ORGANISING
TALL & FLAT STRUCTURES
[A COMPARSION]
TALL STRUCTURE
 Close control
 Better coordination in case
of interlocking network
 Fewer mistakes due to close
supervision
 Good for staff desiring
detailed guidance
FLAT STRUCTURE
 Loose control
 Difficulty in coordination
 More mistakes due to loose
supervision
 Good for staff requiring
greater independence
challenge and responsibility
CONCEPT OF ORGANISATION

ORGANISATION

STRUCTURE PROCESS
ORG. AS A STRUCTURE

Acc. To Mc Farland –
“An identifiable group of
people contributing their efforts towards the
attainment of goals.”
ORG. AS A PROCESS

Acc. To Haimann-
“Organizing is the process of
defining and grouping the activities of the
enterprise and establishing the authority
relationship among them. In performing the
organizing function, the manager defines,
departmentalizes and assigns activities so
that they can be most effectively executed.”
NATURE OF ORGANISATION

 Common purpose.
 Division of labor.
 Authority structure.
 People.
 Communication.
 Co-ordination.
 Environment.
 Rules & regulation.
PRINCIPLES OF ORG..

 Unity of Objective.
 Specialization / Division of Work.
 Span of Control.
 Scalar Principle.
 Functional Definition.
 Exception Principle.
 Unity of Command.
PRINCIPLES

 Balance.
 Efficiency.
 Flexibility.
 Continuity.
 Facilitationof Leadership.
 Parity of Authority & Responsibility.
 Co-ordination.
FORMAL ORG.

It refers to the organization structure

deliberately created by management for
achieving the objectives of the enterprise. It
is a pattern of activities, processes, human
relationships, & roles planned & structured in
order to accomplish organizational goals.
FEATURES OF FORMAL ORG.

POINT FORMAL ORG.

 Origin
 Created deliberately
 Nature
 Size  Planned & official
 Continuity  Large
 Focus
 Stable
 Structure
 Built around jobs
 Definite structure-
mechanical & rational
FEATURES OF FORMAL ORG.
 Goals  Profits & service to society

 Influence processes  Legitimate authority

 Control process  Rigid rules and regulations

 Communication  Official & well defined paths.

One way & slow flow of
 Authority information
 Positional flows, top down
 charting
 Shown on organizational
chart
INFORMAL ORGANIZATION

It refers to the pattern of activities,

interactions and human relationships which
emerge spontaneously due to social &
psychological forces operating at the work
place. It arises naturally on the basis of
friendship or some common interest which
may or may not be related with work.
FEATURES OF INFORMAL ORG.
POINT INFORMAL ORG.
 Origin
 Arise spontaneously
 Nature
 Size  Unplanned & unofficial
 Continuity
 Small
 Focus
 Instable & dynamic
 Structure  Built around people &
their roles
 Structure less,
impersonal & emotional
FEATURES OF INFORMAL ORG.
 Goals  Satisfaction of members.
 Influence processes  Power.
 Control process  Group norms & values.
 Communication  Unspecified channels. Two
way & fast flow of information,
grapevine.
 Authority  Personal flows, bottom up.
 charting  Not shown on organizational
chart.
COMPARISON

 Distorted & delayed  Speedy & improved

communication communication
 Costly in terms of  Reduced overhead
administrative costs & less supervisors
overheads  Faster decision making
 Slows decision making  Lesser administrative
 Grater admm distance distance
b/w top level & workers
COMPARISON

 Little opportunity for  Forces managers to

dev of subordinates delegate leading to the
dev of subordinates
 Less pressure on  Pressures on managers
managers & heavy penalty for
failure
 Difficulty in application
 Easy application as
due to non-availability
less competent
of competent & willing
subordinates can be
subordinates.
employed.
DELEGATION - MEANING

Delegation means assigning work to others

& giving them authority to do it. It involves
granting the right to decision making in
certain defined areas & charging the
subordinates with responsibility for carrying
out the assigned tasks.
CHARACTERISTICS

 It take place when a superior grants some discretion

to subordinate.
 A manager can’t delegate the entire authority to his
subordinates.
 Generally authority regarding routine decisions & for
execution of policies is delegated to subordinates.
 It doesn’t imply reduction in the authority of manager.
 It may be specific/general, written/implied,
formal/informal.
PROCESS OF DELEGATION

Determination of results expected

Assignment of duties

Granting of authority

Creating accountability for

performance
PRINCIPLES OF DELEGATION

 Functional definition.
 Delegation by results expected.
 Parity of authority & responsibility.
 Absoluteness of responsibility.
 Unity of command.
 Well-defined limits of authority.
 Authority level principles.
CENTRALIZATION & DECENTRALIZATION

 Centralization & decentralization are opposite

terms.
 They refer to the location of decision-making
authority in an org.
 Centralization implies the concentration of
authority at the top level of the org.
 While Decentralization means dispersal of
authority throughout the org.
CENTRALIZATION & DECENTRALIZATION

 Centralization & decentralization are opposite

terms.
 They refer to the location of decision-making
authority in an org.
 Centralization implies the concentration of
authority at the top level of the org.
 While Decentralization means dispersal of
authority throughout the org.
Centralization & Decentralization

Acc. To Allen, “Centralization is a systematic

& consistent reservation of authority at
central points within an org. Decentralization
applies to the systematic delegation of
authority in an org. wide context.”
ADVANTAGES OF DECENTRALIZATION

 Relief to top executives.

 Motivation of subordinates.
 Quick decisions.
 Growth & diversification
 Executive development.
 Effective communication.
 Efficient supervision & control.
DISADVANTAGES

 Expensive.
 Difficulty
in co-ordination.
 Lack of uniformity.
 Narrow product lines.
 External constraints.
FACTORS DETERMINING
DECENTRALIZATION

 Size & complexity of the org.

 Dispersal of operations.
 Degree of diversification.
 History of the enterprise.
 Outlook of top management.
FACTORS

 Availabilityof competent personnel.

 Nature of functions.
 Communication system.
 Planning & control procedures.
 Complexities of the situation.
FACTORS DETERMINING
CENTRALIZATION

To facilitate personal leadership.

To provide integration.
To achieve uniformity of action.
To handle emergencies.
 to improve efficiency.
ADVANTAGES

 Effective utilization of talents of the top leader.

 All parts move together. A unifying force that integrates
all operations.
 A strong co-ordination top management team is
developed.
 Uniformity of policy and plans.
 Best arrangement to tackle emergencies.
 Duplication of functions & facilities is minimized.
DISADVANTAGES

 Delays in decision-making & communication.

 Centralized power & authority may be
abused.
 Inhibit development of lower level people.
 Low motivation & moral of lower level people.
 Fortunes of the enterprise depend on the
health & vitality of top executives.
STAFFING

 Staffing is that part of the process of

management which is concerned with obtaining,
utilizing, & maintaining a satisfactory & satisfied
work force.
 Its purpose is to establish & maintain sound
personnel relation at all levels in the org so as to
make effective use of personnel to attain the
objectives of the org & to provide personal &
social satisfaction which personnel want.
Definition

Acc. To Koontz & O’Donnell, “The

managerial function of staffing involves
manning the organizational structure through
proper & effective selection, appraisal &
development of personnel to fill the roles
designed into the structure.”
FEATURES

 It is a universal function.
 Every manager is continuously engaged in
performing the staffing function.
 It is a dynamic function.
 It cannot be entrusted fully to personnel dept or
any other service dept.
 It is a difficult function with extraordinary
problems of social, philosophical &
psychological nature.
ELEMENTS OF STAFFING
[FUNCTIONS OF PERSONNEL
MANAGEMENT]

Procurement
Development
Compensation
Integration
Maintenance
NEED FOR STAFFING

 Increasingsize of organizations.
 Advancement of technology.
 Long-range needs for manpower.
 High wage bill.
 Trade unionism.
 Human relations movement.