Lunes, Hulyo 29, 2013

ORGANIZATIONAL STRUCTURE



A.     BASIC CONCEPT
B.     BUREAUCRATRIC MODEL
C.     PARTICIPATORY MODEL
D.     ALTERNATIVE MODEL OF ORGANIZATIONAL STRUCTURE
E.     THE SCHOOL AS A SOCIAL SYSTEM



BASIC CONCEPT
When two or more people work together to achieve a group result, it is an organization. After the objectives of an organization are established, the functions that must be performed are determined. Personnel requirements are assessed and the physical resources needed to accomplish the objectives determined. These elements must then be coordinated into a structural design that will help achieve the objectives. Finally, appropriate responsibilities are assigned.
KEY TERMS
Ø  Departmentalization - the grouping of related functions into manageable units to achieve the objectives of the enterprise in the most efficient and effective manner.
Ø  Delegation - the process that makes management possible because management is the process of getting results accomplished through others. Delegation is the work a manager performs to entrust others with responsibility and authority and to create accountability for results. It is an activity of the organizing function.
Ø  Scalar principle (chain of command)-  a clear definition of authority in the organization. This authority flows down the chain of command from the top level to the first or lowest level in the organization.
Ø  Centralization - occurs in an organization when a limited amount of authority is delegated.
Ø  Decentralization - occurs when a significant amount of authority is delegated to lower levels in the organization.
Ø   Contingency approach - an approach to organizational structure that states that the most appropriate organizational structure depends on the situation, consisting of the particular technology, the environment, and many other dynamic forces.  

DEPARTMENTALIZATION
Grouping related functions into manageable units to achieve the objectives of the enterprise in the most efficient and effective manner is departmentalization. A variety of means can be utilized for this purpose. The primary forms of departmentalization are by function, process, product, market, customer, geographic area, and even matrix (also called project organization). In many organizations, a combination of these forms is used.
FUNCTION
Perhaps the oldest and most common method of grouping related functions is by specialized function, such as marketing, finance, and production (or operations). Sometimes this form of departmentalization may create problems if individuals with specialized functions become more concerned with their own specialized area than with the overall business. An example of departmentalization by function appears in Figure 11-1 below.

PRESIDENT





OPERATIONS
MARKETING
FINANCE

PROCESS
Departmentalization can also take place by process. This type of departmentalization, which often exists in manufacturing companies, is illustrated in Figure 11-2 below. 

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PATTERN
TREATMENTS OF
PAINTING AND
DESIGN
MATERIALS
FINISHING

PRODUCT
Whenever specialized knowledge of certain products or services is needed, departmentalization by product may be best. This usually occurs in large diversified companies. This form of departmentalization is illustrated in Figure 11-3 below.
VICE
PRESIDENT

MARKETING





LINCOLN
MERCURY
FORD

MARKET
When a need exists to provide better service to different types of markets, departmentalization by market may be the appropriate form. An example of a business serving nonprofit markets, which uses the market form of departmentalization, is shown in Figure 11-4 below. 
KEY CUSTOMER

ACCOUNTS MANAGER





IBM
GENERAL FOODS
PEPSICO

CUSTOMER
Sometimes key or major customers warrant departmentalization by customer.  This is often the case in banks.  See Figure 11-5 below.
KEY CUSTOMER

ACCOUNT MANAGER





IBM
GENERAL FOODS
PEPSICO

GEOGRAPHIC AREA
When organizations are spread throughout the world or have territories in many parts of a country, departmentalization by geographic area may provide better service to customers and be more cost effective. A typical example for this form of departmentalization is shown in Figure 11-6 below.
VICE

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NORTHWEST REGION
MIDWEST REGION
WESTERN REGION

MATRIX (PROJECT ORGANIZATION)
Departmentalization by matrix, or project, has received considerable use in recent years, particularly in such industries as aerospace (e.g., NASA). In this method, personnel with different backgrounds and experiences that bear on the project are assembled and given the specific project to be accomplished within a certain time period. When the project is completed, these specialized personnel return to their regular work assignments. An example of this form is illustrated in Figure 11-7 below; it often takes the shape of a diamond.
LABOR RELATION MANAGER



CORPORATE PRESIDENT


VICE PRESIDENT LABOR RELATIONS - CORPORATE HEADQUARTERS



GENERAL MANAGER

COMBINATION APPROACH
Many organizations, particularly large, physically dispersed and diversified organizations, utilize several different forms of departmentalization. Figure 11-8 is an organizational chart showing the use of several forms of departmentalization.

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FUNCTION
VICE PRESIDENT
VICE PRESIDENT
VICE PRESIDENT
OPERATIONS
MARKETING
FINANCE




MARKET
DIRECTOR
DIRECTOR
DIRECTOR
HEALTHCARE
GOVERNMENT
EDUCATION




GEORAPHIC AREA
AREA MANAGER
AREA MANAGER
AREA MANAGER

YOU SHOULD REMEMBER
Determining the functions to be performed in an organization involves consideration of division of labor; this is usually accomplished by a process of departmentalization. The primary forms of departmentalization are by function, process, product, market, customer, geographical area, matrix (project) or some combination of them

DELEGATION--THE ART OF MANAGING 
As shown earlier, the process of managing begins with the establishment of objectives. Once the objectives have been established, the functions that must be accomplished are considered. Then the work to be performed or the responsibilities to be assigned are determined. This means it is necessary to know the personnel and physical resources needed to accomplish the objectives of the enterprise. Thus, when the functions, personnel, and other resources are grouped together by some means of departmentalization into a logical framework or organizational structure, the process of delegation begins.
Delegation is the process that makes management possible. Why? Because management is the process of getting results accomplished through others.
PARITY OF AUTHORITY AND RESPONSIBILITY 
An important principle of organization as well as management is that authority should equal responsibility. This principle is known as the parity of authority and responsibility and ensures that work will be performed with a minimum amount of frustration on the part of personnel. By not delegating authority equal to responsibility, a manager will create employee dissatisfaction and generally waste energies and resources.
SCALAR PRINCIPLE
This concept is generally referred to as the chain of command.  It means that there should be a clear definition of authority in the organization and that this authority flows, one link at a time, through the chain of command from the top to the bottom of the organization. Communication in the organization is through channels. Following this principle generally results in clarification of relationships, less confusion, and improved decision-making.
DELEGATION DO'S AND DON’TS
Do's
· Delegate as simply and directly as possible. Give precise instructions.
· Illustrate how each delegation applies to organizational goals.
· Mutually develop standards of performance.
· Clarify expected results.
· Anticipate the questions your employees may have, and answer them in order.
· Discuss recurring problems.
· Seek employee ideas about how to do the job.
· Accentuate the positive rather than the negative. Be supportive.
. Exhibit trust
· Recognize superior performance.
· Keep your promises.
Don'ts
· Do not threaten your staff. Effective delegation depends more on leadership skills than on position power.
· Do not assume a condescending attitude.
· Do not merely give answers. Show an employee how to do something and why it is done that way.
· Do not overreact to problems. Refrain from criticizing an employee in front of others.
· Avoid excessive checks on progress.
CENTRALIZATION VERSUS DECENTRALIZATION 
The issues of centralization and decentralization involve the principle of delegation of authority. When a limited amount of authority is delegated in an organization, it is usually characterized as centralized. When a significant amount of authority is delegated to lower levels in the organization, the business is characterized as decentralized.  Centralization and decentralization are opposites, and there are different degrees of each. In a highly centralized organization, employees at lower levels have a limited range of decision-making authority. The scope of authority to make decisions in decentralized organizations, by way of contrast, is very broad for lower level employees.
ADVANTAGES OF CENTRALIZATION
1.   Closer control of operations
2.   Uniformity of policies, practices, and procedures
3.   Better use of centralized, specialized experts
ADVANTAGES OF DECENTRALIZATION
1.   Faster decision-making without resort to higher level consultation
2.   Excellent training experience for promotion to higher level management
3.   Decisions better adapted to local conditions

ORGANIZATIONAL STRUCTURES
YOU SHOULD REMEMBER
The issues of centralization and decentralization involve the principle of delegation of authority. In centralization, a limited amount of authority is delegated; in decentralization, a significant amount of authority is delegated to lower levels. Each form has its advantages and disadvantages and is affected by a number of factors, such as size of organization and the amount of geographic dispersion.

MAJOR TYPES OF ORGANIZATIONAL STRUCTURE
Although there are a number of variations of organizational structure, we shall discuss line and staff organizations and committee organization here.
LINE ORGANIZATION
The line organization is the simplest organizational structure. It is the "doing" organization, in that the work of all organizational units is directly involved in producing and marketing the organization's goods and services. There are direct vertical links between the different levels of the scalar chain. Since there is a clear authority structure, this form of organization promotes greater decision making and is simple in form to understand.
On the other hand, managers may be overburdened when they have too many duties. Figure 11-11 below illustrates a simple line organization.


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VICE PRESIDENTS
VICE PRESIDENT

OPERATIONS


MARKETING







PURCHASING
ASSEMBLY
QUALITY CONTROL
PROMOTION
SALES
MARKETING

LINE AND STAFF ORGANIZATION
When staff specialists are added to a line organization to "advise; "serve;” or “support" the line in some manner, we have a line and staff organization. These specialists contribute to the effectiveness and efficiency of the organization. Their authority is generally limited to making recommendation to the line organization.
Sometimes this creates conflict. However, such conflict can be reduced by having staff specialists obtain some line experience, which will tend to make them better understand the problems facing the line managers they support. Such functions as human resources management and research and development are typical staff functions. Figure 11-12 below provides an example of such a structure.

_ _ _ _ _ _
PRESIDENT
_ _ _ _ _ _




DIRECTOR


DiRECTOR RESEARCH
PERSONNEL


AND DEVELOPMENT





VICE PRESIDENT
VICE PRESIDENT
OPERATIONS
MARKETING

COMMITTEE ORGANIZATION
When a group of people is formally appointed to consider or decide certain matters, this type of structure is a committee. Committees can be permanent (standing) or temporary and usually supplement line and staff functions. Sometimes ad hoc or temporary committees are set up to deal with a specific problem. Once this committee makes its recommendations, it is dissolved. On the other hand, permanent committees usually act in an advisory capacity to certain organizational units or managers. For example, committees are used to a large extent in universities. They may report to a dean or department chair. Certain committees, called plural committees, have the authority to order, not only to recommend. These committees are usually reserved for a very high level, such as the board of directors. An example is an executive committee of the board for compensation or for succession planning.
CONTINGENCY APPROACH
This approach indicates that the most appropriate organizational structure depends not only on the organizational objectives but also on the situation, which includes the environment, the technology employed, the rate and pace of change, the managerial style, the size of the organization, and other dynamic forces.

ANOTHER FACE!
An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment.
Organizations are a variant of clustered entities.
An organization can be structured in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs.
Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual.
Organizational structure affects organizational action in two big ways.
-          First, it provides the foundation on which standard operating procedures and routines rest.
-          Second, it determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organization’s actions.
Operational organizations and informal organizations

The set organizational structure may not coincide with facts, evolving in operational action. Such divergence decreases performance, when growing. E.g., a wrong organizational structure may hamper cooperation and thus hinder the completion of orders in due time and within limits of resources and budgets. Organizational structures shall be adaptive to process requirements, aiming to optimize the ratio of effort and input to output.

Organizational structure types

Pre-bureaucratic structures

Pre-bureaucratic (entrepreneurial) structures lack standardization of tasks. This structure is most common in smaller organizations and is best used to solve simple tasks. The structure is totally centralized. The strategic leader makes all key decisions and most communication is done by one on one conversations. It is particularly useful for new (entrepreneurial) business as it enables the founder to control growth and development.

They are usually based on traditional domination or charismatic domination in the sense of Max Weber's tripartite classification of authority

BUREAUCRATIC MODEL

Bureaucratic structures have a certain degree of standardization. They are better suited for more complex or larger scale organizations, usually adopting a tall structure. The tension between bureaucratic structures and non-bureaucratic is echoed in Burns and Stalker's distinction between mechanistic and organic structures. There is precision, speed, unambiguity, strict subordination, reduction of friction and of material and personal costs- these are raised to the optimum point in the strictly bureaucratic administration. It is also defined as clear roles and responsibilities, a hierarchical structure and respect for merit,

Bureaucratic model is a type of business structure popular among governments and public administrations that were influence by the thinking of Max Weber. Although often associated with excessive paperwork in modern times.

PARTICIPATORY MODEL

Participatory modeling is an approach which is a branch of the general field of conceptual modeling. Its specialization is aimed towards involvement of a large number of people. Benefits obtained from this type of modeling is numerous, depending on the application area. In particular participatory modeling can give a high degree of ownership and motivation towards change for the people involved in the modeling process. There exists two major approaches which themselves provide highly different goals for the modeling; Continuous modeling and conference modeling.

Continuous modeling focuses on the end-user being the active modeler. This can be incorporated into an adaptable, context-sensitive, "intelligent" system, which is suited to the end-user on an individual level, this combination is often termed model generated workplaces or model generated user environments.

The idea is that the end-user potentially has the greatest actual domain knowledge and thus the organization as a whole benefits by obtaining and externalize this knowledge.

Conference modeling is an approach where the goal often is of a more social kind, such as motivating, change management, externalization of knowledge and so on. The idea is to involve a large number of diversified people from the domain in question. Then the modeling process is performed in participation among them during a fixed period of time.

ALTERNATIVE ORGANIZATIONAL STRUCTURES

The current lack of competitiveness in agricultural markets is a direct reflection of a national obsession with the industrial paradigm of business organization. Specialization, standardization, and centralization characterize the industrial paradigm. Specialization, with each person or unit performing fewer functions, allows each function or step of a production process to be performed more efficiently – i.e. division of labor. Standardization allows the various specialized functions to be integrated into an efficient overall production process – i.e. assembly line production. Specialization and standardization allow, in turn, efficient centralization of management and consolidation of control – i.e. economies of scale.

Alternative Organizational Structures

Successful businesses pair the most beneficial organizational structure to their personnel, divisions and communication framework. A tightly paired organizational structure can enhance productivity, ensure dissemination of important information and can allow for the free flow of ideas and business enhancing activities. Depending on your business needs, an alternative organizational structure could improve and enhance your business.

Network

A network organizational structure joins individual organizations to complete large, typically project-oriented activities. This type of structure lends itself to joint ventures with companies in other countries and to large construction or engineering projects. Each organization enhances their own structure to be responsive to network companies. Typically, managers and project specialists are dedicated to working in teams with similar functional positions in each company of the network. Consider using this structure if your company's success is tied closely to working with other companies.

Virtual

The ease of virtual connectivity has given rise to a virtual organizational structure. This structure is composed primarily of teams that communicate and respond to a manager that functions as a team leader and facilitator. A virtual organization can allow companies to leverage individuals from around the globe to perform company-enhancing projects or operations. This type of structure is best for a workforce of professional, self-managing individuals who do not need constant supervision. Consider a virtual organizational structure if you want to expand geographically, you need expertise not available in one business location or you rely heavily on off-site employees.

Self-Managed Teams

Self-managed teams are small groups of employees who focus specifically on one product or service. These teams are comprised of individuals who each contribute functional skills needed to provide a service or produce a product. The hallmark of this type of organizational structure is the lack of a single manager for the group. Members devise their own method of self-management, often through rotating managerial responsibilities. Consider this type of organizational structure if you produce technical products or deliver services that require a high level of problem solving skills. Provide a comprehensive layout of the team requirements, available resources and access to team building training to enhance the success of self-managed teams.

THE SCHOOL AS A social system

In systems analysis, the school may be viewed as a functionally differentiated subsystem of the broader social system in which it is embedded. To maintain a viable relationship with that social system, the school is subject to continual changes to meet the shifting social, economic, political, and technological forces in its environment. However, the more successful the school organization is in assessing accurately changing environmental forces, and in making appropriate adjustments to those forces, the more successful will it be in resisting temporary pressures and transitory movements and in controlling its own directions.

A major research problem is to identify those organizational properties that enable the school to assess accurately new demands and to adjust appropriately to those demands. Theoretically, those properties might be expected to include: (1) operationalized statements of instrumental goals; (2) a work structure that involves interdependence in task performance; (3) participation in decision making; (4) an incentive system that utilizes performance criteria rather than expressive relationships; (5) personnel practices that encourage a cosmopolitan orientation; and (6) institutionalized provisions for change advocacy.

The specification of the relationships among these properties, or variables, and the determination of means for assessing them quantitatively are tasks that remain to be accomplished.

The school as a social system can be studied in terms of its structural aspects, its dynamic and its cultural patterns and contents, especially as those pertain to the problem of internal consistency and the kinds of value standards employed in making individual and group decisions. This paper will be limited to discussion of a system of concept that applies particularly to the structural aspects of the school as a social system.

Simple Model of School Structure:




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CABINET
CABINET
CABINET
CABINET
CABINET
DAR
BIR
DEPED
DILG
DSWD




REGIONS








REGION 1
ARMM
NCR
CAR
REGION 2




DIVISIONS








NAVOTAS
MANILA
CALOOCAN
MAKATI
PASAY




SCHOOLS








MALIGAYA
CAMARIN
MLQ HS
DEPARO
TALA




PRINCIPAL








TLE
SCIENCE
AP HEAD
ENGLISH
MATH





TEACHERS
TEACHERS
TEACHERS
TEACHERS
TEACHERS





CLUBS
CLUBS
CLUBS
CLUBS
CLUBS





STUDENTS
STUDENTS
STUDENTS
STUDENTS
STUDENTS
PERSONNEL


GUIDE QUESTIONS! ANSWER PLEASE J
Ø  WHAT MODEL THEY HAVE?
1.      GOVERNMENT: NATIONAL AND LOCAL
2.      SCHOOL
3.      COOPERATIVE


SOURCES:





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