formation of ion
TRANSCRIPT
-
8/3/2019 Formation of ion
1/28
-
8/3/2019 Formation of ion
2/28
FEATURES OF ORGANISATION
Objective-oriented activity
Delegation of Authority and Responsibility
Dependent on Planning
Importance to Human Element Flexibility
Group activity
Supervision, Control and Co-ordination are its
basis
-
8/3/2019 Formation of ion
3/28
Importance ofImportance of
Organisation:Organisation:
Organisation establishes an inter-relation between authority and
responsibility.To clarify the importance oforganisation a successful industrialissays,
Take away our plants,take away ourbusiness , oh! Take away our wealthbut permit us to retain our
organisation. Within no time we shallbe on our feet once a ain. Andrew
-
8/3/2019 Formation of ion
4/28
1. The success or failure of a business largely depends upon itsformation of organisation
2. There is no duplication of work and co-ordination ismaintained because of organisation.
3. Organisation establishes inter-relationship between functionsand functions and also between functions and individuals.
4. Maximum utilization of time and resources becomes possibledue to organisation5. Employees become more responsible.6. Organisation makes control easy and effective.7. Discipline and morale of personnel increases.8. Division of labour and research are encouraged , and by
adopting new technology administrative efficiency can beincreased.9. Smooth administration is maintained due to clarity of
authority and responsibility.10. Every activity gets equal justice.
-
8/3/2019 Formation of ion
5/28
Every business has to form an organisationfor accomplishment of targetedobjectives.
With the existence of business, there isexistence of organisation.
Organisation should be flexible so as toadapt to the changing time and
circumstances.Following are the stages for the formation
of organisation:
-
8/3/2019 Formation of ion
6/28
1. Clarification of Objectives.
2. Listing of Functions.
3. Departmentation.4. Departmental position and
qualification.
5. Delegation of Authority and Assignmentof Responsibility.
6. Establishment of Inter-relationship.
7. Preparation of Organisational Chart.
-
8/3/2019 Formation of ion
7/28
1) Line Organization
2) Functional Organization
3) Committee Organization
4) Line and Staff Organization
5) Matrix Organization
-
8/3/2019 Formation of ion
8/28
A type of organization where theauthority and responsibility flow in adownward trendfrom top to bottom is
called Line organization It is more known, old and simple type of
organization.
Every person is responsible to hisimmediate superior.
This type of organization is used inmilitary for years.
-
8/3/2019 Formation of ion
9/28
Firstly the entire business is divided intodifferent departments.
Each department gets the head of the
department. The departmental head is given full
authority and responsibility of hisdepartment.
Departmental head has internal authorityand are independent of one another.
The other name for this type of
organisation is departmental
-
8/3/2019 Formation of ion
10/28
-
8/3/2019 Formation of ion
11/28
Board of directors
General manager
Production department Sales department Administrative
department
Purchase
officer
Productionofficer
Sales officer Publicityofficer
Administrative
officer
Accounts
officer
Foremen Supervisors
Workers WorkersSalesmen Personnel
officerClerks Clerks
-
8/3/2019 Formation of ion
12/28
Line organisation has a simple structurethat can be understood by every commonman .
There is a clear division of authority andresponsibility in such type of organisation.
The departmental head possess fullauthority over his department which helps in
maintaining internal control. Due to internal autonomy the head can take
quick decisions.
-
8/3/2019 Formation of ion
13/28
Departmental head concentrates ondeveloping his personality as he himself hasto extract work from persons of his dept.
Flexibility can be brought as per the changesin time and circumstances.
Unity of command is well maintained aseveryone has to take orders from one
individual only. The structure is less expensive and more
economic.
-
8/3/2019 Formation of ion
14/28
Sometimes this type becomes autocratic .
Lack of Specialization.
Centralization of authority to one head.
In this type oforganisation it becomesdifficult to acquire the services of highlyQualified executives capable in everyrespect.
As the department and officers areindependent ,co-ordination is difficult.
There is no flow of communication frombottom to top and therefore many problems
are created.
-
8/3/2019 Formation of ion
15/28
A type of organisation that gives importanceto functions instead of departments is calledFunctional organisation .
Different functions are given importance.
Experts are included who have specialisationin their own fields.
Different experts are assigned different tasks
of work to bring effectiveness and increasingproductivity.
-
8/3/2019 Formation of ion
16/28
Division of authority and responsibility is onthe basis of functions rather than ondepartments.
Experts are appointed for every function.
The experts are given responsibility not for aspecific department but for the unit as awhole.
Workers are responsible to different officersinstead of one officer.
There is a good co-ordination between theexperts to achieve the organizational
objectives.
Chi f E ti
-
8/3/2019 Formation of ion
17/28
Chief Executive
Planning
divisionFactory division
Information
officer
Discipline
officer
Accounts
officer
Counseling
officer
Group
officer
Speed
officer
Quality
control
officer
Maintenance
officer
Workers Workers
-
8/3/2019 Formation of ion
18/28
1) Specialization is possible.
2) Decentralization of Authority.
3) Co-ordination is possible because all the
experts are inter-dependent.4) Less burden of work.
5) Benefit of expertise.
6) Training.
7) Flexibility.
8) Easy Decision Making.
-
8/3/2019 Formation of ion
19/28
1) Complexity.
2) Lack of unity of Command
3) Lack of discipline
4) Lack of Responsibility.5) Delay in Decision.
6) Expensive.
-
8/3/2019 Formation of ion
20/28
A committee is a group of people who havebeen formally assigned some task or someproblem for their decision andimplementation.
In modern business enterprise there is awidespread use of committee in all areas ofmgmt.
In short, committee is that type oforganisation that takes decisions collectivelyfor the business.
This type is not only useful in business but
also has been found to be more useful in
-
8/3/2019 Formation of ion
21/28
Top executive Committee
Production Committee Sales Committee AdministrativeCommittee
Purchase
Committee
Factory
Committee
Publicity
Committee
Sales
Committee
Secretary Accountant
Clerks Clerks Clerks ClerksWorkers Salesmen
-
8/3/2019 Formation of ion
22/28
1) Better decision making.
2) Democratic.
3) Specialization.
4) Co-ordination.5) Decentralization of Authority.
6) Reduced work burden.
7) Improvement in Relations.
8) Research is encouraged.
-
8/3/2019 Formation of ion
23/28
1) Secrets maintained.
2) Delay in decision making.
3) No individual responsible.
When it is responsibility of everybody, it is ofnobody.
4) Autocracy.
5) Groupism or internal conflicts.
-
8/3/2019 Formation of ion
24/28
A form of organisation in which the authorityis assigned only for meeting the responsibilityof some functions is known as formalorganisation.
It is an organisation to bridge the relationshipfor the accomplishment of specific objectives.
E.g., Line, Functional, Line & Staff
organisation,etc.The hierarchy of authority is clear and well-
defined.
The position of superior subordinate s is well
defined.
-
8/3/2019 Formation of ion
25/28
It is a natural structure arising out of the socialtendency of people to associate and interact.
Such organisation emerges when a group of willingand concerned employees is formed on the basisof human relations.
Its values , goals are mainly centered aroundgroup and individual satisfaction, relationship, andfriendship.
People with similar attitudes, interests and work
related needs are attracted to one another. Informal organisation are largely accepted inmodern times.
-
8/3/2019 Formation of ion
26/28
1) Mental stress of employees getsreduced.
2) The authority of management isrestrained because of employeegroups.
3) This type complements the
accomplishments of objectives offormal organisation.
4) It helps in communication.
5) Social restrictions on em lo ees are
-
8/3/2019 Formation of ion
27/28
Due to opposition by employees thereis a possibility of resistance to changesby the mgmt.
Indiscipline is likely to be encouraged.
In place of correct information there isa risk of rumours being spread.
There is also a risk of industrial peacebeing endangered due to negativeleadership.
There is ossibilit of obstacles bein
-
8/3/2019 Formation of ion
28/28
Which is the oldest type of organisation?
Formation of organisation is what type of
process?
Define: Formal Organisation.Give the other name of Line organisation.
What is the basis of organisation?
In which type there is a possibility of
becoming autocratic?
Who has the top most authority in functional
organisation?