CHAPTER 4&5

ORGANIZING AND
STAFFING FUNCTIONS

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 4. ORGANIZING FUNCTION

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 After studying this session you should be able to:
Describe the nature and need for organizing.
Define organizational structure, design and chart.
Describe the process of organizing.
Differentiate formal and informal organization.
Differentiate authority, delegation, responsibility
and accountability.
Appreciate authority relationship in an
organization.
Define span of management and analyze the types
Define the staffing function.
List the benefits of staffing function.
Describe the major activities under staffing
function.
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 Introduction
 In planning, set goals / objectives and determine
what to do to attain these objectives.
 Planning, consequently, requires organizing the
efforts of many people. It forces us to address several
basic questions:
1. What specific tasks are required to implement our
plans?
2. How many organizational positions are needed to
perform all the required tasks?
3. How should these positions be grouped?
4. How many layers of management (organizational
levels) are needed to coordinate them?
5. How many people should a manager supervise directly?
 The answers to these and other questions enable us to
create an organizational arrangement, a structure,
for putting plans into action.
action
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 4.1 THE CONCEPT OF ORGANIZATION
Meaning of Organizing
 It is a management function that involves arranging
human and non-human (physical) resources to
help attain organizational objectives.
 It is the management function that establishes
relationship between activity and authority.
 Organizing is the deployment of organizational
resources to achieve strategic goals.
 The end result of an organizing process is an
organization.

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Cont’d…

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 Organizing involves assigning tasks, grouping
tasks into departments, delegating authority,
and allocating resources across the
organization.

Dr. Bogale Alemu

 It is the function in which the managers develop the
organization structure that allows working
together and achieve organizational goals.

 It involves grouping similar activities in one

department .

 It also involves clearly stating authority and

responsibility. 6
 THE ORGANIZING
PROCESS
The organizing process has the following steps.

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 Cont’d….the organizing process
1. Identification/ reviewing of plans /goal
2. Identification of the specific activities task needed
to accomplish the goal
3. Grouping of activities necessary to attain objectives
4. Grouping of activities according to their similarities
to form department
5. Assigning work and delegating authorities
6. Provision for coordination/Design a hierarchy of
relationships

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 Importance of organizing
1. Organizing promotes collaboration. Thus, it
improves communication within the organization.
2. Organizing sets clear-cut lines of authority and
responsibility
3. Organizing improves the directing and
controlling functions of managers.
4. Organizing develops maximum use of time,
human, and material resources.
5. Organizing enables the organization to
maintain its activities coordinated

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 4.2. TYPES OF ORGANIZATIONS
There are two types of organization:
i. Formal and
ii. Informal
i. Formal organization
 The formal organization represents the classification of
activities within the enterprise, indicates who reports to
whom.
Characteristics of formal organization
 It is properly planned
 It is based on delegated authority.
 It is deliberately impersonal
 Organizational charts are usually drawn
 Unity of command is normally maintained
 It provides for division of labor.
 The responsibility and accountability at all levels of
organization is clearly defined.
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 Continued…
ii. Informal organization: is an organizational structure which
establishes the relationship on the basis of the likes and
dislikes of officers without considering the rules,
regulations and procedures.
Characteristics of informal organization
 Arises voluntarily.
 It is a social structure formed to meet personal needs.
 Has no place in the organization chart
 It acts as an agency of social control.
 Can be found on all levels of organization
 The rules and traditions are not written but are commonly
followed.
 Develops from habits, conduct, and behavior of social groups.
 Informal organization is one of the parts of total organization

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 4.3. Elements of the Organizing Function
1. Organizational structure: is the arrangement of people
and tasks to accomplish organizational goals.
 It is the framework in which the organization defines
how tasks are divided, resources are deployed, and
departments are coordinated.
2. Organization design: is the process of developing an
organization structure.
3. Organizational chart: The visual representation of an
organization’s structure.
 It is a line diagram that depicts the broad outlines of an
organization’s structure.
 Organizing enables the organization to maintain its
activities coordinated.
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Sample of Organization chart
Organization
structure

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 Importance of Organization chart
The organization chart can tell us;
1. Who reports to whom (chain of command)
2. The number of managerial levels
3. The span of control.
4. Channel of official communication
5. How the organization is structured by function,
territory,…
6. The work being done in each job
7. The hierarchy of decision-making
8. Type of authority relationships line authority, staff
authority, and functional authority.

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 Major Elements of Organizing Function
 Generally the following are the major elements of the
organizing function
1. 5.3.1. Division the work
2. 5.3.2. Departmentization
3. 5.3.3. Delegation of authority
4.5.3.4. Centralization and decentralization
5. 5.3.5. Authority relationships in organizations
6.5.3.6. Span of management
7. 5.3.7. Organization structure

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 4.3.1. Division the work
Division of labor refers to the process of dividing the total
task of a unit to successively smaller jobs.
 Overall task must be split into its component jobs and
apportioned among the people involved.
 All jobs are specialized to some degree, since every one
cannot do everything, but some jobs are considerably more
specialized than other.
In short, division of labor involves:
 Breaking down a task into its most basic elements
 Training workers in performing specific duties
 Sequencing activities so that one person’s efforts build on
another’s

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 4.3.2. Departmentization: meaning and basis
Meaning
1. Departmentation is a means of dividing the large
and complex organization into smaller, flexible
administrative unit.
2. Department – is a distinct area division or branch of
an organization over which a manager has authority for
the performance of specified activities.
Bases for Departmentation
1. The five common form of departmentalization are
functional, territorial, product, service and
customer.

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 Departmentization(cont…)

I. Departmentation by
Function.
II. Departmentation by
Territory /Geography
III. Departmentation by
Product (Line)
IV. Departmentation by
customer
V. Matrix departmentaizatin

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 Departmentization(cont…)

Matrix departmentalization
1.Combination of functional
and product
departmetantion

2. More flexible

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  4.3.3. Delegation of authority
Authority:-
 Is the formal and legitimate right of a manager to make
decision, issue order, and allocate resources to achieve
organizational desired outcome.
 Is the formal right of a superior to command and compel his
subordinates to perform a certain act.
 Level of authority varies with levels of management
 It carries with it the burden of responsibility

Delegation of Authority:-
 Is the downward pushing of authority from superiors to
subordinates to make decision within their area of
responsibilities.
 Use to transfer authority and responsibility to positions
below them
 In delegating authority a manager doesn’t surrender his
power.

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 Cont’d…
The process of delegation of authority

Delegation of authority has the following steps

1. Assignment of tasks
2. Delegation of authority
3. Acceptance of resistibility: is the obligation to
carryout one’s assigned duties to the best of one’s
ability.
4. Creation of accountability: is the fact that the people
with authority and responsibility are subject to
reporting and justifying task outcomes to those
above them in the organizational hierarchy.
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 4.3.4. Centralization and decentralization
I. Centralization-is the extent to which power and authority are
systematically retained by top managers.
If an organization is centralized
 Decision-making power remains at the top
 The participation of lower-level managers in decision-making is very
low

II. Decentralization - Is the extent to which power and authority are

systematically dispersed/delegated throughout the organization to
middle and lower level managers.
When decentralization is greater:
 The greater is the number of decisions made at lower level of the
organization
 The more functions are affected by decisions made at lower levels
 The less a subordinate has to refer to his/her manager prior to a
decision.
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4.3.5 Authority Relations in Organization (Line, Staff and
Functional)

Authority: is the legitimate right to make decision, to

allocate resource or to command a subordinate.
 Created in relation between individuals /departments in an
organization.

• Of three type

1. Line authority
2.Staff authority
3.Functional authority

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 Authority Relations in Organization(cont…)
1. Line authority
Line authority defines the relationship between superior and
subordinate.
 It is an exercise of direct command over the subordinate
 In line authority a superior exercises direct command over a
subordinate.
 Line authority is represented by the standard chain of command
Example: department head
2. Staff authority
Staff authority is the authority to give advise , assistance and help.
 Have no direct supervisory control over subordinates.
 Expertise technical assistance, and support to help line managers
to work more
Example: R&D advisor, Legal advisor, repair and maintenance officer

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 Authority Relations in Organization(cont…)
The line department The staff department
1. It is established to meet
the major objective of 1. It is established to assist
the firm line department through
advice, service and
2. Headed by a line assistance
manager 2. Created based on the special
need of the organization
Example: Examples:

1. Legal department
1. Marketing department 2. R&D department
2. Finance department 3. Repair and maintenance
3. Production department department

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 Authority Relations in Organization(cont…)
3. Functional authority
 It is the right, given to an individual or a department to control
specified process or practices undertaken by persons in
other departments.
 If unity of command had strictly applicable only line authority
would exist

Examples Functional authority

 The finance manager command to the marketing
manager
 The legal Advisor command to other on legal affairs
 The personnel manager command to others regarding
recruitment, selection, performance appraisal systems

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 4.3.6. Span of Management
• Number of employees reporting to a supervisor and
also called span of control.
• Type…. Narrow and wide span of management. Characteristics of
Narrow SM.
Tall organization structure
More communication
between superiors and
subordinates.
Managers are
underutilized and their
subordinates are over
controlled
More trained managerial
personnel and centralized
authority.

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 Span or Management (cont…)

Characteristics Wide span of management

The process of delegation of authority
 A flat organization structure
 Many number of subordinates
 Decentralized authority
 Managers are overstrained
and their subordinates
receive too little guidance
and control
 Fewer hierarchal level

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 Factors Determining an Effective Span of Management
1. Ability of the Manger
2. Manager’s personality
3. The Abilities of Subordinates
4. Motivation and commitment
5. Need for autonomy by (employees)
6. Type of work
7. Geographic dispersion of subordinates
8. The availability of information and control
systems
9. Levels of management

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 5. THE STAFFING
FUNCTIONS

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 5.1. MEANING OF STAFFING
 The staffing function follows the function of planning and
organizing

1. Staffing is filling and keeping field positions in the

organizational structure through the right man power.
2. Staffing is the executive function of recruiting, selecting,
training, developing, promoting, and retiring
subordinates.
3. Staffing involves managing the organization structure
through proper and effective selection, appraisal, and
development of personnel to fill the roles designed into
the structure.

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 Benefits of Staffing
1. It helps in discovering and obtaining competent
personnel for various jobs 
2. It makes for higher performance by putting the
right man on the right job.
3. It ensures the continuous survival and growth of the
enterprise
4. It helps to ensure optimum utilization of human
resources
5. It Avoids over manning as well as shortage of
manpower in advance
6. It improves job satisfaction and morale of employees
through objective assessment and fair rewarding
of their contributions. 

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 5.2. ACTIVITIES IN STAFFING FUNCTION
The major activities in the staffing function
include:

A.Manpower planning
B.Recruitment        
C.Selection 
D.Placement 
E.Introduction/ orientation
F.Training and development.
G.Performance appraisal 

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 Cont’d…
A. MANPOWER PLANNING / HUMAN RESOURCE PLANNING:
1. Manpower : the quantity and quality of
workforce.
2. Manpower planning: is the process of
forecasting the number and type of
personnel.       
 Manpower planning process;
1. Forecasting manpower requirements 
2. Preparing manpower inventory / manpower audit
3. Identifying manpower gaps
4. Formulate manpower plans

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 Cont’d…
B. RECRUITMENT 
• It is the process of searching for prospective
employees and stimulates them to apply for jobs in
the organization.
• The purpose of recruitment is to attract potential
employees and generally viewed as a positive process.
Sources of recruitment
1. Internal source : through
• Transfer
• Promotion
1. External source   : through    
 Advertisements
 Employment agencies
 Educational institutions
 Recommendations by other people
 Direct recruitment.
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 Cont’d…
C. SELECTION 

 Is the process of screening or evaluation of

applicants and selecting the right person
for the right position.
Categorizes applicants as
1. Those who will be employed.
2. Those who will not be employed.
 Selection is described as a negative process.

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 Cont’d…
D. INTRODUCTION/ ORIENTATION

 INTRODUCTION : is a socializing process of the

employee.
 ORIENTATION: is a socializing process by which
new employee is provided with information about
work environment and operating realities.

“First impression is the last impression”

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 Cont’d…
E. TRAINING AND DEVELOPMENT 
 The term "training" and "development"
"development considered
as synonymous :
1. Training: It is the process of increasing the knowledge
and skills of an employee for doing a particular job.
2. Development: It refers to the growth of an individual in
all respects - physically, intellectually, and socially.   

Methods of training     
1. On-the-job Training (OJT)
2. Apprenticeship Training 
3. Vestibule Training 
4. Off- the -Job Training

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 End
Thank you!!!
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