Presented By:

• Anjali Joshi

• Dhan Bahadhur Bohara

• Manoj Raj Sharma

• Ramesh Pant

• Keshav Nayak

• Prerna Shah

• Heera Chalaune

Meaning And Definition Of Organizing

Organizing refers to the relationship between people, work and resources used to achieve the common objectives.

Organizing is also structuring of a work system.

By structuring we mean coordinating, establishing relationships and assigning task responsibilities.

”Organizing is the process of defining and grouping the activities of the enterprise and establishing the authority relationships among them.”

According to Theo Haimann

Principles Of Organizing

A principle is a rule which is generally accepted by all. It is a guideline for solving problems and difficulties. The principles of organizing are as follows.

Objectives:- The objectives of the organization should be clearly defined. Every individual in the organizations should understand those objectives. This will enable them to work efficiently and help the organization to achieve its objectives.

• Division of work:- There should be division of work in the organization. This will increase the efficiency, productivity, and profitability of the organization.

• Span of control:- Span of control means maximum number of subordinates which one superior can manage effectively. It depends on many factors such as nature of job, ability of superior, skill of subordinates.

• Authority and Responsibility:- Every individual should be given authority(power) to perform his responsibilities(duties). It describe as “top-down” function in organization.

• Flexibility:- The organization should be flexible so that it can be adjusted to changing conditions. Due to the change in external environment the organization is also changed.

• Simplicity:- The organization should be kept as simple as possible. A complex organization can be a source of big confusion and can be a difficult to accomplish the objectives.

• Decentralization:- It refers to the process of pushing decision making to lower levels of the organization. The principle is that decision making power should be placed as nearer the scene of action as possible.

Process Of Organizing• Identify organizational goals:- In this step

organizational goals, plans and work activities must be identified. Organizational goals and plans describe something which has to be accomplished.

• Classify and group the necessary work:- In this step group activities is done which is based on department. Then manager should assign the defined work activities to specific individuals and group.

• Establish relationship:- In order to secure compliance to organizational directives, reporting relationship must be specified. Manager should determine the vertical and horizontal relationships of the organizational as a whole.

• Delegate authority:- In the fourth step. The authority to carry out the assigned task to be assigned to individuals and group.

• Provide for coordination and control:- Finally, the activities and efforts of various individuals, groups and units must be coordinated. Coordination brings activities or group of activities into proper relation.

Organization architecture comprise : Vertical differentiation

Horizontal differentiation

Organization Architecture

Vertical differentiation Vertical differentiation is related to

distribution of decision making.It consist of a vertical dimension of different

level of authority and responsibility .It is basically differentiation by degrees of

authority . It cab be two types :

(I) Tall hierarchy

(II)Flat hierarchy

(I) Tall hierarchy : this is the traditional pyramid shaped structure . It’s feature are:

• Narrow span of control with too many hierarchical levels.

Features:• Long channels of communication .• Centralization authority at the top .• Close superior subordinate contact .

(ii) Flat hierarchy : this is the emerging organization. Information technology and professional management have made it possible.

Features:• Wide span of control with few hierarchical levels .• Short channel of communication .• Decentralized authority to subordinates .

Horizontal differentiation Horizontal differentiation is concerned with the

distribution of function . It is wide division of work into department . This differentiation is often refreshed to as de departmentalization .

Horizontal Differentiation:

It consist of : Functional structure : it is grouping of activities by

functions performed. It focuses on work specialization.

Multi-dimensional structure: It is grouping of activities by product. All function of a product line are put under one division. For e.g. All food item under food division.

Geographical structure: It is grouping of activities by territory. All activities of a specified territory are assigned to a manager.

Matrix structure: It super impose multi divisional structure of functional structure. This is widely used for project management.

Forms of organizational structure

1. Line structure

2. Line-and-staff structure

3. Functional structure

4. Committee structure

5. Matrix structure

Line structure

The line form of organization is simple. It is the oldest form of organization structure.

It is also known as the scalar or military type of structure.

In this form of organization, each manager is given complete charge of the work assigned to him or her.

In the line structure,authority flows from the top most executive to the subordinate at the lowest level in a more or less straight line.

Advantage

Simplicity:- The line structure is simple. It has a clear demarcation of lines of authority, responsibility, and accountablity. Employees easy understand this structure.

Quick decision making:- Since there are few people to consult when problems arise,the answer can be obtained quickly. Many times the speed of making decision is highly required than anything else.

Flexiblity:- Quite often, this structure provides more flexiblity because on-the-spot options can be made use of.

Unified control :- The advantage of unified control is the result of the direct line of command.

Line-and-staff -structure

The line- and- staff organization is similar to a line organization in that each person reports to a single supervisor.

However, in line- and- staff organization ,there are also staff specialists who perform specialized services or act as management advisers in special areas.

It is the most widely used form of organization structure.

It has evolved as the best all around type of structure.

Advantages

Making use of specialization:- A line manager receives expert advice from the staff managers. Thus, he or she can concentrate upon his or her primary responsibilities. The line managers are not burdened with all the varied duties that they would have under the line form of organization.

More operating efficiency:- As the work is divided into line and staff functions.This adds to the effciency of their work.

Prospects of career development:- It provides opportunity to employees to specialize in their areas.This provides them better prospects for promotion and career advancement.

Functional structure

F.W. Taylor orginally develop the conept of functional structure or functional organization.

In functional organization the whole task of an organization is divided according to the types of work involved.

An expert handles each function.

AdvantagesUse ofspecialist skills:- The specialists

skills of expert in charge of activities can be used throughout the organization.

Command authority:- The functional staff specialist becomes the command authority not merely the advisers.

Jop specialization:- The specialist feels that he or she is making more contribution to the work than would be possible from a simple staff position.

Committee structure

The committee organization is a variation of the line and staff structure. A set of committees is added to the functioning of the line and staff organization

Such committees are formed to help managers reach necessary decisions by exploring the pros and cons of a given situation.

Advantages

Employees often reach more favourably to and accept a committee decision than the decision of one person.

Members of the committee actively participate in the discussion.Thus ,better teamswork and communication is provided.

Boarder understanding of dicision is developed since the committee examines the overall situation of the organization.

Matrix structure

Matrix organization is alsocalled project organization or multiple command system.

It is a mixed form of organization in which functional and departmental forms overlap.

Thus in matrix structure manager group people and responsibilities in two ways simultaneously: by function and by productor work project.

Advantages

The matrix structure is an efficient means for bringing together the diverse specialized skills required to solve a certain problem.

It gives organization a great deal of cost saving.

It avoids unnecessary duplication in the organization.

Functional organization structure

Function organization the functional specialist communicate with each through general manager. Here no functional specialist can provide direct instruction or suggestion to another functional specialist. The functional specialist interact with each other through general manager to chief executive of the enterprise.

Advantages• Benefits of specialization• Increase efficiency• Healthy competition among experts• Relief to expansion• Suitable for present environment

Matrix organization structure

• Matrix organization structure is a special types of problems solving form of organization.

• Matrix organization is a combination and interaction of functional and project managers.

Advantage• Better coordination and control• Adoptable to dynamic environment• Maximum use of resource• Participative management• Sufficient time to top management• Excellence in inter-disciplinary specialization• Development of team work

Responsibility

• The duty to perform the task or activity an employer has been assigned.

• Responsibility is the duty to which a person is bound by reason of his status or task.

Responsibility

Responsibility Responsibility is the obligation of a subordinate to

properly perform the assigned duty. When a superior assigns a job to his subordinate it becomes the responsibility of the subordinate to complete the job.

Features :- Responsibility can be assigned to some other

person The essence of responsibility is to be dutiful It gets originated because of superior-subordinate

relationship.

Establishing Task The first step in the responsibility system to create specific task

for each employee. Establishing tasks in the process by which managers decide

how to divide the work into specific tasks that have to performed by the division or department.

The result of establishing tasks process is a division of labour among employees. Establishing an appropriate division of labour among employees is vital to increasing efficiency and effectiveness.

When deciding how to assign tasks to individual jobs, manager must be careful not to oversimplify tasks.

A job description identifies essential and non-essential tasks that are assigned to a specific position and also identifies reporting relationships and may also describe required qualification, min. requirements, working conditions, and desirable qualification.

Reporting Relationship Once required work activities and tasks are defined,

the next step is how these activities and tasks should fit together in the organizational hierarchy.

It often called the chain of command, are represented by vertical lines on an organizational chart. And the chain of command should be an unbroken line of authority that links all person in an organization and shows who reports to whom.

Types of reporting relationships

Direct (solid-line) Reporting It describes a relationship between an employee and

his/her direct supervisor/leader.

Supervisor provide primary guidance to the employee, controls the major financial resources the employee relies on to perform his/her work, conduct performance reviews with the subordinate, and provide all other direct supervision.

Indirect (dotted-line) Reporting

It describes a relationship between an employee and a secondary supervisor/leader that provide additional oversight and guidance to the employee in the execution of his/her work.

The intent of the dotted-line relationship is to ensure that the dotted-line supervisors/leaders has the authority to provide some level of influence and leadership over the employee.

Accountability

The fact that the people with authority and responsibility are subject to reporting and justifying task to those above in the chain of command.

• Accountability is defined as being answerable for one’s own action or lack of action.

Accountability

ACCOUNTABILITY

• Accountability means the answerability of the subordinate to his superior for his work performance.

Features:- Accountability cannot be delegated. It originates because of delegation of authority. It is only towards the delegators. Its base is senior – subordinate relationship

Authority

The power to make decision which guides the action of

others

Definition

A Right & a Power to

influence the behavior or

efforts of other persons

Authority: The right in the position and hence the right in the person occupying the position to exercise discretion in making decisions affecting others and the performance of individuals and others

AUTHORITY

It means the power to take decisions. Decision can be related to the use of resources and to do or not to do something.

Features:- Authority can be assigned to some other person. It is related to the post (with the change of post,

even authorities change). It makes implementation of decisions possible. It is the key to a managerial job, because a post

without authority cannot be a managerial post.

Authority The formal and legitimate right of a manager to

make decision, issue orders, and allocate resources to achieve desired outcomes.

• Authority may be defined as the power to make decisions which guides the actions of others

Authority

Types of Authority1.Line Authority2.Staff Authority

Authority that entitles a manager to direct the work of a subordinate.

The position authority (given and defined by the organization) that entitles a manager to direct the work of operative employees.

Line authority means that managers have formal authority to direct and control immediate subordinates.

Line authority is the power of command that is exercised by a person over his direct subordinates in the formal structure, such as power to supervise, direct and evaluate the work of his subordinates.

Line Authority

Generalmanager

Employs Employs EmploysEmploys

EmploysEmploysEmploys

Salesmanager

Manager oflogistics

Productionmanager

EmploysEmploys

Authority given to individuals who support, assist and advise others who have line authority.

Positions that have some authority (e.g., organization policy enforcement) but that are created to support, assist, and advise the holders of line authority.

Staff authority is generally more narrow than line authority

Staff authority includes the right to advise, recommend, and counsel in the staff specialists' area of expertise.

Staff Authority

Delegation of authority

Delegation is the process of transferring of authority from a manager to the sub-ordinates to enable him/her to make decisions, to use their own skills and to use various resources.

Delegation of authority is the downward process.

By delegating authority, the superior can perform more important tasks.

Task of Effective Delegation

Decide which tasks can be delegated Decide who should get the assignment Provide resources for carrying out the

delegated tasks Delegate the assignment Be prepared to run the interference, if

necessary Establish a feedback system

CENTERALIZATION

• The concentration of decision –making authority in upper management

• In a centralized organization, the decision making has been moved to higher levels or tiers of the organization, such as a head office, or a corporate center.

DECENTRLIZATION AND DEVOILUTION

Meaning:

As the organization grows in size and complexity, decentralization tends to increase. The faster the rate of organization growth, the greater the need for decentralization or devolution. The top level management cannot undertake all the increased workload. Hence, it has to be shared among the lower level managers. When the managers and supervisors at the middle and lower levels are given considerable autonomy in decision making , the organization is considered as decentralized.

ADVANTAGES

Decentralization and Devolution have many advantages.

Some are as follows: A decentralized or devolved organization structure stresses

delegation of decision making and lightens the load of top management.

The development of generalists rather than specialists is encouraged.

Familiarity with important aspects of special work is readily acquired.

Risks involving possible losses of personnel, facilities, equipment etc are spread out.

For organizations having wide spread units, managers can be obtain full advantage of local conditions.

DISADVANTAGES

Decentralization or devolution is not always smooth sailing. There are some disadvantages and they are:

To be effective, the employees must be better trained and educated.

Their decision making abilities have to be enhanced. It require increased overhead and staff. New system has to be developed. As the decision

making is dispersed. New information processing system with larger networking has to be installed.

As the decision making is dispersed, the cost and risk associated with such decision increases.

Emerging issues in organization design

• Re-engineering process: re-engineering is a radical design of all aspects of an organization to achieve major benefits in costs, service, time.re-engineering of an existing organization design, process or structure is essential when it fails to work in competitive environment. It is designed to bring organizational effectiveness and to gain costs. However, to make re- engineering successful, it requires a systematic and comprehension assessment of the entire organization. For this, the top level management needs to clear the reasons and goals of re- engineering and it is necessary to take support from subordinates.

• Teamwork: at, present team work is considered as an important elements of organization effectiveness. teams are formed to do variety of jobs on the basis of requirement. they have authority to plan, allocate resources, coordinate and control activities.

• Network organization structure: a network organization structure is an art alliance of several organizations for the purpose of producing a product or providing services to the customers. Its main objective is to eliminate unnecessary departments and to perform specialized work throughout source experts.

• Downsizing organization: it is the process of restructuring the organizational design by removing unnecessary levels, jobs, units, employees etc. downsizing concentrates on minimizing the vertical size and maximizing the horizontal size of the organization on the basis of requirements. Development of automation, computerization, and other technological development forces the management to introduce the downsizing in organization structure.

• Boundary-less organization: it is an organization structure in which the chain of command is eliminated, span of control is unlimited and rigid departments give way to empowered teams. It is also known as barrior free organization. For boundary less organization to function effectively, everyone involved must have high level of skill so that they can operate without much managerial guidance.

Meaning of staffing

the term staffing stands for manning various positions in the organizations. It is defined as the process involved in identifiying,placing, evaluation and developing individuals at work. the task of supplying human resources to different posts according to quality and experience as needed by the structure of the organization called staffing.Saffing is, thus, a process through which component employees are properly trained, effectively developed. suitably rewarded and their combined efforts are harmoniously integrated and directed towards achieving the . Desired result of the business enterprise.

• Staffing function is one of the basic functions of management. It is very important function of management. Without effective staffing functional firm cannot achieve its goals it has set. Stated precisely, staffing function is to ensure the right number and right type of people to work on the right jobs at right time and place.

Importance of staffing

• Staffing is an important managerial function. The fate of organization depends on it. It mobilizes all the means and resources of organizational goal. so,it is supposed as the brain of the whole organization. Without staffing the organization cannot run on. Its importance can be maintained in the following ways:-

• Staffing provides planning for the effective utilization:- of efforts and potentialities of individuals and groups.

• Staffing organizes a proper division of tasks:-

of an organization in accordance with a sound plan into functions and positions, each indicating a clear-cut authority, responsibility, duties and reporting relationships. In the absence of such a division, confusion will prevail and no work will be done properly.

• Provides service to the entire organization: the expertise available with the staffing specialists helps the total organization in the proper management of human resources.

• Staffing provides cordial and amicable job relationships: by providing opportunities for self-development through training and promotion programmes.

• Staffing ensures social justice: by uniform application of rules and the regulations with special consideration for unique individual differences of employees.

• Ensures fair terms of work and congenial work environment.

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