Organizing – 2nd Managerial Function

Organizing – 2nd Managerial Function : 

Organizing is the 2nd Managerial function, which is strongly based on good planning, as discussed in the previous session (Planning Function). Part 4 of Management (2015) Book is Organizing, which has 4 chapters and one module (picture below). This post & video discuss chapters 1 & 2 (Basic & Modern Designs of Structure). The book is the 1st one in your channel: Management with Merits – Manage to Prosper. We have already introduced this book and done the first three parts of it. First Part was about the Nature of Management, the second was Basics of Management, and the 3rd was (last session) Managerial Planning.  All videos about this book can be found in our YouTube Account in the dedicated playlist for Management 2015 book. To download the presentation associated with this video (PDF), please go to the description section in YouTube below the video. 

 

Organizing - 2nd Managerial Function - Part 4 of Management 2015 Book
Part 4 – Organizing (Management 2015 Book)
Source: Robbins, P. & Coulter, R. (2015). Management. (13h edn). U.S.A.: Pearson e

Definition & Components of Organizing – 2nd Managerial Function: 

Organizing by itself is means towards an end, not an end by itself.  Thus, every organization shall choose and change their organizing design & structure in a manner that enhances their purpose, strategy & goals, depending on the environment, culture and situation. Organizing can be defined as the managerial function that involves arranging and structuring work activities and tasks to achieve goals. There are some key terms and concepts associated with organizing, which were defined in our book as below.

1)Organizational Structure: The formal arrangement of jobs within an organization

2) Organizational Design: Creating or changing an organization’s structure. It consists of six elements:

a.            Work Specialization

b.            Departmentalization

c.            Chain of Command “Authority, Power, Responsibility, Unity of Command”

d.            Span of Control

e.            Centralization / Decentralization

f.            Formalization

3.            Organizational Chart:  The visual representation of an organization’s structure

All of these elements will be discussed in details when we take the 3rd Book in our channel, which is: “Organizational Theory, Design & Change – 7th Edition – 2013 – Gareth Jones – Pearson U.S.A.”. We have already introduced this book in a previous post. 

Self-Organizing & Self-Management: 

One of the most modern methods for organizing and management is Self-Management & Self-Organization”, where people work within self-managed teams to achieve common goals. There are numerous methods for self-management. However, the most popular and bizarre one is  “Holacracy”, where teams work within a “Holarchy”. This method was created by Brian Roberston (U.S.A.) in 2007, who launched: “HolacracyOne” to spread and implement Holacracy for interested companies. In Holacracy, people are arranged within a unique structure called “Holarchy”, consisting of self-managed & self-organized teams who work independently and together to achieve organization’s purpose. This is how the word got it name, which has Greek origins (the word holo) that denotes an entity formed by several self-managed units that work together towards achieving common purpose. A famous company that adopts Holacracy is the online retailer Zappos (part of Amazon).

Organizing - 2nd Managerial Function - Holarchy & Holacracy, self-management & organization
Holarchy in Holacracy
Source (2015):
https://www.cnbc.com/2015/06/05/why-zappos-got-it-right-about-holacracy-commentary.html

Why Holacracy? 

Implementing and benefiting from Holacracy depends on the organization’s strategy,  culture & environment (internal & external). This can be highlighted by discussing “Zappos” Holacracy case. This organization has found that Holacracy is the best solution for them because it helps them enhance their basic purpose & vision of presenting (WoW!) for every customer. Holacracy helps Zappos employees to find creative and innovative solutions and decisions for customer affairs & preferences, without getting stuck on multiple managerial levels or prolonged procedures within the traditional hierarchy.

There is no fully defined procedure for practicing Holacracy. People learn it basically by experimenting, trial & error and feedback. General guidelines are provided by the company’s purpose and strategy, as well as the Holacracy Constitution (About 50 pages). Thus, purpose and accountability are clearly defined, then people work within self-managed teams (circles), both big and small) to create and implement their own methods for achieving the purpose. In short, the most prominent feature of Holacracy is revolutionizing organizations and management via providing the highest level of decentralization and empowerment.

4 thoughts on “Organizing – 2nd Managerial Function

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