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Presentation prepared by: Presentation prepared by: Mohammed Usama Siddiqui Mohammed Usama Siddiqui Syed Umair Ali Syed Umair Ali Mohammed Arsalan Hasan Imam Mohammed Arsalan Hasan Imam Mohammed Ayaz Abbasi Mohammed Ayaz Abbasi Mohammed Ovais Syed Mohammed Ovais Syed Farhan Azad Farhan Azad

Basic Elements of Organization

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University Of Karachi,BS COMMERCE

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Page 1: 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

Page 2: Basic Elements of Organization

ORGANIZINGORGANIZING“It’s all about working

together”

Deciding the task.

Dividing and allocating.

Coordinating activities.

Page 3: Basic Elements of Organization

ORGANIZATIONORGANIZATION

“A social entity that is goal directed and deliberately

structured”

Page 4: Basic Elements of Organization

FORMAL ORGANIZATIONFORMAL ORGANIZATION

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

responsibility and accountability, the whole consciously designed”

Page 5: Basic Elements of Organization

INFORMAL ORGANIZATION

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

attitudes, not in terms of procedures and regulations.

Page 6: Basic Elements of Organization

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.

Page 7: Basic Elements of Organization

DIVISION OF LABORDIVISION OF LABOR

““The degree to which organization tasks are

subdivided into individual jobs; also called work

specialization””

Page 8: Basic Elements of Organization

ADVANTAGES OF DIVISION OF LABOR

•Skills and expertise.

•Time consumption.

• Inventions and innovations.

•Productivity.

Page 9: Basic Elements of Organization

DISADVANTAGES OF DIVISION OF LABOR

•Poor communication.

•Limited view.

• Interest of the employees.

Page 10: Basic Elements of Organization

OVERCOME FROM DYSFUNCTION OF SPECIALIZATION

JOB ENLARGEMENT

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

Page 11: Basic Elements of Organization

JOB ROTATION

In this method, an individual is

transferred from one position to another.

Page 12: Basic Elements of Organization

THE PARTICIPATION

To committing a worker to a decision.

Page 13: Basic Elements of Organization

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.”

Page 14: Basic Elements of Organization

DELEGATION OF AUTHORITY

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

subordinate by a supervisor.

Page 15: Basic Elements of Organization

PERSONAL ATTITUDE AND DELEGATION

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

Page 16: Basic Elements of Organization

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.

Page 17: Basic Elements of Organization

WILLINGNESS TO TRUST

SUBORDINATES

Usually a superior has no way out

except to trust his subordinates in

delegation decision making authority.

Page 18: Basic Elements of Organization

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.

Page 19: Basic Elements of Organization

WILLINGNESS TO ESTABLISH AND

APPLY CONTROLS

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

Page 20: Basic Elements of Organization

DECENTRALIZATION

The location of decision authority near lower organizational levels.

Page 21: Basic Elements of Organization

SPAN OF SPAN OF CONTROL OR CONTROL OR

MANAGEMENTMANAGEMENT

The number of employees who reports to a

supervisor.

Page 22: Basic Elements of Organization

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.

Page 23: Basic Elements of Organization

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.

Page 24: Basic Elements of Organization

USE OF OBJECTIVE STANDARDS

Objective standards increases the span.

COMMUNICATION TECHNIQUES

Effective and technological communication techniques

widen the span.

Page 25: Basic Elements of Organization

AMOUNT OF PERSONAL INTERACTIONS AND CONTACTS NEEDED

The more the personal contacts needed the smaller the span

will be.

Page 26: Basic Elements of Organization

ORGANIZATIONAL ORGANIZATIONAL STRUCTURESTRUCTURE

Organization structure is the result of organization chart

and organization design. Structure comes into

existence when activities are grouped.

Page 27: Basic Elements of Organization

ORGANIZATION CHART

Page 28: Basic Elements of Organization

DEPARTMENTATIONDividing up the workers.

Page 29: Basic Elements of Organization

ORGANIZATION LEVEL

Trustee level.Trustee level.

General management.General management.

Department level.Department level.

Middle level.Middle level.

Supervisory level.Supervisory level.

Page 30: Basic Elements of Organization

JOB ANALYSIS

The systematic study to identify the job.

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

conducted?

Page 31: Basic Elements of Organization

SIZE AND COMPLEXITY

Organization size affects coordination, morale and

complexity.

Page 32: Basic Elements of Organization

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.

Page 33: Basic Elements of Organization

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.

Page 34: Basic Elements of Organization

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.