management oo7
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Every organization has its own
purposes and objectives.Organizing is the functionemployed to achieve the overallgoals of the organization.
Organization harmonies theindividual goals of the employeeswith overall objectives of thefirm.
[edit ] Composition of individuals and groups
Individuals form a group and thegroups form an organization.Thus, organization is the
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composition of individual and
groups. Individuals are groupedinto departments and their work iscoordinated and directed towardsorganizational goals.
[edit ] Differentiated functions
The organization divides theentire work and assigns the tasks
to individual in-order to achievethe organizational objectives eachone has to perform a differenttask and tasks of one individualsmust be coordinated with thetasks of others.
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[edit ] Continues process
An organization is a group of people with defined relationshipto each other that allows them towork together achieve the goalsof the organization. Thisrelationship do not come to endafter completing a task.
Organization is a never endingprocess.
[ edit ] Purpose of organization
[edit ] Helps to achieveorganizational goal
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Organization is employed to
achieve the overall objectives of business firms. Organizationfocuses attention of individualsobjectives towards overall
objectives.[edit ] Optimum use of resources
To make optimum use of
resources such as men, material,money, machine and method, it isnecessary to design anorganization properly. Work should be divided and rightpeople should be given right jobs
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to reduce the wastage of resources
in an organization.[edit ] To perform managerial
function
Planning, Organizing, Staffing,Directing and Controlling cannotbe implemented without proper organization.
[edit ] Facilitates growth anddiversification
A good organization structure is
essential for expanding businessactivity. Organization structuredetermines the input resources
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needed for expansion of a
business activity similarlyorganization is essential for product diversification such asestablishing a new product line.
[edit ] Human treatment of employees
Organization has to operate for
the betterment of employees anmust not encourage monotony of work due to higher degree of specialization. Now, organizationhas adapted the modern conceptof systems approach based on
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human relations and it discards
the traditional productivity andspecialization approach.
[ edit ] Applications
Organizing , in companies pointof view, is the managementfunction that usually follows after planning. And it involves the
assignment of tasks, the groupingof tasks into departments and theassignment of authority andallocation of resources across theorganization.
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[edit ] Structure
The framework in which theorganization defines how tasksare divided, resources aredeployed, and departments arecoordinated.
1. A set of formal tasksassigned to individuals and
departments.2. Formal reporting
relationships, including lines of authority, decisionresponsibility, number of
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hierarchical levels and span of
managers control.3. The design of systems toensure effective coordination of employees across departments.
[edit ] Work specialization
Work specialization (also calleddivision of labour ) is the degree
to which organizational tasks aresub-divided into individual jobs.With too much specialization,employees are isolated and doonly a single, tiny, boring job.Many organizations enlarge jobs
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or rotate assigned tasks to provide
greater challenges.[edit ] Chain of command
The chain of command is the
unbroken line of authority thatlinks all individuals in anorganization, and specifies whoreports to whom.
o Unity of Command - oneemployee is held
accountable to only onesupervisor
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o Scalar principle - clearly
defined line of authority inthe organization thatincludes all employees
[edit ] Authority, responsibility,and accountability
Authority is a manager'sformal and legitimate right to
make decisions, issue orders,and allocate resources toachieve organizationallydesired outcomes.
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Responsibility means an
employee's duty to performassigned task or activities. Accountability means that
those with authority and
responsibility must report and justify task outcomes to thoseabove them in the chain of command.
[edit ] Delegation
Delegation is the processmanagers use to transfer authorityand responsibility to positionsbelow them. Organizations today
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tend to encourage delegation from
highest to lowest possible levels.Delegation can improveflexibility to meet customersneeds and adaptation to
competitive environments.Managers often find delegationdifficult
[edit ] Types of authority (andresponsibility)
Line authority managers havethe formal power to direct andcontrol immediate subordinates.The superior issues orders and is
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responsible for the resultthe
subordinate obeys and isresponsible only for executing theorder according to instructions.
Functional authority is wheremanagers have formal power over a specific subset of activities. For instance, the Production Manager
may have the line authority todecide whether and when a newmachine is needed but theController demands that a Capital
Expenditure Proposal is submittedfirst, showing that the investmentwill have a yield of at least x%;
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or, a legal department may have
functional authority to interfere inany activity that could have legalconsequences. This authoritywould not be functional but it
would rather be staff authority if such interference is "advice"rather than "order".
Staff authority is granted to staff specialists in their areas of expertise. It is not a real authorityin the sense that a staff manager
does not order or instruct butsimply advises, recommends, andcounsels in the staff specialists'
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area of expertise and is
responsible only for the quality of the advice (to be in line with therespective professional standardsetc) It is a communication
relationship with management . Ithas an influence that derivesindirectly from line authority at ahigher level.
[edit ] Span of management
Factors influencing larger span of management.
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1. Work performed by
subordinates is stable androutine.2. Subordinates perform similar
work tasks.
3. Subordinates areconcentrated in a singlelocation.
4. Subordinates are highlytrained and need little directionin performing tasks.
5. Rules and proceduresdefining task activities areavailable.
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6. Support systems and
personnel are available for themanagers.7. Little time is required in
non-supervisory activities such
as coordination with other departments or planning.
8. Managers' personal preferences and styles favour alarge span.
[edit ] Tall versus flat structure Tall - A management structure
characterized by an overallnarrow span of management
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and a relatively large number
of hierarchical levels. Tightcontrol. Reducedcommunication overhead .
Flat - A management structure
characterized by a wide span of control and relatively fewhierarchical levels. Loosecontrol. Facilitates delegation.
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[edit ] Centralization,
decentralization, andformalization Centralization - The location
of decision making authoritynear top organizational levels.
Decentralization - Thelocation of decision making
authority near lower organizational levels. Formalization - The written
documentation used to direct
and control employees.
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[edit ] Departmentalization
The basis on which individualsare grouped into departments anddepartments into totalorganizations.
Approach options include;
1. Functional - by common skillsand work tasks
2. Divisional - common product, program or geographicallocation
3. Matrix - combination of Functional and Divisional
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4. Team - to accomplish specific
tasks5. Network - departments are
independent providingfunctions for a central core
breaker [edit ] Importance of organizing
Organizations are often
troubled by how to organize, particularly when a newstrategy is developed
Changing market conditions or new technology requireschange
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Organizations seek efficiencies
through improvements inorganizing
Note that the word "hiring" issometimes used interchangeablywith "staffing", which does aninjustice to the broad scope of activities involved in staffing.
Hiring might be thought morespecifically as the selection phaseof the overall process of staffing.Also note that the word
"Recruitment " is sometimes usedinterchangeably with "staffing",although many see "recruiting" as
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referring more specifically to the
sourcing