3 Organising

8/9/2019 3 Organising

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ORGANIZINGORGANIZING


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Importance ofImportance of

OrganizationOrganization Sound organization can contributeSound organization can contribute

greatly to the continuity andgreatly to the continuity and

success of enterprise.success of enterprise.

A sound organization leads to A sound organization leads to

specialization.specialization.

A sound organization minimizes A sound organization minimizes

corruption and ineiciencies.corruption and ineiciencies.


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Importance of OrganizationImportance of Organization

contcont !acilitate Optimum use of!acilitate Optimum use of

resources.resources.

A sound organization does not A sound organization does not

generate confusion.generate confusion.

A sound organization facilitates A sound organization facilitates

the training and managerialthe training and managerial

de"elopment of personnel.de"elopment of personnel.


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#$ARA#%&RIS%I# ' !&A%(R&S O!#$ARA#%&RIS%I# ' !&A%(R&S O!

ORGANIZA%IONORGANIZA%ION

Organization is a group of people) small orOrganization is a group of people) small orlarge.large.

It leads to di"ision of *or+ andIt leads to di"ision of *or+ andresponsibilities.responsibilities.

It de,nes and ,-es the duties andIt de,nes and ,-es the duties and

responsibilities of employees.responsibilities of employees.

It establishes a relationship bet*eenIt establishes a relationship bet*een

authority and responsibility and controlsauthority and responsibility and controls

the eorts of the groups.the eorts of the groups.


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OrganisingOrganising

%he deployment of organisational%he deployment of organisational

resources toresources to

achie"e strategic goals.achie"e strategic goals.

%he deployment of resources is%he deployment of resources is

re/ected in the organization0s di"isionre/ected in the organization0s di"ision

of labour intoof labour into speci,c departmentss

peci,c departmentsand 1obs) the formal lines ofan

d 1obs) the formal lines of

authority) and the mechanisms forauthorit

y) and the mechanisms for

co2ordinating tas+sco2ordinatin

g tas+s.3.3


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4RO#&SS O!4RO#&SS O!

ORGANIZINGORGANIZING

5etermination of ob1ecti"es.

5eciding "arious acti"ities.

Grouping of acti"ities.

Assignment of responsibilities

to de,nite persons. 5elegation of authority.

4ro"iding physical facilities and

proper en"ironment.


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%&N 6ASI# 4RIN#I47&S O!%&N 6ASI# 4RIN#I47&S O!


8.8. %he Scalar 4rinciple%he Scalar 4rinciple

9.9. (nity of #ommand(nity of #ommand

:.:. Span of ;anagementSpan of ;anagement

. Authority and Responsibility Authority and Responsibility


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6ASI# 4RIN#I47&S O!6ASI# 4RIN#I47&S O!

ORGANA%ION contORGANA%ION cont

?.?. 5elegation of Authority 5elegation of Authority

@.@. #entralization and#entralization and5ecentralization5ecentralization

.. !ormalization!ormalization

B.B. 5epartmentalization5epartmentalization

8C.8C. #oordination and $uman Relations#oordination and $uman Relations


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Need for organizationNeed for organization

structurestructure

%he organization structure%he organization structure

facilitates in ,-ing thefacilitates in ,-ing the

responsibility department *ise)responsibility department *ise)

section *ise or on indi"idual basis.section *ise or on indi"idual basis.

It is necessary for theIt is necessary for the

establishment of authority.establishment of authority.

It promotes di"ision of *or+ andIt promotes di"ision of *or+ and

leads to specialization.leads to specialization.


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It a"oids confusion) duplication)It a"oids confusion) duplication)

*astage and ineiciencies. *astage and ineiciencies.

It facilitates the /o* ofIt facilitates the /o* of

information and decision ma+inginformation and decision ma+ing

from one le"el to another.from one le"el to another.

It de,nes the positions and unitsIt de,nes the positions and units

*ith in the organization. *ith in the organization.

Need for organizationNeed for organization

structurestructure cont..cont..


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%ypes of organization%ypes of organization

structurestructure

7ine or military or scalar7ine or military or scalar

organization.organization.

!unctional or sta organization.!unctional or sta organization. 7ine and sta organization.7ine and sta organization.

#ommittee organization.#ommittee organization.

4ro1ect organization.4ro1ect organization.

;atri- organization.;atri- organization.


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7IN& ORGANIZA%ION7IN& ORGANIZA%ION

It is based upon relati"eIt is based upon relati"e

authority and responsibility.authority and responsibility.

It is direct and people atIt is direct and people at

dierent le"el +no* to *homdierent le"el +no* to *hom

they are accountable) assignthey are accountable) assign

duties) dismiss and ta+eduties) dismiss and ta+edisciplinary action against them.disciplinary action against them.


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General ManagerGeneral Manager

Accounts Production Marketing Manager Manager Manager

Accountant 1 Accountant 2

Supervisor 1 Supervisor 2

Sales

Supervisor 1Sales

Supervisor 2

Clerks Clerks

Workers Workers

Salesmen Salesmen


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S%A!!'!(N#%IONA7S%A!!'!(N#%IONA7


!.=.%aylor disco"ered this method of!.=.%aylor disco"ered this method ofdi"iding the *or+ of management indi"iding the *or+ of management in

such a *ay that each man in the factorysuch a *ay that each man in the factoryshould ha"e as fe* functions as possibleshould ha"e as fe* functions as possibleto perform.to perform.

(nder this type of organization *or+ers(nder this type of organization *or+ersor subordinates) instead of coming inor subordinates) instead of coming incontact *ith only one immediatecontact *ith only one immediatesuperior) recei"e daily *or+ orders fromsuperior) recei"e daily *or+ orders from

se"eral specialists or oicers.se"eral specialists or oicers.


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Superintendent

Oice Shop

RouteClark

Instruction Clark

Time &isciplinar! Clark

Repair"oss

Speed"oss

Gang"os

s

#orkers


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7ine and sta7ine and sta

organizationorganization %he combination of line%he combination of line

organization *ith e-pert staorganization *ith e-pert sta

constitutes the type ofconstitutes the type of

organization +no*n as line andorganization +no*n as line andsta organization.sta organization.

In this method) the line maintainsIn this method) the line maintainsdiscipline D stability and stadiscipline D stability and sta

pro"ides e-pert informationpro"ides e-pert information


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%he line delegates the authority by%he line delegates the authority by

*hich the sta performs these *hich the sta performs thesefunctions and the performance mustfunctions and the performance must

be acceptable to the line beforebe acceptable to the line before

action is ta+en.action is ta+en.

&ach department is headed by a line&ach department is headed by a line

oicer *ho is to decide) plan) e-ecuteoicer *ho is to decide) plan) e-ecute

and control business operations onand control business operations onthe guidelines indicated by the stathe guidelines indicated by the sta

e-perts associated *ith his dept.e-perts associated *ith his dept.


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Share Holders

Board of Directors

eneral Manager !esearch

"ngineers

#ndustrial

!esearch

"ngineers

Work Manager Assistant Assistant

Production Superintendent AccountingSales

Manager

$oremen

Workers


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5epartmentalization5epartmentalization

Departmentalization is the basis for grouping Departmentalization is the basis for grouping positions into departments and departments positions into departments and departments

into the total organization.into the total organization.

%here are > approaches%here are > approaches

8.8. !unctional!unctional

9.9. 5i"isional5i"isional:.:. ;atri- ;atri-

. Net*or+ Net*or+


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Functional structure Functional structure

people are grouped together inpeople are grouped together in

departments by common s+illsdepartments by common s+ills

and *or+ accordingly.and *or+ accordingly.

e.g. ;anufacturing) ;ar+eting)e.g. ;anufacturing) ;ar+eting)

!inance3!inance3President

Finance Manufacturing Marketing


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Divisional structure Divisional structure

5epartments are grouped into5epartments are grouped into

di"isions based on a commondi"isions based on a common

product) program or geographicalproduct) program or geographical

region territory3.region territory3.President

Division 1 Division 2 Division 3

Finance

Marketing

R&D Finance

Marketing

R&D Finance

Marketing

R&D


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Matrix structure Matrix structure

!unctional and di"isional chains!unctional and di"isional chains

of command are in eect all atof command are in eect all at

once in the same departments.once in the same departments.

%*o chains of command e-ist and%*o chains of command e-ist and

some employees report to t*osome employees report to t*o

bossesbosses President

VP Finance VP Marketing

Product Manager A

Product Manager B


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Team-based structureTeam-based structure

A A structure in *hich the entirestructure in *hich the entireorganisation is made up of teamsorganisation is made up of teams

that coordinate their *or+ andthat coordinate their *or+ and

*or+ directly *ith customers to *or+ directly *ith customers to

accomplish organisational goals.accomplish organisational goals.


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Network structure Network structure

%his is *here the company%his is *here the company

subcontracts many of its ma1orsubcontracts many of its ma1or

functions to separate companiesfunctions to separate companies

and coordinates their acti"itiesand coordinates their acti"itiesfrom a small headEuartersfrom a small headEuarters

organisation.organisation.

Compan Core

!"#B$

Design Compan

%ransportation

Compan

Manufacturing Compan

AC Receiva'(eCompan

Distri'ution Compan


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#&N%RA7IZA%ION#&N%RA7IZA%ION It is the systematic and consistentIt is the systematic and consistent

reser"ation of authority at centralreser"ation of authority at central

points *ithin the organization.points *ithin the organization.

#entralization can be found#entralization can be found

necessary for thenecessary for the

follo*ing reasons Ffollo*ing reasons F

%o facilitate personnel leadership.%o facilitate personnel leadership.

%o introduce better coordination .%o introduce better coordination .

%o handle emergencies.%o handle emergencies.


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5&N%RA7IZA%ION5&N%RA7IZA%ION

It implies a systematic delegationIt implies a systematic delegationof authority through out the *holeof authority through out the *holeorganization.organization.

5ecision authority is pushed5ecision authority is pusheddo*n*ard to lo*er organizationdo*n*ard to lo*er organizationle"els.le"els.

5ecentralization is belie"ed to5ecentralization is belie"ed torelie"e the burden of top managers)relie"e the burden of top managers)ma+e greater use of *or+ers s+ills.ma+e greater use of *or+ers s+ills.


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3 Organising