ORGANIZATIONAL DEVELOPMENT

Junhel Dalanon, DDM, MAT

Organizing Defined

• The process of grouping and assigning activities and providing the necessary authority to carry out the activities

Types of Organization

Line Organization

– Characteristics• Simplest and oldest type of organization• Direct vertical flow of authority from top to bottom• Common in small enterprises

– Advantages• No problem tracing authority• Promotes rapid decision making

– Disadvantages• Managers perform more duties• Inefficient job results• No provisions to train, develop, and replace leaders

Line & Staff Organization

– Characteristics• Consists of addition of staff specialists• Common in larger enterprises

– Advantages• Brings expert knowledge• Structure directly affects finance, manufacture, or marketing• Allows for more specialization and flexibility

– Disadvantages• Authority and responsibility are not clearly set• Supervisors depend too much on staff

Matrix Organization

– Characteristics• Form teams within line and staff• Temporary pending a specific purpose• Has the capability to evolve

– Advantages• Ability to meet complicated projects

– Disadvantages• Conflict of authority

Principles of Organization

Consideration of Objectives Since the objective of the undertaking does have an important bearing on the organization structure,

the organizer should have clearly in mind what he wants to accomplish

Division of Work The narrowing of the scope of a person’s job to one or a few major functions to enable him to

specialize on these few and to increase his efficiency

Delegation of Authority

The authority to take action should be delegated to individuals who have the necessary knowledge and ability to take intelligent action

Parity of Responsibility and Authority

When a subordinate is made responsible for reaching a given objective, he should be given enough authority to take steps to reach it

Span of Control

Refers to the number of subordinates a manager can effectively manage

Unity of Command Each member of an organization should be accountable to, and receive directions from only one

supervisor, his immediate superior

Short Chain of Command There should be as few levels of supervision between the highest authority and the rank and file as

possible

Coordination

All individual activities of an organization must be synchronized with respect to their amount, time and direction to avoid duplication of work

Efficiency

The objectives can be attained with the lowest possible cost

Separation of Line and Staff Functions

Where separation of functions is possible, no individual or department should be given both line and staff functions

Consideration of Policies, Procedures, and Rules They outline the boundaries within which the objectives must be pursued

Job Groupings Jobs must be logically grouped into sections, sections into departments, and so on until all functions

of the organization are covered

Flexibility

An organization is a dynamic not a static entity

Communication

Design and installation of an honest communication system to help provide the organization with information they need promptly and accurately

Balance

Balance between standardization of operation and flexibility, centralization and decentralization of decisions

Steps in Organizational Development

• Define precisely the new objectives– Precise objectives determine the structure and

permanency– Brings into focus the basic organizational

characteristics

• List down all activities required and group them into units– Required to achieve the objectives– Products, tools, and processes are possible areas

for grouping

• Determine the organizational structure– Consider the principles previously discussed

• Ascertain the availability of personnel– Secure information about work performed,

authority and duty– Consider changes in activities

• Consider the new organization according to resources– This may be a possible source for constraints

• Prepare and implement the organization– Unanimous acceptance of all members must be

attained

• Conduct periodic audits– Check whether goals are attained– Utilizes present personnel to the fullest– Contributes to growth