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Engineering Management and Dalumat Reviewer, Summaries of Engineering Economy

Polytechnic University Engineering Economy

Prof. Diane Castillo

it's all about reviewer for a specific subject.

Typology: Summaries

2022/2023

Uploaded on 12/06/2023

owric-manalo 🇺🇸

2 documents

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Rizal Technological University

Bachelor of Science in Civil Engineering

Engineering Management

Functions of Management - Organizing

Objectives:

1. This presentation aims to explore the importance of organizing in improving

decision-making skills, enhancing teamwork, and increasing overall organizational

productivity and success.

2. To provide a foundational understanding organizational structure, coordination,

and delegation contribute in achieving organizational objectives.

3. At the end of the discussion, the students will be able to analyze various

organizational structures in engineering management and their applications,

including functional, project-based, and matrix structures.

What is Organizing?

Organizing is the act of arranging and structuring items, information, or tasks

systematically and efficiently to facilitate ease of access, use, and management.

A manager performs the organizing function with the help of the following steps:

1. Identification of activities - All the activities that have to be performed in a

concern have to be identified first. For example, preparation of accounts, making

sales, record keeping, quality control, inventory control, etc. All these activities

have to be grouped and classified into units.

2. Departmentally organizing the activities - In this step, the manager tries to

combine and group similar and related activities into units or departments. This

organization of dividing the whole concern into independent units and departments

is called departmentation.

3. Classifying the authority - Once the departments are made, the manager likes

to classify the powers and their extent to the managers. This activity of giving a

rank to the managerial positions is called hierarchy.

4. Coordination between authority and responsibility - Relationships are

established among various groups to enable smooth interaction toward the

achievement of the organizational goal.

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Bachelor of Science in Civil Engineering Engineering Management Functions of Management - Organizing Objectives:

This presentation aims to explore the importance of organizing in improving decision-making skills, enhancing teamwork, and increasing overall organizational productivity and success.
To provide a foundational understanding organizational structure, coordination, and delegation contribute in achieving organizational objectives.
At the end of the discussion, the students will be able to analyze various organizational structures in engineering management and their applications, including functional, project-based, and matrix structures. What is Organizing? Organizing is the act of arranging and structuring items, information, or tasks systematically and efficiently to facilitate ease of access, use, and management. A manager performs the organizing function with the help of the following steps: 1. Identification of activities - All the activities that have to be performed in a concern have to be identified first. For example, preparation of accounts, making sales, record keeping, quality control, inventory control, etc. All these activities have to be grouped and classified into units.
Departmentally organizing the activities - In this step, the manager tries to combine and group similar and related activities into units or departments. This organization of dividing the whole concern into independent units and departments is called departmentation.
Classifying the authority - Once the departments are made, the manager likes to classify the powers and their extent to the managers. This activity of giving a rank to the managerial positions is called hierarchy.
Coordination between authority and responsibility - Relationships are established among various groups to enable smooth interaction toward the achievement of the organizational goal.

Bachelor of Science in Civil Engineering Importance of Organizing Function

Specialization - Organizational structure is a network of relationships in which the work is divided into units and departments. This division of work is helping to bring specialization in various activities of concern.
Well-defined jobs - Organizational structure helps in putting the right men on the right job which can be done by selecting people for various departments according to their qualifications, skill, and experience. This helps in defining the jobs properly which clarifies the role of every person.
Clarifies authority - Organizational structure helps in clarifying the role positions of every manager (status quo). This can be done by clarifying the powers of every manager and the way he has to exercise those powers should be clarified so that misuse of powers does not take place.
Coordination - Organization is a means of creating coordination among different departments of the enterprise. It creates clear-cut relationships among positions and ensures cooperation among individuals.
Effective administration - The organization structure helps define the job positions. The roles to be performed by different managers are clarified. Specialization is achieved through the division of work. This all leads to efficient and effective administration.
Growth and diversification - A company’s growth is dependent on how efficiently and smoothly a concern works. Efficiency can be brought about by clarifying the role positions to the managers, co-ordination between authority and responsibility, and concentrating on specialization.
Sense of security - Organizational structure clarifies the job positions. The roles assigned to every manager are clear. Coordination is possible. Therefore, clarity of power helps automatically in increasing mental satisfaction and thereby a sense of security in a concern. This is very important for job- satisfaction.
Scope for new changes - Where the roles and activities to be performed are clear and every person gets independence in his work, this provides enough space for a manager to develop his talents and flourish his knowledge. **Principles of Organizing
Principle of Specialization**

The whole work of concern should be divided amongst the subordinates based on qualifications, abilities, and skills 2. Principle of Functional Definition

Bachelor of Science in Civil Engineering Classification of Organizations

1. Formal Organization - A structure of well-defined jobs each bearing a measure of authority and responsibility - An arbitrary setup in which each person is responsible for their performance - It has a formal setup to achieve predetermined goals 2. Informal Organization - A network of personal and social relationships that spontaneously originate within the formal setup - There is no conscious effort made to have an informal organization - Emerges from the formal organization and it is not based on any rules and regulations as in the case of a formal organization Relationship between Formal and Informal Organization Formal and informal organization helps in bringing efficient working organization and smoothness in a concern. Within the formal organization, the members undertake the assigned duties in cooperation with each other. They interact and communicate amongst themselves. Therefore, both formal and informal organizations are important. When several people work together for the achievement of organizational goals, social tie-ups tend to be built, and therefore informal organization helps to secure cooperation by which goals can be achieved smoothly. Therefore, we can say that informal organization emerges from formal organization. Line Organization

Line organization is the oldest and simplest method of administrative organization.
According to this type of organization, the authority flows from top to bottom in a concern. The line of command is carried out from top to bottom. This is the reason for calling this organization a scalar organization which means a scalar chain of command is a part and parcel of this type of administrative organization.
In this type of organization, the line of command flows on an even basis without any gaps in communication and coordination taking place. Features of Line Organization

It is the simplest form of organization.
The line of authority flows from top to bottom.
Specialized and supportive services do not take place in these organizations.

Bachelor of Science in Civil Engineering

Unified control by the line officers can be maintained since they can independently make decisions in their areas and spheres.
This kind of organization always helps in bringing efficiency in communication and bringing stability to a concern. Merits of Line Organization
Simplest - It is the most simple and oldest method of administration.
Unity of Command - In these organizations, the superior-subordinate relationship is maintained and the scalar chain of command flows from top to bottom.
Better Discipline - The control is unified and concentrates on one person and therefore, he can independently make decisions of his own. Unified control ensures better discipline.
Fixed Responsibility - In this type of organization, every line executive has fixed authority, power, and fixed responsibility attached to every authority.
Flexibility - There is a co-ordination between the topmost authority and bottom line authority. Since the authority relationships are clear, line officials are independent and can flexibly make the decision. This flexibility gives satisfaction to line executives.
Prompt Decision - Due to the factors of fixed responsibility and unity of command, the officials can make prompt decisions. Demerits of Line Organization
Over-reliance - The line executive’s decisions are implemented to the bottom. This results in over-relying on the line officials.
Lack of Specialization - A line organization flows in a scalar chain from top to bottom and there is no scope for specialized functions. For example, expert advice whatever decisions are taken by line managers are implemented in the same way.
Inadequate Communication - The policies and strategies that are framed by the top authority are carried out in the same way. This leaves no scope for communication from the other end. The complaints and suggestions of the lower authority are not communicated back to the top authority. So, there is one way of communication.

Bachelor of Science in Civil Engineering

Line and Staff Organization is a compromise of line organization. It is more complex than line concern.
Division of work and specialization takes place in line and staff organization.
The whole organization is divided into different functional areas to which staff specialists are attached.
Efficiency can be achieved through the features of specialization.
There are two lines of authority which flow at one time in a concern:
- Line Authority
- Staff Authority
Power of command remains with the line executive and staff serves only as counselors
Line Authority
Staff Authority Merits of Line and Staff Organization
Relief to Line of Executives - The relief provided to line executives by specialized staff personnel is a merit of the line and staff organization structure. It allows executives to focus on their core responsibilities, access specialized advice, improve efficiency, and ensure the organization has the expertise needed to succeed.
Expert Advice - The availability of expert advice is a significant merit of the line and staff organization structure. It allows line executives to benefit from the specialized knowledge and expertise of staff members, leading to improved decision-making, enhanced efficiency, and the ability to adapt to changes in the business landscape.
Benefit of Specialization - By allowing individuals to specialize in particular areas of work, line and staff organization capitalizes on the strengths and expertise of employees, leading to increased productivity, efficiency, and ultimately, the success of the organization.
Better Coordination - Better coordination leads to smoother workflow, improved efficiency, and the ability to adapt and respond quickly to changes and challenges in the business environment.
Benefits of Research and Development (R&D) - By separating R&D functions into dedicated staff positions, line managers can leverage the specialized expertise, resources, and insights of staff managers to drive innovation, create competitive advantage, and ensure the long-term success of the organization.
Training - The presence of staff managers in training and development fosters a learning mindset within the organization. They can provide ongoing coaching and

Bachelor of Science in Civil Engineering support to employees, cultivate a culture of continuous learning, and encourage the transfer of newly acquired knowledge and skills into the workplace.

Balanced Decisions - Balanced decisions are one of the merits of line and staff organization because they take advantage of the collaborative nature of the organizational structure. By involving both line and staff managers in decision- making processes, organizations can leverage diverse knowledge and perspectives to make more informed and effective decisions that align with both operational considerations and strategic goals.
Unity of Action - the unity of action promotes a cohesive and harmonious work environment. Demerits of Line and Staff Organization
Lack of Understanding - the lack of understanding between line and staff managers can hinder effective collaboration and coordination. It can impede the flow of information, slow down decision-making, and ultimately affect the overall performance and efficiency of the organization.
Lack of Sound Advice - A lack of clear communication and coordination between line and staff managers.
Line and Staff Conflicts - The potential clash of interests and perceptions between line and staff managers. Line managers are responsible for accomplishing operational goals and often prioritize achieving immediate results. On the other hand, staff managers may focus on long-term strategies, analysis, and providing support. This difference in focus can create conflicts in goals and priorities.
Costly - Concerns must continue to provide their staff specialists with a high salary in line with worker concerns. This turns out to be expensive for a business with limited resources.
Assumption of Authority - When staff managers assume authority in a line and staff organization, it can disrupt the hierarchy, create confusion, undermine the accountability of line managers, undervalue their expertise, and lead to delays in decision-making.
Staff Steals the Show - When staff managers steal the show, it disrupts the balance and collaboration between line and staff roles. It can undermine the authority and accountability of line managers, lead to a lack of ownership and engagement, create imbalances in priorities, and hinder the development of line managers' skills.

Bachelor of Science in Civil Engineering Demerits of Functional Organization

Confusion- The functional system is quite complicated to put into operation, especially when it is carried out at low levels. Therefore, coordination becomes difficult.
Lack of Coordination- Disciplinary control becomes weak as a worker is commanded not by one person but by a large number of people. Thus, there is no unity of command.
Difficulty in fixing responsibility- Because of multiple authorities, it is difficult to fix responsibility.
Conflicts- There may be conflicts among the supervisory staff of equal ranks. They may not agree on certain issues.
Costly - Maintenance of specialist staff of the highest order is expensive for a concern. Delegation of Authority Delegation of Authority means division of authority and powers downwards to the subordinate. Delegation is about entrusting someone else to do parts of your job. Delegation of authority can be defined as the subdivision and sub-allocation of powers to the subordinates to achieve effective results. Elements of Delegation
Authority - in the context of a business organization, authority can be defined as the power and right of a person to use and allocate resources efficiently, make decisions, and give orders to achieve organizational objectives. The authority must be well-defined. All people who have the authority should know what the scope of their authority is and they shouldn’t utilize it. Authority always flows from top to bottom. It explains how a superior gets work done from his subordinate by clearly explaining what is expected of him and how he should go about it.
Responsibility - is the duty of the person to complete the task assigned to him. A person who is given the responsibility should ensure that he accomplishes the tasks assigned to him. If the tasks for which he was held responsible are not completed, then he should not give explanations or excuses. Responsibility flows from bottom to top. The middle-level and lower-level management holds more responsibility. The person held responsible for a job is answerable for it.

Bachelor of Science in Civil Engineering

Accountability - means giving explanations for any variance in the actual performance from the expectations set. Accountability cannot be delegated. Accountability, in short, means being answerable for the result. Accountability can’t be escaped. It arises from responsibility. To achieve delegation, a manager has to work in a system and perform the following steps:
Assignment of tasks and duties
Granting of authority
Creating responsibility and accountability Delegation of authority is the base of a superior-subordinate relationship, it involves the following steps:
Assignment of Duties - The delegator first tries to define the tasks and duties of the subordinate. He also has to define the result expected from the subordinates. Clarity of duty as well as the result expected has to be the first step in delegation.
Granting of authority - Subdivision of authority takes place when a superior divides and shares his authority with the subordinate.
Creating Responsibility and Accountability - The delegation process does not end once powers are granted to the subordinates. They at the same time have to be obligatory towards the duties assigned to them. Accountability arises out of responsibility and responsibility arises out of authority. Therefore, it becomes important that with every authority position an equal and opposite responsibility should be attached. Therefore, every manager, the delegator has to follow a system to finish up the delegation process. Equally important is the delegate’s role which means his responsibility and accountability are attached to the authority over here. Relationship between Authority and Responsibility Authority is the legal right of a person or superior to command his subordinates while accountability is the obligation of the individual to carry out his duties as per standards of performance Authority flows from the superiors to subordinates, in which orders and instructions are given to subordinates to complete the task.

Bachelor of Science in Civil Engineering Through delegating powers, the subordinates get a feeling of importance. They get motivated to work and this motivation provides appropriate results to a concern. Job satisfaction is an important criterion to bring stability and soundness in the relationship between superiors and subordinates. Delegation also helps in breaking the monotony of the subordinates so that they can be more creative and efficient.

Delegation of authority is not only helpful to the subordinates but it also helps the managers to develop their talents and skills. Granting powers and getting the work done, helps the manager to attain communication skills, supervision, and guidance, effective motivation and leadership traits flourish. Therefore, it is only through delegation, that a manager can be tested on his traits.
Delegation of authority helps both superiors and subordinates. This, in a way, gives stability to a concern’s working. With effective results, a concern can think of creating more departments and divisions to flow work. This will require the creation of more managers which can be fulfilled by shifting the experienced, skilled managers to these positions. This helps in both virtual as well as horizontal growth which is very important for a concern’s stability. We therefore conclude, from the above points, we can justify that delegation is not just a process but it is a way by which a manager multiplies himself/herself and can bring stability, ability, and soundness to a concern. **Principles of Delegation
Principle of Result Excepted**

This principle suggests that every manager before delegating the powers to the subordinate should be able to clearly define the goals as well as results expected from them.
For instance, if you’re a manager and you set a sales target for your team, it’s a clear goal that each salesperson should aim for. This defines what success looks like for the task being delegated. 2. Principle of Parity of Authority and Responsibility
According to this principle, the manager should keep a balance between authority and responsibility. Both of them should go hand in hand. If a subordinate is given a responsibility to perform a task, then at the same

Bachelor of Science in Civil Engineering time he should be given enough independence and power to carry out that task effectively.

This principle also does not provide excessive authority to the subordinate which at times can be misused by him. The authority should be given in such a way that matches the task given to him. Therefore, there should be no degree of disparity between the two. 3. Principle of Absolute Responsibility
The authority can be delegated but responsibility cannot be delegated by managers to their subordinates which means responsibility is fixed. Every superior is responsible for the acts of their subordinates and is accountable to their superior therefore the superiors cannot pass the blame to the subordinates even if he has delegated certain powers to subordinates. 4. Principle of Authority Level
This principle suggests that a manager should exercise his authority within the jurisdiction/framework given. Every manager has a set limit or boundary of decisions they can make. If something falls outside that boundary, they need to consult their higher-ups. Similarly, subordinates shouldn't overwhelm their managers with minor decisions that fall within their own delegated authority. It's about respecting the structure and levels of decision-making in the organization. Centralization and Decentralization Centralization - is said to be a process where the concentration of decision-making is in a few hands. All the important decisions and actions at the lower level, all subjects and actions at the lower level are subject to the approval of top management. According to Allen , “Centralization” is the systematic and consistent reservation of authority at central points in the organization. The implication of centralization can be:

Reservation of decision-making power at the top level.
Reservation of operating authority with the middle-level managers.
Reservation of operation at the lower level at the directions of the top level. Under centralization, the important and key decisions are taken by the top management and the other levels are into implementations as per the directions of the top level. Example:

Bachelor of Science in Civil Engineering

In decentralization, the subordinates get a chance to decide and act independently which develops skills and capabilities. This way the organization can process the reserve of talent in it.
In decentralization, diversification and horizontal can be easily implanted.
In decentralization, concern diversification of activities can be placed effectively since there is more scope for creating new departments. Therefore, diversification growth is of a degree.
In a decentralization structure, operations can be coordinated at a divisional level which is not possible in the centralization setup.
In the case of a decentralization structure, there is greater motivation and morale of the employees since they get more independence to act and decide.
In a decentralization structure, coordination to some extent is difficult to maintain as there are lot many department divisions, and authority is delegated to the maximum possible extent, i.e., to the bottommost level delegation reaches. Example: The general manager of a company is responsible for receiving the leave application for the whole of the concern. The general manager delegates this work to the personnel manager who is now responsible for receiving the leave applicants. In this situation, delegation of authority has taken place. On the other hand, at the request of the personnel manager, if the general manager delegates this power to all the departmental heads at all levels, in this situation, decentralization has taken place. “Everything that increases the role of subordinates is decentralization and that decreases the role is centralization.” Centralization and decentralization are the categories by which the pattern of authority relationships becomes clear. The degree of centralization and de-centralization can be affected by many factors like the nature of operation, volume of profits, number of departments, size of concern, etc. The larger the size of a concern, a decentralization setup is suitable for it. Delegation of authority is a complete process and takes place from one person to another. While decentralization is complete only when the fullest possible delegation has taken place. For example, the general manager of a company is responsible for receiving the leave application for the whole of the concern.

Bachelor of Science in Civil Engineering Decentralization is wider in scope and the subordinate’s responsibility increases in this case. On the other hand, in delegation, the managers remain answerable even for the acts of subordinates to their superiors. Delegation and Decentralization Basis Delegation Decentralization Meaning Manager delegate some of their functions and authority to their subordinates. The right to make decisions is shared by top management and another level of management. Scope The Scope of delegation is limited as the superior delegates the powers to the subordinates on an individual basis. The scope is wide as the decision- making is shared by the subordinates. Responsibility Responsibility remains of the managers and cannot be delegated Responsibility is also delegated to subordinates. Freedom of Work Freedom is not given to the subordinates as they have to work as per the instructions of their superiors. Freedom to work can be maintained by subordinates as they are free to make decisions and implement them. Nature It is a routine function It is an important decision for an enterprise.

Bachelor of Science in Civil Engineering

Engineering Management and Dalumat Reviewer, Summaries of Engineering Economy

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