ORGANIZING

Definitions “Process of determining the activities to be performed, arranging these activities to administrative units, as well as assigning managerial authority and responsibilities to people employed in the organization.”

Heney – A harmonious adjustment of specialised parts for the accomplishment of some common purpose

Mc Farland- An identified group of people contributing their efforts towards the attainment of goals

Allen – Identifying and grouping work to be performed, defining and delegating responsibility and authority and establishing relationships to work effectively

Chester Bernard – A system of cooperative activities of two or more persons

G.R.Terry – Establishing effective behavioural relationships among persons

Joseph L Massive – Structure and process by which a cooperative group of human beings allocates its tasks among its members, identifies relationships and integartes its activities

Organising – Differentiating and Integrating activities for attaining common objectives

Attainment of the objectives of the enterprise

Optimum utilisation of resources

Growth and diversification

Creativity and innovation

Effective communication

Better relations between labour and management

Increase employee satisfaction and decreases employee turnover

Organisation as a process

Organisation as structure or framework of relationships ( Results of the process)

Organizing - the process of creating an organization’s structure

Organizational structure - the formal framework by which job tasks are divided, grouped, and coordinated

Organizational design - process of developing or changing an organization’s structure

PROCESS OF ORGANIZINGEstablishing enterprise objectives.

Formulating supporting objectives and plan.

Identifying , analyzing and classifying.

Grouping of activities.

Delegation of authority.

Horizontal and vertical coordination.

Every Organization has a StructureBut structures can differ

Due to choice

The words used to describe them also can differ

Organization chart, design, structure

The Structural Configuration

Is the skeleton of the organization

Reflects corporate governance

Is intended to meet organizational objectives

Arises out of strategic directions

And causes managers to ask:

What structure will best aid us in meeting our strategy and objectives?

Restructuring Occurs for Many Reasons

Turnover in top management

Competitive positioning

Mergers and/or acquisitions

Cost-savings

Even the illusion of managerial control

ORGANIZATIONAL ROLES

Organizational role incorporates :

Verifiable objectives.

A clear idea of the major duties or activities involved .

An understood area of discretion or authority.

The person filling the role knows what he or she can do to accomplish goals.

Organization Chart

“A chart that shows the structure of the organization including the title of each manager’s position and, by means of connecting lines, who is accountable to whom and who has authority for each area.”

Advantages of Organisation

Adoption of new technology

Better human relations

Check on corrupt practices

Coordination

Creativity , initiative and innovation

Enhancement of managerial efficiency

Growth ,expansion and diversification

Proper weightage to all activities

Specialisation

Training and development

FORMAL & INFORMAL ORGANIZATION

On the basis of relationship:

FORMAL ORGANIZATION refers to:

Structure of well defined jobs.

Definite measure of authority, responsibility and accountability.

Each individual consciously combine their effort to accomplish common task.

INFORMAL ORGANIZATION refers to:

It is a joint personal activity without conscious joint purpose even though contributing to joint results.

The relations are not developed according to procedures and regulations.

FUNCTIONAL ORGANIZATION STRUCTURE

“Refers to grouping activities in accordance with the functions of an enterprise, embodies what enterprises typically do.”

Most widely employed at some level of organization.

The characteristics of various departments are recognised & thoroughly understood.

Coordination of activities.

ADVANTAGES:

Is logical reflection of functions

Simplifies training

Furnishes means of tight control at top.

DISADVANTAGES:

Deemphasis of overall company objectives

Overspecialises & narrows viewpoints of key personnel

Reduces coordination between functions

Responsibility of profits is at the top only.

DIVISIONAL ORGANIZATION STRUCTURE

“Divisional structure groups together people who work on a similar product, work in the same geographical region, or serve the same customers.”

ADVANTAGES:

• Expertise focused on special products, customers, regions.

• Better coordination across functions within divisions.

• Better accountability for product or service delivery.

• Easier to grow or shrink in size as conditions change.

MATRIX ORGANIZATION STRUCTURE

“Combining of functional & product patterns of departmentation in the same organization structure.”

‘Grid’ or ‘project’ or ‘product management’’.

A matrix is a highly flexible form that is readily adaptable to changing circumstances.

ADVANTAGES:

Is oriented towards end result.

Professional identification is maintained.

Pinpoints product profit responsibility.

DISADVANTAGES:

Conflict in organization authority exists.

Possibly of disunity of command exists.

ORGANIZATION LEVELS & SPAN OF MANAGEMENT

Organizational levels exist because there is a limit to number of person a manager can supervise effectively.

The relationship between organizational levels & Span of management is

classified as:

Wide Span of Management

Narrow Span of Management

Span of Management(normally called Span of Control)

The number of employees reporting to a supervisor.

Traditional view, 6 or so per manager.

Many organizations today, 30 or more per manager.

Generally if supervisors want to be closely involved with employees span should be small.

Hamilton- An average human brain can handle only 3-6 other

human brains

Urvick – 4 For superior authorities,

- 8-12 at the bottom level

ADVANTAGES:

Superiors are forced to delegate

Clear policies must be made

Subordinates must be carefully selected.

DISADVANTAGES:

Many levels of management.

High costs due at many levels.

Excessive distance between lowest level & top level.

ADVANTAGES:

Close Supervision

Close control

Flat communication between subordinates & superiors

DISADVANTAGES:

Tendency of overloaded superiors to become decision bottlenecks.

Danger to superior’s loss of control.

Requires exceptional quality of managers.

PROBLEMS WITH ORGANIZATIONAL LEVELS

Levels are expensive

Complicate communication

Complicate planning and control

FACTORS DETERMINING EFFECTIVE SPAN

Subordinate training

Clarity of delegation of authority

Clarity of plans

Use of objective standards

Rate of change

Communication techniques

Amount of personal contact needed

A person should have one and only one manager to whom he or she is directly responsible.( a traditional management style)

Contemporary management methods have broken away from the principle through the developments such as ‘team working’

Contemporary Organisations

VIRTUAL ORGANIZATIONS

An organization that has few on-site employees and does most if its interactions online.

The Virtual Organization

A rather loose concept of a group of independent firms or people that are connected often through information technology.

These firms may be suppliers, customers, and even competing companies.

Team Structure

Team-Based Structures - entire organization is made up of work teams

employee empowerment is crucial

teams responsible for all work activity and performance

complements functional or divisional structures in large organizations

-allows efficiency of a bureaucracy

-provides flexibility of teams

Network structure

A recent innovation in organizational architecture is the use of network structures.

A network structure is a cluster of different organizations whose actions are coordinated by contracts and agreements rather than through a formal hierarchy.

Network structures often result from outsourcing.

Outsourcing is the process of moving activities that were previously performed inside the organization to the outside (where they are done by other companies).

Boundary less Organization

Jack Welch, former CEO at GE (General Electric), stated his vision for the company as a boundary less company, an “open, anti-parochial environment, friendly toward the seeking and sharing of new ideas, regardless of their origin.” .

Boundary less Organization - design is not defined by, or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure ( Eg: walmart)

strategic alliances break down barriers between the company and its customers and suppliers

seeks to eliminate the chain of command, to have limitless spans of control, and to replace departments with empowered teams

flattens the hierarchy by removing vertical boundaries

horizontal boundaries removed by organizing work around processes instead of functional departments

Delegation

Manager assigning some part of his work to his subordinates and also giving them necessary authority to make decisions within prescribed limits

This downward pushing of authority to make decisions is delegation

Advantages of delegation

Relieves the manager of his heavy work load

Leads to better decision making as employees close to scene of action have better view of facts

Speeds up decision making

Training ground for subordinates

Builds morale

Barriers to effective delegation

Reluctance from Manager’s side:

- Fear of loss of power

- I can do it better by myself

- Lack of confidence in subordinates

- Fear of subordinates overtaking the boss

- Difficulty in briefing( Lack of communication power)

Barriers to effective delegation

Reluctance to accept delegation from Subordinates:

- Fear of criticism

- Lack of adequate information and resources

- Lack of self confidence and initiative

- Absence of positive personal gain

Empowerment

Is a term used to express the ways in which non-managerial staff can make autonomous decisions without consulting a boss/ manager

How?

- Demonstrating your concern for people

- Sharing leadership vision

- Sharing goals and direction

- Trusting people

- Providing information fro decision making

- Delegate work as well as authority

- Provide frequent feedback

- Point out problems and not people

- Listen and provide guidance

- Help employees feel empowered

Types of organization

Org. is designed on the basis of principles of division of labour, span of management, nature , scale and size of business

Line and staff Organisations

Organisation design and configuration

Org. Design- Process of creating structure for the organisation which will help to achieve org. mission and objectives

Org. Configuration – A frame work to understand org. structures. 6 components. Henry Mintzberg.

- Operating core, strategic apex, Middle line, techno-structure, support staff, ideology