organising chap 3
TRANSCRIPT
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 1/25
ORGANIZING
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 2/25
Organising
The deployment of organisational resources toachieve strategic goals.
(The deployment of resources is reflected inthe organization's division of labour into
specific departments and jobs, theformal lines of authority, and themechanisms for co-ordinating tasks.)
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 3/25
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.
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 4/25
TEN BASIC PRINCIPLES OFORGANIZATION
1. The Scalar Principle
2.Unity of Command
3. Span of Management
4. Work specialization/Division of Work
5. Authority and Responsibility
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 5/25
BASIC PRINCIPLES OF ORGANATIONcont…
6. Delegation of Authority
7. Centralization and Decentralization
8. Formalization
9. Departmentalization
10. Coordination and Human Relations
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 6/25
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 7/25
Need for organization structure
The organization structure facilitates infixing 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 tospecialization.
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 8/25
It avoids confusion, duplication, wastage andinefficiencies.
It facilitates the flow of information anddecision making from one level to another.
It defines the positions and units with in the
organization.
Need for organization structure
cont..
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 9/25
Types of organization structure
Line or military or scalar organization.Functional or staff organization.Line and staff organization.Committee organization.
Project organization.Matrix organization.
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 10/25
LINE ORGANIZATION
It is based upon relative authority andresponsibility.
It is direct and people at different levelknow to whom they are accountable,assign duties, dismiss and takedisciplinary action against them.
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 11/25
General Manager
Finance Production MarketingManager Manager Manager
Accountant 1 Accountant 2
Supervisor 1 Supervisor 2
SalesSupervisor 1
SalesSupervisor 2
Clerks ClerksWorkers Workers
Salesmen Salesmen
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 12/25
STAFF/FUNCTIONALORGANIZATION
F.W.Taylor discovered this method of dividingthe work of management in such a way thateach man in the factory should have as few functions as possible to perform.
Under this type of organization workers orsubordinates, instead of coming in contact with only one immediate superior, receive daily work orders from several specialists or officers.
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 13/25
Superintendent
Office Shop
RouteClark
InstructionClark
Time &Disciplinary Clark
RepairBoss
SpeedBoss
Gang Boss
Workers
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 14/25
Line and staff organization
The combination of line organization withexpert staff constitutes the type of organization known as line and staff
organization.
In this method, the line maintains discipline
& stability and staff provides expertinformation
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 15/25
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 controlbusiness operations on the guidelinesindicated by the staff experts associated with
his dept.
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 16/25
Share Holders
Board of Directors
General Manager ResearchEngineers
IndustrialResearchEngineers
Work Manager Assistant Assistant
Production Superintendent AccountingSalesManager
Foremen
Workers
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 17/25
Departmentalization
Departmentalization is the basis for grouping positions into departments and departments into the total organization.
There are 5 approaches1. Functional2. Divisional3. Matrix4. Team-based5. Network
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 18/25
Functional structure
people are grouped together in departmentsby common skills and work accordingly.(e.g. Manufacturing, Marketing, Finance)
President
Finance Manufacturing Marketing
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 19/25
Divisional structure
Departments are grouped into divisions basedon a common product, program orgeographical region (territory).
President
Division 1 Division 2 Division 3
Finance
Marketing
R&D Finance
Marketing
R&D Finance
Marketing
R&D
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 20/25
Matrix structure
Functional and divisional chains of commandare in effect all at once in the samedepartments.
Two chains of command exist and someemployees report to two bosses
President
VP Finance VP Marketing
Product Manager A
Product Manager B
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 21/25
Team-based structure
A structure in which the entire organisation ismade up of teams that coordinate their work and work directly with customers toaccomplish organisational goals.
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 22/25
Network structure
This is where the company subcontracts manyof its major functions to separate companiesand coordinates their activities from a small
headquarters organisation.
Company Core(HUB)
Design Company
TransportationCompany
Manufacturing Company
A/C ReceivableCompany
Distribution Company
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 23/25
CENTRALIZATIONIt is the systematic and consistent reservation of authority at central points within theorganization.
Centralization can be found necessary for thefollowing reasons :
To facilitate personnel leadership. To introduce better coordination . To handle emergencies.
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 24/25
DECENTRALIZATION
It implies a systematic delegation of authority throughout the wholeorganization.
Decision taking authority is pusheddownward to lower organization levels.
Decentralization is believed to relieve theburden of top managers, make greater use of
workers’ skills.
7/31/2019 Organising Chap 3
http://slidepdf.com/reader/full/organising-chap-3 25/25