Chapter 10 – Organizing as a Management Function
•Organizing arranges people and resources to work toward a goal. As one of the basic
functions of management, it involves both creating a division of labour for tasks to be
performed and then coordinating results to achieve a common purpose.
•Organization Structure is a system of tasks, reporting relationships, and communication
linkages. Any structure should both allocate tasks through a division of labour and provide
for the coordination of performance results. A structure that does both of these things well is
an important asset, helping to implement an organization’s strategy.
•An organization chart describes the arrangement of work positions within an organization.
A typical organization chart identifies various positions and job titles as well as the lines of
authority and communication between them.
•A formal structure is the official structure of the organization. It represents the way the
organization is intended to function. Basics of an organization chart includes:
1.Division of work: positions and titles show work responsibilities.
2.Supervisory relationships: lines show who reports to whom.
3.Communication channels: lines show formal communication flows.
4.Major subunits: positions reporting to a common manager are shown.
5.Levels of management: vertical layers of management are shown.
•Informal structure is the set of unofficial relationships among an organization’s members.
If the informal structure could be drawn, it would show who talks to and interacts regularly
with whom regardless of their formal titles and relationships. Informal structures can be
very helpful in getting work accomplished.
Departmentalization is the process of grouping together people and jobs into work units. These
decisions have traditionally resulted in three major types of organizational structures – the
functional, divisional, and matrix structures.