ORGANISING
What is organizing?
“organizing in a general sense means
systematic arrangement of activities”
Organizing follows “planning”
Organizing in management refers to the relationship
between people, work and resources used to achieve
the common objectives (goals).
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Definition of Organizing.
According to Theo Haimann,
"Organizing is the process of defining and grouping the
activities of the enterprise and establishing the authority
relationships among them.“
According to Louis Allen,
"Organizing is the process of identifying and grouping the
work to be performed, defining and delegating responsibility
and authority and establishing relationships for the purpose of
enabling people to work most effectively together in
accomplishing objectives."
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Organizing Process
Division of work: The first process of Organizing includes
identification and division of work which shall be done in
accordance with the plans that are determined previously.
Departmentation: once the work of identifying and dividing
the work has been done those are similar are to be grouped.
Linking departments: When the process of departmentation
was completed, linking of departments has to be done so that
those departments operate in a co-ordinated manner which
gives a shape to overall organization structure.
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Assigning Duties: On completion of departmentation
process assigning duties i.e. defining authority
and responsibility to the employees on the basis of
their skills and capabilities has to be done, which in
consequence magnifies efficiency with regard to their
work.
Defining hierarchal structure: Each employee should
also know from whom he has to take orders and to
whom he is accountable/responsible.
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ORGANIZATION STRUCTURE
A design of organization movement or
blueprint,
Definition
organization structure explains the position and
official relationship between various individuals in
the organization.
It is a diagrammatic representation of
organization structure show names designation
functions of personnel in a organization.
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TYPES OF ORGANIZATION STRUCTURE
Line structure
Line and staff structure
Functional structure
Committee structure
Project structure
Matrix structure
LINE STRUCTURE
It flows from top to lower level .
It is the simplest and oldest method
followed in many organization.
It is also called as military organization.
MERITS OF LINE STRUCTURE
Simple and easy to establish.
Authority and responsibility is clearly defined
Speedy action taken.
Unity of command since each will have full
control over subordinates.
Ensures Better discipline.
It provides better scope for supervision.
DEMERITS OF LINE STRUCTURE
Lacks specialization
Overburden with lots of administrative work
It may result in autocratic control
Manager enjoys monopoly in the matter of
decision making ( he himself take decision)
Always downward communications is possible
Lacks upward communication
It is suitable for small concerns employing few
persons
LINE AND STAFF ORGANIZATION
The staff is attached to line
The staff are experts specialized in
specific areas
The staff supports the line personnel
MERITS OF LINE AND STAFF
Expert advice
Relief to top executives.
Quality decisions.
Flexible.
DEMERITS OF LINE AND STAFF
Often arises conflicts between line and staff.
Leads to confusion since responsibility is not
well defined.
Ineffective staff .
Suitability ( in large organization).
FUNCTIONAL ORGANIZATION
There will be a separate department for
different actions or activities.
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MERITS OF FUNCTIONAL
ORGANIZATION
Specialization is possible
Work load is less
Better control over subordinates
Scope for expansion
Higher efficiency
DEMERITS
Interdepartmental conflicts.
Delay in decision making.
Matrix organization structure
It is suitable where there is large number of
small projects.
It is also called as multiple command system.
It is also called as linking pins.
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MERITS
best utilization of organizational resources.
benefit to both functional and technical
specialist .
it promotes communication
permits higher degree of flexibility and
adaptability.
DEMERITS
Its against principle of unity of command.
Quick decision may not be possible
It gives scope for conflicts.
SPAN OF MANAGEMENT
It is also called as span
of control or span of
supervision.
It refers to the number
of subordinates that
report directly to a
single manager or
supervisor.
TWO TYPES OF SPAN
NARROW SPAN OF MANAGEMENT
Small organization.
Manager oversees “few” subordinates.
better communication.
WIDE SPAN OF MANAGEMENT
Flat organization .
Manager oversees “large” number of subordinates.
Less overhead cost.
example: large firms .
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narrow span wide span
of control of control
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DEPARTMENTATION
It is a process of grouping
individual jobs into
departmentation.
TYPES:
Departmentation by function.
Departmentation by products.
Departmentation by territory.
Departmentation by customers.
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Departmentation by FUNCTIONS
Deparmentation done by the functions.
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MERITS & DEMERITS
Provides scope of specialization.
Effective control over performance.
Facilitates delegation of authority.
Interdepartmental conflicts.
Difficulty in coordination of activities.
Increases responsibility of departmental heads.
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DEPARTMENTATION BY PRODUCTS
It is suitable for different lines of products.
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MERITS & DEMERITS
Reduces problem of coordination.
It leads to specialization.
Performance evaluation can be done easily.
It is flexible and adaptable to change .
Chance of duplication is more.
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TERRITORIAL Departmentation
Used for large scale enterprises whose activities are
geographically spread over.
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MERITS & DEMERITS
It helps in achieving benefits of local operation.
Better coordination of activities.
Provides effective span of control.
Opportunity to train managers.
Facilitates expansion of business to various regions
Due to geographical distance problem of
communication.
Coordination and control becomes less effective.
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Departmentation By Customers
Each department will serve the particular type
or class of customers.
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MERITS & DEMERITS
Offer scope of specialization.
Enterprise gain ultimate knowledge about
needs of various categories of customers.
Lead to duplication of activities.
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