ORGANIZING

Organising
The deployment of organisational resources to achieve strategic goals.

(The deployment of resources is reflected in the organization's division of labour into

specific departments and jobs, the formal lines of authority, and the mechanisms for co-ordinating tasks.)

PROCESS OF ORGANIZING

Determination of objectives. Deciding various activities. Grouping of activities. Assignment of responsibilities to definite persons. Delegation of authority. Providing physical facilities and proper environment.

TEN BASIC PRINCIPLES OF ORGANIZATION

1.

The Scalar Principle Unity of Command Span of Management

2.

3.

4.

Work specialization/Division of Work

Authority and Responsibility

5.

BASIC PRINCIPLES OF ORGANATION cont

6.

Delegation of Authority
Centralization and Decentralization Formalization

7.

8.

9.

Departmentalization
Coordination and Human Relations

10.

ORGANIZATION STRUCTURE

It simply means the systematic arrangement of the people working in the organization in order to achieve pre-decided goals.

It is concerned with the establishment of positions (persons) and the relationship between positions. The structure provides an appropriate frame work for authority and responsibility relationships between various positions.

Need for organization structure

The organization structure facilitates in fixing the responsibility - department wise, section wise or on individual basis. It is necessary for the establishment of authority. It promotes division of work and leads to specialization.

Need for organization structure cont..

It avoids confusion, duplication, wastage and inefficiencies.

It facilitates the flow of information and decision making from one level to another. It defines the positions and units with in the organization.

Types of organization structure

Line or military or scalar organization. Functional or staff organization. Line and staff organization. Committee organization. Project organization. Matrix organization.

LINE ORGANIZATION

It is based upon relative authority and responsibility. It is direct and people at different level know to whom they are accountable, assign duties, dismiss and take disciplinary action against them.

General Manager
Finance Manager Production Manager Marketing Manager

Supervisor 1 Supervisor 2 Accountant 1 Accountant 2 Sales Supervisor 1 Workers Clerks Clerks Salesmen Salesmen Workers Sales Supervisor 2

STAFF/FUNCTIONAL ORGANIZATION

F.W.Taylor discovered this method of dividing the work of management in such a way that each man in the factory should have as few functions as possible to perform.
Under this type of organization workers or subordinates, instead of coming in contact with only one immediate superior, receive daily work orders from several specialists or officers.

Superintendent

Office

Shop

Route Clark

Instruction Time & Disciplinary Clark Clark

Gang Boss

Speed Boss

Repair Boss

Workers

Line and staff organization

The combination of line organization with expert staff constitutes the type of organization known as line and staff organization. In this method, the line maintains discipline & stability and staff provides expert information

The line delegates the authority by which the staff performs these functions. Each department is headed by a line officer who is to decide, plan, execute and control business operations on the guidelines indicated by the staff experts associated with his dept.

Share Holders

Board of Directors

Industrial Research Engineers

Assistant Sales Manager

General Manager

Research Engineers

Work Manager

Assistant Accounting

Production Superintendent

Foremen

Workers

Departmentalization
Departmentalization is the basis for grouping positions into departments and departments into the total organization.

1. 2. 3. 4. 5.

There are 5 approaches Functional Divisional Matrix Team-based Network

Functional structure

people are grouped together in departments by common skills and work accordingly. (e.g. Manufacturing, Marketing, Finance)
President

Finance

Manufacturing

Marketing

Divisional structure

Departments are grouped into divisions based on a common product, program or geographical region (territory).
President

Division 1
Finance R&D Marketing

Division 2
Finance R&D Marketing

Division 3
Finance R&D Marketing

Matrix structure

Functional and divisional chains of command are in effect all at once in the same departments. Two chains of command exist and some employees report to two bosses
President

VP Finance
Product Manager A Product Manager B

VP Marketing

Team-based structure

A structure in which the entire organisation is made up of teams that coordinate their work and work directly with customers to accomplish organisational goals.

Network structure

This is where the company subcontracts many of its major functions to separate companies and coordinates their activities from a small headquarters organisation.
Manufacturing Company

Design Company Company Core (HUB)

A/C Receivable Company

Transportation Company

Distribution Company

CENTRALIZATION

It is the systematic and consistent reservation of authority at central points within the organization.

Centralization can be found necessary for the following reasons : To facilitate personnel leadership. To introduce better coordination . To handle emergencies.

DECENTRALIZATION

It implies a systematic delegation of authority throughout the whole organization. Decision taking authority is pushed downward to lower organization levels. Decentralization is believed to relieve the burden of top managers, make greater use of workers skills.