Organizing Group a Final

8/2/2019 Organizing Group a Final

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A PRESENTATION

BY:ANAND.RAMANUJAM

ARPITA.SIDHARTHASMA.HUSSAIN

RACHANA.SINGH

RELU.JOHN

SIDDHARTH.PANDY


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Introduction to organizing Principles of Organizing

Formal & Informal Organization

Line Organizational Structure

Line and Staff Structure Functional Structure

Matrix Structure

Departmentation

Accountability

Decentralization

Delegation Of Authority

Committee

Authority & Responsibility


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INTRODUCTION TO ORGANIZING


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Organizing is the process of identifyingand grouping of the works to beperformed, defining and delegating

responsibility and authority andestablishing relationships for thepurpose of enabling people to work

most efficiently- LOUIS A. ALLEN


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Organizing helps Organizations to reap thebenefit of specialization.

Organizing provides for Optimum utilization

of resources. Organizing helps in Effective

administration.

Organizing channels for Expansion andgrowth.

Organizing achieves co-ordination amongdifferent departments.

Organizing creates scope for new change.


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PRINCIPLES OF ORGANIZING


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Principle of Specialization

This principle says that the work within theorganization should be divided according to the

qualifications of subordinates to achieve thegoals effectively.


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Principle of Functional Definition:

According to this principle, all the functions in aconcern should be completely and clearly

defined to the managers and subordinates.This can be done by clearly defining the duties,responsibilities, authority and relationships ofpeople towards each other. Clarifications in

authority- responsibility relationships helps inachieving coordination and therebyorganization can take place effectively


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Principles of Span of Control/Supervision

According to this principle, span of control is aspan of supervision which depicts the number

of employees that can be handled andcontrolled effectively by a single manager.According to this principle, a manager should

be able to handle what number of employeesunder him should be decided.


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Principle of Scalar Chain

Scalar chain is a chain of command or authoritywhich flows from top to bottom. With a chain ofauthority available, wastages of resources areminimized, communication is affected, overlappingof work is avoided and easy organization takesplace. A scalar chain of command facilitates work

flow in an organization which helps in achievementof effective results. As the authority flows from topto bottom, it clarifies the authority positions tomanagers at all level and that facilitates effective

organization.


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Principle of Unity of Command

It implies one subordinate-one superiorrelationship. Every subordinate is answerable

and accountable to one boss at one time. Thishelps in avoiding communication gaps andfeedback and response is prompt. Unity ofcommand also helps in effective combination ofresources, that is, physical, financial resourceswhich helps in easy coordination and,therefore, effective organization.


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Chester I. Barnard defined formalorganisation as a system of consciously

coordinated activities or forces of two or more

persons.

It refers to the structure of well-defined jobs ,

each bearing a definite measure of authority,responsibility, and accountability.


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FormalOrganisation

Divisionof labour

Scalar &functionalprocess

Structure

Span ofcontrol


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Organisation structure is laid down by the topmanagement to achieve organisational goals.

Organisational structure is based on division

of labour & specialization to achieve efficiencyin the operations.

Organisational structure concentrates on the

jobs to be performed & not the individualswho are to perform jobs.


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The organization does not take intoconsideration the sentiments of theorganizational members.

The authority &responsibility relationshipcreated by the organization structure are tobe honored by everyone.


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Informal organisation refers to therelationship between people in theorganisation based on personal attitudes,

emotions, prejudices , likes, dislikes etc.Large formal groups give rise to small

informal or social groups.

They are not preplanned, but they developautomatically through continuous interactionbetween people.


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It serves as a very useful channel ofcommunication in the organisation.

The informal leader lightens the burden of the

formal manager & fill in the gap in themanagers abilities.

It gives psychological satisfaction to the

members.It encourages the managers to plan as well

as to act carefully to support & supplement

the formal organisation.


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INFORMAL ORGANIZATION


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Origin:

Formal Organisation are created byconscious managerial decision. Informal Organisation arise naturally within

the formal organisation.

Purpose Formal organizations are created for

realizing certain well-defined objectives. Informal groups are created by

organizational members for their social andpsychological satisfaction.


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Structure

Formal organisation is hierarchical pyramid-shaped and bureaucratic in structure with well-defined positions, rigid indication of roles,superior-subordinate relationships on impersonalbasis etc.

Informal organisation is uncharitable, it looks likea complicated & common social network ofinterpersonal relationships.

Stability

Formal organisation is usually stable.

The life of informal groups is generally short.


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Flexibility

Formal organisation follows a rigid structure ofrelationship.

Informal organization is loosely structured and ishighly flexible in nature.

Behavior

In formal organisation individuals are required tobehave in the prescribed manner in their work

situations.But, in informal organisation individuals behavior

& group behavior influences each other.


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LINE ORGANIZATIONALSTRUCTURE


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PRODUCTIONMANAGER

FINANCEMANAGER

MARKETINGMANAGER

SUPERINTENDENT

SALES

SUPERVISORACCOUNTAN

TFOREMAN

SALESMANCLERKSWORKERS

GENERALMANAGER

ASST. FINANCEMANAGER

ASST.MARKETINGMANAGER


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Line of authority & instructions are vertical.They flow from top to bottom.

The unity of command is maintained bystraight & unbroken line. It implies that eachsubordinate

receives instructions from his immediatesuperior.

All persons at the same level of


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Simplicity : this organization is simple in bothunderstanding & implementation.

Discipline :since each position is subjected

to control by its immediate superior position,often the maintenance of discipline is easy.

Prompt decision : most of the decisions are

taken by the superiors concerned. Thismakes the decision making process easier &less time consuming.


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Orderly communication: in this type of organizationscalar chain of communication is followed. This

means the communication going up or down willpass through the immediate superiors

Easy supervision & control: the line organizationprovides for easy supervision & control becauseeach subordinate by a single superior.

Economical:the line organization is quiteeconomical because it does not use staff

specialists whose appointment is a costly affairespecially for small organizations.


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Lack of specialization:the line organization does

not offer scope for specialization. It is not suitablefor big organizations.

Absence of conceptual thinking: the managers in

this type of organization do not find time forconceptual thinking because they are busy withday to day activities of the organization.

Autocratic approach: the line organization is

based on autocratic approach Problems of coordination: coordination is

achieved only through horizontal relationships but

line organization stresses on vertical relationship


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LINE & STAFF STRUCTURE


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LINE &STAFF STRUCTURE


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Line authority remains the same

Managers are assisted with staffs for adviceand support on decision making

Authority is from top to bottom

Staffs are not involved in decision making

Staff investigates, informs and recommendsto managers

Popular as most problems are complex andrequire expert knowledge and skill to solvethem


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Specialized Knowledge

Reduction of burden

Better decisions

Proper weightage

Unity of command

Disadvantages:

Conflicts between managers and staff

Performance of the staffs not accounted for


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Expert advice from staffs over complexproblems whereas problem solving is difficultin line structure

Better and processed decision makingcompared to line structure

Suitable for large organizations as comparedto small organizations


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FUNCTIONAL STRUCTURE


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Functional organizational structures are bestsuited for companies producing standardized

goods and services at large volumes and lowcost. Therefore, functional structures may bemost effective for companies operating inrather stable environments with low rates ofchange and dynamism.

Employees within the functional divisions ofan organization tend to perform a specializedset of tasks.

Functional structures are useful for relativelybig companies. Employees within thefunctional structure are differentiated toperform a specialized set of tasks.


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Small to mediumsized firms with limitedproduct diversification.

Specialization of functional knowledge.

Less duplication of functional resources.

Facilitates coordinates within functionalareas.


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Weak coordination of functional groups.

Restricted view of overall organisational goals.

Limits customer attention.

Slower response to market changes.

Burdens chief executives with decisions.


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The matrix structuregroups employees byboth function and product.

A matrix organization frequently uses teamsof employees to accomplish work, in order to

take advantage of the strengths, as well asmake up for the weaknesses, of functionaland decentralized forms.

Matrix structure is amongst the purest oforganizational structures, a simple latticeemulating order and regularity demonstratedin nature.
http://en.wikipedia.org/wiki/Matrix_managementhttp://en.wikipedia.org/wiki/Matrix_management


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Weak/Functional Matrix: A project managerwith only limited authority is assigned tooversee the cross- functional aspects of theproject. The functional managers maintain

control over their resources and project areas.

Balanced/Functional Matrix: A projectmanager is assigned to oversee the project.

Power is shared equally between the projectmanager and the functional managers. Itbrings the best aspects of functional andprojectized organizations. However, this is themost difficult system to maintain as the

sharing power is delicate proposition.


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Strong/Project Matrix: A project manager isprimarily responsible for the project.Functional managers provide technical

expertise and assign resources as needed.


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The cross functional teams of a matrix

structure reduce the functional barriersbetween departments, and increase theintegration of functions.

Matrix structures open up for communication,and may provide an opportunity for teammembers to learn from each other - thusdistributing valuable knowledge laterally

within the organization. The matrix structure makes it possible to

assign specialized resources to projects when

needed.


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A matrix structure lacks the effectiveness of

bureaucracy, and will potentially not work ifthe organization does not need to react swiftlyto changes

The flat hierarchy may be the cause ofconflict, and different stakeholders maypursue entirely different goals.

The great focus on integration between

functional areas requires a great amount oflateral communication, and it may requiregreat resources to get information distributed

efficiently between team members.


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DEPARTMENTATION


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The process of classifying an organization onthe basis of departments or similar activities,to facilitate planning and control. It leads to

grouping of both functions and personnel whoare assigned to carry out allocated functions.


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Increase efficiency

Fixation of accountability

Performance appraisal

Better control


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1. Functional Departmentation:

Departments are created on the basis of

specified functions to be performed likeproduction,finance,marketing and personneldepartment. Functional departmentation isuseful where there is production of single

product or similar kind of product, for exampleTV, Computer etc


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2. Product Departmentation

Grouping of activities on the basis of productand applied where there is a large range ofproducts manufactured. Top management can

easily evaluate the performance of differentproduct divisions and greater attention can bepaid to the product line which is less

profitable.


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3. Customer Departmentation

Departments formed to cater different kinds of

customers. Management groups activities onthe basis to cater the requirements of clearlydefined customer groups. A marketingdepartment may be divided into following

Marketingmanager

Wholesaledept

Retail dept Exportdept


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4. Process Departmentation

Manufacturing organizations having numberof production process does departmentationon basis of production process or equipment.Manpower and material brought together insuch department to carry out particularoperation. a textile mill may be divided into

following process


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Chief

executive

spinning weaving dyeing

Generalmanager

Packing


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ACCOUNTABILITY


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Accountability is the willingness and interest toassume responsibility for ones actions and

work. Without accountability, an organization isincapable of achieving and sustaining high

performance. Implementation of accountabilityand be done in following ways:

Clearly define goals:Individuals have a tendency to feel ownershipof measurable goals and will work harder toachieve those goals.


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Carry out on agreed upon consequences:

Once goals and outcomes have been agreedupon, follow-through on the variousconsequences for results that meet and donot meet expectations.

Develop and training of workforce to feelaccountable for their actions:

Accountability in the workplace is supportedwhen there is ongoing discussions with youremployees about their goals and the impactsthe goals have on the organization.


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DECENTRALIZATION


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Decentralization is the policy of delegatingdecision making authority to the lower levelsin an organization. the top executives delegatemuch of their decision-making authority to

lower tiers of the organizational structure. Forexample, if an experienced technician at thelowest tier of an organization knows how to

increase the efficiency of the production, thebottom-to-top flow of information can allow thisknowledge to pass up to the executive officers.


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Relieving burden

More efficient decision making

Ease of expansion

Empowering employees

Effective control and supervision

Improvement of motivation and morale


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DELEGATION OF AUTHORITY


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Delegation is defined as a process ofentrusting responsibility and creatingaccountability on those employees who are

entrusted responsibility and authority. A manager alone cannot perform all the tasks

assigned to him. In order to meet the targets,

the manager should delegate authority.Delegation of Authority means division ofauthority and powers downwards to thesubordinate. Delegation is about entrusting

someone else to do parts of your job.


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Elements of delegation:

1. authority

2.responsibity

3.accountability.

Importance of delegation:

1. Reduces the work load of managers.2. basis of superior-subordinate relationship.

3. improves managerial effectiveness.


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4. motivates subordinates.

5. facilitates development of workers.

6. facilitates organizational growth

Scope of delegation:

delegation is limited in scope because in

delegation only two parties are involved.it isconfined to manager and his immediatesubordinates.


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COMMITTEE


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A committee is a type of small deliberativeassembly that is usually intended to remainsubordinate to another, larger deliberative

assemblywhich when organized so thataction on committee requires a vote by all itsentitled members, is called the "Committee ofthe Whole".


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Governance: in organizations considered toolarge for all the members to participate indecisions affecting the organization as a

whole, a committee (such as a Board ofDirectors or "Executive Committee") is giventhe power to make decisions, spend money,or take actions. Some or all such powers may

be limited or effectively unlimited. Forexample of the later case, the Board ofdirectors can frequently enter into binding

contracts and make decisions which once


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Coordination: individuals from different partsof an organization (for example, all senior vicepresidents) might meet regularly to discussdevelopments in their areas, review projectsthat cut across organizational boundaries, talkabout future options, etc. Where there is alarge committee, it is common to have smaller

committees with more specialized functions -for example, Boards of Directors of largecorporations typically have an (ongoing) auditcommittee, finance committee, compensation


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Research and recommendations: committeesare often formed to do research and makerecommendations on a potential or planned

project or change. For example, an organizationconsidering a major capital investment mightcreate a temporary working committee of severalpeople to review options and make

recommendations to upper management or theBoard of Directors. Such committees aretypically dissolved after issuingrecommendations (often in the form of a final

report).


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Project management: while it is generallyconsidered poor management to giveoperational responsibility to a committee to

actually manage a project, this is notunknown. The problem is that no singleperson can be held accountable for poorperformance of the committee, particularly if

the chairperson of the committee is seen as afacilitator


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AUTHORITY & RESPONSIBILITY


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Authority is the power or right to takedecision.

To carry on the responsibilities every

employee need to have someauthority.So,when managers are passing theirresponsibilities to the subordinates, they alsopass some of the authority to the

subordinates. origin - authority arises because of a formal

position in the organization.

authority always flows from upward as a

superior always has more authority.


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Responsibility means the work assigned to anindividual.it includes all the physical andmental activities to be performed by theemployees at a particular job position. Theprocess of delegation begins when managerpasses on some of his responsibilities to hissubordination which means responsibility canbe delegated.

Responsibility also means all the physical andmental activities to be performed by anindividual in an organization.


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Responsibility cannot be entirely delegated assuperiors pass their responsibilities to thesubordinates..

Responsibilities flow downward as superiorspass responsibility to subordinates.


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1) Reference book Management- By James.A.Stoner,R.Edward Freeman and Daniel R.Gilbert,JR. (PearsonEducation 6th Edition)

2) Reference Book Management-By Stephen.Robbins,

Mary.Coulter and Neharika.Vohra. (Pearson Education10Th edition).


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Organizing Group a Final

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