organising chap 3

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ORGANIZING



Organising

The deployment of organisational resources toachieve strategic goals.

(The deployment of resources is reflected inthe organization's division of labour into

specific departments and jobs, theformal lines of authority, and themechanisms for co-ordinating tasks.)



PROCESS OF ORGANIZING

Determination of objectives.Deciding various activities.Grouping of activities.

Assignment of responsibilities to definite

persons.Delegation of authority.Providing physical facilities and proper

environment.



TEN BASIC PRINCIPLES OFORGANIZATION

1. The Scalar Principle

2.Unity of Command

3. Span of Management

4. Work specialization/Division of Work

5. Authority and Responsibility



BASIC PRINCIPLES OF ORGANATIONcont…

6. Delegation of Authority

7. Centralization and Decentralization

8. Formalization

9. Departmentalization

10. Coordination and Human Relations



Need for organization structure

The organization structure facilitates infixing the responsibility - department wise,section wise or on individual basis.

It is necessary for the establishment of authority.

It promotes division of work and leads tospecialization.



It avoids confusion, duplication, wastage andinefficiencies.

It facilitates the flow of information anddecision making from one level to another.

It defines the positions and units with in the

organization.

Need for organization structure

cont..



Types of organization structure

Line or military or scalar organization.Functional or staff organization.Line and staff organization.Committee organization.

Project organization.Matrix organization.



LINE ORGANIZATION

It is based upon relative authority andresponsibility.

It is direct and people at different levelknow to whom they are accountable,assign duties, dismiss and takedisciplinary action against them.



General Manager

Finance Production MarketingManager Manager Manager

Accountant 1 Accountant 2

Supervisor 1 Supervisor 2

SalesSupervisor 1

SalesSupervisor 2

Clerks ClerksWorkers Workers

Salesmen Salesmen



STAFF/FUNCTIONALORGANIZATION

F.W.Taylor discovered this method of dividingthe work of management in such a way thateach man in the factory should have as few functions as possible to perform.

Under this type of organization workers orsubordinates, instead of coming in contact with only one immediate superior, receive daily work orders from several specialists or officers.



Superintendent

Office Shop

RouteClark

InstructionClark

Time &Disciplinary Clark

RepairBoss

SpeedBoss

Gang Boss

Workers



Line and staff organization

The combination of line organization withexpert staff constitutes the type of organization known as line and staff

organization.

In this method, the line maintains discipline

& stability and staff provides expertinformation



The line delegates the authority by which

the staff performs these functions.

Each department is headed by a line officer who is to decide, plan, execute and controlbusiness operations on the guidelinesindicated by the staff experts associated with

his dept.



Share Holders

Board of Directors

General Manager ResearchEngineers

IndustrialResearchEngineers

Work Manager Assistant Assistant

Production Superintendent AccountingSalesManager

Foremen

Workers



Departmentalization

Departmentalization is the basis for grouping positions into departments and departments into the total organization.

There are 5 approaches1. Functional2. Divisional3. Matrix4. Team-based5. Network



Functional structure

people are grouped together in departmentsby common skills and work accordingly.(e.g. Manufacturing, Marketing, Finance)

President

Finance Manufacturing Marketing



Divisional structure

Departments are grouped into divisions basedon a common product, program orgeographical region (territory).

President

Division 1 Division 2 Division 3

Finance

Marketing

R&D Finance

Marketing

R&D Finance

Marketing

R&D



Matrix structure

Functional and divisional chains of commandare in effect all at once in the samedepartments.

Two chains of command exist and someemployees report to two bosses

President

VP Finance VP Marketing

Product Manager A

Product Manager B



Team-based structure

A structure in which the entire organisation ismade up of teams that coordinate their work and work directly with customers toaccomplish organisational goals.



Network structure

This is where the company subcontracts manyof its major functions to separate companiesand coordinates their activities from a small

headquarters organisation.

Company Core(HUB)

Design Company

TransportationCompany

Manufacturing Company

A/C ReceivableCompany

Distribution Company



CENTRALIZATIONIt is the systematic and consistent reservation of authority at central points within theorganization.

Centralization can be found necessary for thefollowing reasons :

To facilitate personnel leadership. To introduce better coordination . To handle emergencies.



DECENTRALIZATION

It implies a systematic delegation of authority throughout the wholeorganization.

Decision taking authority is pusheddownward to lower organization levels.

Decentralization is believed to relieve theburden of top managers, make greater use of

workers’ skills.

organising chap 3

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