Organizing Unit - 3: 6/14/2019 Prof - Basavaraj S Mammani

Organizing
UNIT - 3
PROF.BASAVARAJ S MAMMANI 6/14/2019

OVERVIEW
 Organizing
 Organization structure
 Formal and informal organizations
 Principles of organizations
 Chain of command
 Span of control
 Delegation
 Decentralization
 Empowerment

 Functional
 Divisional
 Geographical
 Customer based
 Matrix organizations
 Tram based structures
 Virtual organizations
 Boundary less organizations

Meaning of Organizing
 Organizing refers to the process of bringing together

physical ,financial and human resource and establishing
productive relations among them for the achievement of
the specific goal

What is Organizing
 The grouping of activities necessary for attaining objective.
 The process of creating an organization’s Structure .
 A Process that initiates implementation of plans by clarifying

jobs and working relationship and effectively deploying
resources for attainment of identified and desired results
PROF.BASAVARAJ S MAMMANI
6/14/2019
Definition
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.
Louis Allen

Organizing viewed in relationship with the
other management functions.

It is a framework within which an Organization arranges it’s
lines of authorities and communications and allocates rights
and duties.

All Organizations have a management structure that
determines the relationships b/w functions and positions and
subdivides and delegates roles, responsibilities and authority
to carry out defined tasks.

 Impacts effectiveness and efficiency.
 Reduces redundant actions.
 Promotes teamwork.
 Improves communication.
 Contributes to success or failure.

Principles of organization
 Principle of unity of objectives: Organizational goals, departmental
goals, and individual goals must be clearly defined. All goals and objectives
must have uniformity.
 Principle of specialization: Sound and effective organization believes

on organization. The term specialization is related to work and employees.
When an employee takes special type of knowledge and skill in any area, it
is known as specialization.
 Principle of coordination: In an organization many equipment, tools

are used. Coordination can be obtained by group effort that emphasize on
unity of action.

 Principle of authority: Authority is the kind of right and power through
which it guides and directs the actions of others so that the organizational
goals can be achieved
 Principle of responsibility: Authentic body of an organization is top
level management, top level management direct the subordinates.
 Principle of delegation: Process of transferring authority and creation
of responsibility between superior and subordinates to accomplish a certain
task is called delegation of authority.
 Principle of unity of command: subordinates should receive orders
from single superior at a time and all subordinates should be accountable to
that superior.
 Principle of span of control: unlimited subordinates cant be supervised
by manager, this principle thus helps to determine numerical limit if
subordinates to be supervised by a manager.
Formal and Informal
Organization

Formal organization structure
Refers to the collection of work groups that

have been consciously designed by senior
management to maximize efficiency and
achieve organizational goals.

Formal Organization
 The Formal Organization is a system of well-defined
jobs, each bearing a definite measure of authority,
responsibility and accountability.
Louis Allen
 Formal Organization is a system of consciously
coordinated activities of two or more persons
toward a common objective.
Chester Barnard
PROF.BASAVARAJ S 6/14/201
MAMMANI 9
formal organization
public relations
job evaluation
safety

Formal Organizations
MAMMANI 9
Advantages
o Easier to fix Responsibility

o No ambiguity in the role . This also helps in
avoiding duplication of effort.
o Behavior of Employee fairly predicted
o Unity of command through an established
chain of command
o Stability to the organization
6/14/201
9
Limitations
 The formal communication may lead to procedural
delays
 Do not provide adequate recognition to creative talent
 More emphasis on Structure and Work, difficult to
understand all human relationships in an enterprise as
it places
6/14/201
9
Informal organization
• Refers to the network of relationships that

spontaneously establish themselves between
members of the organization on the basis of their
common interests and friendships.

Informal Organization
 An Informal organization is an aggregate of
interpersonal relationships without any
conscious purpose but which may contribute to
joint results.
Chester Barnard
 Informal organization is a network of
interpersonal relationship that arise when
people associate with one another .
Keith Davis
MAMMANI 9
A
B C C
D E F G H I
J K L M N 0 P Q R T U V
MAMMANI 9
informal organization

[Buchanan, 2000, p. 463]
Advantages:
 It helps to fulfill the social needs .
 Sense of belongingness in the organization
 Faster spread of information as well as quick feedback.
 It contributes towards fulfillment of organizational
objectives. For example, employees reactions towards plans
and policies can be tested through the informal network.
MAMMANI 9
Disadvantages:
 It spreads rumors. This may work against the interest
of the formal organisation.
 The management may not be successful in
implementing changes if the informal organisation
opposes them. Such resistance to change may delay or
restrict growth.
 It pressurizes members to conform to group
expectations.
6/14/201
9
The Formal and Informal organization
Formal Informal
organization organization
A structure
(a) origin planned spontaneous
(b) rational rational emotional
(c) characteristics stable dynamic
B position terminology job role
C goals profitability or member satisfaction

service to society
D charting organizational sociogram
chart

Departmentalization is part of the organization process .it
means dividing and grouping the activities and employees of
an enterprise into various departments, division of the total
work of an enterprises into individual function
6/14/2019
 When a company expands to
Supply goods or services
Produces variety of diff. products
Engage in several diff. markets
in such conditions the company can adopt
Departmentalization.

Departmentalization
 The Basis by which jobs are grouped together
 Five common form of Departmentalization

Functional
Geographical
Product
Process
Customer
PROF.BASAVARAJ S
6/14/2019
MAMMANI
 Functional
 Product
 Customer
 Geographic
 Process

 Arranging the business according to what each section or
department does.

Functional Design
Potential Pitfalls
Potential Benefits
 Inadequate communication
 Supports skill specialization
 Difficulties with interunit
 Reduces duplication of resources coordination
& increases coordination
 Focus on departmental rather
 Enhances career development & than organizational issues
training within functional area and goals
 Allows superiors and subordinates
to share common expertise
 Promotes high-quality technical
decision making

 Organizing according to the different types of products
produced.

Product Design
Potential Benefits Potential Pitfalls
 Permits fast changes in a  Not allowing efficient
product line utilization of skills and
 Allows greater product line resources
visibility  Not fostering coordination of
 Fosters a concern for activities across product
customer demand  Encourages politics and
 Clearly defines conflicts in resource allocation
responsibilities for each across product lines
product line  Limits career mobility for
 Develops managers who can personnel outside their own
think across functional lines product lines
 Where different customer groups have different needs.

 It’s based on geographical or regional structure.

Geographical Design
 Has facilities and the equipment  Duplication of functions, to
used for production and/or varying degrees, at each
distribution all in one place, regional or individual unit
saving time and costs location
 Able to develop expertise in  Conflict between each
solving problems unique to one location's goals and the
location organization's goals
 Gaining an understanding of  Adds levels of management
customers’ problems and desires and extensive use of rules
 Getting production closer to raw and regulations to coordinate
materials and suppliers and ensure uniformity of
quality among locations
 Where products have to go through stages as they are made.

organizational structures based on product,
geography, customer, and process.

 Department can be staffed with specialized training.
 Shared management responsibility.
 Supervision is facilitated.
 Coordination within the department is easier.

 Inter department documentation of activities is not possible.
 Decision-making becomes slow.
 Delays when there are problems.
 Accountability and performance are difficult to monitor.

Principle of Organizing
 Chain of command
 Span of Control
 Departmentalization
 Centralization and Decentralization
 Delegation
 Empowerment
6/14/201
9
1. Chain of Command
 The continuous line of authority that extends from upper
level of organization to lowest level of organization and
clarifies who reports to whom.
 Line of authority from the top to the bottom of the
organization.
 Tells you who your boss is and who to go to for help.
 To work quickly, employees at all levels need to communicate
directly, and who the boss is can change according to the task to
be performed.

Chain of Command
 Unbroken line of authority that links all persons in an
organization.
 Shows who reports to whom.
 Associated with two underlying principles.
 Unity of Command. (no one has more than 1 boss)
 Scalar Principle. (communication follows chain of command)

2.SPAN OF MANAGEMENT
 A term originating in the military organization, but now used
most commonly in the business management.
 Span of management is also called as span of control or span

of supervision. It refers to the number of subordinates who
can be managed effectively by a superior.

Span of control
 Span of control is the number of persons that a
manager can manage effectively .
 Managers should have neither too many nor too few

subordinates.
 span of management determine the number of hierarchical
levels in an organization-
1. A Tall structure
2. A Flat structure

Span of Control
 The number of employees reporting to a
supervisor.
 Traditional view, seven or so per manager.
 Many organizations today, 30 or more per
manager.
 Generally if supervisors must be closely
involved with employees, span should be
small.

Tall versus Flat Structure
 Span of control used in an organization determines whether the

structure is tall or flat.
 Tall structure has a narrow span and more hierarchical levels.
 Flat structure has a wide span, is horizontally dispersed and
fewer hierarchical levels.
 The trend has been toward wider spans of control.

Tall vs. Flat Structure

Organization with Narrow(Tall) Span
A
B C D
E F G H I J
K L

Advantage Disadvantage
 Close supervision  Subordinates tend to get
 Close control involved in Subordinates
Work
 Fast communication between
subordinates and superiors  Many Levels of Management
 High Costs due to many
levels
 Excessive distance between
lowest level and top level
PROF.BASAVARAJ S
6/14/2019
MAMMANI
Organization with Wide(Flat) Span
6/14/2019
Advantages Disadvantage
 Superior are forces to  Tendency of overloaded

delegate  Danger of superiors loss of
 Clear polices must be made control
 Subordinate must be carefully  Requires exceptional quality
selected of Managers
6/14/2019
Decentralization with Centralization
 Centralization is the concentration of authority for making most
decisions at the top levels of the organization.
 Decentralization is the dispersion of authority to make decisions

throughout all levels of the organization.

 With centralized authority, top managers make important
decisions.
 With decentralized authority, middle and first-line managers
make important decisions where the action is.
 Decentralization allows more input into decision making and
greater employee commitment to carrying out the decisions.
PROF.BASAVARAJ S MAMMANI 6/14/2019 6-62

3.Delegation
 Giving another person the authority and responsibility to

carry out a task.
 Since the supervisor cannot accomplish all of the department’s

work, others must be assigned duties with the authority and
responsibility to accomplish the task

Delegation
 Delegation is the process of entrusting work to others by giving

them the right to make decisions and take action.
 The manager assigns responsibility, grants authority to act, and

creates accountability.
 Authority should be commensurate with responsibility.

Difference Between Decentralizations
& Delegation
 A Process  End Result of Delegation
 Denotes Relationship Between  Denotes Relationship Between

Superior & Subordinate Top Management & Various
Departments or Divisions
 Technique of Management  Philosophy of Management

 Guidelines for effective delegation:
 Carefully choose the person to whom you delegate.
 Define the responsibility; make the assignment clear.
 Agree on performance objectives and standards.
 Agree on a performance timetable.
 Give authority; allow the other person to act independently.
 Show trust in the other person.
 Provide performance support.
 Give performance feedback
 Recognize and reinforce progress.
 Help when things go wrong.
 Don’t forget your accountability for performance results.

Empowerment
 Delegation of broad decision-making authority and

responsibility.
 It is official authority or legal power to person to perform a

task independently with strength and confidence on his /her
own intivitive

A. Matrix organization
B. Virtual Organizational Structure
C. Boundary less Organizational Structure

 Virtual organization can be thought of as a way in
which an organization uses information and communication
technologies to replace or augment some aspect of the
organization.
 People who are virtually organized primarily interact by
electronic means.
 For example, many customer help desks link customers and
consultants together via telephone or the Internet and problems
may be solved without ever bringing people together face-to-face.

 A boundary less Organizational structure is a contemporary
approach in Organizational design.
 It is an organization that is not defined by, or limited to the
horizontal, vertical or external boundaries imposed by a pre-
defined structure.
 It behaves more like an organism encouraging better integration
among employees and closer partnership with stakeholders.
 It’s highly flexible and responsive and draws on talent wherever it’s
found.

The boundaryless organization eliminates
internal and external barriers.

Matrix structure
 Combines functional and divisional structures to gain

advantages and minimize disadvantages of each.
 Used in
 Manufacturing
 Service industries
 Professional fields
 Non-profit sector
 Multi-national corporations

Matrix Organization
 Two sets of bosses-functional and divisional.

 Violates the chain of command, e.g. two bosses, not clear line of authority.
 Attempts to lower the risks of functional and divisional structures
 Requires employee to manage two sets of bosses.
6/14/2019 PROF.BASAVARAJ S MAMMANI

Matrix structure in a small multiproject business
firm.

President
Matrix Structure
Director of
Design Manufacturing Marketing
Product
Vice President Vice President Vice President
Operations
Product
Manger A
Product
Manger B
Product
Manger C

Matrix Structure
PROF.BASAVARAJ S MAMMANI 6/14/2019 6-76

Matrix Design
 More efficient use of  Dual chain of
resources than single command
hierarchy  High conflict between
 Adaptable to changing two sides of matrix
environment  Many meetings to
 Development of both coordinate activities
general and specialists  Need for human
management skills relations training
 Expertise available to all  Power domination by
divisions one side of matrix.
 Enlarged tasks
PROF.BASAVARAJ for
S MAMMANI 6/14/2019
employees.
Team Approach
 Cross-functional teams consist of
employees from various functional
departments
 Interdisciplinary approach to management
 Permanent team = to solve ongoing

problems
 Reengineering = radical redesign for
improvements in cost, quality, service and

speed.
Team Approach
 Same advantages as  Dual loyalties and
functional structure conflict
 Reduced barriers among  Time and resources
departments spent on meetings
 Quicker response time  Unplanned
 Better morale decentralization.

Organizing Unit - 3: 6/14/2019 Prof - Basavaraj S Mammani

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Organizing Unit - 3: 6/14/2019 Prof - Basavaraj S Mammani

Загружено:

Авторское право:

Доступные форматы

Organizing

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

 Organizing refers to the process of bringing together

PROF.BASAVARAJ S MAMMANI 6/14/2019

 The process of creating an organization’s Structure .

 A Process that initiates implementation of plans by clarifying

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

 Principle of specialization: Sound and effective organization believes

 Principle of coordination: In an organization many equipment, tools

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

Refers to the collection of work groups that

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

o Easier to fix Responsibility

• Refers to the network of relationships that

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

(a) origin planned spontaneous

(b) rational rational emotional

(c) characteristics stable dynamic

B position terminology job role

C goals profitability or member satisfaction

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

 Five common form of Departmentalization

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

 Span of management is also called as span of control or span

PROF.BASAVARAJ S MAMMANI 6/14/2019

 Managers should have neither too many nor too few

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

 Span of control used in an organization determines whether the

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019

 Superior are forces to  Tendency of overloaded

 Decentralization is the dispersion of authority to make decisions

PROF.BASAVARAJ S MAMMANI 6/14/2019

PROF.BASAVARAJ S MAMMANI 6/14/2019 6-62

 Giving another person the authority and responsibility to

 Since the supervisor cannot accomplish all of the department’s

PROF.BASAVARAJ S MAMMANI 6/14/2019

 Delegation is the process of entrusting work to others by giving

 The manager assigns responsibility, grants authority to act, and

 Authority should be commensurate with responsibility.