Specific Objectives

By the end of this sub-module unit, the trainee should be able to:

  1. explain the nature and purpose of organizing
  2. outline types of organization structures
  3. explain ways of making organizing effective



This is an activity which establishes human adjustment among all the factors of production. Organizations are social entities which coordinates the activities of a number of people for their achievement of some common goals through division of labour and well defined systems of working.


Organizing can be seen as a process.

As a process therefore, organizing can be defined as follows

  1. A processing of welding together a framework of position which can be used by the management for the purpose of accomplishing the organizational
  2. It’s a process of identifying and grouping the work to be performed, definitions, responsibilities, delegating them and giving authority together with establishing relationship for the purpose of enabling people to work most effectively in accomplishing organizational
  3. It’s a process of grouping of activities necessary of the purpose of achieving organizational


Organizing can be seen as a structure.

As a structure organization, structure consist of those aspect of patterns of organization, organizations that are attractively stable and change only slowly.


Equally, organization as a structure can be defined as a system of relationship that governs the activities of people who are dependent upper each other / changing the common objectives.




  • Organizing is an aid to management-it aids management in accomplishing organizational
  • It facilitates growth of the organization i.e. it assists in recruitment of staff, delegation of authority assignment of responsibility
  • It helps to ensure optimum use of human resources because it affects human resources in different ways such as training, placement of workers, creating of harmony, improving communication
  • It stimulates creativity e. it encourages divergent thinking and makes employers to be innovative.


  • It facilitates stability of the business organization because it has flexibility to adjust to
  • It encourages adoption to technology because it facilitates optimum use of technological
  • It leads to executive development because it provides training
  • It helps to ensure cooperation among workers because it entails communication reducing

9)              It establishes responsibility and prevents buck passing

  • It eliminates disputes between individuals
  • It provides for easier communication and helps in developing executives
  • It assists in measuring a person’s performance against his or her responsibility
  • It aids in equitable distribution of work and functions
  • It permits expansion and contractions without seriously disrupting the existing structure
  • It prevents duplication of work
  • It makes organizational goals possible without adequate control and without literally killing top executives through overworking.

Essential elements of a good organization

  1. A good organization must be helpful in the achievement of objectives

This means that it must be c capable of overcoming the problems of an organization

  1. There must be harmonious grouping of functions: meaning that a good organization should divide the functions in the enterprise in such a way that they can be implemented easily and
  2. An organization must be complete in all aspects

It means that a good organization must include all the activities of the enterprise and there should be no any repetition of the activities (duplication)

  1. There must be perfect coordination in all the activities of the

If the activities are not coordinated, the achievement of the objectives of an organization cannot be thought off.

  1. There must be reasonable span of control

Through means that each manager or supervisor must have is reasonable number of subordinates under him or her.

  1. There must be proper utilization of resources

This means optimal use of resources this minimizes wastage and maximizes profits.

  1. There is provision of expansion

This means that the organization must provide for adequate flexibility so that necessary adjustment may be made in accordance to the needs of the charging circumstances


  1. There has to be employee satisfaction. This includes job satisfaction which minimizes high staff turnover
  2. There must be a policy which can be executed easily and


The process of organizing


The building up of an organization is the most important function of management. The process of organizing consist of the following steps


1.       Determination and division of work


This is about determining the tasks required for the accomplishment of established objectives via divided business activities into technical, commercial, financial, security, and accounting and managerial. In a modern business enterprise manufacturing, marketing, financing, purchasing and personnel are considered to be the main business activities.


2.       Grouping activities

The various activities identified above are then classified into appropriate departments and divisions according to similarities and common purpose.

Such grouping of activities is known as departmentalization. Activities may be grouped on the basis of functions, territories, customers e.t.c

Each department may be further divided into sections and subsections to create a logical structure.


3.       Assignment of duties

The individual departments are being allotted to different positions and individuals. The duties of every individual are defined on the basis of his abilities and aptitude

Clearly definition of the responsibility of each individual is necessary to avoid duplication of work and overlapping of efforts. Every individual is made responsible for the specific job assigned to him. In this way, duties are assigned to specific individuals.


4.       Delegation of authority

One of the duties and responsibility of every individual have been fixed, he must be given the authority necessary or equivalent to carry out the duties assigned to him

A chain of command is created from top to the bottom through successful delegation of authority.



The process of organizing is a series of steps which must be undertaken to create logical structure of authority responsibility relationship. This process involves division of work, placement of individuals on jobs, delegation of authority, coordination of individual efforts and execution of responsibility for the results.


Principles of organization

The following are the major principles of organizing:


1.       Principle of objectives

It states that the objectives of the business concern formulating the organizational structure and achieving the desired results with minimum costs and efforts.

2.       Principle of specialization

It states that good organization must divide work into smaller activities and entrust each to individuals with enough skills in better performance and quality.

3.       Principle of span of control

This states that span of control should be minimized because there is a limit to the number of persons that can be effectively supervised by one boss.

4.       Principle of exception

This means that only exceptionally, complex matters should be referred to the executives for decision making otherwise managers should handle matters relating to their levels.

5.       Principle of scalar chain

This is sometimes known as the scalar principle. From the chief executive at the top of the enterprise to the first line of the bottom which must be clearly be stated. This is also known as chain of command. This is likely to minimize any confusion in organizational function


6.       Principle of authority

This means that the responsibility and authority of each manager and supervisors should be clearly defined. It also implies that the authority given must be equal to the responsibility entrusted to the manager.

7.       Principle of unity of command

This states that each subordinate should have only one supervisor to report to. This is likely to minimize the disorders, delays and confusion. It also reduces conflicts

8.       Principle of delegation of authority

According to this principle, the authority delegation should be equal to the responsibility so that to enable the concerned person to accomplish the task assigned to him/ her by his or her supervisor. This helps to minimize partial delegation.

9.       Principle of responsibility

This states that the superiors should not be allowed to avoid responsibility by delegating authority to his or her subordinates. The superiors therefore must be held responsible to the acts of his or her subordinate to whom he or she has delegated authority.

10.   Principle of flexibility

This states that the organization structure should be such which should be adaptable to the changing circumstances, meaning that there should be room for expansion and replacement without disrupting the basic design of the structure. It also means giving room for addition of subtraction if need be.

11.   Principle of simplicity

This states that the organization structure should be simple enough with minimum number of levels. This is likely to reduce the problem of poor coordination and communication.

12.   Principle of continuity


This states that the structure should be such that its serviceable for a long time. This is possible if it’s dynamic and capable of adopting itself to the views of changing circumstances.

13.   Principle of unity of direction

This states that for a group of activities having the same objectives there should be one plan and one objective this facilitates verification and coordination of activities.

14.   Principle of efficiency

This states that the structure that is formulated should enable the business concern to function efficiently and achieve its objectives with minimum costs and efforts.

15.   Principle of balance

It states that a good organizing must put balance on all types of factors of production so that inefficiency is reduced.


Organizing is considered a process which contains the following key components and concepts

  • Job design
  • Grouping of jobs/departmentation
  • Authority and responsibility
  • Span management
  • Organization structure


i.            Job design

This is the process of determining what procedures and operations are to be performed by the employees in each position based on qualification and experience. The basis for all job design activities and job specialization which involves a definition of the task that distinguishes one job from the others


ii.             Departmentation (grouping of jobs)

This is the process of grouping jobs into logical sets in an organization.

It is also a process of grouping individual jobs into departments as well as equipment. A department is a distinct area, unit or a subsystem of an organization over which a manager has authority for performance of specific activities. It is also known as division, branch battalion etc.


  1. Specialization- Departmention enables an enterprise to take advantage of specialization since division of work becomes
  2. Expansion- With expansion only one manager can oversee a limited number of subordinates. In the absence of departmentation the size of the enterprise remains limited.
  3. Autonomy- Departmentation results in the division of the enterprise into semi- autonomous units. In this units every manager is given adequate freedom. Autonomy provides job satisfaction and motivation which in turn leads to higher efficiency of


  1. Appraisal- Appraisal of managerial performance becomes easier when specific tasks are assigned to departmental
  2. Fixation of responsibilities- Departments enables each person to know the specific part he / she is to play in the total organization. It provides a basis for building up loyalty and
  3. Management development- Departmentation facilitates communication, coordination and control. It simplifies the training and development of executives by providing them opportunity to take independent decisions and to exercise
  4. Administrative control- Grouping of activities and personnel into manageable units facilitates administrative control. The standards of performance for each and every department can be precisely


Departmentalization usually groups jobs according to one of the following bases;

  • Number
  • Time
  • Function
  • Product
  • Location
  • Equipment/process
  • Customer


a.          Departmentation by simple numbers

This was once an important method in organization of tribes, clans, armies e.t.c the simple numbers method of departmentation is achieved by tolling off people who are to perform the same duties and putting them under the supervision of a manager.

The essential fact is not what these people do, where they work, or what they work with. It is that the success of the undertaking depends on the number of people involved in it.


b.         Departmentation by time

This is a form of grouping jobs which has generally at lowest levels of organization. The use of shifts in many enterprises where for economic, technological or other reasons, the normal working day would not be enough.

Example of this kind of department is the hospital where around the clock patient care is essential. Similarly, deferent departments have to be ready to respond to the emergencies at any time.

A factory operating for 24 hrs may have three departments, morning, day and night shifts.


c.          Departmentation by function

Functional departmentation entails what enterprises typically do.

Employees who are involved in the same or very similar features are grouped together. The basic enterprise functions are;


  1. Production i.e. creating utility or adding utility to a good/ service
  2. Selling i.e. finding customers, patients, clients, students, or members who will agree to accept the services/ goods at a price
  3. Financing i.e. raising and collecting, safeguarding and expanding the finances of the enterprise

The coordination of activities may be achieved through the rules and procedures, various aspects of planning such as budgeting the organization hierarchy e.t.c


Advantages of departmentation by function

  1. It maintains power and prestige of major functions
  2. It is logical and time proven method
  3. It follows the principle of occupational specialization and thereby facilitating efficiency into the utilization of people
  4. It simplifies training
  5. It provides a means of maintaining tidy control at the top because top managers are responsible for the end results
  6. Coordination is improved since work is not duplicated at specific functional levels
  7. It provides better opportunities for growth and career development


Disadvantages of departmentation

  1. Responsibility for profits is at the top level only
  2. It results into slow adaptation to changes in environment
  3. It reduces coordination between functions at overall level
  4. It deemphasizes the overall company objectives i.e. it leads to sub optimization
  5. It limits development of managers who need certain knowledge and experience in all enterprise functions
  6. The chain of command becomes excessively long as new levels are added this may slow down communication





MARKETING                             PRODUCTION                       FINANCE




MATERIALS                          MAINTENANCE

Chart showing departmentation by function.


  1. Departmentation by product

The activities associated with individual products or closely related products lines are grouped together. This structure permits top management to delegate to division executives authority over the manufacture, sales and engineering.



  1. All activities associated with unique products are kept together
  2. Profitability of the various products is more easily evaluated
  3. Internal competition is promoted I.e. one product line competes with another
  4. It uses specialized technology



  1. Some duplication of efforts may results i.e. each product line may require its own accountant, engineer, marketing staff t.c
  2. Coordination of departments mat be difficult
  3. Additional management personnel may be required to handle different product lines
  4. The firm may find it difficult to adopt itself to changes in demand and technology


e.          Departmentation by location, territory/ geographical

Jobs are in one location or nearby locations are grouped together into one department and allocated a manager.

Territory departmentation is very useful to a large scale enterprise whose activities are geographically spread e.g. banks, insurance companies, transport companies, supermarkets; distribution agencies e.t.c. the ultimate authority for performing the basic organizational functions is still retained by the headquarters.



  • It places responsibility at lower levels
  • It improves coordination within the region
  • It places emphasize on local market and problems
  • It improves face to face communication with the local people
  • It provides a measurable training ground for general managers
  • The managers can give special attention to the needs and problems of the local market



  • It requires more persons with general manager ability
  • Coordination and control of a different branches from the head office becomes less effective
  • There is duplication of resources especially the human
  • The branches are expensive to
  • Due to the geographical



iii.              Authority and responsibility

This involves the determination of how authority and responsibility are managed in the organisation

At the level of an individual manager and his subordinates, it involves the delegation process while at the level of the total organisation it relates to decentralization.

Delegation is the process through which the manager assigns a portion of his work or task to the subordinates.

Decentralization on the other hand is where power is spread down the employees. Power is the ability of an individual or group to influence the believes or the actions of other people or groups

Authority in an organisation is the right in a position and through it, the right of the person occupying the position to exercise discretion in making affecting other persons. Responsibility is the obligation of the subordinates to carry out the duties assigned to him. Responsibility is a personal attribute, it’s an obligation to ones’ own superior, and no person can shift his responsibility by delegating his authority to others.

Accountability is subordinates obligation to render an account as report of his activities to the superior. To be accountable, is to be answerable in respect to obligations fulfilled or unfulfilled.

Accountability grows out of responsibility and goes hand in hand with it. A person who is responsibility for something is also accountable for the results.



Sources of power/ bases of power;

  1. Legitimate power

This normally arises from a position and derives from our cultural system of rights, delegation and duties when a position is accepted by people as being legitimate.


B.      Reward power

This arise from ability of some people to grant rewards


C.     Expert power

This is the power of knowledge, physicians, lawyers; university professor’s

e.t.c. may have considerable influence on others because they are respected for their special knowledge.


  1. Referent power/ charismatic power

This is the influence that people or groups may exercise because people believe in them and their ideas.


E.      Coercive power

It is the power to punish, whether by firing a subordinate or withholding demerit. It arises from legitimate power.


Types of authority in an organization


  1. Formal authority

This is normally confined by the law or delegated within an organization based on the organization structure. It has to be in writing and known to all managers or executives and employees in an organization.


b)   Line authority

This authority can be regarded as the main authority in an organization. It is the ultimate authority to decide upon matters affecting others and it’s the main feature of superior subordinate relationship.

Line authority is not absolute; it must be applied with discretion within the limits of delegated authority and must relate to performance of jobs which leads to the attainment of the objectives of the organization.


c)    Staff authority

Its scope is very limited as there is no right to command. It is concerned with assisting and advising and it is used where line authority becomes inadequate. Specialized skills are used to direct or perform those activities which the line managers cannot effectively perform.

Staff authority is subordinate to line authority and its purpose is to aid the activities which are directed and controlled by line managers


d)   Functional authority

This authority is also subordinate to line authority but in comparison with staff authority, it conflicts upon the holder the right to command in matters relating to the functions. It therefore has limited right to command and help the superior to delegate authority to command to the specialist without bestowing full line authority.

Where organizations have a central head office and branches, functional authority is often used e.g. The head office, Human resource director renders staff functions for the whole company, but he usually exercises functional authority on human resource matters in his relationship with branch human resource officer.



It is the process whereby an individual or group transfers to some other individuals or groups the duty of carrying out some particular action and at the same time taking some particular decisions.

  • It means, in effect and trusting some part of the work of management to subordinates
  • It is the process of vesting decision making discretion to subordinates by the superiors
  • Responsibility is not surrendered since no manager avoids ultimate responsibility by delegating


  • The work is delegated and the superior holds the subordinates The subordinate is responsible for doing the job and the superiors’ responsibility to see the job is done.


Elements/process of delegation


  1. Assignment of duties to subordinates
  2. Granting authority to make commitments to the extent necessary to enable them carryout those duties assigned
  • Creating an obligation on the part of each subordinate; This enables satisfactory performance of the job


Types of delegation

  1. General/specific delegation

General delegation is where any person is granted authority to perform the various functions his department or division but the exercise of authority by each subordinate continues to be subject to an overall regulation and supervision by his subordinates. Specific delegation is functional in character, subordinates are given different specific functions to perform i.e. the production manager may delegate the authority for production and the accounts officer may delegate authority for accounting matters.


2.          Written/unwritten delegation

Written delegation is made by written orders/ instructions. Unwritten delegation is based on customs, conventions, agreements, usage e.t.c.


3.          Formal/informal delegation

Formal delegation of authority is laid down in the organization structure on an enterprise

e.g. the sales manager is assigned the responsibility and the accompanying authority to maintain and promote sales.

Informal delegation occurs when employees perform certain duties not because these are assigned to them but because they feel that they can perform their tasks better and in time.


4.          Downward, upward and sideward delegation

Downward delegation occurs where the superior assigns duties and delegates authority to his immediate subordinates.

In upward delegation, a subordinate assigns some of his tasks to his immediate superior. This is a rare kind of delegation.

In sideward delegation, a subordinate assigns some of his duties and tasks to another subordinate of the same rank.


Guidelines to ensure effective delegation


  1. Grant proper amount of authority


It means that responsibility should not be less than authority delegated. Enough authority should always be delegated to achieve the desired results.

2.          Make sure that authority is clearly stated.

Authority relationship should be clearly defined not only to the subordinates in question but all others concerned as well.

3.          Define the results expected

This will enable the subordinates to know by what standards their performance should be charged

4.          Consider the capability of the subordinates

Authority should be delegated to those who are competent and willing to accept delegation. People should be selected in the right of the jobs to be done.

5.          Follow unit of command and chain of command.

Every subordinate must at a time receive orders and be accountable to only one superior. In delegating, it is also important to follow the chain of command where authority flows from the highest manager to all the subordinates at all levels

6.          Modify the authority whenever necessary

Managers should maintain flexibility attitude about what kind of and how much authority to delegate. This is because the environment of the business is dynamic and authority relationship needs to be altered from time to time

7.          Develop a willingness to delegate

No organization can function without delegation, managers must be willing to let go and let others make mistake if delegation is to work.

8.          Develop effective communication

There should be a free flow of information between the superior and the subordinates. This enables the superior to give clear instructions and the subordinates to seek necessary clarification

9.          Establish an effective control system

Manager should put controls in place to ensure that the authority delegated is used properly. The superior should set the performance standards and evaluate subordinates performance periodically and help them improve.

10.      Appropriate incentives

Suitable financial incentives are provided to reward subordinates for the successful assumption of authority.

11.      Allocate sufficient resources


Why managers do not delegate


  1. Feeling of superiority– a manager may have a feeling that his subordinates are not capable enough to do any work without close supervision. He may therefore concentrate all decision making in his
  2. Fear of exposure- if the manger is himself not competent to plan ahead, and decode which tasks should he delegate to whom he may avoid delegation of authority because doing so will expose him for what he is incompetent and as a disorganized person


  1. Risk avoidance– the feeling of insecurity may be a major reason for reactance on the part of the manager to delegate authority. Despite the delegation of authority, the manager will continue to be accountable for the actions of subordinate and these might deter him from running the risk of decision making to
  2. Feeling of indispensability– if a manager has inflated sense of his own worth, and wants other s to realize his importance, he may delegate authority such that everyone around him is dependent on him for decision
  3. Habit pattern– if as a result of practice of close supervision, the manager has developed personal contact with all aspects of work, he may avoid delegation of authority so as to sustain the deep, seated habit
  4. Loss of importance– a manager may feel that delegation of authority to subordinates may lead to diminution of his authority and divest of the importance enjoyed by him as the centre of whole


Why do subordinates fear delegation

  1. Fear of criticism

The subordinates’ reluctance to accept delegation of authority may be due to fear of criticism of mistakes. They may have a fear that even the slightest mistake on their part may lead to their dismissal from service


b)   Insecurity

They consider it safe to carry out the decision handed down to them by the superiors than to make decision themselves

c)    Lack of self confidence

Sometime, the subordinates may avoid acceptance of delegation due to lack of confidence in their capabilities to discharge new responsibilities

d)   Inadequacy of information and resources

They may fear that delegation in their case will mean assignment of activities to them without a matching authority over the relevant information to facilitate decision, making or the necessary human and physical resources to carry out the decision

e)    Inadequate incentives

If delegation of authority is not accompanied by suitable incentives, subordinates may not be motivated to accept it willingly


Advantages of delegation

  1. Reduction of managerial work load-delegation reliefs the manager of the need to attend to routine types of duties
  2. Basis of effective functioning- it establishes a relationship through the organization an d helps in achieving coordination of various activities
  3. Benefit of specialized services-it enables the manager to benefit from specialized knowledge and expertise of persons at lower levels
  4. Efficient running of the branches- in the big organization, delegation can provide key to smooth and efficiently running of the various branches of the business


  1. An aid to employee development- delegation enables employees of the business to develop their capabilities to undertake new and more challenging jobs. It also promotes job satisfaction and high employee motivation
  2. An aid to expansion and diversification of the business- with the employees fully trained in decision making in various areas of the business, it can confidently undertake expansion and diversification of its activities



This is the process of transferring all the authority to all levels of management to enhance efficiently in the performance of the task. According to Koonts and O Donnel decentralization of authority is a fundamental phase of delegation.

According to Allen, decentralization is the systematic effort to delegate to the lowest level of all the authority, except that which can only be exercised at the top (central point).

Difference between delegation and decentralization


Delegation                                                                             decentralization

It is an act/process                                                             it is the end results of delegation and dispersion of authority to various levels

It is vital to management

its optional in the sense that the top management favour a deliberate policy \to work for a general

dispersion of authority


It refers to the relationship between two

it refers to the relationship between

individuals i.e. a superior and his immediate  top management and various


department and activities in the enterprise

Control over a subordinate performance is exercised by the superior who constitute the source of


delegation of authority.

the power to control may be delegated to departments concerned


Guidelines determining the degree of decentralization of authority Decentralization is not just physical dispersion of activities. An enterprise, whose activities and function are confined to a small area, may have a greater decentralization than the ones whose activities and functions are distributed over a wider area.

The degree of decentralization in an enterprise is determined by the combination of the following factors:

a)   Competence of the personnel available

The competence and the capacity of subordinates or managers is an important determinant of the degree of decentralization. When the managers of the enterprise are


capable and experienced enough, to make important decisions decentralization could be easier.


b)   Size and complexity of the organization

The larger the enterprise the more the authority the central manager is forced to delegate. With growth in size and complexity of the organization, decentralization is necessary to ensure to ensure speed and accuracy of decision making and flexibility of the operations.


c)    History of the organization

A firm is likely to have a very centralized structure if it has grown primarily from may be personal leadership


d)   Adequacy of communication system

Managers may seek to avoid decentralization through the development of a good communication system that provides for speed, accuracy and capacity of information needed for top management to exercise centralized control.


e)    Dispersion of the organization

Geographical dispersion of the organization tends to result in greater decentralization of authority.


f)    Uniformity of policies

The greater the need for uniformity of policies the greater will be the degree of centralization


  1. Environmental influences e. tax policies, action of competitors, economic forces, government policies, technology, customers’ e.t.c.


h)   Philosophy of the top management

The attitude of the top managers has an important bearing on the degree of decentralization

i)     Business dynamics

  1. Desire for independence
  2. Control techniques

The degree of decentralization tend to be greater where an effective control system is not available

Advantages of decentralization

  1. It can contribute to staff motivation by enabling the middle and junior staff to get a test of responsibility and encouraging the use of initiative by all employees
  2. It encourages decision making and assumption of authority and responsibilities
  • It results in the principles of democratic management


  1. It encourages smooth diversification of products and markets
  2. It prevents the top management overload by freeing them from many operational decisions enabling them to concentrate on their strategic responsibilities
  3. It speeds up operational decision making by enabling line units to take local actions without reference back
  • There is better communication
  • It focuses attention into important matters of cost and profit centres within the total organization these sharpens management awareness of cost effectiveness as well as revenue targets
  1. It enables local management to be flexible in their approach to decisions, this is after taking into account the local conditions and make decisions that are more adaptable in situations of rapid change

Disadvantages of decentralization

  1. It results into higher operational cost and duplication of resources
  2. It requires an adequate control and communication system if major errors of judgment are to be avoided on the part of the operational management
  • It requires greater coordination by senior management to ensure that individual units within the organization are not working against the overall organization e. need to control sub optimization
  1. It can lead to inconsistency of treatment of customers, clients or the public especially in service industries
  2. It requires plentiful supplies capable and well motivated managers who are able to respond to the increased responsibility which decentralization brings about
  3. It may encourages a parochial attitude in subsidiary units, who may be inclined to look more to their own needs then those of the colleagues in the organization


IV.           Span of management/ span of control


This refers to the number of the people or employees that a superior can effectively supervise. It is the number of subordinates or employees reporting directly to one person (a superior)

In practice, spans of management can vary between 1-40 or more subordinates directly supervised, although the most likely range is between 3-20. Small spans of management tend to be found among managerial, professional and technical groups.


Factors affecting the span of management

  1. Location – incase of geographically scattered operations, the span has to be narrow because one executive cannot effectively manage the distinct and distributed operations
  2. Competence of the superior – executives who are more capable can supervise large number of subordinates than those who are less competent
  • Caliber of subordinates – the more qualified and experienced subordinates are, the lesser will e the pressure on the superior and the wider the span of management
  1. Nature of work – in case of routine repetitive operations, span can be wider since subordinates do not frequent guidance from the superior. In case of specialized and frequently changing of duties, and those involving constant interaction, the span of management has to be narrow
  2. Level of authority – at higher levels of management, span of control is generally narrow than at lower
  3. Clarity of plans – the more clear and understandable the plans are, the wide the span of
  • Communication techniques – more effective is the communication, lesser is the need for face to face contact and wider may be the
  • Staff assistance – an executive can supervise more subordinates when advice and assurance of the staff specialists is available to him
  1. System of control – span of management has to be narrower where the control is exercised through personal supervision


V.               Organization structure

This may be defined as the prescribed pattern of work related behaviors which are deliberately established for the accomplishment of organizational objectives. It serves as an instrument for the introduction of logical and consistency relationship among the various decision function which made up the organization.


Specialization and coordination are the key issue on the design of the organization structure. Specialization relates to division of labour and use of special purpose machines and equipment. Coordination means harmony in operations to achieve organizational objectives

Organizational structure shows different position and responsibilities attached to the post.

Types of organization structure

  1. Line organization
  2. Functional organization
  3. Staff organization
  4. Matrix organization
  5. Project organization
  6. Free form organization
  7. Committee organization h)

1)              Committee organization

A committee is a group of persons constituted to deal with specific issues or problems of organization. Committee can also be considered as formal groups with a chairman on agenda and rules on conduct. Committee has specific tasks or set of tasks to achieve. These tasks are made frequently although not always associated with decision making.

As a formal group the formality of a committee is expressed by the following features:

  1. A chairman or chairperson who is responsible in ensuring
  • That the committee is conducted in accordance with the rule
  • The committee is supplied with necessary resources
  • A secretary who is responsible for taking the minutes of the meeting standing out the agenda and other papers.
  • An agenda which is set out the agreed subject of matter of the meeting
  • The minutes of the meeting which are the official records of what has taken place
  • Committee papers and reports which provides the committee with the quality of information which will enable it to make usual informed decisions or proposal
  • Rules of procedure which are designed to promote the smooth running of a committee and ensure the consistency and fair play monitoring such rules includes procedures for:
  1. Speaking in a debate
  2. Voting
  3. Proposing a motion
  4. Adding emergency to the operations of the committee as a communication medium.


Types of committees


  1. Standing and adhoc committees

The standing committee which is always present in the organization

Adhoc committee is a temporary special purpose committee which is appointed to deal with many specific problems or issues. It is disbanded and dissolved as soon as the assignment given is completed

ii.             Executive and advisory committee

An executive committee s one charged with the responsibility of making and executing his decisions.

An advisory committee only remains as specific problem in all the details and makes recommendations

iii.             Line and staff committees

A line committee is responsible for controlling and coordinating a specific business function having executive over the subordinate within a formal chain of command.

A staff committee only acts in advisory capacity having no authority in its decisions

iv.             Formal and informal committees

A formal committee is constituted as per the organization policies and rules deriving its authority from the same policies and rules

An informal committee is not consolidated as per the formal policies or rules of the organization. It has no formal authority.

Advantages of a committee in an organization

  • Discussion of proposal are based on group assessment of facts and ideas are not a very small grouped working in isolation
  • Committee can encourage the proofing of special knowledge and talent possessed by individual members
  • Precisely because they are organized groups, committee can undertake a large volume of work than individuals or vey smaller groups working in isolating
  • Committee are very useful in achieving coordination and collaboration between worked groups
  • Committees acts as a vocal point for information and customs within the organization
  • It’s a tool of managerial strategy i.e. the committee may serve as important tool for delusion or consolidation of authority vested on a single individual or postponing
  • It is a tool of training and development of the employee

Limitations of committee organizations

  • Decision making is on hold together slower process when dominated by committee
  • Committee works demand certain skills members who are unsure of themselves unskilled in committee practice tend to leave the initiative to the good committee members
  • Committee sometimes have the tendency to be looked down in procedural matters which reduce the time avoidable for the decision of substantive issues
  • Committee decision may often represent compromised solution rather than optimum solution
  • Committee may represent the wishes of a certain group who one or more influenced and not necessarily the riskiness of the



  1. The mandate of the committee needs to be clearly defined so as to keep the committee on
  2. Committees should have specific agendas to work
  3. The size of the committee should be appropriate. (not so large)
  4. It should have the right membership.
  5. The chairperson should be
  6. They should be provided with the necessary resources to accomplish their
  7. A committee should be provided with a reasonable
  8. A final written report should be presented by the committee for
  9. Members of the committees should not devote too much time on committee assignments and forget their regular jobs.


2.  Matrix organization/ hybrid departmentalization

This is normally the combining of functional and project or product patterns of departmentation in the same organization structure. This kind of organization occurs frequently in construction e.g. building a bridge, in aerospace designing and launching a weather satellite, in the installation of an electric data processing system, in management consulting firms in which professional experts work together on project.

In case of a two year project to produce a modified fashion of standard air craft, one project manager will coordinate and be held accountable for the work to be undertaken by the project team, and he will be the person who deals on a regular basis with the clients.

Functional managers provide technical expertise and organizational stability. Project managers provide the drifting force and the day to day control required to steer the project its temporary life.

Guidelines for making matrix organization


  1. Define the objectives of the project/ task
  2. Balance the power of functional and project and project managers
  3. Clarify roles, authority and responsibilities of managers and team members
  4. Ensure that influence is based on knowledge and information rather than the
  5. Select an experienced manager for the project who can provide
  6. Understand organisation and team development
  7. Install appropriate cost, time and quality control that reposts’ derivations from standards in a timely
  8. Reward project managers and team members



  1. It’s oriented towards the end result.
  2. It helps to clarify who is responsible for the success of the
  3. It encourages functional managers to understand their contributive role in their organizations productive efforts.
  4. It leads to shorter project development time
  5. It pin points the project profit responsibility
  6. It combines the relative stability and efficiency of hierarchical structure with the flexibility and uniformity of an organic form



  1. Conflicts can arise concerning the division of authority and the allocation of resources between project groups and functional
  2. It requires money time and consuming meetings
  3. Too much shifting of staff from one project to another may hinder training of new employees.
  4. Relative dilation of functional management responsibilities throughout the organisation mega exist
  5. This type of organisation requires the manager to be more effective in human relational and to have interpersonal skills which is not always passed by all managers.



  1. Describe the factors that determine the degree of centralization and decentralization.
  2. Explain the benefits of
  • Explain the factors that influence the span of


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