1. ORGANIZING
A process of designing an organization’s structure and coordinating its managerial practices.
An organizational structure is a pattern of
relationships through which people under the
direction of a given manager pursue common goals.

2. ORGANIZING cont... Organizational Structures show among other things:
Positions in the organization
Division of work activities incl levels of specialization
Reporting relationships
Link between different functions

3. Types of organizational structures
Flat structure
This is a structure with less formalisation and has its authority centralized in a single person.

4. flat structure cont…
General Manager
Employee

5. flat structure cont… Merits Enhances production
Makes decision making faster.
Promotes employee loyalty to the company owner.
It reduces boredom and monotony since employees vary their duties.

6. flat structure cont… Demerits Poor decisions are made
Discourages innovation
Lack of accountability and responsibility
Poor quality products and services

7. Functional structure
This groups people by common function

8. Functional structure cont...
General Manager
Accounting Manager
Credit controller
Projects Officer
Production Manager
Artisan A
Artisan B

9. Functional structure cont...
Merits
Enhances career development and training within departments
Makes supervision easier
Efficiency in the use of specialised resources

10. Functional structure cont...
Demerits
Employee loyalty to own departments.
Promotes boredom and monotony since employees will be doing routine duties.

11. Divisional structure
Brings together all the functions related to a certain type of product or service.
Each division resembles a separate business unit and may be self contained.

12. DIVISIONAL STRUCTURE cont...
Managing
Director
GM Div A
Production Manager
Procurement
Manager
GM Div B
Marketing
Finance

13. Basis for division
Geographical based divisions are based on physical location.
Merits
It lowers costs of operation since costs are for a specific unit.
Decentralisation of authority, which attracts quality decisions.
Knowledge of local social patterns may help in decision making.
It enhances commitment by members.

14. Basis for division cont…
Lack of control of the organization as a whole.
Employees may fail to see the divisions as part of the whole organization.

15. Basis for division cont…
Customer division is based on the type of customers or Markets being serviced.
It is designed when an organization has a diverse set of customers that can be grouped around common interests.
Merit: high customer satisfaction
Demerit: increases costs through duplication.

16. Basis for division cont…
Production process/equipment division is done according to the type of process being done, where each process require different skills and specialized equipment
Its major merit is its high specialization in the use of machines and personnel.

17. Matrix structure
An organization employs or sets aside from within specialist functions when new services or goods are being developed.
Some employees are allocated to assist the projects manager.

18. Matrix structure cont... Projects Manager CEO Div A G.M Manager
Finance
Marketing Manager
Div B
Production
Procurement Manager
Projects Manager

19. Matrix structure cont... Merits
It enhances flexibility as teams can be created, refined and dissolved as needed.
Employees can learn new skills from projects members.
It motivates employees as they will be identified with end products

20. Matrix structure cont... Demerits It is costly to implement
Encourages power struggles
Leads to more discussions than actions
It demands good interpersonal skills
Creates employee confusion.

22. Managers’ Powers
Authority is the right in a manager’s position to command or give orders.
Power is the leader’s ability to influence the behaviour of others.

23. Types of power Legitimate power
Authority that an organization grants to its positions.
Reward power
the right to give or withhold benefits or to provide subordinates with things they desire or value.
Rewards may be tangible (financial), symbolic (promotion), or social (praise, recognition).

24. Types of power cont... Expert power
comes from one’s experiences, skills or knowledge
Coercive power
Ability to enforce compliance through fear.
Referent power
This is when a leader is followed, trusted, liked or respected because of his/her desirable personal traits..

26. DELEGATION
The assignment to another person of formal authority and responsibility for the completion of a specific task.

27. Reasons for delegation
To enable managers get more work done.
Subordinates often have specialised knowledge required for a given task.
Helps subordinates improve their managerial skills.

28. Barriers to delegation
Fear that subordinates may fail to perform the task properly
Fear that delegating may reduce their authority
Fear that subordinates may excel and perform better than the manager.

29. Barriers to delegation cont...
Some tasks may be too complex and confidential to be delegated.
Some subordinates are afraid of challenges associated with responsibilities.
General rigidity by some managers.
Lack of incentives for completing delegated tasks.

30. Guidelines to effective delegation
The manager should decide on the duties to be delegated
Select appropriate subordinates to get the assignment
Provide sufficient resources for carrying out delegated duties
Specify the associated rules and regulations
Establish feedback systems
Reward effective delegation..