Professional Documents
Culture Documents
UNIT-II
DESIGNING ORGANISATIONAL STRUCTURES ===================================================== INTRODUCTION: Management is a process involving planning, organizing, directing and controlling human efforts to state of objectives in an organization. The second phase of management process is organizing, which basically involves analysis of activities to be performed for achieving organizational objectives, grouping these activities into various division, departments and sections so that these can be assigned to various individuals and delegating them appropriate authority so that they are able to carry on their work effectively. CONCEPT OF ORGANISATION AND ORGANISING: n management literature, sometimes the term organisation and organizing are used inter changeably because the term organisation is used in many ways. !ut it is not correct organisation is different from organising. "rganising is one of the functions of management where as organisation refers to the institution where in the functions of management is performed. "rganising is a process of # $etermining, grouping and structuring the activities. %reating rules for effective performance at work. &llocation necessary authority and responsibility. $etermining detailed procedures and systems for different problems areas such as coordination, communication motivation etc. The ultimate result of organising is organisation. n other words, organising function ends with creating a structure of relationships. FORMAL AND INFORMAL ORGANISATION: 'ormal organisation refers to the structure of well(defined jobs, each bearing a definite authority, responsibility and accountability. CHARACTERISTICS: ). "rganisation structure is designed by the top management to fulfill certain re*uirements. +. %oordination among members and their control are well specified through process, procedures rules etc. ,. "rganisation concentrates more on the performance of jobs and not on the individuals performing the jobs. nformal organisation refers to the natural grouping of people on the basis of some similarity in an organisation. t refers to people in group associations at work, but these associations are not specified in the blue print of the formal organisation, the informal organisation means natural grouping of people in the work situations. CHARACTERISTICS: nformal organisation is a natural out come at the work place. nformal organisation is created on the basis of some similarity among its members. The basis of similarity may be age, place of origin, caste, religion, liking-disliking etc.
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BASIC CONCEPTS RELATED TO ORGANISATION: AUTHORITY AND RESPONSIBILITY: &uthority may be defined as the power to make decisions which guide the actions of another. t is a relationship between two individuals, one superior, other subordinate. The superior frames and transmits decisions with the e4pectation that these will be accepted by the subordinate. 0esponsibility is defined as that obligation of an individual to carry out assigned activities to the best of his ability. t is not merely duty that is assigned but an obligation that the duty is performed. PARITY OF AUTHORITY AND RESPONSIBILITY: 2rinciple of authority and responsibility suggests that authority of a person should match his responsibility. "therwise, the performance of the managers goes unchecked where the authority e4ceeds the responsibility. t may lead to miss(utilization of authority and vice( versa. DELEGATION OF AUTHORITY: $elegation of authority is one of the important factors in the process of organising. t is essential to the e4istence of a formal organisation. $elegation means conferring authority from one manager to another in order to accomplish particular assignments. CENTRALISATION AND DECENTRALISATION: ¬her highly important issue in organising is the e4tent to which authority is centralized, or decentralized, in a formal organisation structure. n management centralization refers to concentration of authority and decentralization refers to dispersion of authority. SPAN OF MANAGEMENT: t refers to the number of subordinates that should be placed under single superior. The number of subordinates who report to superior has two important implications. t determines the comple4ity of individual manager job. t determines the shape or configuration of the organisation. The classical writers suggest that between , to 3 subordinates as ideal depending up on the level of management. 5.&.6racuna a 'rench management consultant has suggested a mathematical formula to fi4 the number of subordinates. 7e classified superior and subordinate relationship into the following8 $irect single relation ship. $irect group relation ship. %ross relation ships. Direct sing e re !ti"ns#i$8( $irect single relationships arise from the direct individual contacts of the superior with his subordinates. /48( &,!,% are subordinates to 9 7ere three single relation ships. Direct gr"%$ re !ti"n s#i$s8($irect group relationships arise between the superior and subordinates in all possible combinations. Thus the superior may consult his subordinates with one or more combinations. /48(& with !,! with %,& with %, etc..
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Cr"ss re !ti"ns#i$s8( %ross relationships arise because of mutual interaction of subordinates working under the common superior , such as & and !,! and %,& and %,% and & etc.. The relationship is *uite different between & and ! than ! and & from management point of view because the type of interaction will be different in both cases. 6racuna has given formula to find various relationships with varying number of subordinates. :umber of subordinates ; n, $irect single relationship $irect group relationship %ross relationship Total relationship ; ; ; ; <or= ; :o. of sub ordinates ) + , @ A ? 3 )B . . . . . . . . n<+n() >n()=. :o. of relationships ) ? )3 @@ )BB +++ )B3B A+)B n, n<+n()()= n<n()=, n<+n-+>n()=
6racuna suggest that most ideal span for a manager is ? subordinates with +++ relationships. F!ct"rs effecting span of management8( ). %apacity of superior +. %apacity of subordinate ,. :ature of work @. $egree of decentralization A. $egree of planning ?. %ommunication techni*ue C. Dse of staff assistance 3. .upervision from others
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2roduction Manager F GGGGGGGGGGGGGGGGGGGGGGGGGGGGGG FGGGGGGGGGGGGGGGGGGGGGGGGGGGG F F F 'oreman(& 'oreman(! 'oreman(% F F F Horker Horker Horker (' DEPARTMENTAL LINE ORGANISATION: Dnder this form, entire activities are divided into different departments on the basis of similarity of activities. The basic objective of this form is to have uniform control, authority and responsibility. 2roduction Manager F GGGGGGGGGGGGGGGGGGGGGGGGGGGGGG FGGGGGGGGGGGGGGGGGGGGGGGGGGGG F F F 'oreman(& 'oreman(! 'oreman(% <!ody Moulding= <.eating= <'inishing= F F F Horker Horker Horker Merits )= t is simple to understand += /asy supervision I control ,= Juick decisions @= t sets clearly the direct lines of authority and responsibility of a line manager De)erits Kack of specialization Kow # Morale &utocratic approach "verburden to manager
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S%it!*i it+8( t is suitable to small # scale organizations where the number of subordinates is *uite small
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FEATURES: This origin structure clearly distinguishes between two aspects of administration viz., planning and e4ecution. .taff officers provide advice only to the line officersE they do not have any power of command over them. The staff supplements the line members. MERITS &' t enhances the *uality of decision (' 6reater scope for advancement ,' t relieves the line managers. -' 0eduction of burden. DEMERITS ). t may create more friction or %onflict between line and staff +. t is e4pensive ,. t creates confusion
SUITABILITY: ( t can be followed in large organizations where specialization of activities is re*uired, because it offers ample opportunities for specialization. FUNCTIONAL ORGANISATION STRUCTURE:t is the most widely used organization structure in the medium and large scale organizations having limited number of products. This structure emerges from the idea that the organization must perform certain functions in order to carry on its operations. 'unctional structure is created by grouping the activities on the basis of functions re*uired for the achievement of organizational objectives. 'or this purpose, all the functions re*uired are classified into basic, secondary and supporting functions according to their nature I importance.
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COMMITTEE ORGANISATION: & committee does not represent a separate type of organization like line and staff, or functional. t is rather a device which is used as supplementary to or in addition to any of the above types of organizations. & committee may be defined as a group of people performing some aspects of Managerial functions. Thus, a committee is a body of persons appointed or elected for the %onsideration of specific matters brought before it.
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De)erits:). t calls for greater degree of coordination, +. t violates unity of command. ,. $ifficult to define authority I responsibility. @. /mployee may be de motivated.
General Manager
Production
Personnel
Finance
Marketing
Project C Manager
S%it!*i it+:t can be applicable where there is a pressure for dual focus, pressure for high in formation processing, and pressure for shred resources. /48( &erospace, chemicals, !anking, !rokerage, &dvertising etc..,
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