ORGANISING

Its formalisation of intentional structure of roles or positions.

Organizing process consists of –

• Determination of work load
• Grouping and subgrouping of activities
• Creation of managership through delegation of authority
• Division of work withing the departmental set up – human organization
• Definition and establishment of authority –responsibility relationship

Principles of Organisation :

1. Division of labour :
• Better work possible only with division of work in concentrated manner
2. Principle of work specialization
• After division of work, it becomes specialized
• Man , who keeps on doing the same, becomes specialist
• But over a period of time, somebody else should brought in by job rotation
policy
3. Principle of departmentation :
• Clubbing of closely intetrlinked function
• SBU-division – dept – sectioj – subsection etc
• Size decides the pattern of departmentation
4. Principle of authority levels :
• Decision making authority through action involving direction and utilization of
organization resources
5. Principle of span control of management
• Span – means how many men are reporting to one mgr at a given time
• Defines the structure as tall or flat
6. Scaler chain of management
• Hierarchy of the organization
• If the CEO needs to pass an instruction to base line opr, then it has to go
through VP, HOD, Section head, sup and then to operator
• Defines the structure as tall or flat
• Tall – traveling time of communication – high
• Flat – traveling time of communication – less
• Structure depends on wht is considered as the optimum pt of eff. And
effectiveness in performance
7. Principle of unity of porpose/objective
• Common objective at individual and dept objectives
• Remain flexible to adapt external as well as internal environment
8. Principle of navigation
• Navigation calls for visionary skills to steer clear out rough weather and yet
pursue its direction
• Anticipation of future and ability to remain flexible
9. Principle of authority and responsibility
• Authority and responsibility are concurrent
10. Principle of unity of command :
 • Instructions from only one superior
• Instructions from ore than one person – leads to conflicts
11. Principle of synergy
• Combined strength of persons > its mere sum total
• This extra energy is called synergy
• Energy produced by coming together
12. Principle of spirit
• Mgmt does work on pure rationality
• There is something emotional for people to work in it
• Have motivation, pride, sense of belonging, stability and growth in personal
life
• Team spirit – sacrifice for team performance by each of its member

Type of organization :
Formal :
• Most businesses start with an intention to build long term involvement
• Has a beginning but no end
• Looks for growth and stability
• Formally designed in terms of –
o Authority distribution
o Creating positions
o Linking various functions involved
Informal :
• People under formal orgn come together informally through their acquaintances,
Likings , Fellow feelings and develop informal relations
• Chance of gossiping
• Creates didd communication channel called grapevine
Matrix:
o Sometimes essential to have two superiors in exceptional cases.
o This generally happens in projects eg. Reporting to project managers as well as
hi own dept head
Project:
o Temporary orgn
o Has definite beginning and end
o Eg. Orgn for dam construction, bridges etc
o Specialized people required at different stages of work

Forms of orgn:
1. Sole trading or proprietorship
2. Partnership
3. Joint stock co (LLC)
4. Co-operatives
5. Society and trusts

Delegation :
o Delegate to the person who is able to make needed contribution to the group
work
o Goes with responsibility as well
 o Ultimate responsibility lies with superior too
o Needs to ensure the competency of the person undertaking the responsibility
o In case of failures, the concerned has face the consequences also

Empowerment :
o Same as delegation
o Additionally, power to decide the way how to do it
o No need to take approvals for doing the delegated job

Centralisation :
o Tendency to concentrate decision making at a position
o This makes centralization of authority withing few positions
o Advantages :
o Speed in decision making
o Clear cut instructions
o Clear decision making

Decentralisation
o Sufficiently large persons allowed to take decision
o No concentration of decision making
o Employees feel empowered
o May result slackness in decision making
o May create political culture and loss in effectiveness
o Good leader can effectively implement decentralization

Types of organizations

1. Line authority:
o Comes from top through its levels till the final operational person in
line
o Most common type of authority
o More the line of authority, more the decision making elongated and
expensive
o Decision making slow and routine
o More disciplined but less productive
o By proper empowerment, this can be improved, but empower itself
gets discouraged in such environment

2. Staff authority
o Authority of advice
o Expertise in the field to strenthen the management
o Eg. Human resources expert, engg. Expert, industrial engineers,
mgmt consultant
o Acts as a support function to line
o Once staff added to this, he must be utilized otherwise it will add to
cost w/o results and will prove to be the burden on the orgn.

3. Functional authority
 o Intervening authority within line authority
o Right to personnel manager to intervene in line for any personnel
function

Levels of authority :
1. Organisational levels :
• Operational level
• Middle level
• Top level
2. Vertical Organisation
• Given position according to his lebel
• Eg. Unskilled, skilled, supervisor, at operational level, asst mgr, mgr, sr.mgr,
exec at middle level, GM, VP, CEO at top level
3. Horizontal Organisation
• Dist between top and operational level is less
• Less promotions to an individual as no of levels decrease

Concepts of organization :
1. Departmentation :
• related activities which can form semi independent unit e.g. SLC dept
in Larsen and toubro – where processes like purchasing, planning,
development production related to air circuit breaker for a department.
2. Departmentation by time -
• Imp consideration to time, eg. Shift working, call center, hospitals, fire-
brigades, cont. process plants etc
3. Departmentation by Location
• Regional offices
4. Departmentation by function
• Dept like mktg, finance, matl, operations etc
5. Departmentationn by process
• Textile co – dspinning, weaving etc
6. Departmentation by division
• Extension of the concept of departmentation
• Dept defined as cost center and division as profit center
7. SBUs