The document discusses key concepts in organizing, including: - Chain of command principles regarding authority and responsibility. - The purpose of organizational structures to define relationships and reporting hierarchies. - Formal vs informal structures, with formal being planned and informal arising spontaneously. - Concepts like span of control, departmentalization by function, and matrix structures. - The organizing process of identifying activities and classifying them into departments. - Centralization vs decentralization of decision making within an organization.

1. Principles of Management

2. ORGANISING

3. Chain of Command AUTHORITY < RESPONSIBILITY

4. Chain of Command AUTHORITY > RESPONSIBILITY

5. Chain of Command AUTHORITY = RESPONSIBILITY

6. Concepts in organizing Purpose of a structure Formal & informal structures Narrow & wide span of control Departmentalization Line & Staff Delegation - decentralization

7. Purpose of the Structure Defines relationships between tasks and authority Defines formal reporting relationships, levels of hierarchy, span of control Defines individual departments Defines systems that affects the organization

8. Formal System Planned structure Lines of responsibility, authority, and position Establish patterned relationships among components Can be described through: Organizational Chart Policy Manual Departments

9. Informal System Based on needs, sentiments, and interests of people Vulnerable to expediency, manipulation and opportunism More subtle and invisible in the organizational chart Can be classified as: Horizontal = same department or same level Vertical = different levels Mixed = combination of both

10. Formal vs Informal Organizations Not formally planned Arise spontaneously as a result of interactions Not depicted in a chart Stressed by human relation theory Have planned structure Deliberate attempts to create patterned relationships Usually shown by a chart Advocated by traditional theory FORMAL INFORMAL

11. Span of Control Span of 8 (Classical) Span of 4 (Contemporary)

12. Classical Viewpoint SPAN OF 8 Base level = 4096 Managers (levels 1-4) = 585

13. Contemporary Viewpoint SPAN OF 4 Base level = 4096 Managers (levels 1-6) = 1365

14. Departmentalization Putting specialists together Direction of a manager Departmentation Process Setting up and establishing departments

15. Departmentalization Can be done by: Function Geography / Territory Customers Product Flexibility (Matrix) SBUs Virtual

16. Organizing Process

17. Identify Activities Production Delivery Selling Maintaining Personnel Training Accounting Advertising Recruitment Purchasing Compensating Budgeting Quality Control

18. Classify Activities in Departments MARKETING OPERATIONS FINANCE HUMAN RESOURCES >Selling >Advertising >Delivery >Production >Purchasing >Quality control >Accounting >Budgeting >Compensating >Recruitment >Training >Maintaining personnel

19. Matrix Structure Represents the most fluidsystem – dots are individuals or groups Can function on different levels according to the requirements of the task – project

20. Matrix structure Pluses (loaning employees) Allows to share information more readily across task boundaries Allows for specialization that can increase depth of knowledge Minuses: Employees can get confused – conflicting loyalties To overcome: managers/parties must work closely together

21. Centralization & Decentralization

22. Centralization & Decentralization