0% found this document useful (0 votes)
107 views67 pages

Organizational Structures Guide

The document discusses different types of organization structures including line, functional, line and staff, product, project, and matrix organizations. It provides definitions and examples of each type as well as their advantages and disadvantages.

Uploaded by

Marjorie Agustin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
107 views67 pages

Organizational Structures Guide

The document discusses different types of organization structures including line, functional, line and staff, product, project, and matrix organizations. It provides definitions and examples of each type as well as their advantages and disadvantages.

Uploaded by

Marjorie Agustin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 67

Prepared by:

Amy Fe A. Adap
Phillip R. Foronda
Allen Christian M.
Project Management Gallardo
Sheila G. Griengo
Organizing and Staffing
Introduction
 Nature and Importance and purpose of
organization
 Principles of Organization
 Types of Organization
 Committees
 Centralization and Decentralization of Authority
and Responsibility
 Nature and Importance of Staffing
 Process of Selection and Recruitment
ORGANIZATION
 It is a social group which distributes tasks for a collective goal.
 The word itself is derived from the Greek Word ‘Organon”, itself derived
from a better-known word ‘ergon” – as we know ‘organ”- and it means a
compartment for a particular job.
Few Definitions

 Organization – is a system of cooperated


activities of two or more persons (Chester
Bernard)
 Organization is a form of human association for
the attainment of a common purpose – Mooney
and Reily
 Organization is a structural relationship by
which an enterprise is bound together and the
framework in which individual effort are
coordinated – Koontz and o’Donell
 Organization is like a musical store. T is not the
sound from each instrument which matters but
the harmony between them and overall – Peter
Drucker
Nature and Importance and Purpose of
Organization
o Made of People
o Common Goals and personal goals
o Both vertical and horizontal relationships
o Establishes authority or chain of command
o Dynamics of organization
o Facilitates administration
o Help optimum utilization of resources
o Coordination and direction
o Facilitates growth and diversification
o Stimulates creativity
o Enlarge abilities of employees
Principles of Organization
 Co-ordination
 Authority and responsibility
 Unity of objectives
 Span of control (Time, knowledge)
 Dividing and grouping of activities
 Delegation
 Communication
 Balance (between authority and responsibility)
 Flexibility
 Simplicity
 Primary Line and supportive Staff
Principles of Organization

 Productivity
value of goods and services produced/value of resources utilized for this
production
Formal organization

 It is an organization which
clearly defines the
authority, responsibility and
inter relations of people
working therein.
Authority, responsibility and
accountability of individuals in
the organization is very well
defined.
Hence, facilitating the co-
ordination of various activities
of the organization is very
effective.
Informal Organization

 One which is not reliant on a


hierarchical structure, typical
of large- scale companies.
Informal Originations have very
loose structures. People can
become members freely and
sometimes spontaneously:
relationships are undefined and
the sharing of responsibility and
involvement of members will
vary considerably.
Structure of the Organization depends on the
following facts:

NATURE OF THE
PRODUCT BEING
MANUFACTURED

FACTORS

COMPLEXITY
SIZE OF OF THE
ORGANIZATION PROBLEMS
BEING FACED
Main types of Organization

 Line, Military types of


organizations
 Functional Organization
 Line and Staff organization
 Product/Project organization
 Matrix or Grid Organization
 Committee organization
Line, Military types of organizations

 Simplest and earliest type of organization


 Clear cut Hierarchy of positions
 Authority flows directly from top too bottom
 GM level to worker level
 At all level immediate boss gives orders to his
subordinates
The Line Organization

Sales
Manager

Sales Sales Sales


person A person B person C
Advantages (LO) Disadvantages (LO

 Simple  Overload of work


 Flexible  Lack Specialization
 Clear-Cut division  Dictatorial Way
Authority  Scope for favouritism
 Strong Discipline  Lack of Growth
 Unstable for large
concern
Application of Line Organization

 Small enterprise :
restaurants
 Automatic and Continues
process industries such as
paper, sugar, textiles
industries
 Government Offices
Functional Organization
 Organized based on their activity or function
 A hierarchy where each employee has one clear superior .
 Staff members are grouped by function, specialty, or expertise.
 The project scope of these organizations are usually limited to the
boundaries of the function it is organized by.
 Each function is managed independently and has a limited span of control.
Functional Organization

Director

Admin Research Extension

Accounts Livestock Consumers

Agri-
Personnel Seeds
Processing

Purcahse Pesticides Producers


Advantages ( FO)

Specialization
Cost Reduction
Mass Production
No need for all around
executives
Disadvantages (FO)

 Functional design encourages narrow


specialization rather than general management
skills so that functional managers are not well
prepared for top executive position
 Functional units may be so concerned with their
own areas that they may be less responsive to
over all organizational needs
 Kills the initiative of workers
 No all around executives
Applications (FO)

 Educational Institutes
 Transport Systems
Line and Staff organization

 Combines the line organization with staff departments


that support and advise line departments. Most medium
and large-sized firms exhibit line-and-staff organizational
structures.
 The distinguishing characteristics between simple line
organizations and line-and-staff is the multiple layers of
management within line-and-staff organizations,
 The following sections refer primarily to line-and-staff
structures although the advantages and disadvantages
discussed apply to both types or organizational structures.
Line and Staff organization

 Examples of line
organizations are small
business in which the top
manager, often the owner, is
so positioned at the top of
the organizational structure
and has clear “ lines” of
distinction between him and
his subordinates.
Line-and-Staff Organization
Advantages ( LSO)
 Decision Efficiency
Staff managers generally perform their job
functions without managerial guidance or approval
 Company Oversight
Line Managers are vital to the success of any
growing business.
Line managers compose the chain of command,
and are responsible for directing, motivating and
supervising employees at all levels of an organization.
Line managers make formal decisions within their
sphere of authority that directly influence the way a
company does business, including production goals,
organizational policies and compensation decisions
Advantage of LOS
 Expert advice form specialist staff
executives can be made use of.
 Line executives are relieved of some of
their loads and are thus able to devote
more attention towards production.
 Less wastage of material, man and
machine hours.
 Quality of product is improved.
 There is no confusion as exists in
functional organization.
 Line and staff organization possesses
practically all the advantages of both
the line and functional organizations.
Disadvantages of LOS
 Product rate will increase because of high salaries of staff
executives.
 At times the staff department may infringe upon the
rights and responsibilities of the lines organization, thus
weakening the line organization when its true function is
to strengthen this organization.
 Line and staff organization may get confusion in case
functions are not clear.
 Frictions and jealousies if developed between line and
staff executives may cause harm to the enterprise.
 Line executives if they start depending too much on staff
executives may lose their initiative, drive and ingenuity.
Product Organization
 All jobs associated with producing and
selling a product or product line will be
placed under the direction of one manger
 Product becomes the preferred basis as a
firm grows by increasing the number of
products it markets
 Concentrating authority, responsibility, and
accountability in a specific department
allows top management to coordinate
actions
Product Organization Structure
Project Organization

 Structure that is specifically designed for executing


projects. It is specifically tailored to meet the demands of
complex projects by isolating unique work and
maintaining a strong focus on completing the project.
Once the project is completed, this structure disbands.
This structure is effective in maintaining dedicated
resources throughout the life of the project.
 In the company activities are group based on the project
 Example Fly over project, Metro Project, Airport project
Project Organization Structure

Program
Leader

Project Project Project


Leader A Leader B Leader C

Farm to Rural
Livelihood
Market Road Development
Project
Project Project
Matrix Organization
 An organizational structure that facilitates the
horizontal flow of skills and information. It is used
mainly in the management of large projects or
product development processes, drawing
employees from different functional disciplines
for assignment to a team without removing them
from their respective positions.
 Attempts to maximize the strengths and minimize
the weaknesses of both functional and product
bases.
Matrix organization structure
Chief Executive

Functional Functional Functional Project


Manager Manager Manager Manager

Project
Staff Staff Staff Manager

Project
Staff Staff Staff
Manager

Project
Staff Staff Staff
Manager

The dotted lines on the graphic represent where the Project Manager
coordinates projects and the gray boxes represent staff engaged in
project activities.
Advantages (MO)

 Flexible and versatile


 Result Oriented
 Responsibility is clearly
defined
 Cost
is reduced due to sharing
of manpower
 Better Professional
Identification is maintained
Committees
 Itis a smaller group within a larger
organization consisting of fewer
individuals and having its own
objectives
 Itis formed when a group of
individuals come together to discuss,
decide and recommend solutions to
certain issues of the organization.
 Itis compose to solve an issue of the
organization.
Different types of Committees

Ad-hoc
Standing or Permanent
Advisory committee
Educational Committee
Authority and Responsibility

Henri Fayol defines


authority “The right to give
orders and power to
demand obedience”
Authority will be given
based on position in the
hierarchy
Functions of Authority
 Itdemands and ensures
obedience from the
subordinates
 Helps in implementation of
decisions
 Help in coordination and
maintaining uniformity
Responsibility

 Authority and responsibility


are the two sides of the
same coin
 Authority is used to give
instruction to his or her
subordinates
 Responsibility refers to
accountability to ones action
Centralization
 A process where the concentration of decision making is in
few hands.
 All important decision and actions at the lower level, all
subjects and actions at the lower level are subject to the
approval of top management
 Implication of centralization
 Reservation of decision making power at top level
 Reservation of operating authority with thee middle level
mangers
 Reservation of operation at lower level at the directions of
the top level
Decentralization

A systematic delegation of authority at all


levels of management in all of the
organization. In decentralization concern,
authority in retained by the top
management for taking major decisions and
framing policies concerning the whole
concern. Rest of the authority may be
delegated to the middle level and lower
level of management.
STAFFING
Staffing

 Staffing
is the process
of acquiring, deploying,
and retaining a
workforce of sufficient
quantity and quality to
create positive impacts
on the organization’s
effectiveness.
(Heneman and Judge)
Nature of Staffing

 It is a continuous process
 Involves people
 Development oriented
 Involves multidisciplinary knowledge
 It is a step by step process
Importance of Staffing
 Biggest factor for success of an organization
 Filling Organizational positions ( good
systematic staffing)
 Develops competencies (right job to the right
person)
 It helps in identifying and nurturing talent
 It helps in building sound organization
 Helps in optimal utilization of resources
Scope of staffing

 Hiring
 Remuneration
 Motivation
 Employee
maintenance
 Human relations
Elements of Staffing

 Manpower planning
 Job analysis
 Recruitment and selection
 Training and development
 Performance appraisal
 Employment decisions (monetary rewards,
transfers, promotions and demotions)
 Separation
Human Resource Planning/Manpower
Planning
 “Manpower planning is the process
by which an organization ensures
that it has the right number and
the kind of people, at the right
place, at the right time, capable
of effectively and efficiently
completing those tasks that will
help the organization achieve its
over all objectives
Importance of manpower planning

 DEFINING FUTURE PERSONNEL NEED.


( Basis of recruiting and developing personnel)
 COPING WITH CHANGES
(Future changes can be cope up with effective
planning)
 PROVIDING BASE FOR DEVELOPING TALENTS.
(setting up the priorities before recruiting)
 INCREASING INVESTMENT IN HUMAN RESOURCES
(Provides the way foe effective utilization of
talents)
Job analysis

Job analysis is the process


of studying and collecting
information relating to the
operations and
responsibilities of a specific
job. The immediate products
of this analysis are job
descriptions and job
specifications”.
USES OF JOB ANALYSIS

 ORGANIZATIONAL DESIGN( building internal relationships)


 ACQUISITION OF PERSONNEL (planning, recruitment, orientation)
 HUMAN RESOURCE DEVELOPMENT ( career planning & training
&development)
 JOB EVALUATION & COMPENSATION ( determining relative worth of
job)
 PERFORMANCE APPRAISAL ( promotion, pay increase, training needs)
 SAFETY & HEALTH ( environmental & operational conditions)
 EMPLOYEE COUNSELLING ( choice of careers and rehabilitation)
Recruitment
 RECRUITMENT:
It is the process of finding and attracting
capable applicants for employment. The
process begins when new recruits are sought
and ends when their applications are
submitted. The result is a pool of applicants
from which new employees are selected.
 Is a process of searching for prospective
employees and stimulating them to apply
for jobs in the organization
 Enables management to select suitable
employees for its different jobs
Sources of Recruitment

INTERNAL EXTERNAL
Internal Sources

 People working in the


organization are promoted
for higher positions or
transferred to a different
department
 Helps to existing
employees to enjoy
benefits and
responsibilities of higher
posts
Advantage of Internal Sources
 Employ develops good will towards
management
 It provides them a chance to develop
financially and socially
 They will adjust with the new positions
immediately
 Less time consuming and less expensive
 Encourages employees to work harder in
order to attract promotions and generates
higher motivation levels.
Disadvantage of Internal Sources
 Sometimes it is difficult to get
the required talent and skilful
person for the post
 There may be limited choice
for promotion
 No chance for new ideas and
talents
 Discrimination and favouritism
External Sources

 Former employees
 Recommendation
 Employment exchange
 Campus interviews
 Advertisements
 Voluntary or walk-in applications
 Employment or HR consultants
 Labor unions
Advantage External Disadvantage of
Sources External Sources

 Can attract  Corruption


talented people
 Can attract
experienced  Difficult to judge
people attitude
 Can avoid
prejudice and
favouritism
Selection
 IT IS THE PROCESS OF
DIFFERENTIATING BETWEEN
APPLICANTS IN ORDER TO
IDENTIFY AND HIRE TOSE
WITH A GREATER LIKELIHOOD
OF SUCCESS IN A JOB.
 After completion of the
recruitment process
 It looks to be negative
process
 Done through screening
process
Selection Process 3
Emplyment
tess 4
2 Preliminary Group
test discussions

Receipt of
Final
1 job
application Selection interview 5

placement Checcking
reference
8 6
Medical
examiation

7
Employment tests

 Proficiency tests
 Aptitude Test
 Intelligence test
 Attitude test
 Interest test
 Movement test
TRAINING & DEVELOPMENT
 TRAINING:
“ Training is a short term process utilizing a
systematic and organized procedure by which non
managerial personnel learn technical knowledge and
skills for a definite purpose”.

 DEVELOPMENT:
“ development is a long term educational process
utilizing a systematic and organized procedure by
which managerial personnel learn conceptual and
theoretical knowledge for general purpose”.
ROLE OF TRAINING & DEVELOPMENT
 INCREASE IN EFFICIENCY
 INCREASE IN MORALE OF
EMPLOYEES
 BETTER HUMAN RELATIONS
 REDUCED SUPERVISION
 INCREASED ORGANIZATIONAL
VIABILITY AND FLEXIBILITY
PERFORMANCE APPRAISAL
 Major key to managing itself
 Basis in determining who is
promotable to higher position
 Determines strengths and
weaknesses of a manager
 Measures performance in
accomplishing goals and plans
 Integral part of organization
 Recognize legitimate desire of
employees for progress
 Essential for effective
management
APPRAISAL METHODS
 Graphic Rating Scale
 Critical Incidence Method
 BARS
 Self Appraisal
 180 Degree Appraisal
 360 Degree Appraisal
 Management by Objective
 Balance Score Card
Employment Decisions (monetary rewards, transfers,
promotions and demotions) & Separation

Employment decisions are classified as: monetary


rewards, promotion, transfer, and demotion.
Separations may be classified as either voluntary
and involuntary
Employee compensation is another area of
concern for staffing. The factors that affect
compensation are performance, the relative
worth of each job within the firm, labor market
conditions and prevailing wage rates, and the
type of pay system used.
Employee health and safety is another important
staffing concerns
CONCLUSION

 Staffing is the most vital asset


with an organization, without
which it cannot move ahead
in the competitive world.
 Staffing is an open system
approach. It is carried out
within the enterprise but is
also linked to external
environment.
END OF THE SHOW…

You might also like