I. DEFINING ORGANIZING, ORGANIZATIONAL STURUCTURE AND
DESIGN
A. Before discussing the elements of organizational structure and design, it is essential to define some key terms.
1. Organizing is deciding how best to group organizational activities and resources. It is the process by which managers establish working relationships among employees to achieve goals.
2. Organizational structure is a formal system of task and reporting relationships that determines how employees use resources to achieve organizational goals. The organization structure is usually represented by the organization chart and is determined by top management.
The structure both separates and integrates tasks. Separation of duties makes it clear who should do what. Integration of duties tells people how they should work together.
Organizational structure helps employees work together effectively by
? Assigning human and other resources to tasks
? Clarifying employees’ responsibilities and how they should mesh using job descriptions, organization charts, and lines of authority
? Letting employees know what is expected of them through rules, operating procedures, and performance standards
ORGANIZATION CHART
One way to visualize the interrelationships of the key elements is to create an organization chart.
What is an organization chart?
? It is a graphic representation of an organization structure (division of work, positions, departments and their formal reporting relationships)
? It shows the chain of command (the solid line along which authority flows from the CEO at ...