Organize

What is Organizing?

Identification & classification

Grouping of activities to attain objectives

Assignment of each group to a manager

Coordination – horizontally & Vertically

Formal Organization

• An intentionally formed structure

• Of roles assigned to people• In a formally organized

enterprise

Informal Organization

• A joint personal activity• Without conscious joint

purpose• Contributing to joint results

Example of formal & informalPresident

Vice- president

Division manager

Dpt. manager

Dpt. manager

Division manager

Vice- President

Division manager

Division manager

Vice-President

Division manager

Division manager

Play cricket every weekend

Play chess every Sunday

Informal organization

Organization with narrow span

Advantages:1. Close supervision

2. Close control3. Fast communication

Disadvantages:1.Superiors interfere in subordinates work

2. High costs3. Distance between lowest and highest

level

Organization with wide span

Advantage:1. Superiors are forced to delegate2. Clear policies should be made3. Subordinates must be carefully

selected

Disadvantage:1. Requires good quality managers

2. Superior’s loss of control3. Superiors make decisions

excessively

Structure & Process of Organizing

1

•Formulating objectives, policies & plans

2

•Identifying & classifying

3

•Grouping

4

•Delegating authority

5

•Coordinating authority

VIRTUAL ORGANISATION

Customer

Supplier

Competitor

• Flexible• Reduce risks

• Respond rapidly to

market needs

Organizational Division: Department

Distinct area

Division Branch

Manager has authority

Departmentation by Territory or Geography:Grouping activities according to the areas

President

Marketing Personnel Finance Finance Purchasing

Western region

Central region

Eastern region

South- east

South-west

engineering production accounting Sales

Departmentation by Enterprise function:Grouping activities according to the functions

President

Assistant

Marketing

Market Research

Advertising & Promotion

Engineering

Electrical

Mechanical

Finance

Planning

Budget

Personnel

Departmentation by Product:Grouping activities according to the product or product lines.

Matrix organization

AUTHORITY

•Right in a position to exercise discretion

POWER

•Ability to induce the beliefs

EMPOWERMENT

•Giving Powers to take actions•Without asking superiors for permission

• Affects business directly• Eg: Operations,

MarketingLINE

• Affects business Indirectly, Advisory functions

• Eg: HR, FinanceSTAFF

Example of Line Management

Disperse decision making authority

Selection of which decisions to push down

Affects all areas of management

DECENTRALIZATION

CENTRALIZATIONRestricted Delegation

Concentration of activities in one department

Decision Making lies in the hands of Top Management

ART OF DELEGATION

Receptiveness Willingness to Let Go

Willingness to Allow Mistakes

Trust Subordinates Establish & Use Broad Controls

Complete Centralization

Complete Decentralization

Authority Not Delegated

Authority Delegated

TENDENCIES

PLANNING

OVERCOMEINFLEXIBILITY

MAKE LINE LISTEN TO STAFFAVOID CONFLICTS

PROMOTING ORGANIZATION

CULTURE

EFFECTIVE ORGANISING

Zenia Choksey 405Rashi Agarwal 401