DEFINE

ORGANIZATION???

According

to Louis A. Allen defines

organisation as 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.

WHAT IS ORGANISING???
A) STRUCTURE B) PROCESS
A) STRUCTURE
Organising is a set of relationship that defines
vertical and horizontal relationship amongst
people who are assigned various tasks and
duties.
Organizational task is divided into units, people
in each unit are assigned specific tasks and
goals.
Organising as a structure is a network of
relationships amongst all those who are part of
the organization.

 B)

PROCESS
Organising defines relationships amongst
people .
i.
It involves : identification of work
ii. Grouping of work into smaller groups
iii. Assigning work to each individual at every
level in every department
iv. Defines its authority and responsibility

STRUCTURE OF RELATIONSHIPS:
Well defined tasks and duties
Delegation of authority and responsibility
2. MANAGERIAL FUNCTION:
Helps in performing other managerial functions
Integrates human and non human resources for
achieving organizational goals
3. ONGOING PROCESS:
Involves series of steps from determination of
objectives to accomplishment of objectives
Continuous process
1.

4. ENCOURAGES TEAMWORK:
Organization comes into existence when
there are number of persons in
communication and relationship to each
other
Work got divided amongst people and each
person coordinated work with others.
5. GOAL ORIENTED:
The process of organization is goal oriented
process

6. ADAPTIVE TO CHANGE:
It is open to change
7. SITUATIONAL:
Depending upon the nature of activities, size
of the organization and nature of
relationships amongst people, the
organization structure also varies.

1.

DETERMINATION OF OBJECTIVES:

Various tasks/activities are determined for

achieving goal.
For eg., an organization is established to
export goods
Then it must determine the type of goods to
be exported
The sources from where raw materials will be
obtained
Countries where goods will be exported etc

2. DIVISION OF ACTIVITIES

List of activities to be prepared to achieve the objectives

One person cannot manage all the activities
Total task is broken into smaller units
Then assigned to members
Work assigned according to qualification and ability of
every person

3.GROUPING OF ACTIVITIES

After work is assigned, those performing similar activities

are grouped in one department
On the basis of specialization , grouping of activities takes
place.

MARKETING DEPARTMENT

MARKETING ACTIVITIES

4. ASSIGNING OF RESPONSIBILTY

Responsibility is an obligation of a subordinate to perform a duty,

as insisted by the superior.

Assigning each department to a person.

A qualified and experienced person is assigned the duty of

performing each group of activities

Job is assigned and responsibility is created

Various positions like marketing manager, sales officer, financial

manager etc come into existence.

5. Delegating of Authority :

Superiors delegate authority to position holders to enable them to

carry out activities.
Delegation refers to granting or offering of a legitimate power to
subordinates to enable them to take decisions independently.

6. COORDINATION OF ACTIVITIES:

Inter-departmental conflicts develops when departments work for

their objectives
Conflicts can be resolved through coordination so that all
departments share the common resources.

7. REVIEWING AND REORGANIZING

Constant appraisal is must so that changes in the organization

structure can be made.

1.

FACILITATES ADMINISTRATION

Too much work performed by top level managers will make

them overburdened.
Sharing of workload needed
Top level will be relieved of managing routine affairs
Top level can concentrate on companys effective
administration
For instance, Can concentrate on basic elements of organizing
division of work, grouping of activities , distribution of
authority etc.

2. GROWTH AND DIVERSIFICATION:

WELL ORGANIZED ORGANIZATION ARE ADAPTIVE TO

CHANGE
THEY RESPOND AND DIVERSIFY, IF NEEDED

3. CREATES SYNERGIES:

Synergy means total task achieved by a group of people is more than

the sum total of their individual achievements.
Division of work brings benefits of synergies

4. OPTIMUM USE OF TECHNOLOGY:

Age of technological developments

Absence of well developed technology will not help the
organization to compete

5. FACILITATES COMMUNICATION:

EFFECIENCY OF ORGANIZATION DEPENDES UPON

COMMUNICATION BETWEEN ORGANIZATIONAL MEMBERS.

6. FACILITATES CREATIVITY:
A sound organization helps the top management to improve the way
of doing things
Creativity creates a sense of achievement in the managers by
developing new ways of doing existing things
Increases the morale
7. IMPROVES INTER PERSONAL RELATIONSHIP:
Placing right person at right job brings job satisfaction and morale
boost up of employees.
Further , improves inter personal relationship of people

8. FACILITATES COORDINATION:
9. FACILITATES TEAMWORK:

ORGANIZATION FACILITATES TEAMWORK.

All individuals are assigned tasks and work collectively as team
Optimum Use of scarce resources

10. FACILITATES CONTROL:

Organization provides sound direction to peoples activities

So that they can work according to plans

1.
2.
3.

4.
5.

6.

SIMPLICITY
FLEXIBILITY
STABILITY- must be stable and serve for a long
period
SUITABLITY- The organization structure should be
suitable to the particular business unit.
PROVISION FOR TOP MANAGEMENT- Top level
management is essential to guide, supervise,
coordinate and control efforts of all departments.
IMPORTANCE OF HUMAN ELEMENT- the
structure should be capable to meet human needs,
motivate them and control their behaviour.

7. Specialization- similar type of activities

should be performed under one function of
department.
8. Scalar Principle- line of authority should be
clear and unbroken
9. Unity of direction and command similar type of activities should be directed
by one manager
Unity of command- every subordinate should
get orders from only one boss

THE

NUMBER OF WORKERS
THAT A MANGER CAN
EFFECTIVELY SUPERVISE IS
KNOWN AS SPAN OF
MANAGEMENT/ SPAN OF
CONTROL/ SPAN OF
AUTHORITY/ SPAN OF
SUPERVISION / SPAN OF
RESPONSIBILITY.

1. TALL STRUCTURE
A manager can supervise only a few subordinates
He can exercise tight control over their activities
Large number of level in the organization is
created
Also known as narrow span of control

1.
2.
3.
4.

Managers can closely supervise activities of

their employees
Better communication amongst superior
and subordinates
Promotes personal relationship
Tightened control on subordinates

 Too

many levels complicates coordination

More managers needed to supervise the
workers. Leads to Increase in overhead
expenditure
Slows communication because of increase in
gap
Decision making becomes difficult because of
two many levels.
Employees work under strict control of
superiors
Leads to low morale and job satisfaction

 Delegation

is a process the manager uses in

distributing work to the subordinates.

According

to Pearce and Robinson,

Delegation is the process by which a manager
assigns tasks and authority to subordinates
who accept responsibility for those jobs.

1.
2.
3.
4.
5.

DELEGATION IS A PROCESS :
ON GOING PROCESS :
IT IS AN ART, NOT SCIENCE:
DELEGATION OF AUTHORITY AND NOT
ACCOUNTABILITY
NECESSARY ORGANISATIONAL ACTIVITY

1.
2.
3.

TOP TO BOTTOM DELEGATION

BOTTOM TO TOP DELEGATION
LATERAL DELEGATION

1.
2.

3.

RELIEF TO TOP MANAGERS Relieves burden

of the top level management
DEVELOPMENT OF MANGERS more
delegation of authority can help them
taking more challenging projects and
expand their skills and knowledge as
competent managers.
DEVELOPMENT OF SUBORDINATES Routine
and innovative tasks enhances their skill in
handling delegated taks.

4. Better DECSION MAKING

5. FASTER DECISIONS
6. SPECIALIZATION
7. JOB SATISFACTION
PROMOTES INTER PERSONAL RELATIONSHIP

DECENTRALISATION IS
DELEGATION OF AUTHORITY TO
MAKE DECISIONS TO THE
LOWEST POSSIBLE LEVEL IN
THE ORGANIZATIONAL
HIERARCHY.

1.
2.

3.

4.
5.

REDUCTION IN THE BURDEN OF TOP

MANAGERS
DEVELOPMENT OF SUBORDINATES
Managers can develop the subordinates by
allowing them to make mistakes
FASTER DECISIONS Subordinates can make
faster decisions as they learn to face
problems.
PROMOTES MOTIVATION
FLEXIBILITY managers can change their
policies according to environment

6. CONTROL-