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Organising
The process of identifying & grouping the work is to be
performed ,defining & delegating responsibility & authority &
establishing relationship for the purpose of enabling people to
work most effectively together in accomplishing objectives
-allen
An identified group of people contributing their efforts towards
the attainment of goal is called an orgensiation
-Mc Farland
Orgenisation is the form of every human association for the
attainment of common purpose
-Mooney & Reily
2. Purposive creation
3. Coordination of activities
4. Structure
5. Rationality
Orgenisation structure
Organizational structure is the pattern of relationship among
various components or parts of the orgenisation.
Organization structure refers to the differentiation & integration
of activities & authorities ,role & relationship in the orgenisation
Departmentation
The process of grouping the activities known as departmentation
Departmentation means the process by which similar activities of
the business are grouped into units for the purpose of facilitating
smooth administration at all levels
According koontz & O,Donnell a departmentation is process of
dividing the large functional orgenisation into small & flexible &
administrative unit.
Choosing basis for departmentation
Specialization
Coordination
Control
Economy
Recognition of local condition
Adequate attention
Human consideration
1. Departmentation by Product
Product structure based on organizing employees and work on
the basis of the different types of products.
if a company produce three different types of products, they will
have three different division for these products.
Each division has its own internal departments & operates like a
mini business
Each product line has its own functional orgenisation with
production ,sales ,R& D & accounting
Product departmentation
Chief Executive
Car Division
production
Truck Division
Marketing
Bus division
finance
Long vehicle
HR
Advantages
Disadvantages
2.Functional departmentation
The grouping of common & homogeneous activities to form an
organizational unit is known as functional orgenisation
Function are two types basic function & secondary function
basic function can be divided into sub-function
Each department have a head with the title departmental manager
The functional departmentation will include both line function as
well as staff function
Board of Director
Managing Director
Production
Marketing
Accounts
Personnel
IT
Advantages
Specialisation each department focuses on its own work
Accountability someone is responsible for the section
Clarity know your and others roles
Simplifies training
Disadvantages
Eastern Zone
Kolkata
jalandhar
branch
Central Zone
Kolhapur
Northern zone
Delhi
Southern zone
Chennai
chandigarh
New delhi
branch
branch
Western zone
Mumbai
ajmer
branch
Advantage
Disadvantage
Require more person wit general manager abilities .
increases problem of top management control
Require good caliber managers
Increase problems of control
4. Departmentation by customer
Customer based departmentation is basically market oriented
in which department are created around the market served or
around marketing channel
CUSTOMERS ARE THE KEY TO THE WAY ACTIVITIES ARE
GROUPED
Marketing Manager
wholesale
Retail
Hire purchase
export
Advantage
Disadvantage
Their may be duplication of activities
Co-ordination is difficult
Conflict
5. Departmentation by process
When production activities involve the use of several
distinctive process ,these can be used as the base for
grouping of activities
Production Manager
spinning
dyeing
Weaving
Packaging
Advantage
Disadvantages
Heavy cost of operation
More specialist are essential
2.
3.
4.
5.
6.
Production Manager
Foramen A
workers
Foramen B
workers
Foramen C
workers
Foramen D
workers
Foramen A
Spinning
workers
Foramen B
weaving
workers
Foramen C
Dyeing
workers
Foramen D
finishing
workers
1.
2.
3.
4.
5.
6.
Simplicity
Discipline
Prompt decision
Orderly communication
Easy supervision & control
Economical
1.
2.
3.
4.
Advantage
Disadvantage
Lack of specialization
Autocratic approach
Problems of co-ordination
Not suitable for large scale orgenisation
Public relation
General Manager
Manager finance
Manager HR
Manager Production
Production eng
foreman
worker
Manager Marketing
Sales officer
Sales supervisor
salesman
Advantage
Planned specialization
Quality decision
Prospect for personnel growth
Disadvantage
lack of well defined authority
Line & staff conflict
Board of Director
Managing Director
Production
Marketing
Accounts
Personnel
IT
advantages
Specialisation each department focuses on its own work
Accountability someone is responsible for the section
Clarity know your and others roles
Simplifies training
Disadvantages
Advantage
Division focuses its attention on a particular product or service
Higher level of managerial motivation
Each product or customer is able to get specialized service
Disadvantage
Expensive
Control problem
Co-ordination problem
Managing
Director
Corporate
planning
Legal service
Consumer
product design
Mfg
Mktg
Personnel
purchase
Accounting
R&D
Chemicals
division
Finance
Electronics
division
Mfg
Mktg
Personnel
purchase
Mfg
Mktg
Personnel
purchase
Accounting
Project A
Quality
control
Project B
R& D
admin
scheduling
Quality
control
R& D
admin
scheduling
6.MATRIX ORGANISATION
COMMONLY CALLED THE GRID ORG.
Matrix orgenisation structure is the realization of two dimensional
structure
Matrix structure applied when the orgenisation has large number of
smaller projects so that when one project is completed it resources are
directed to other project
Project manager is appointed to coordinate the activities of the
Personal are drawn from their respective functional departments
Employee should receive instruction from two boss
Application:-insurance & retailing , manufacturing electronics
equipment ,industrial product
DIRECTOR-ENGG. **
Line authority
Project authority
MANAGE Producti
R
on
Marketing Finance
personnel
PROJECT
A
prod
Mktg
Finance
pers
PROJECT
B
prod
Mktg
Finance
pers
PROJECT
C
prod
Mktg
Finance
pers
PROJECT
D
prod
Mktg
Finance
pers
Advantage
Matrix structure focuses resources on single project ,
permitting better planning & control
Flexible structure compared to traditional hierarchical structure
It improves motivation because people can focus more on
completion of one project than they can in the traditional
functional structure
Disadvantage
People have to work under multiple command
Delay in decision making process
Benefits of centralization
1.
2.
3.
4.
5.
1.
2.
3.
4.
Benefits of decentralization