on function
Figure 10.5
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CLASSICAL ORGANIZING THEORY
Organization structure based primarily on product
Figure 10.6
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CLASSICAL ORGANIZING THEORY
Organization structure based primarily on territory
Figure 10.7
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CLASSICAL ORGANIZING THEORY
Organization structure based primarily on customers
Figure 10.8
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CLASSICAL ORGANIZING THEORY
Organization structure based primarily on manufacturing process
Figure 10.9
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CLASSICAL ORGANIZING THEORY
Combined organization chart for Greene Furniture Company
Figure 10.10
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CLASSICAL ORGANIZING THEORY
Division of Labor
Advantages and Disadvantages of Division of Labor
Division of Labor and Coordination
Follett’s Guidelines on Coordination
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CLASSICAL ORGANIZING THEORY
Span of Management
Designing Span of Management: A
Contingency Viewpoint
Similarity of functions
Geographic continuity
Complexity of functions
Coordination
Planning
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CLASSICAL ORGANIZING THEORY
Table 10.1
Major Factors that Influence the Span of Management
Factor Has Tendency to Increase
Span of Management When—
Factor Has Tendency to Decrease
Span of Management When—
1. Similarity of functions
1. Subordinates have
similar functions
1. Subordinates have
different functions
2. Geographic contiguity
2. Subordinates are
physically close
2. Subordinates are
physically distant
3. Complexity of functions
3. Subordinates have
simple tasks
3. Subordinates have
complex tasks
4. Coordination
4. Work of subordinates needs
little coordination
4. Work of subordinates needs
much coordination
5. Planning
5. Manager spends
little time planning
5. Manager spends
much time planning
Factor
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CLASSICAL ORGANIZING THEORY
Span of Management (con’t)
Graicunas and Span of Management
Graicunas’ formula:
2n
C=n
+n-1
2
(
)
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CLASSICAL ORGANIZING THEORY
Span of Management (con’t)
Height of Organization Chart
Tall chart: Greater height - Smaller span
Flat chart: Lower height - Greater span
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CLASSICAL ORGANIZING THEORY
Relationship between organization chart height
and span of management
Figure 10.11
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CLASSICAL ORGANIZING THEORY
Scalar Relationships
Unity of command
Fayol’s Guidelines on Chain of Command
Gangplank
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CLASSICAL ORGANIZING THEORY
Sample organization chart showing that adhering
to the chain of command is not advisable
Figure 10.12
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Chapter Ten
Questions
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