SUBJECT- PERSPECTIVE MANAGEMENTTOPIC- ORGANIZINGCLASS- FYMMS

Presented By-Taslima Bashir Mujawar

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CONTENT

• What is Organizing?

• Nature of Organizing

• Types of Organizing

• Centralization and decentralization of Authority

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WHAT IS organizing?

Organizing is the process of arranging and allocating work, authority, and resources among an organization’s members so that they can achieve organizational goal.

Stoner, Freeman and Gilbert

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NATURE OF organizing1. Group of Persons

2. Common Objectives

3. Division of Work

4. Cooperative Efforts 5. Communication

6. Central Authority

7. Rules & Regulations

8. Dynamic Element

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TYPES OF organizations

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Line Organization

Functional Organization

Project Organization

Line and Staff Organization

Divisional Organization

Matrix Organization

1. LINE ORGANIZATION

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Advantages of Line Organization• It is simple to establish and can be easily understood by the employees.

• It helps in fixing authority and responsibility of each and every person in the organization.

• Easy to operate and less expensive.

• Too much is expected from executives.

• Lack of co-ordination among various departments.

Disadvantages of Line Organization

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2. LINE AND STAFF ORGANIZATION

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• A line and staff structure allows higher flexibility and specialization

• Staff officers may resent their lack of authority.

• Co-ordination between line and staff may become difficult.

• Conflict between line and staff may still arise.

Advantage of Line and Staff Organization

Disadvantages of Line and Staff Organization

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3. FUNCTIONAL ORGANIZATION

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• Benefit of having specialists in each area.

• It provides wide scope for growth.

• Top executives are not unnecessarily burdened as happens in line organization.

• The principle of unity of command is violated.

• Involvement of more than one person in decision-making process slows the process down.

• The division of authority creates problem of discipline.

Advantages of Functional Organization

Disadvantages of Functional Organization

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4. DIVISIONAL ORGANIZATION

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• Divisional structure emphasizes on the end result, i.e., on the product, or customer through which revenue is generated in the organization.

• Performance measurement is easier.

• Organization size can be increased without any problem.

• Divisional Structure is quite costly.

Advantages of Divisional Organization

Disadvantage of Divisional Organization

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5. PROJECT ORGANIZATION

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• It allows maximum use of specialized knowledge.

• Provides more flexibility for the utilisation of resources.

• Less loyalty of people with the organization.

• Lack of clarity among members about their role in organization.

Advantages of Project Organization

Disadvantages of Project Organization

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6. MATRIX ORGANIZATION

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• Decentralised decision making.

• Strong product/project co-ordination.

• Flexible use of resources.

• Efficient use of support systems.

• High administration cost.

• Potential confusion over authority and responsibility.

• High prospects of conflict.

Advantages of Matrix Organization

Disadvantages of Matrix Organization

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Centralization and Decentralization of AUTHORITY

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Centralization• “Centralization” is the systematic and consistent reservation of authority at central points

in the organization.

• The implication of centralization can be :- Reservation of decision making power at top level.

Reservation of operating authority with the middle level managers.

Reservation of operation at lower level at the directions of the top level.

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Decentralization• “Decentralization” is a systematic delegation of authority at all levels of management and

in all of the organization.

• The implication of decentralization can be :- Less burden on the Chief Executive as in the case of centralization.

Subordinates get a chance to decide and act independently.

Operations can be coordinated at divisional level.

Co-ordination to some extent is difficult to maintain.

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THANK YOU