Chapter 10 – Organizing
ORGANIZING AS A MANAGEMENT FUNCTION
Organizing: The process of arranging people and other resources to work together to accomplish a
Organizing is used to divide the work, arrange resources and coordinate activities.
What is organization structure?
Organization Structure: The system of tasks, workflows, reporting relationships, and
communication channels that link together diverse individuals and groups. As environments and
situations changes so must the structures.
The structure of the organization in its official state.
An organization chart is a diagram describing reporting relationships and the formal arrangement
of work positions within an organization.
An organization chart identifies the following aspects of formal structure:
oThe division of work: positions and titles show work responsibilities
oSupervisory relationships: lines show who reports to who
oCommunication channels: lines show formal communication flows
oMajor subunits: positions reporting to a common manager are shown
oLevels of management: vertical layers of management are shown
A “shadow” organization made up of the unofficial, but often critical, working relationships
between organization members.
If it was drawn it would show who talks to who, who has meetings with who, and who goes to coffee
Potential advantages of informal structures:
oHelping people accomplish their work: during times of change because out-dated formal
structures fail to provide support to people, so they use an informal structure to fill the
oOvercoming limits of formal structure: people are in personal contact of others, tasks are
not as strictly separated
oGaining access to interpersonal networks: social events, formal meetings
oInformal learning: interacting with people on a personal level
Potential disadvantages of informal structures:
oMay work against best interests of entire organization: outside formal authority system
oSusceptibility to rumor
oMay carry inaccurate information.
oMay breed resistance to change.
oDiversion of work efforts from important objectives.
oFeeling of alienation by outsiders: “shadow cabinet” those who have high power working in
an inclusive environment
TRADITIONAL ORGANIZATION STRUCTURES
Departmentalization: process of grouping together people and jobs into work units