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What is organizing? Organization: a group of people who have a common objective Organizing: The process of arranging resources, primarily people, to carry out the organization’s plans; the process of creating an organization’s structure. organizational structure - the formal framework by which job tasks are divided, grouped, and coordinated How to organize a business? Three phases: vertical organization (纵向组织) departmentalization （部门化） horizontal coordination （横向协调） Vertical organization ---- defining individual jobs to complete the tasks necessary to achieve company goals. Departmentalization---- grouping jobs into departments and larger units. Horizontal coordination– aligning all tasks across departments and divisions. Hierarchical An organization that emphasizes vertical structure maintains tight control over hierarchical levels, defines jobs rigidly, sets up many specific rules, centralizes authority, and communicates through the vertical hierarchy. Disadvantages Information move slowly and Channels of communication were limited. The standard jobs are separated into sequential steps and carried out under direct supervision. No motivation and authority for the line workers. Companies may become slow to react to change High-level managers may overlook many great ideas for improvement that originate in the lower levels of the organization Vertical organization Work specialization--- division of labor, improve organizational efficiency. Dividing labor by task/ dividing labor by authority Authority--- is a form of power, it is power granted by the organization and acknowledged by the employees. Work specialization Advantages: make the work more efficiently; workers does not need all skills; skills can be enhanced through practice repeatedly; less preparation or set-up time Disadvantages: the range of task is too narrow; employees may become bored with performing the same tiny, repetitious job