Prepared by Pheng Khna, Siv VutthyBuild Bright University 1 Organizing i-foundation of organizing What is Organizing?  Organizing: It is the process of arranging all of the resources in order to execute the organization plans. 1-What is an organization structure? It is a system or network of communication and authority that links people and groups of people together to achieve important tasks. Chapter3:

Prepared by Pheng Khna, Siv VutthyBuild Bright University 2 2 -The process of building an organization structure Step1: Review plans and objectives It is the starting point of building an organization structure. It is dictate the purpose and activities that organization have or will have. Step2: Determine work activities Determine what activities are necessary to accomplish the organizational objectives. (create a list of tasks to accomplished objectives)

Prepared by Pheng Khna, Siv VutthyBuild Bright University 3 Step3: Classify and group activities Examine activities identified to determine its general nature (marketing, production, finance, and personnel), group the activities into these areas, and establish the basic department design for the organization structure. Step4: Assign the work and delegate authority The activities now must be designed to individuals who are simultaneously given the appropriate authority to accomplish the task.

Prepared by Pheng Khna, Siv VutthyBuild Bright University 4 Step5: Design a hierarchy of relationship Determine the vertical and horizontal operating relationships of the organization as a whole. 3-Role of Organization

Prepared by Pheng Khna, Siv VutthyBuild Bright University 5 4-Characteristics of organitional structure  Authority  Line authority: the authority that follows the chain of command established by formal hierarchy.  Staff authority: the authority that supports, assists, and advises of line authority.  Functional authority: the authority to make decisions on specific activities.

Prepared by Pheng Khna, Siv VutthyBuild Bright University 6  Delegation  Assignment of tasks : specific tasks or duties that are to undertaken by manager for assignment to the subordinates.  Delegation of authority: a guideline for authority should be delegated to complete the duties or tasks.  Acceptance of responsibility : when we accept the assignment, we have an obligation to do our best to complete the task provided by the manger.  Accountability: being answerable to others for the results of one’s actions.

Prepared by Pheng Khna, Siv VutthyBuild Bright University 7  Centralization and Decentralization of authority  Centralization : the concentration of authority at the top of an organization or department.  Decentralization : a high degree of delegated authority throughout an organization or department.

Prepared by Pheng Khna, Siv VutthyBuild Bright University 8 5-Types of organizational structure  Line organization It is the simplest and the oldest form of organization structure. It is one that establish a clear line of authority flowing from the top downward through every subordinate position. It is appropriation when Jobs are simple and Routine, few Employees, and The manager can stay in complete control GM Sales Manager Production Manager

Prepared by Pheng Khna, Siv VutthyBuild Bright University 9  Line and Staff organization It is one that has a clear chain of command from top downward but that also includes various auxiliary groups of people who come under the heading of staff. GM Marketing Manager Production Manager Finance Manager Staff Service

Prepared by Pheng Khna, Siv VutthyBuild Bright University 10  Functional organization It is one in which specialists are given direct authority in their particular area of expertise. That is the one alternative to line organization. GM Marketing Manager Production Manager Finance Manager HR Manager

Prepared by Pheng Khna, Siv VutthyBuild Bright University 11  Committee organization It is a formal groups in that they are created by the organization, but it is usually not as specific as that of the task group. Committees are routinely used for resolving conflict within the organization, recommending decisions to senior management, generative ideas, and innovative solutions that confronting the business.

Prepared by Pheng Khna, Siv VutthyBuild Bright University 12 Management Committee Chair of the board, GM, senior and deputy general manager Marketing Manager Production Manager Finance Manager HR Manager Board Of Director Committee organization chart

Prepared by Pheng Khna, Siv VutthyBuild Bright University 13 Project Manager  Matrix organization It is one that assigns specialists from functional departments to work on one or more projects that are led by a project manager. President Vice Pre Project Manager

Prepared by Pheng Khna, Siv VutthyBuild Bright University 14 iI- Human resource management 1-What is HRM?  HRM: is the process of staffing function of the organization, including the activities of human resource planning, recruitment, selection, orientation, training, performance evaluation, compensation, and safety and health. 2-Why is managing HR so importance? There are many factors affect to the business including:

Prepared by Pheng Khna, Siv VutthyBuild Bright University 15 3-Human Resource Management Process a)-Human Resource Planning Is the process of reviewing human resource requirements to ensure that required number of employees with the required skill available when they are needed.

Prepared by Pheng Khna, Siv VutthyBuild Bright University 16 Strategic Plan Human Resource Planning Forecasting Human Resource Requirement Reviewing Human Resource Inventory Demand=SupplyShortage of workersSurplus workers Comparison of Requirement and availability No Action -Restrict hiring -Reducing hours -Early retirement -Layoff Requirement /Selection HR Planning Process

Prepared by Pheng Khna, Siv VutthyBuild Bright University 17 b)-Recruitment It is the process of attract people to apply for jobs with appropriate quality. Sources of Recruitment  Internal: hiring from the inside.  External: hiring from the outside.

Prepared by Pheng Khna, Siv VutthyBuild Bright University 18 Human Resource Planning Alternative to recruitment Recruitment Individuals Internal Source External Source Internal Method External Method Recruitment Recruitment Process

Prepared by Pheng Khna, Siv VutthyBuild Bright University 19 c)-Selection It is the process by which an organization choose from a list of applicants the person or persons who best meet the criteria for the position available, considering current environment condition.

Prepared by Pheng Khna, Siv VutthyBuild Bright University 20 Selection Process Step1: Preliminary Screening interview Step2: Application Blank completed Step3: Employment interview Step4: Employment test Step5: More Interview Step6: Background And Reference Check Step7: Conditional Offer Step8: Physical examination Step9: Decision

Prepared by Pheng Khna, Siv VutthyBuild Bright University 21 d)-Orientation It is the series of activities that give new employees the information to help them adapt to the organization and their new jobs.  Organization orientation  Company history, products and services  Organization structure and important role  Policy and Procedure  some areas  Personal organization  Work area, department or office  Duties and Responsibility  Team members  Position or Role

Prepared by Pheng Khna, Siv VutthyBuild Bright University 22 Human Resource Development Process It is the process of improving employee competency levels and organizational performance through training, education, and development programs. Determine HRD needs Establish specific Objectives Select HRD Method Evaluation HRD Program Implement HRD Program Select HRD Media

Prepared by Pheng Khna, Siv VutthyBuild Bright University 23 e)-Performance Evaluation It is a formal system of periodic and evaluation of an individual’s job performance. Identify specific Performance Evaluation Goals Establish job Expectation Examine Work Performance Discuss Performance Evaluation Evaluate Performance Performance evaluation Process

Prepared by Pheng Khna, Siv VutthyBuild Bright University 24 f)- Compensation It refer to every types of rewards that individual receive in return for their labor. Compensation structure in the organization Compensation FinancialNon-financial DirectIndirect Job Environment -Wage -Salary -Commission -Bonuses -… -Insurance -Social benefit -Pad absent -… -Interest duty -Responsibility -Recognition -… -Coworker -Flextime -Cafeteria -…

Prepared by Pheng Khna, Siv VutthyBuild Bright University 25 g)-Safety and Health It is mean of reducing potential suffering and keeping health.  Safety: involves protecting employees from injures caused by work-related accidents.  Health: refer to employees’ freedom from physical and emotional illness.