Basic Elements of Organization

Presentation prepared by:Presentation prepared by:

Mohammed Usama SiddiquiMohammed Usama Siddiqui

Syed Umair AliSyed Umair Ali

Mohammed Arsalan Hasan ImamMohammed Arsalan Hasan Imam

Mohammed Ayaz AbbasiMohammed Ayaz Abbasi

Mohammed Ovais SyedMohammed Ovais Syed

Farhan AzadFarhan Azad

ORGANIZINGORGANIZING“It’s all about working

together”

Deciding the task.

Dividing and allocating.

Coordinating activities.

ORGANIZATIONORGANIZATION

“A social entity that is goal directed and deliberately

structured”

FORMAL ORGANIZATIONFORMAL ORGANIZATION

“A system of well-defined jobs with a definite measure authority,

responsibility and accountability, the whole consciously designed”

INFORMAL ORGANIZATION

It is what people do in terms of needs, emotions and

attitudes, not in terms of procedures and regulations.

BASIC ELEMENTS OF BASIC ELEMENTS OF ORGANIZATIONORGANIZATION

According to G.Scott there According to G.Scott there are four basic factors on are four basic factors on which classical which classical organization theory is organization theory is built.built.

Division of labor.Division of labor.

Scalar chain of command.Scalar chain of command.

Span of control/Span of Span of control/Span of management.management.

Organization structure.Organization structure.

DIVISION OF LABORDIVISION OF LABOR

““The degree to which organization tasks are

subdivided into individual jobs; also called work

specialization””

ADVANTAGES OF DIVISION OF LABOR

•Skills and expertise.

•Time consumption.

• Inventions and innovations.

•Productivity.

DISADVANTAGES OF DIVISION OF LABOR

•Poor communication.

•Limited view.

• Interest of the employees.

OVERCOME FROM DYSFUNCTION OF SPECIALIZATION

JOB ENLARGEMENT

Different tasks are combine into one so that the employee performs different operations.

JOB ROTATION

In this method, an individual is

transferred from one position to another.

THE PARTICIPATION

To committing a worker to a decision.

SCALAR AND SCALAR AND FUNCTIONAL CHAIN OF FUNCTIONAL CHAIN OF COMMANDCOMMAND

DELEGATION“The process manager use

to transfer authority and responsibility to

positions below them.”

AUTHORITY“The formal and legitimate

right of a manger to make decisions, issue orders and allocate

resources to achieve organizational desired

outcomes.”

DELEGATION OF AUTHORITY

It refers to vesting of organization power or right to the decisions in a

subordinate by a supervisor.

PERSONAL ATTITUDE AND DELEGATION

Personal attitudes have an important bearing on delegation. Personal attitude has the following impacts.

RECEPTIVENESSIt is willingness of the

delegator to welcome the ideas of his subordinates.

WILLINGNESS TO LET GO

The delegator must be willing to allow others to make decision in this

place.

WILLINGNESS TO TRUST

SUBORDINATES

Usually a superior has no way out

except to trust his subordinates in

delegation decision making authority.

WILLINGNESS TO LET OTHER MAKE

MISTAKES

Delegating means that the superior is

willing to let his subordinates make

mistake. But it never means

jumping blindly into the well.

WILLINGNESS TO ESTABLISH AND

APPLY CONTROLS

The delegator must establish and use control to ensure that the objective of delegation is accomplished.

DECENTRALIZATION

The location of decision authority near lower organizational levels.

SPAN OF SPAN OF CONTROL OR CONTROL OR

MANAGEMENTMANAGEMENT

The number of employees who reports to a

supervisor.

FACTORS OF SPAN

SUBORDINATE TRAINING

Span may be greater if subordinate are well-trained.

EXTENT OF DELEGATION OF AUTHORITY

Delegation of authority increases the span.

PLANNING AND DEFINITION OF JOB

If jobs are planned and defined, span can be

increased.

RATE OF CHANGEIncrease in the rate of

change in the technology, market, government laws, fashion, and national and international conditions

narrow the span.

USE OF OBJECTIVE STANDARDS

Objective standards increases the span.

COMMUNICATION TECHNIQUES

Effective and technological communication techniques

widen the span.

AMOUNT OF PERSONAL INTERACTIONS AND CONTACTS NEEDED

The more the personal contacts needed the smaller the span

will be.

ORGANIZATIONAL ORGANIZATIONAL STRUCTURESTRUCTURE

Organization structure is the result of organization chart

and organization design. Structure comes into

existence when activities are grouped.

ORGANIZATION CHART

DEPARTMENTATIONDividing up the workers.

ORGANIZATION LEVEL

Trustee level.Trustee level.

General management.General management.

Department level.Department level.

Middle level.Middle level.

Supervisory level.Supervisory level.

JOB ANALYSIS

The systematic study to identify the job.

• What job analysis does?• What job analysis is not?• How job analysis is

conducted?

SIZE AND COMPLEXITY

Organization size affects coordination, morale and

complexity.

HOW TO OVERCOME??

ORGANIC SYSTEMS• Organization goals are considered as the end, Organization goals are considered as the end,

functional goals as the means to accomplish them.functional goals as the means to accomplish them.• Coordination is achieved by vertical and flat Coordination is achieved by vertical and flat

contacts.contacts.• Guidelines, policies and work are flexible.Guidelines, policies and work are flexible.• Direction is as consultation, not in the form of Direction is as consultation, not in the form of

command.command.

MECHANISTIC SYSTEMS

• Specialization and division of labor according to their expertise.

• Coordination through functional departments is lateral coordination.

• Clearly defined jobs.• Development of loyalty and conformity.• Vertical authority relationship and chain of

command.

REFRENCES:-REFRENCES:-

We have extracted the text from the We have extracted the text from the following books:following books:

• NEW MANAGEMENT of Prof. M Amin NEW MANAGEMENT of Prof. M Amin Khalid.Khalid.

• MANAGEMENT of Koontz O’Donnell MANAGEMENT of Koontz O’Donnell Weihrich.Weihrich.

• MANAGING of Reitz & JewellMANAGING of Reitz & Jewell• MANAGEMENT of Danny Samson & MANAGEMENT of Danny Samson &

Richard L. Daft.Richard L. Daft.