Chapter 6

Organizing
 Advanced Organizer

Managing Engineering and Technology

Management Functions Managing Technology Personal Technology

Leading Research Time Management

Design Ethics
Planning
Production Career
Decision Making
Quality
Organizing
Marketing
Controlling
Project Management
 Purpose of Organizing

• Helps to achieve organizational goal

• Optimum use of resources
• To perform managerial function
• Facilitates growth and diversification
• Human treatment of employees
• Main forms of business organizations adopted by private
sector in Pakistan are as follows:
• Sole proprietorship
• Partnership
• Limited liability company
• Joint venture
 Sole Proprietorship

Ownership:1 person
Advantages
• Simple to operate
• Owner is free to make all decisions
Disadvantages
• Owner faces unlimited liability (next slide)
• Difficult to raise capital
Unlimited liability means that owners can be held personally accountable for
a business's debt. For example, three partners each invest $20,000 in a
business. The business accrues $150,000 in liabilities. If the business is
unable to repay the debts or defaults on its debt, each of the three partners
is equally liable for the debt. In other words, each would have to come up
with $50,000 above their initial investment to satisfy the debt. Placing
personal assets at risk can be disadvantageous and many businesses choose
to form as limited partnerships instead.
This is in contrast to a limited liability structure where owners' losses cannot
exceed the total amount invested in the business.
 Partnership

Ownership: 2 or More
Advantages
• Pooling of management skills, financial strength
Disadvantages
• Divided decision-making authority
• Partners face unlimited liability
Limited Liability Companies (LLC)
 Joint venture

• Al Ghurair Giga Pakistan (Private) Ltd is a joint

venture between two of the UAE’s largest
business conglomerates, the Al Ghurair Group
and the Giga Group.
Traditional Organizational Theory
Span of Control
the area of activity and number of
functions, people, or things for which
an individual or organization is
responsible.
As an example, a manager with eight direct reports
has a span of control of eight.
Flat Organizational Structure
Modern Organization Structures

Modern organization design draws on ideas

from many fields to make communication
more dynamic and blend individual and
organizational solutions together into a
cohesive whole.
New designs focus on adaptability.
They rely highly on employee involvement,
distribute authority based on skill and have
fewer rules and boundaries, resulting in a
more organic structure.
Modern Organization Structures
The matrix organizational structure divides authority both
by functional area and by project.
a matrix structure, each employee answers to two
immediate supervisors: a functional supervisor and a
project supervisor.
The functional supervisor is charged with overseeing
employees in a functional area such as marketing or
engineering.
Project supervisors manage a specific and often
impermanent project.
They absorb employees from various functional areas to
complete their project teams.