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ORGANISING
TOPIC 3 :
NURUL HAZWANI HUSNA BINTI MOHD
RAZLAN TEO
09DUP15F1015
THE ELEMENT AND FORM OF
ORGANISATIONAL
STRUCTURE
AND DESIGN
Definition of
Organising
Organising is a process whereby
work activities are arranged and
allocated to employees in order
to achieve organizational goals
and objective .
1
2
IMPORTANCE OF
ORGANISING
1. Identification of
organizational activities
2.Departmentalization of
organizational activities3.Classifying authority
4.Coordination
between authority
and resposibility
ORGANISING
PROCESS
1.Alligning with
company’s mission and
vision
2.Determing
tasks,duities and
responsibilities
3.Grouping into logical
units ans subunits
4.Coordinating
resources
5.Monitoring and
feedback
3
BASIC ELEMENT OF
ORGANISATION
4
1. Job
Specialisation
2.
Departmentalisatio
n3.Chart and Chain
of Command
4.Span of
5.Delegation
6.Centralised
and
Decentralisati
on
1.Job specification
Employee will perform their specific job
according to their skills,qualification and abilities
2.Departmentalisation
Mean division of work and employee to different
organisational units that are responsible in resolving
the duties given.
3.Chart and Chain of Command
A graphic representation of a formal organization structure.It
is important to analysing problem in organization
Example of Organizational Chart
This chart can help manager to verify :
• Level of Management
• Chain of Command
• Positions and Types of Worked Performed
• Departmentalisation or Division of Work
4.Span of Control
• Known as Span Management
• Defined as : the number of subordinates or employee that a
managed by a manager.
• There 2 types of span of control
NARROW SPAN OF CONTROL WIDE SPAN OF CONTROL
A manager supervise a
small group of employees
,resulting in a tall
organization structure
A manager supervise a
larger group of employees
,resulting in a flat
organization structure
5.Delegation
• A process of assigning authority to another person and the
accountability of carrying out specific activities.
Authority
• The right given
to a person to
take action,to
make decisions
Responsibility
• The obligation
to perform the
task or duties
Accountability
• Liability
created for the
use of
authority.it is
the
answerability
for ther
performance
of the assigned
duties
1) Line authority
• Directly responsible for achieving organizational goals
• Based on legitimate power
2) Staff Authority
• Includes all elements of an organization.
• Based on expert power
• Held by individual or groups in an organization who provide
varied types of services and advice to line manager
3) Functional Authority
• It is necessary in carrying out many organizational
activities,both to provide a degree of uniformly
and allow for application of axpertise.
6.Centralised and Decentralization
A process where the focal point
of approval for secisions made
are subjected to the approval of
the top management.
Decentralization decision
making pose several
implication
TYPE OF
ORGANISATION STRUCTURE5
Divisional
Design
Matrix
Design
Functional
Design
1. Task are grouped according to organizational function such as production,
marketing and finance.
2. Use for small organizations that have a limited number of product or
services.
Managing Director
Production
Manager
Marketing
Manager
Finance
Manager
Advertising Sales
Different types of organisation have
different functional units to support
their business and operation.
PRODUCT
DEPARTMENTALIZATION
GEOGRAPHICAL
DEPARTMENTALIZATION
CUSTOMER
DEPARTMENTALIZATION
1. A form that the activities are grouped according to similarities in terms of product,market
and geographical location.
2. A divisional organisation can divided into 3 of departmentalization :
Product Departmentalization Geographical Departmentalization Customer Departmentalization
1) Task or group based on the product produced by
the organization
2) Practised by organization producing multiple
products.
3) Example :
1. Performed based on location.
2. Got branches in other location
3. responsible for the production and marketing of
product in their location
4. Example :
1. Based on customer group who purchase the
organisation’s product such as industrial
customer,ordinary customer and office customer
2. Responsible for producing and marketing the
products that will used by consumer in their
market.
3. Example :
Managing
Director
Inbound
Manager
Outbound
Manager
Umrah and Haji
Manager
General and
Administration
Manager
President
Vice President
U.S Operation
Accounting Marketing Operation
Human
Resources
Vice President
Accounting Marketing Operation
Human
Resources
CEO
VP Consumer
Product
Research and
Development
Manufacturing
Marketing and
Sale
VP Small
Business Market
Research and
Development
Manufacturing
Marketing and
Sale
VP S mall Major
Acconta
Research and
Development
Manufacturing
Marketing and
Sale
Chief Financial
Officer
Accounting
Planning
Staff
1. A type of structure that combines two or
more types of departmentalisation at the
same.
2. The employees report to two different
supervisors or managers.
3. It is also suitable for aoganization with
limited resources.
General
manager
Project A
Project C
Project B
Production
Manager
Production
unit
Production
unit
Production
unit
Finance
Manager
Finance
unit
Finance
unit
Finance
unit
Marketing
Manager
Marketing
unit
Marketing
unit
Marketing
unit
ADVANTAGES
AND DISADVANTAGES
6
DESIGN OF ORGANISATIONAL STRUCTURE ADVANTAGES DISADVANTAGES
1.Functional Design • Emphasizes job specialization in each department.
• Avoid conflict in resource allocation.
• Easier to control the employees as managers
practise job specialization.
• Involves the implementation of routine and
monotonous tasks.
• Lack of communication via meeting and employees
in different department.
• Cannot produce employees who are skilled in
many areas due to job specialization in specific
area.
2.Divisional Design PRODUCT DEPARTMENTALIZATION
• Allows specialization in particular products and
services
• Manager can become expert in their industry.
• Close to customer
• Duplication of function
• Limited view of organizational goals
GEOGRAPHICAL DEPARTMENTALIZATION
• More efficient handling of specific regional issue
that arise
• Duplication of function
CUSTOMER DEPARTMENTALIZATION
• Customer’s need and problems can be met by
specialis
• Duplication of functions
• Limited view or organisational goals
3.Matrix Design • Activities of each project are coordinated more
effectively and efficiently.
• Rewards are allocated fairly to managers and team
members.
• Experienced managers can handle any project
satisfactory
• Differences in opinion among team members on
ways to perform a task may result in conflict.
• Individuals performing important tasks must have
skills in specific area.
• Involves lengthly discussion sessions which may
hinder effort to perform duties effectively
T H A N K
OY U

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Organizing

  • 1. ORGANISING TOPIC 3 : NURUL HAZWANI HUSNA BINTI MOHD RAZLAN TEO 09DUP15F1015
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  • 8. THE ELEMENT AND FORM OF ORGANISATIONAL STRUCTURE AND DESIGN
  • 9. Definition of Organising Organising is a process whereby work activities are arranged and allocated to employees in order to achieve organizational goals and objective . 1
  • 10. 2 IMPORTANCE OF ORGANISING 1. Identification of organizational activities 2.Departmentalization of organizational activities3.Classifying authority 4.Coordination between authority and resposibility
  • 11. ORGANISING PROCESS 1.Alligning with company’s mission and vision 2.Determing tasks,duities and responsibilities 3.Grouping into logical units ans subunits 4.Coordinating resources 5.Monitoring and feedback 3
  • 12. BASIC ELEMENT OF ORGANISATION 4 1. Job Specialisation 2. Departmentalisatio n3.Chart and Chain of Command 4.Span of 5.Delegation 6.Centralised and Decentralisati on
  • 13. 1.Job specification Employee will perform their specific job according to their skills,qualification and abilities 2.Departmentalisation Mean division of work and employee to different organisational units that are responsible in resolving the duties given. 3.Chart and Chain of Command A graphic representation of a formal organization structure.It is important to analysing problem in organization Example of Organizational Chart This chart can help manager to verify : • Level of Management • Chain of Command • Positions and Types of Worked Performed • Departmentalisation or Division of Work
  • 14. 4.Span of Control • Known as Span Management • Defined as : the number of subordinates or employee that a managed by a manager. • There 2 types of span of control NARROW SPAN OF CONTROL WIDE SPAN OF CONTROL A manager supervise a small group of employees ,resulting in a tall organization structure A manager supervise a larger group of employees ,resulting in a flat organization structure 5.Delegation • A process of assigning authority to another person and the accountability of carrying out specific activities.
  • 15. Authority • The right given to a person to take action,to make decisions Responsibility • The obligation to perform the task or duties Accountability • Liability created for the use of authority.it is the answerability for ther performance of the assigned duties 1) Line authority • Directly responsible for achieving organizational goals • Based on legitimate power 2) Staff Authority • Includes all elements of an organization. • Based on expert power • Held by individual or groups in an organization who provide varied types of services and advice to line manager 3) Functional Authority • It is necessary in carrying out many organizational activities,both to provide a degree of uniformly and allow for application of axpertise.
  • 16. 6.Centralised and Decentralization A process where the focal point of approval for secisions made are subjected to the approval of the top management. Decentralization decision making pose several implication
  • 19. 1. Task are grouped according to organizational function such as production, marketing and finance. 2. Use for small organizations that have a limited number of product or services. Managing Director Production Manager Marketing Manager Finance Manager Advertising Sales Different types of organisation have different functional units to support their business and operation.
  • 20. PRODUCT DEPARTMENTALIZATION GEOGRAPHICAL DEPARTMENTALIZATION CUSTOMER DEPARTMENTALIZATION 1. A form that the activities are grouped according to similarities in terms of product,market and geographical location. 2. A divisional organisation can divided into 3 of departmentalization :
  • 21. Product Departmentalization Geographical Departmentalization Customer Departmentalization 1) Task or group based on the product produced by the organization 2) Practised by organization producing multiple products. 3) Example : 1. Performed based on location. 2. Got branches in other location 3. responsible for the production and marketing of product in their location 4. Example : 1. Based on customer group who purchase the organisation’s product such as industrial customer,ordinary customer and office customer 2. Responsible for producing and marketing the products that will used by consumer in their market. 3. Example : Managing Director Inbound Manager Outbound Manager Umrah and Haji Manager General and Administration Manager President Vice President U.S Operation Accounting Marketing Operation Human Resources Vice President Accounting Marketing Operation Human Resources CEO VP Consumer Product Research and Development Manufacturing Marketing and Sale VP Small Business Market Research and Development Manufacturing Marketing and Sale VP S mall Major Acconta Research and Development Manufacturing Marketing and Sale Chief Financial Officer Accounting Planning Staff
  • 22. 1. A type of structure that combines two or more types of departmentalisation at the same. 2. The employees report to two different supervisors or managers. 3. It is also suitable for aoganization with limited resources. General manager Project A Project C Project B Production Manager Production unit Production unit Production unit Finance Manager Finance unit Finance unit Finance unit Marketing Manager Marketing unit Marketing unit Marketing unit
  • 24. DESIGN OF ORGANISATIONAL STRUCTURE ADVANTAGES DISADVANTAGES 1.Functional Design • Emphasizes job specialization in each department. • Avoid conflict in resource allocation. • Easier to control the employees as managers practise job specialization. • Involves the implementation of routine and monotonous tasks. • Lack of communication via meeting and employees in different department. • Cannot produce employees who are skilled in many areas due to job specialization in specific area. 2.Divisional Design PRODUCT DEPARTMENTALIZATION • Allows specialization in particular products and services • Manager can become expert in their industry. • Close to customer • Duplication of function • Limited view of organizational goals GEOGRAPHICAL DEPARTMENTALIZATION • More efficient handling of specific regional issue that arise • Duplication of function CUSTOMER DEPARTMENTALIZATION • Customer’s need and problems can be met by specialis • Duplication of functions • Limited view or organisational goals 3.Matrix Design • Activities of each project are coordinated more effectively and efficiently. • Rewards are allocated fairly to managers and team members. • Experienced managers can handle any project satisfactory • Differences in opinion among team members on ways to perform a task may result in conflict. • Individuals performing important tasks must have skills in specific area. • Involves lengthly discussion sessions which may hinder effort to perform duties effectively
  • 25. T H A N K OY U