Principles of Management

Organising

• Organising - Meaning and definition

• Process of organising

• Types of organisations- Formal and Informal

• Departmentation – Meaning

• Bases of departmentation

• Span of control
 Principles of Management

Organising - Meaning

It is a process of –

• Identification and grouping of work to be performed

• Defining and delegating authority and responsibility to the

right people and

• Establishing relationships among the activities to enable the

people to work effectively to achieve objectives
 Principles of Management

Process of organising

1. Determine the objectives to be achieved

3. Identify the total work involved in achieving the objectives

5. Enumerate the activities by breaking down the work into

essential functions

7. Classification of the activities after taking into consideration,

the human and material resources needed

9. Allocation of duties to the right employee

11.Establishing formal reposting system to keep a tab on the

progress of work in each department

13.Measurement of performance

15.Delegation of authority
 Principles of Management

Types of organisations

Formal Organisation –

• A group of people work towards a common objective/goal

• The formal groups are a typical part of every organisation

• The groups are given official status and need o operate within
the rules and regulations

• The job responsibilities and positions are well defined giving

clarity on work to be done by every member of the group
 Principles of Management

Informal Organisation –

• It is a network of personal and social relations which arise

when people associate with each other

• It does not take a conscious effort to build an informal

organisation

• It is not governed by any rules and can exist within the formal
organisation

• It is formed due to common interests of the members of the

group
 Principles of Management

Departmentation

• It is the process of dividing the organisation in to convenient

smaller units

• Such smaller units are called departments

• This process is carried out for ease and efficiency of functioning

• The process assumes importance, as the organisation grows in

size, in order to cope with complexities of business
 Principles of Management

Bases for Departmentation

• By Function (e.g. HR dept, finance department etc)

• By Process (e.g. Printing, mixing, molding, etc)

• By Product (e.g. Cold drinks, biscuits, etc)

• By Geographical Location (e.g. Asia-Pacific, middle East etc)

• By Customers (e.g. Retainers, wholesalers, foreign buyers,

NGOs)

• By Time (e.g. Morning, evening, night shifts etc)

 Principles of Management

Span of Control

• It refers to the number of sub ordinates who can be

successfully supervised, directed and controlled by one
supervisor or manager

• A superior cannot keep an effective control on too many sub

ordinates

• Hence it is advisable to have a span of control which is neither

too large nor too small
 Principles of Management

Factors affecting the span of control

• Capacity of the manager and efficiency of the sub ordinates

• Nature of work to be carried out

• Clarity of responsibility for each sub ordinate

• Degree of decentralisation

• Training provided to the employees

• Communication methods employed

• Leader- sub ordinate relationship (Level of trust, faith etc)