As an engineer we need some skills in managing our construction project to ensure the project runs effectively and efficiently. Theories of organizing Organization Management Engineering Management Engineering Subject

1. ORGANIZING
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2. OBJECTIVES
• Realize that the purpose of an organization
structure is to establish a formal system of roles
that people can perform so that they may best
work together to achieve enterprise objectives.
• Know the importance of organizing as one of the
managerial function.
• Understand the meaning of “organizing”,
“organization” and “department”.
After this report, you should be able to:
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3. • Draw a distinction between formal and informal
organization.
• Recognize some common mistake made in organizing.
• Avoid mistakes in organizing by planning.
OBJECTIVES
After this report, you should be able to:
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4. WHAT IS ORGANIZING?
• It is the identification and classification of
required activities.
• The word “organizing” stems from the word
“organism” which means to create a structure
with parts fully integrated.
• Organizing is like a bridge connecting the
planning function to the accomplishment of
reality.
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5. This theory emphasizes rationale, efficiency, work
accomplishment, and balance in the size of the various
departments. Structure is considerable attention. This
implies a pattern revealing a logical arrangement of the
functions with limitations in the number of subordinate
that should report a superior.
Applicable when: there recurring problems – as if the situation is forever helpless, like:
a. Rush assignment
b .Persistent last minute crazes jobs
THEORIES OF ORGANIZING
1. The Classical Theory
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6. This theory strives to correct the shortcomings of the
classical theory. Contributions of the behavioral
sciences are heavily emphasized. There is much
attention paid to human relations, individual an group
behavior upon organizing, recognition of informal
groups within the formal organization, and
improvements for better functions.
THEORIES OF ORGANIZING
2. The Neoclassical Theory
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7. An organization attempts to use the individual
to further its goals and vice-versa. Emphasis
upon behavior, dealing largely with role, not job
modification.
THEORIES OF ORGANIZING
3. The Fusion Theory
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8. In this approach, organizing is viewed as a system of mutually dependent
variables. It is similar in approach to the system school of management.
The basic parts of the organizing system are the:
a. Individual
b. Formal organization or arrangement of functions
c. Informal organization
d. Reciprocal patterns of behavior arising from role demands of the
organization.
e. Physical environment in which the work is performed
THEORIES OF ORGANIZING
4. The System Theory
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9. The quantitative theory covers only a portion of
the considerations that affect organizing work.
For example, leadership, environmental informal
relationship and communications are excluded
in the analysis.
THEORIES OF ORGANIZING
5. The Quantitative Theory
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10. ORGANIZING PROCESS
Delegation of
authority
Enterprise
objectives
Supporting
objectives,
policies, and
plans
Identification
and
classification of
required
activities
Grouping of
activities in
light of
resources and
situations
Horizontal and
vertical
coordination of
authority and
informal
relationships
Staffing
Leading
Controlling
(Planning) (Other
functions)
(Organizing)
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11. An organization is a
social group of
individuals
deliberately created
and maintained for
the purpose of
achieving specific
goals.
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ORGANIZATION
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12. It implies a formalized
intentional structure of
roles or positions.
(Weihrich,
Koontz,1993)
ORGANIZATION
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13. CHARACTERISTICS OF ORGANIZATION
Goal Directed
Management Systems
Structural Systems
Psychosocial
Technological Systems
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14. FORMAL AND INFORMAL
ORGANIZATION
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15. FORMAL ORGANIZATION
 Formal organization means the intentional structure of roles
in a formally organized enterprise. Formal organization must
be flexible. There should be room for discretion for
advantageous utilization of creative talents, and for
recognition of individual likes and capacities in the most
formal of organizations. (Weihrich, Koontz,1993)
 Refers to the defined and visible organizational structure.
Formal positions, with their corresponding authority and
responsibility are known to all. The table of organization
reflects the line of authority and relationships
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16.  Any joint personal activity without conscious joint
purposes, even though contributing to joint results.
(Chester Barnard)
 A network of personal and social relations not
established or required by the formal organization
but arising spontaneously as people associate with
one another.`
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INFORMAL ORGANIZATION
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17. 17
FORMAL
ORGANIZATION
INFORMAL
ORGANIZATION
INFORMAL ORGANIZATION
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President
Vice-Presidents
Division managers
Department
managers

18. The normal way of describing the
structure of an organization.
The chart specifies the relationships,
levels of authority, responsibilities of
people, parts and activities.
ORGANIZATIONAL CHART
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19. ORGANIZATIONAL CHART
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20. CLASSICAL PRINCIPLES OF
MANAGEMENT
Objectives
Specialization Coordination
Authority
Responsibility
Delegation
Efficiency
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21. This refers to the number of people a manager can effectively
control and manage.
Executive span – 3-9 persons
Operative system – up to 30 persons
COORDINATION PROCESS
1. Unity of Command
This refers to the arrangement in an organization where there
is chain of authority in which each member knows to whom he
reports, and who reports to him in turn. It is hierarchy from top to
bottom. The subordinate is supposed to be accountable to one
superior.
2.Span of Control
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22. This refers to high degree of delegation of
responsibility and authority at the lowest level usually. It
must be that manager should be properly trained to make
decisions and solve superior’s problem.
3. Delegation of Authority
Authority refers to the right to command and flows
downward from top management. If authority is delegated
downward, then top management has more time to plan
and control.
4. Decentralization
COORDINATION PROCESS
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23. Some big companies have staff units like planning, legal counsel,
public relations, etc. located near the very top, either reporting to the
company president or to one occupying a vice president title. Some have
the staff located right next to the line department needing it, especially if it
is very large line operation.
5. Line and staff relationships
Line units normally mean a command relationship. Staff units refer to
advisory relationships. Line man would be concerned be with direct
operations, works assignments, and supervision of others. The staff man
influence, the works of others through suggestions, advice and
recommendations.
6. Location of Staff Units
COORDINATION PROCESS
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24. STRATEGIES FOR ORGANIZATIONAL
DEVELOPMENT
– this is the strategy that
is based on the
understanding the power
structure that people must
deal within the organization.
To be close/attach to
powerful influential people.
1. Political Strategy
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25. – emphasis in this
approach is on acquiring or
at least having influence
overall forms of materials
goals. If you are the budget
offices you are powerful.
STRATEGIES FOR ORGANIZATIONAL
DEVELOPMENT
2. Economic Strategy
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26. – this assumes that
people are rational. If you
present enough facts to
the people, the people
will make the change
required. Convincing
people by the facts
themselves.
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STRATEGIES FOR ORGANIZATIONAL
DEVELOPMENT
3. Academic Strategy
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27. – here we bring about
change in individual behavior
by dealing with the people.
The assumption seems to be,
if the environment or
surroundings change enough,
people will change also.
STRATEGIES FOR ORGANIZATIONAL
DEVELOPMENT
4. Engineering Strategy
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28. DEPARTMENT
Designates the distinct
area, division, or branch of
an enterprise over which
the manager has the
authority and
responsibility.
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29. 29
BASIC DEPARTMENTALIZATION
1. Departmentalization by numbers
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30. 30
BASIC DEPARTMENTALIZATION
2. Departmentalization by time
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31. 31
BASIC DEPARTMENTALIZATION
3. Departmentalization by enterprise function
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32. 32
BASIC DEPARTMENTALIZATION
4.Departmentalization by territory
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33. 33
BASIC DEPARTMENTALIZATION
5.Departmentalization by product
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34. 34
BASIC DEPARTMENTALIZATION
6. Departmentalization by customers
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35. 35
BASIC DEPARTMENTALIZATION
7.Departmentalization by service/product
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36. TOOLS AND TECHNIQUES OF
ORGANIZATION
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Among the most important tools and techniques available to
organizing executive are the following:
Records
Reports
Organizational charts
Manual of operation
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37. SOME MISTAKES IN ORGANIZING
Failure to clarify relationships
Failure to delegate authority
Failure to plan properly
Failure to balance delegation
Confusion lines of authority with
lines of information
Granting authority without
exacting responsibility
Holding people responsible who do
not have authority
Careless application of staff device
Misuse of functional authority
Multiple subordination
Misunderstanding of the function of
service departments
Over organization and under
organization
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38. SOLUTION TO MISTAKES IN ORGANIZING
• Organization charts
• Position description
1. AVOID MISTAKES IN ORGANIZING BY PLANNING
• Planning for the ideal
• Modification for the human factor
2. AVOIDING ORGANIZATIONAL INFLEXIBILITY
• Signs of inflexibility
• Avoiding inflexibility through reorganization
3. AVOIDING CONFLICT BY CLARIFICATION
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39. REFERENCES
2. URL:
Managementstudyguide.com. (2017). Organizing Function of
Management. [online] Available at:
http://www.managementstudyguide.com/organizing_function.htm
[Accessed 9 Dec. 2017].
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1. Textbook:
a. Koontz, H., & Weirich, H.(1993).Management: A Global
Perspective.10th ed. N.Y. : Mc Graw-Hill
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