LESSON VI: ORGANIZING

WORK, STRUCTURE AND

PEOPLE

Prepared by: Daisy Galilea

 ORGANIZING WORK
• Aspects on Organizing Work:
I. Reasons for Organizing
II. Division of Labor
III. Centralization and Decentralization
IV. Empowerment
V. Principles based on authority
VI. Workplace changes of organization
I. Reasons for Organizing
a. Efficient Administration
- Brings together various departments by
grouping similar and related jobs under a single
specialization.
- Establishes coordination between different
departments, which leads to unification of
effort and harmony in work.
b. Resource Optimization
- Ensures effective role-job-fit for every
employee in the organization.
- Helps in avoiding confusion and delays, as well
as duplication of work and overlapping of
effort.
I. Reasons for Organizing
c. Benefits Specialization
- Organizing groups and sub-divide the various
activities and jobs based on the concept of
division of labor.
- Helps in the completion of maximum work in
minimum time ensuring the benefit of
specialization.
d. Promotes Effective Communication
- Creating coordination and communication
among the various departments of the
organization.
- Different jobs and positions are interrelated by
structural relationship.
I. Reasons for Organizing
e. Creates Transparency
- Jobs and activities performed by the employees
are clearly defined on the written document
called job description which details out what
exactly has to be done in every job.
f. Expansion and Growth
- Resources are optimally utilized and there exists
a proper division of work among departments and
employees, management can multiply its strength
and undertake more activities.
II. Division of Labor
– Economic concept which states that dividing the
production process into different stages enables
workers to focus on specific tasks. If workers can
concentrate on one small aspect of production,
this increases overall efficiency – so long as there
are sufficient volume and quantity produced.

– This concept was popularised by Adam Smith

in An Inquiry into the Nature and Causes of the
Wealth of Nations (1776). Famously, he used the
example of a pin factory.
II. Division of Labor
 Why is the division of labour more efficient?
a. Workers need less training as they only have to
master a small number of tasks;
b. It is faster to use one particular tool and do one job;
c. No time is wasted with a worker dropping a tool and
then picking up another;
d. Workers can gain loyalty and a sense of achievement
from their branch of the production;
e. There is no need to move around the factory; the
half-finished good comes to him;
f. Workers can concentrate on those jobs which best
suit their skills and temperament.
III. Centralization and Decentralization

- Centralization and Decentralization are the

two types of structures, that can be found in
the organization, government, management
and even in purchasing.
III. Centralization and Decentralization
 Centralization of authority means the
power of planning and decision making are
exclusively in the hands of top
management. It alludes to the
concentration of all the powers at the apex
level.
 Decentralization refers to the
dissemination of powers by the top
management to the middle or low-level
management. It is the delegation of
authority, at all the levels of management.
 BASIS FOR
CENTRALIZATION DECENTRALIZATION
COMPARISON

The retention of powers The dissemination of

and authority with respect authority, responsibility
to planning and decisions, and accountability to the
Meaning
with the top various management
management, is known as levels, is known as
Centralization. Decentralization.

Systematic and consistent Systematic dispersal of

Involves
reservation of authority. authority.

Communication Flow Vertical Open and Free

 BASIS FOR
CENTRALIZATION DECENTRALIZATION
COMPARISON

Decision Making Slow Comparatively faster

Proper coordination and Sharing of burden and

Advantage
Leadership responsibility

Lies with the top Multiple persons have the

Power of decision making
management. power of decision making.

Inadequate control over Considerable control over

Implemented when
the organization the organization

Best suited for Small sized organization Large sized organization

IV. Empowerment
 What is Empowerment?
– Each organization is driven by its employees. That
means it’s important to motivate all employees
and raise them to a higher level. Empowerment
aims at making employees function as optimally
as possible by giving them independence.
 Benefits of Empowerment
– Employees who are empowered understand that
they have the ability to change their attitude.
– They are confident and approach others feeling
good and relaxed, regardless of whether they’re a
co-worker or a superior.
IV. Empowerment
 Benefits of Empowerment
– They believe in themselves and won’t let others
around them intimidate or discourage them.
– Empowered employees believe in equality and
won’t allow others or themselves to show
dominance.
– Empowerment increases a manager’s scope of
control.
IV. Empowerment
Important Elements of Empowerment:
a. Freedom to decide - It gives employees a lot of
independence when they’re allowed to make
their own decisions, for instance about the tasks
they perform and the time in which something
has to be completed. It makes them better able
to keep their promises, and they experience
more joy in their work.
b. Freedom to choose - This also grants
independence, and it’s worth noting that it can
even help employees make the right choice.
Continuing to be of two minds is not part of
freedom to choose; it’s about going for it.
IV. Empowerment
Important Elements of Empowerment:
c. Assertiveness - By clearly standing up for
themselves while also respecting others and
expressing their own wishes and expectations,
employees will be able to achieve what they
want.
d. Individual Opinion - Empowerment enables
employees to express their opinions and to
really listen to others.
IV. Empowerment
Important Elements of Empowerment:
e. Critical Thinking - By acting in ways that are not
conditioned and instead also looking at things
from different perspectives, employees are more
aware of their own actions and those of others.
f. Group Interest - Empowerment isn’t just about
the individual; it’s also about being connected
with others. This is a particularly important
aspect in a team context.
g. Eager to Learn - Without being open to new
methods, approaches and ideas, an individual
can’t grow.
V. Principles based on Authority

Definition - a process through which a manager

assigns responsibility to the subordinate to carry out
the work on his behalf. Also, a certain authority is
delegated to the subordinate to the extent, which is
sufficient to accomplish the assigned responsibility.
V. Principles based on Authority
 Following are the guidelines that can be followed
by the managers to practice an efficient
delegation:
V. Principles based on Authority
 Principle guidelines:
a. Principle of Functional Definition: An organization
is comprised of different functional departments,
each contributing to the organizational goals and,
in turn, have their specific objectives. Thus, clearly
defined objectives of each department, the
expected results, the specific activities to be
performed and intradepartmental relationships
help the manager to determine the requirements
of that specific position.
V. Principles based on Authority
 Principle guidelines:
b. Principle of Result Expected: Before actually
delegating the authority to the subordinate, the
manager must know the purpose of such
delegation and the results expected from it. The
goals, targets and the standard of performance
must be clearly defined to direct the actions of the
subordinate towards the accomplishment of a
given task in a required manner. This principle
helps in determining the authority to be delegated
which is sufficient for completing the responsibility.
V. Principles based on Authority
 Principle guidelines:
c. Principle of Parity of Authority and
Responsibility: This principle states that the
responsibility and the authority co-exists. This
means, if the subordinate is assigned certain
responsibility, he must be given some level of
authority i.e. power to perform his responsibility.
Thus, both the responsibility and the authority
shall be clearly defined to the subordinate, so that
he knows what he is required to do within the
powers delegated to him.
V. Principles based on Authority
 Principle guidelines:
d. Principle of Unity of Command: According to this
principle, every subordinate should have a single
supervisor from whom he gets the authority and to
whom he is solely accountable. This means the
subordinate should get the instructions from a
single superior and perform those responsibilities
as assigned by him. In case, if the subordinate is
required to report to more than one boss, then
there may be a conflict and delay in the managerial
operations.
V. Principles based on Authority
 Principle guidelines:
e. Principle of Absoluteness of Responsibility: This
principle asserts that responsibility cannot be
delegated. This means even after delegating the
authority to the subordinate to perform certain
tasks on the manager’s behalf; the manager will be
solely responsible for the doings of the
subordinate. In other words, whatever actions
being taken by the subordinate, the manager will
be accountable to his senior. Thus, the
responsibility is absolute and remains with the
superior.
V. Principles based on Authority
 Principle guidelines:
f. The Scalar Principle: There are clear lines of
authority in the organization, i.e. who is under
whom. This helps the subordinate to know, who
delegates the authority to him and to whom he
shall be accountable. Also to whom he shall contact
in case things are beyond his control. Thus, this
principle asserts, that there should be a proper
hierarchy in the organization.
V. Principles based on Authority
 Principle guidelines:
g. Principle of Exception: According to this principle,
the subordinate shall be given complete freedom
to perform his responsibilities under the purview of
his authority. The manager should not interfere in
between his work and must allow him to do even if
he commits mistakes. But in some exceptional
cases, the managers can interfere and even
withdraw the authority delegated to the
subordinate.
VI. Workplace changes on Organization

The world is changing more rapidly than ever

and technology is the key enabler driving this
transformation. Although these changing forces
affect society as a whole, perhaps their biggest
impact will be how they reshape the future of
work — a though that sounds ominous to many.
Hence, significant shifts in the labor market
will have major economic impact and those
companies who can serve new market demands
will capture massive value creation.
VI. Workplace changes on Organization
• Freedom before safety.
Organizations will not default to having employees,
but rather on-demand bring in the right competence for a
specific project. The ultimate ambition is to adopt a more
“fluid organization” which efficiently can on- and offboard
talent and combine employees and contractors.
• Opportunities
– Redefined compensation services
– Marketplaces and digital channels to find
contingency talent, across blue and white collar jobs
– Tools for more efficient talent on- and off-boarding
– Products to facilitate dynamic collaboration within
fluid team structures
VI. Workplace changes on Organization
• Enhancing the employee experience
This design thinking will lead companies away from
structuring around function and processes, and rather
center them around the employee, to create a compelling,
enjoyable, and frictionless work environment.
• Opportunities
– Intelligent, personalized and self-directed learning
platforms
– AI-based employee coaching
– Data-driven intelligent career management and
talent mobility
VI. Workplace changes on Organization
• Redefining organizational structures.
This trend of flattening organizations will continue
to spread in favor of empowering small teams and
individual contributors.
• Opportunities
– Automated/AI-based people management
– Tools to simplify and improve asynchronous and
remote teamwork
– Digital services to manage corporate culture
development and alignment
VI. Workplace changes on Organization
• Reinventing Human Resources.
HR decisions and tactics around individuals will
become more decentralized and sit within teams; every
team lead will “work in HR” and will own their own talent
management.
• Opportunities
– Automated candidate sourcing of passive talent
– AI-based succession management
– HR analytics platform
VI. Workplace changes on Organization
• Machine + Human
It’s unlikely machines will be able to do
everything in the foreseeable future and instead,
the winning model will incorporate machine +
human where part of the value creation will come
from machines and part from humans.
• Opportunities
– Infinite automation
– Next gen engineering training
– Augmented human intelligence
References
• https://courses.lumenlearning.com/wmopen-
introbusiness/chapter/organizing
• https://www.tutorialspoint.com/management_principles/management_p
rinciples_importance_organizing.htm
• https://www.economicshelp.org/blog/glossary/division-of-labour/
• https://keydifferences.com/difference-between-centralization-and-
decentralization.html
• https://www.toolshero.com/management/empowerment/
• https://
• https://medium.com/startup-grind/adapt-or-die-5-changes-in-the-
workplace-which-will-impact-all-organizations-375409605408
• https://medium.com/startup-grind/adapt-or-die-5-changes-in-the-
workplace-which-will-impact-all-organizations-375409605408