Organization

Presented by Manish Kumar Nagda

Meaning of Organization

“An organization represents a group of people who work together for the achievement of common objective.”“An organization comes into existence when there are a number of persons in communication and relationship to each other and are willing to contribute towards a common endeavor.”

Process of organization Determination of objectives. Division of Activities. Fitting Individuals. Developing relationships. Co-ordination.

Advantages of organization Effective Management. Co-ordination and communication. Growth and diversification. Optimum use of technical

innovations. Optimum use of human resource. Balance emphasis to various

activities.

Principles of organization Principle of objectives. Principle of division of work. Principle of unity of command. Principle of span of control. Principle of scalar chain. Principle of delegation. Principle of absoluteness of

responsibility.

Principle cont… Principle of parity of authority and

responsibility. Principle of co-ordination. Principle of flexibility . Principle of efficiency. Principle of continuity. Principle of exception.

Departmentation

“Departmentation involves grouping all operation tasks into jobs, combining of jobs into effective work group,combining all groups into division often termed as departments.”

Advantages of Departmentation Easier to fix accountability for the results. Increase in efficiency of management and

enterprise. Departmentation is a logical reflection of

functions. Maintains power and prestige of manor

functions. Departmentation simplify training.

Bases of the Departmentation

P ro du c tionp la nn ing

F o u n d ry L a the A sse m by S to res

M a nu fa c tu ring Q u a lityco n tro l

P ro du c tionD e pa rtm e nt

M a rke tingD e pa rtm e nt

F in an ceD e pa rtm e nt

H u m an re so u rceD e pa rtm e nt

C h ie f E x iqu it ive

1. Departmetation by function

2. Departments by Product

P ro du c tion M a rke ting R e se a rch A cco u n ting P e rson n e l

P la s ticD iv is io n

M a ta ls D iv is ion C h e m ica lsd iv is ion

P ro du c tionD ire c to r

C h ie f E x iqu it ive

3. Departmentation by equipment or process

S p inn ing W e av ing C a la nd e ring D ye ing P a ck ing

G e n era l M a n aa g er{T A X T IL E }

C h if E xiq u it ive

4. Departmentation by Consumers.

H e a vy D iv is ion L ig h t D iv is ion S co o te r D iv is ion

G e ne ra l M a na g er{A U T O M O B IL E }

C h ie p E x iqu it ive

5. Departmentation by Geographical location

L ife In sura nce co rpo ra tio n o f In d ia

E a ste rn{ca lcu tta }

C e n tra l{K a n p u r}

N e w D e lh iD iv is io n

Ja la nd h arD iv is io n

C h an d ig a rhD iv is io n

B ra n chU n it 1

B ra n chU n it 2

B ra n chU n it 3

Ja ip urD iv is io n

N o rth en{D e lh i}

S ou the rn{M a d ra s }

W e s te rn{B o m b a y}

H e a d O ffice{B o m b a y}

Conclusion

A good organization structure is necessary to operate the organization efficiently and organization must be structured according to the type of the organization and situations.