Presented By: Prakhar Rastogi Ankur Tripathi Anil Kr Yadav

Dulguun Tarbat Saurav Singh

Organisation is the detailed arrangement of work and working conditions in order to perform the assigned activities in an effective manner.

An identified group of people contributing their efforts towards the attainment of goals is called an organisation

- Mc Farland
"Organisation is the process of identifying and grouping of the works to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most efficiently"

- Louis A. Allen

Organising helps Organisations to reap the benefit of specialization. Organising provides for Optimum utilization of resources. Organising helps in Effective administration. Organising channels for Expansion and growth. Organising achieves co-ordination among different departments. Organising creates scope for new change.

Principle of Functional Definition

According to this principle, all the functions in a concern should be completely and clearly defined to the managers and subordinates. This can be done by clearly defining the duties, responsibilities, authority and relationships of people towards each other.

Principle of Specialization

According to the principle, the whole work of a concern should be divided amongst the subordinates on the basis of qualifications, abilities and skills. It is through division of work specialization can be achieved which results in effective organization.

Principles of Span of Control/Supervision

According to this principle, span of control is a span of supervision which depicts the number of employees that can be handled and controlled effectively by a single manager

Principle of Scalar Chain

Scalar chain is a chain of command or authority which flows from top to bottom. With a chain of authority available, wastages of resources are minimized, communication is affected, overlapping of work is avoided and easy organization takes place.

Principle of Unity of Command

It implies one subordinate-one superior relationship. Every subordinate is answerable and accountable to one boss at one time.

Formal Organization
Consciously created to achieve organizational objectives Formal relations are well planned and are created deliberately Follows official chain of command Follows a rigid structure of relationships Prescribed pattern of behavior for its members

Informal Organization
Has no predetermined objectives Relations are unplanned Does not have a fixed chain of command Life of informal groups is short Informal authority is personal Loosely structured and is highly flexible

Identification of activities - All the activities which have to be performed in a concern have to be identified first Departmentally organizing the activities - In this step, the manager tries to combine and group similar and related activities into units or departments Classifying the authority - Once the departments are made, the manager likes to classify the powers and its extent to the managers.

Co-ordination between authority and responsibility Relationships are established among various groups to enable smooth interaction toward the achievement of the organizational goal.

Organisation structure is the pattern of relationships among various components or parts of the organisation which prescribes the relations among various activities and positions. An effective structure will result in increased profitability of the enterprise. whenever an enterprise grows in size or complexity it needs an adequate organisation structure.

Line Organisation Structure: Hierarchy derived from a scalar process. Organisation is quite simple in understanding and implementation. this does not offer scope for specialization. Line and Staff Organisation Structure: Staff personnel generally specialists in their fields advice line managers to perform their duties. Staff personnel have right to recommend, but have no authority. Functional Organisation: Grouping of activities on the basis of functions required for the achievement of ultimate objectives. Divisional Organisation Structure: Several fairly selfcontained autonomous units were created. Each unit was headed by a manager and is directly accountable to the organisation.

Line Organization
General Manager Production Manager Superintendent Foreman Workers Finance Manager Asstt. Finance Manager Accountants Clerks Marketing Manager Asstt. Marketing Manager Sales Supervisors Salesmen

It consists of an uninterrupted series of authority steps and forms a hierarchical arrangement. It not only becomes the avenue of command to operating personnel but also provides the channel of communication, coordination and accountability in enterprise.

Line and Staff Organization

Board of Directors Executive ---Committee Managing Director---Controller of --------Asstt. To Finance Managing Director

Manager Division A

Manager Division B

Manager Division C

1. 2. 3. 4. 5. 6.

Right to decide and command Contributes directly to the accomplishment of objectives Flows downward from a superior to subordinate Creates superior-subordinate relationship Bears final responsibility for results Provides channel of communication

Functional Organization
Managing Director Production Manager Superintendent of Production Foreman

Engineer

Chemist

Foreman

Foreman

Foreman

Workmen

Workmen

Workmen

This is based on the concept of functional foremanship. In this Organization is divided into a number of functional areas. Each function is managed by an expert in that area.

Project Organization
Managing Director

Manager Project Division I

Engineer R&D A/c Manager officer

Manager Project Division II

Engineer

R&D Manager

A/c officer

1. Oriented towards the completion of a project 2. Molding the organization around a specific project 3. It is usually structured to facilitate planning and designing of the product, completion of the task and phasing out of the project 4. Need for project organization is felt when an organization is to execute a project which is subject to high standards of performance 5. Assignment presents a unique or unfamiliar change

Matrix Organization
Division X Engineering Finance Personnel Production

Proj. Mgr. I Proj Mgr II

Prod Grp Prod Grp

Engg Grp Engg Grp

Fin Grp Fin Grp

Pers. Grp
Pers. Grp

1. It is created by merging the two complementary organizations the project and the functional 2. projects cut across the functional line 3. project teams are composed of people from functional departments who are assigned to the project for a specific period or for the duration of the project 4. After the project is finished they return to the functional departments

Division of work: The first process of Organising includes identification and division of work which shall be done in accordance with the plans that are determined previously. Departmentation: once the work of identifying and dividing the work has been done those are similar are to be grouped. Linking departments: When the process of departmentation was completed, linking of departments has to be done so that those departments operate in a co-ordinated manner which gives a shape to overall organisation structure. Assigning Duties: On completion of departmentation process assigning duties i.e. defining authority and responsibility to the employees on the basis of their skills and capabilities has to be done, which in consequence magnifies efficiency with regard to their work. Defining hierarchal structure: Each employee should also know from whom he has to take orders and to whom he is accountable/responsible.

Departmentation
Departmentation or departmentalization is the process of grouping tasks into jobs, the combining of jobs into effective work groups and the combining of groups into identifiable segments or departments. A department is a division ,branch, regiment or some other organizational unit over which a manager has authority for performance of task.

Need and Importance of Departmentation

Specialization Expansion Autonomy Fixation of responsibility Appraisal Administrative Control

Types of Departmentation

Departmentation by Functions Departmentation by Products Departmentation by Territory Departmentation by Customer Departmentation by Process Departmentation by Time and Numbers Composite Departmentation

Functional Departmentation
Board of Directors Managing Director Marketing Quality Control Production Processing Material

Finance Repairs and Maintenance

1. Each major function is organized as a separate department 2. Basic or organic functions are the functions whose performance is vital and essential to the survival of the organization. 3. A major function may be divided into minor or sub functions 4. Exists almost in every organization at some level

Authority and Responsibility

Authority
Authority may be defined as the power to make decisions which guides the actions of others

Responsibility

Responsibility is the duty to which a person is bound by reason of his status or task.

Characteristics :
Authority and Responsibility
Responsibility

Delegation
The process a manager follows in dividing the work assigned to him so that he performs that part which only he has been assigned to, because of his unique organizational placement, can perform effectively and so that he can get others to help with what remains.

The number of subordinates a manager can efficiently and effectively direct

Better supervision and control

Increases efficiency

Team spirit and morale

Good communication and coordination

Facilitates quick action

Develops discipline and mutual trust

At the top level of management, the span of control should not be more than 1:6 while at the lower level of management, the span of control should not be more than 1:20.

Centralization
Centralization is systematic and consistent reservation of authority at central points within an organization.

Disadvantage

Decentralization
Decentralization refers to the systematic effort to delegate to the lowest levels all authority except that which can only be exercised at central authority. It is the distribution of authority throughout organization. Disadvantage

Thank you