organising - principles of management

1. 1. ORGANISING BY, C.HELEN JOSEPHINE S.SNEHA V.RATHNA PRIYADHARSHINI

2. 2. What is organising? organising in a general sense means systematic arrangment of
activities Organising follows planning ORGANISING
3. 3. 3 ALLEN defines Organizing is the process of identifying and grouping the work to be
performed defining and delegating resposibility and authority and establishing relationship for
the purpose of enabling people to work most effectively together in accomplishing
objectives. DEFINITION
4. 4. THEO HAIMANN Organising is the process of defining and grouping the activities of the
entire process and establishing the authority and relationship among them
5. 5. Organising in management refers to the relationship between people,work and resources
used to achieve the common objectives ORGANISING IN MANAGEMENT
6. 6. A DESIGN OF ORGANIZATION MOVEMENT OR BLUEPRINT, ORGANIZATION
STRUCTURE
7. 7. ORGANIZATION STRUCTURE EXPLAINS THE POSITION AND OFFICIAL
RELATIONSHIP BETWEEN VARIOUS INDIVIDUALS IN THE ORGANIZATION.
DEFINITION
8. 8. It is a diagrammatic representation of organization structure show names designation
functions of personnel in a organization. ORGANISATION CHART
9. 9. Learning objectives Identifying the task Grouping the activities Delegation of authority
Coordination NATURE OF ORGANISING
10. 10. Perform an analysis about the work Identify the work Organisation structure The grouping
of activities neccesary for attaining objectives(division of labour) Assignment of
work(communication) Delegation of authority(authority structure) NATURE
11. 11. Aids to management It facilitates growth,creativity It ensures optimum use resources
Establishes relationship among individual groups Clusters job into units Coordinates.
PURPOSE OF ORGANISING
12. 12. FORMAL GROUP- A formal group is a structured group,which has a plan and positions
each jobs objective and functions FORMAL AND INFORMAL GROUPS
13. 13. Formal means something systematic. It is in an official structure It provides official
relationship between individual. It is objective oriented It abides with rules and regulations
CHARACTERISTICS OF FORMAL GROUP
14. 14. The line of communication is very clear It is accuracy of the information. systematic It is
objective oriented. It has a heirarchial pattern ADVANTAGES:
15. 15. It is the outcome of personal ,social and friendly relationship and it develops
spontaneously. It arises naturally on the basis of friendship or some common interest which
may or may not be related with work INFORMAL GROUPS
16. 16. According to chester bernard informal organisation is joint personal activity with our
conscious common purpose though contributing to common purpose DEFINITION

17. 17. Informal group is created by the member of the organisation for their social and
psychological satisfaction Informal groups are unstable in nature ,it is not permanent Informal
groups are greater in numbers than the formal groups Free interaction CHARACTERISTICS
OF INFORMAL GROUP
18. 18. It is concisiously deliberate in nature It arises spontaneously It is based on delegation of
authority It arises on account of social interaction or it arises from account of personal factors
like friendship Rules responsibilities are written and clearly defined Just unwritten rules and
regulations It shown in organization chart It has no place in organization chart It provides a
definite structure It is structure less because it is social Formal authority is attaches to a
position Informal authority attaches to a person out of social interactions It flows downwards (
top to lower level) It flows upwards It is permanent and stable It is temporary and unstable It
is deliberately impersonal It is personal
19. 19. LINE STRUCTURE LINE AND STAFF STRUCTURE FUNCTIONAL STRUCTURE
COMMITTEE STRUCTURE PROJECT STRUCTURE MATRIX STRUCTURE TYPES OF
ORGANIZATION STRUCTURE
20. 20. 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. LINE STRUCTURE
21. 21. GENRAL MANAGER PRODUCTION MANAGER ASSISTANT MANAGER
SUPERVISORS WORKERS
22. 22. Simple and easy to establish. Authority and responsibility is clearly defined Prompts
decision. Speedy action taken. Unity of command since each will have full control over
subordinates. Ensures Better discipline. It is very economical since it is less elaborate. It
provides better scope for supervision. MERITS OF LINE STRUCTURE
23. 23. 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 DEMERITS OF LINE STRUCTURE
24. 24. The staff is attached to line The staff are experts specialized in specific areas They give
ideas to personnel The staff supports the line personnel LINE AND STAFF ORGANIZATION
25. 25. Expert advice Relief to top executives. Quality decisions. Flexible. Specialization is not
violated. Unity of command is not violated. MERITS OF LINE AND STAFF
26. 26. Often arises conflicts between line and staff. Leads to confusion since responsibility is
not well defined. Ineffective staff . Suitability ( in large organization). DEMERITS OF LINE
AND STAFF
27. 27. There will be a separate department for different actions or activities. FUNCTIONAL
ORGANIZATION
28. 28. Specialization is possible Work load is less Better control over subordinates Scope for
expansion Higher efficiency MERITS OF FUNCTIONAL ORGANIZATION
29. 29. Unity of command is violated. Interdepartmental conflicts. Delay in decision making.
DEMERITS
30. 30. A group of persons entrusted in a task Types: Standard or permanent committee.
Temporary or ad hoc committee. Executive committee. Advisory committee. Formal
committee. Informal committee. COMMITTEE ORGANIZATION

31. 31. Scope of group judgment . Proper coordination and control among individuals and
departments. Motivation through participation is possible. Various interest groups. Check
against misuse of powers. MERITS
32. 32. Expensive affair to constitute a committee Time consuming or slow decision Compromise
decision Suppression of ideas DEMERITS
33. 33. It varies from one organization to organization. Any organization execute a large project
for a long period of time adopt this project organization. Usually some company have large
number of small projects. The term leader organize the expert or specialist. PROJECT
ORGANIZATION
34. 34. Maximum use of specialized knowledge and skills. Unity of command exist in this
organization Flexibility of operation. Fixation of individual responsibility for results. Focuses
attention on the specific projects. Provides better coordination. MERITS
35. 35. Difficulty in decision making. Pressure and uncertainty due to some several specialist.
Difficulty in coordination. Evaluation of performance of various specialist is difficult.
DEMERITS
36. 36. 37 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. MATRIX ORGANIZATION STRUCTURE
37. 37. BEST UTILISATION OF ORGANIZATIONAL RESOURCES. BENEFIT TO BOTH
FUNCTIONAL AND TECHNICAL SPECIALIST . IT PROMOTES COMMUNICATION
PERMITS HIGHER DEGREE OF FLEXIBLITY AND ADAPTABILITY. MERITS
38. 38. Its against principle of unity of command. Quick decision may not be possible It gives
scope for conflicts. DEMERITS
39. 39. 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.
40. 40. TWO TYPES OF SPAN NARROW SPAN OF MANAGEMENT Tall organization. Manager
oversees few subordinates. better communication. example : handicraft , ivory work , etc.
41. 41. WIDE SPAN OF MANAGEMENT Flat organization . Manager oversees large number of
subordinates. Less overhead cost. example: large firms .
42. 42. narrow span wide span of control of control
43. 43. THEORY OF GRAICUNAS He was a French management consultant. He developed a
formula for analyzing superior subordinate relationship.
44. 44. THREE TYPES OF RELATIONSHIP Direct relationship (superior has direct link with
subordinates). Direct group relationship(arises between manager and group of
subordinates ). Gross relationship ( relationship among subordinates).
45. 45. DIRECT SINGLE RELATIONSHIP
46. 46. DIRECT GROUP RELATIONSHIP
47. 47. GROSS RELATIONSHIP
48. 48. MATHEMATICAL FORMULAS
49. 49. FACTORS DETERMING SPAN OF MANAGEMENT Nature of work Type of technology
Ability of the manager Capacity of subordinates Degree of decentralization Quality of
planning Staff assistant Communication techniques Time available for supervision
Geographical dispersion of subordinates

50. 50. DEPARTMENTATION It is a process of grouping individual jobs into departmentation.

TYPES: Departmentation by function. Departmentation by products. Departmentation by
territory. Departmentation by customers. Departmentation by process. Departmentation by
time and
51. 51. Departmentation by FUNCTIONS Deparmentation done by the functions.
52. 52. MERITS & DEMERITS Provides scope of specialization. Eliminates cost of duplication of
work. Effective control over performance. Facilitates delegation of authority.
Interdepartmental conflicts. Difficulty in coordination of activities. Increases responsibility of
departmental heads.
53. 53. DEPARTMENTATION BY PRODUCTS It is suitable for different lines of products.
54. 54. 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. There may be underutilization of plant capacity when the demand of
product is not adequate.
55. 55. TERRITORIAL DepartmentationUsed for large scale enterprises whose activities are
geographically spread over.
56. 56. 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.
57. 57. Departmentation By Customers Each department will serve the particular type or class of
customers.
58. 58. MERITS & DEMERITS Offer scope of specialization. Enterprise gain ultimate knowledge
about needs of various categories of customers. Lead to duplication of activities.
59. 59. DEPARTMENTATION BY PROCESS OR EQUIPMENT The activities are grouped
according to process or equipment. It is generally used in manufacturing industries. Lead to
specialization. No confusion. Proper utilization of manpower and machine engaged in proper
way.
60. 60. TIME AND NUMBER DEPARTMENTATION TIME: The activities or group on basis of
time EXAMPLE: Call centers or any factory. NUMBER: The activities or group on basis of
performance by certain number of persons.

Organizing is the function of management which follows planning. It is a function in which the
synchronization and combination of human, physical and financial resources takes place. All the three
resources are important to get results. Therefore, organizational function helps in achievement of results
which in fact is important for the functioning of a concern. According to Chester Barnard, Organizing is a
function by which the concern is able to define the role positions, the jobs related and the co-ordination
between authority and responsibility. Hence, a manager always has to organize in order to get results.
A manager performs organizing function with the help of following steps:-

1. Identification of activities - All the activities which have to be performed in a concern have to be
identified first. For example, preparation of accounts, making sales, record keeping, quality
control, inventory control, etc. All these activities have to be grouped and classified into units.
2. Departmentally organizing the activities - In this step, the manager tries to combine and group
similar and related activities into units or departments. This organization of dividing the whole
concern into independent units and departments is called departmentation.
3. Classifying the authority - Once the departments are made, the manager likes to classify the
powers and its extent to the managers. This activity of giving a rank in order to the managerial
positions is called hierarchy. The top management is into formulation of policies, the middle level
management into departmental supervision and lower level management into supervision of
foremen. The clarification of authority help in bringing efficiency in the running of a concern. This
helps in achieving efficiency in the running of a concern. This helps in avoiding wastage of time,
money, effort, in avoidance of duplication or overlapping of efforts and this helps in bringing
smoothness in a concerns working.
4. Co-ordination between authority and responsibility - Relationships are established among
various groups to enable smooth interaction toward the achievment of the organizational goal.
Each individual is made aware of his authority and he/she knows whom they have to take orders
from and to whom they are accountable and to whom they have to report. A clear organizational
structure is drawn and all the employees are made aware of it.

Importance of Organizing Function

1. Specialization - Organizational structure is a network of relationships in which the work is divided
into units and departments. This division of work is helping in bringing specialization in various
activities of concern.
2. Well defined jobs - Organizational structure helps in putting right men on right job which can be
done by selecting people for various departments according to their qualifications, skill and
experience. This is helping in defining the jobs properly which clarifies the role of every person.
3. Clarifies authority - Organizational structure helps in clarifying the role positions to every
manager (status quo). This can be done by clarifying the powers to every manager and the way
he has to exercise those powers should be clarified so that misuse of powers do not take place.
Well defined jobs and responsibilities attached helps in bringing efficiency into managers working.
This helps in increasing productivity.
4. Co-ordination - Organization is a means of creating co-ordination among different departments
of the enterprise. It creates clear cut relationships among positions and ensure mutual cooperation among individuals. Harmony of work is brought by higher level managers exercising
their authority over interconnected activities of lower level manager.
Authority responsibility relationships can be fruitful only when there is a formal relationship
between the two. For smooth running of an organization, the co-ordination between authorityresponsibility is very important. There should be co-ordination between different relationships.
Clarity should be made for having an ultimate responsibility attached to every authority. There is a
saying, Authority without responsibility leads to ineffective behaviour and responsibility without
authority makes person ineffective. Therefore, co-ordination of authority- responsibility is very
important.

5. Effective administration - The organization structure is helpful in defining the jobs positions. The
roles to be performed by different managers are clarified. Specialization is achieved through
division of work. This all leads to efficient and effective administration.
6. Growth and diversification - A companys growth is totally dependant on how efficiently and
smoothly a concern works. Efficiency can be brought about by clarifying the role positions to the
managers, co-ordination between authority and responsibility and concentrating on specialization.
In addition to this, a company can diversify if its potential grow. This is possible only when the
organization structure is well- defined. This is possible through a set of formal structure.
7. Sense of security - Organizational structure clarifies the job positions. The roles assigned to
every manager is clear. Co-ordination is possible. Therefore, clarity of powers helps automatically
in increasing mental satisfaction and thereby a sense of security in a concern. This is very
important for job- satisfaction.
8. Scope for new changes - Where the roles and activities to be performed are clear and every
person gets independence in his working, this provides enough space to a manager to develop
his talents and flourish his knowledge. A manager gets ready for taking independent decisions
which can be a road or path to adoption of new techniques of production. This scope for bringing
new changes into the running of an enterprise is possible only through a set of organizational
structure.

Principles of Organizing
The organizing process can be done efficiently if the managers have certain guidelines so that they can
take decisions and can act. To organize in an effective manner, the following principles of organization
can be used by a manager.

1. Principle of Specialization
According to the principle, the whole work of a concern should be divided amongst the
subordinates on the basis of qualifications, abilities and skills. It is through division of work
specialization can be achieved which results in effective organization.

2. Principle of Functional Definition

According to this principle, all the functions in a concern should be completely and clearly defined
to the managers and subordinates. This can be done by clearly defining the duties,
responsibilities, authority and relationships of people towards each other. Clarifications in
authority-responsibility relationships helps in achieving co-ordination and thereby organization
can take place effectively. For example, the primary functions of production, marketing and
finance and the authority responsibility relationships in these departments shouldbe clearly
defined to every person attached to that department. Clarification in the authority-responsibility
relationship helps in efficient organization.

3. Principles of Span of Control/Supervision

According to this principle, span of control is a span of supervision which depicts the number of
employees that can be handled and controlled effectively by a single manager. According to this
principle, a manager should be able to handle what number of employees under him should be

decided. This decision can be taken by choosing either froma wide or narrow span. There are two
types of span of control:a. Wide span of control- It is one in which a manager can supervise and control effectively
a large group of persons at one time. The features of this span are:i.

Less overhead cost of supervision

ii.

Prompt response from the employees

iii.

Better communication

iv.

Better supervision

v.

Better co-ordination

vi.

Suitable for repetitive jobs

According to this span, one manager can effectively and efficiently handle a large number
of subordinates at one time.
b. Narrow span of control- According to this span, the work and authority is divided
amongst many subordinates and a manager doesn't supervises and control a very big
group of people under him. The manager according to a narrow span supervises a
selected number of employees at one time. The features are:i.

Work which requires tight control and supervision, for example, handicrafts, ivory
work, etc. which requires craftsmanship, there narrow span is more helpful.

ii.

Co-ordination is difficult to be achieved.

iii.

Communication gaps can come.

iv.

Messages can be distorted.

v.

Specialization work can be achieved.

Factors influencing Span of Control

a. Managerial abilities- In the concerns where managers are capable, qualified and
experienced, wide span of control is always helpful.
b. Competence of subordinates- Where the subordinates are capable and competent and
their understanding levels are proper, the subordinates tend to very frequently visit the
superiors for solving their problems. In such cases, the manager can handle large
number of employees. Hence wide span is suitable.
c.

Nature of work- If the work is of repetitive nature, wide span of supervision is more
helpful. On the other hand, if work requires mental skill or craftsmanship, tight control and
supervision is required in which narrow span is more helpful.

d. Delegation of authority- When the work is delegated to lower levels in an efficient and
proper way, confusions are less and congeniality of the environment can be maintained.
In such cases, wide span of control is suitable and the supervisors can manage and
control large number of sub- ordinates at one time.
e. Degree of decentralization- Decentralization is done in order to achieve specialization
in which authority is shared by many people and managers at different levels. In such
cases, a tall structure is helpful. There are certain concerns where decentralization is
done in very effective way which results in direct and personal communication between
superiors and sub- ordinates and there the superiors can manage large number of
subordinates very easily. In such cases, wide span again helps.

2. Principle of Scalar Chain

Scalar chain is a chain of command or authority which flows from top to bottom. With a chain of
authority available, wastages of resources are minimized, communication is affected, overlapping
of work is avoided and easy organization takes place. A scalar chain of command facilitates work
flow in an organization which helps in achievement of effective results. As the authority flows from
top to bottom, it clarifies the authority positions to managers at all level and that facilitates
effective organization.

3. Principle of Unity of Command

It implies one subordinate-one superior relationship. Every subordinate is answerable and
accountable to one boss at one time. This helps in avoiding communication gaps and feedback
and response is prompt. Unity of command also helps in effective combination of resources, that
is, physical, financial resources which helps in easy co-ordination and, therefore, effective
organization.

Authority Flows from Top to Bottom

Managing Director

Marketing Manager

Sales/ Media Manager

Salesmen

According to the above diagram, the Managing Director has got the highest level of authority. This
authority is shared by the Marketing Manager who shares his authority with the Sales Manager.
From this chain of hierarchy, the official chain of communication becomes clear which is helpful in
achievement of results and which provides stability to a concern. This scalar chain of command
always flow from top to bottom and it defines the authority positions of different managers at
different levels.

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