ORGANIZING TECHNICAL ACTIVITIES

ORGANIZING TECHNICAL ACTIVITIESReason for OrganizingIn effective organizing, steps are undertaken to breakdown the total job into more manageable man-size jobs. Doing these will make it possible to assign the particular tasks to particular personsOrganizing DefinedOrganizing is a management function which refers to the the structuring of resources and activities to accomplish objectives in an efficient and effective manner.Purpose of the Structure1. It defines the relationships betweentasks and authority for individuals anddepartments.2. It defines formal reporting relationships, the number of levels in the hierarchy of the organization, and the span of control.3. It defines the groupings of individuals into departments and departments into organization.4. It defines the system to effect coordination of effort in both vertical (authority) and horizontal (tasks) directions.

Concerns to be Addressed in Structuring Organization1. Division of labor 2. Delegation of authority 3. Departmentation4. Span of Control 5. Coordination

THE FORMAL ORGANIZATIONThe formal organization is the structure that details lines of responsibilities, authority, and position. What is depicted in the organization chart is the formal organization. It is the planned structure and it represents the deliberate attempt to establish patterned relationships among the components that will meetthe objectives effectively.The formal structure is described bymanagement through:Organization chart - is a diagram of the organizations official positions and formal lines ofauthority.

Organizational manual - provides written descriptions of authority relationships, details the functions of major organizational units, and describes job procedures.

Policy manuals - describes personnelactivities and company policies.

INFORMAL GROUPSThere are instances when members of an organization spontaneously form a group with friendship as a principal reason for belonging. This group is called an informal group. It is not part of the formal organization and it does not have a formal performance purpose. Informal groups are oftentimes very useful; in the accomplishment of major tasks, especially ifthese tasks conform to the expectations of the members of the informal group.The informal organization, useful as it is, is vulnerable to expediency, manipulation, and opportunism, according to Valentine. Its low visibility, Valentine added, makes it difficult for management to detect these perversions and considerable harm can be done to the company.

TYPES OF ORGANIZATIONAL STRUCTURESFunctional Organization this is a form of departmentalization in which everyone engaged in one functional activity, such as engineering or marketing, is grouped into one unit.Product or Market Organization this refers to the organization of a company by divisions that bring together all those involved with a certain type of product or customer.Matrix organization an organizational structure in which each employee reports both a functional or division manager and to a project or group manager.

Functional OrganizationFunctional organization structures are very effective in smaller firms, especiallysingle-business firms where key activities revolve around well-definedskills and areas of specialization.

AdvantagesThe groupings of employees who perform a common task permit economies of scale and efficient resource use.Since the chain of command converges at the top of the organization, decision-making is centralized, providing a unified direction from the top.Communication and coordination among employees within each department are excellent.The structure promotes high-quality technical problem-solving.The organization is provided with indepth skill specialization and development.Employees are provided with career progress within functional departments.

Disadvantages:Communication and coordination between the departments are often poor.Decisions involving more than one department pile up at the top management level and are often delayed.Work specialization and division of labor, which are stressed in a functional organization, produce routine, no motivating employee tasks.It is difficult to identify which section or group is responsible for certain problems.There is limited view of organizational goals by employees.There is limited general management training foremployees.

Product or Market OrganizationThe product or market organization, with its feature of operating by divisions, is appropriate fora large corporation with many product lines in several related companies.

AdvantagesThe organization is flexible and is responsive to change.The organization provides a high concern for customers needs.The organization provides excellent coordination across functionaldepartments.There is easy pinpointing of responsibility for product problems.There is emphasis on overall product and division goals.

DisadvantagesThere is a high possibility of duplication of resources across divisionsThere is less technical depth and specialization in divisions.There is poor coordination across divisions.There is less top management control.There is competition forcorporate resources.

Matrix OrganizationA matrix, organization, according to Thompson and Strickland, is a structure with two (or more) channels of command, two lines of budget authority, and two sources of performance and reward. Higgins declared that the matrix structure was designed to keepemployees in a central pool and to allocate them to various projects in the firm according to length of time they were needed.

AdvantagesThere is more efficient use of resources than the divisional structure.There is flexibility and adaptability tochanging environment.The development of both general and functional management skills are present.There is interdisciplinary cooperation and any expertise isavailable to all divisions.There are enlarged tasks for employees which motivate them better.

DisadvantagesThere is frustration and confusion from dual chain ofcommand.There is high conflict between divisional and functional interests.There are many meetings and more discussion than action.There is a need for human relations training for key employees and managers.There is a tendency for power dominance by one side of the matrix.

TYPES OF AUTHORITYLine authority a managers right to tell subordinates what to do and then see they do it.Staff authority a staff specialists right to give advice to superior.Functional authority a specialists right tooversee lower level personnel involved inthat specialty, regardless of where the personnel arein the organization.

Purpose of CommitteesA committee is a formal group of persons formed for a specific purpose. For instance, the product planning committee, as described by Millevo, is often staffed by top executives from marketing, production, research, engineering, and finance, who work part-time to evaluate and approve product ideas.Committees are very useful most especially to engineering and manufacturing firms. When a certain concern, like product development, is under consideration, a committee is usually formed to provide the necessary line-up ofexpertise needed to achieve certain objectives.

Committees may be classified as followsAd hoc committee - one created for a short-term purpose and have a limited life. An example is the committee created tomanage the anniversary festivities of acertain firm.Standing committee it is a relatively permanent committee that deals with issues on an ongoing basis. An example is the grievance committee set up to handle initially complaints from employees of the organization.

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