Cover

Organizing
Session 4 :Prof. Parveen Kaur
 Cover
Agenda
01 Factors that affect OS

02 Pillars of designing OS
03 Forms of Organizational Structure
04 Virtual Organizations/Remote working

https://www.youtube.com/watch?v=xcTtQ0hiHbE
Organizing

“Organizing 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”
Organizing refers to the following process

Identification of activities

Grouping of activities

Assignment of responsibilities

Grant Authority

Establish Relationship
 An organizational structure defines how
activities such as task allocation,
coordination, and supervision are directed
toward the achievement of organizational
aims.

Organizational Chart /Organogram

 Let’s Think !!!

‘Rainbow Colours’ is a profit making colour producing company. The company deals in making different
types of colours used in painting. The organisation has always been systematic in its approach and due to
good organizing has seen a continuous increase in its revenue. Workers are given their respective jobs
clearly which leads to gaining of experience since they do their respective jobs on a regular basis leading to
high productivity. The organisation has many challenges and it wants to improve. There is no doubt in the
lines of communication and everyone knows who has to report whom. With passage of time, there is more
need to connect with the employees. They are the most important asset to the organisation. When managers
delegate work to their subordinates they set themselves free from routine jobs and this leads to great
amount of learning for the subordinates in practical situations.

Which importance(s) of organizing has been highlighted in the above case?

https://padlet.com/parveenkaur4/nd4tff18uupkjbnb- Omega
Features/
Elements/
Pillars
The dilemma? Support an optimally decentralized operation that enables
customization as per local needs, or focus on centralization and process
optimization to minimize cost and effort?

Spectrum
Span of Control

The span of control shows the number of

subordinates reporting to a manager. 

Management Ratio
 Expanding On the Concept of Span of Control
Width: Organization structures can be described as wide (with larger span of
control) or narrow (with smaller span of control.)

Height: As there are levels of management, or hierarchy, an organization may be tall

(with many levels) or flat (with fewer levels.)
Tall & Flat Structure
Work Specialization
 Effective use of Chain of Command

https://www.youtube.com/watch?v=Gd4w5zh3WyA
 Example of Chain of Command
Identify Two chains of command

1 John

2 Harish 3 Smith

A Peter B Danial C Joseph

Formalization

Formalization is the extent to which an

organization’s policies, procedures, job
descriptions, and rules are written and
explicitly articulated.
Departmentalization
Departmentalization by Function: When the creation of department is on the basis of
specified functions, such as production, marketing, purchase, finance etc. In this method, all the
activities related to a function or which are of similar nature are combined in a single unit, to give
proper directions to the entire group in one go.
Departmentalization by Product: When the activities related to product development and
delivery are combined into a particular division, it is called as product departmentalization.
It is appropriate for large-scale multi-product enterprises.
Departmentalization by Territory/Geography When the division is based on the
geographical area, it is called as territorial departmentalization. This is suitable for the
organizations, that have widespread operations at different locations.
Departmentalization by Customer: The grouping of the organization according to the different
classes of customer or clients. It focuses on special customer needs.
Matrix Organizational Structure

A matrix organizational structure is a company structure in which the reporting

relationships are set up as a grid, or matrix, rather than in the traditional hierarchy.
In other words, employees have dual reporting relationships - generally to both a
functional manager and a product manager.
https://economictimes.indiatimes.com/definition/matrix-organization#:~:text=Definition%3A
%20A%20matrix%20organisation%20is,have%20more%20than%20one%20boss!
 Lets check the application !!!
Q1. “Roopak Spices Ltd.” are the manufacturer of different food specific spices. Mr. Raghav, the owner
of the company has created different departments for purchase, production, marketing, finance and
human resource. There are thirty employees working in the organisation. Planning is of paramount
importance to the company as Mr. Raghav believes that effective planning leads to achievement of
organisational objectives. So in order to make employees focus on objectives, he issued instructions
that during working hours only official matters will be discussed. He made certain rules and code of
conduct for the employees to follow, according to which employees are not allowed to visit and talk to
the employees of other departments except for official work. He emphasised on work performance
which resulted in smooth functioning of the organisation.

1.Identify and state the type of organisation mentioned in the above para.
2. State one feature of the concept identified in part (a) as mentioned in the above para.
3. What was the purpose behind the formulation of rules for the employees that restricted their
personal communication with the employees of other departments?
Answer :1. Formal organisation is the type of organisation mentioned in the above paragraph.

Formal organisation refers to the organisation structure which is deliberately created by the
management to accomplish a particular task. It clearly defines the boundaries of authority and
responsibility and facilitates systematic coordination among the various activities to achieve
organisational goals.

2. One feature of formal organisation is that it clarifies who has to report to whom by specifying
the relationships among various job positions and the nature of their interrelationship.

3.The purpose behind the formulation of rules for the employees that restricted their personal
communication with the employees of other departments is to ensure discipline at workplace and
avoid wastage of time. This is help to curb the emergence of informal organisation to a certain
extend and increase work efficiency.
Q2. The activities and employees in ‘Zubin Pvt. Ltd.’, a footwear manufacturing company,
can be broadly grouped into five departments namely; production, purchase, marketing,
accounts and personnel. Over the years the company has grown and expanded its
operations manifolds. The company nomanagement has decided to restructure its
operations. They plan to create separate product divisions w intends to diversify into
leather bags segment. So its for each product line wherein the functioning of each division
will be further divided into five departments namely; production, purchase, marketing,
accounts and personnel.

In context of the above case:

A. What is the current organizational structure like , What would be the future OS ?
B. How is the company’s future organisational structures likely to be different from the
existing one?
Answer :

Functional , Divisional
Q3. Jai works as a human resource manager in ‘Omega Housing Ltd.’ a
company engaged in the real estate business. He suggests to the
Managing Director of the company to start a sports club in the office
where friendly indoor matches can be organised amongst the
employees on every Saturday.
In context of the above case:

a. Identify the type of organisation that Jai is desirous of promoting in

the company.
b. State any three advantages of the type of organisation as identified
in part (a) of the question
Answer : Informal

Any three with Justification

Q4.Joel and Natasha started an interior design business five years
ago. At first, it was just Joel taking care of the business side of things
while Natasha focused on design, but as the business grew, they
hired people to help. Now they have a marketing, and purchasing.
What kind of stteam of 20 organized into the following areas:
designers, operations and finance, sales and ructure have they
implemented in their business?
Q5. Jackson is an engineer at a computer manufacturer with offices in the
US, Europe, and South America. His New York-based team reports to their
office’s head product manager. The team also reports to the CTO, who is
based in Germany. What type of structure is Jackson’s company using?
 Line & Staff Function
A wide variety of positions exist within a line-and-staff organization. Some positions are
primary to the company's mission, whereas others are secondary—in the form of
support and indirect contribution. Although positions within a line-and-staff organization
can be differentiated in several ways, the simplest approach classifies them as being
either line or staff.
Line groups are engaged in tasks that constitute the technical core of the firm or
the subunit of a larger enterprise. They are directly involved in accomplishing the
primary objective of the enterprise. In manufacturing, line groups
engage in work related to production. In the service sector, the line group is
responsible for its customers. Line groups have final decision-making authority
regarding technical organizational purposes.

Staff groups are engaged in tasks that provide support for line groups. They consist
of advisory (legal), service (human resources), or control (accounting) groups. Staff
groups support those engaged in the central productive
activity of the enterprise.
https://theinvestorsbook.com/matrix-organizational-structu
re.html
Modern Organization structure

Virtual Organizations /Boundryless organizations/digital organizations/network organizations

Network OS
❖ These days, few businesses have all their services under one roof, and juggling the
multitudes of vendors, subcontractors, freelancers, offsite locations, and satellite offices
can get confusing.

❖ ICT (Information and Communication Technology) is the backbone of virtual

organizations. This organization is a social network without vertical and horizontal
boundaries.

❖ Resources aren't tied to a particular workstation (desk). Also, you can work from any
mobile device.

❖ You can manage every project activity, including meetings, virtually

.
❖ . The team reports digitally except on a few occasions that need physical meetings. Hence,
it's common to hear of virtual offices, virtual teams, and virtual leadership
 STRIDA

How do two people run an entire company that sells thousands of high-tech folding bicycles all
over the world?

Steedman Bass and Bill Bennet do it with a virtual network approach that outsources design
,manufacturing ,customer service, logistics ,accounting ,and just about everything else to other
organizations.Bass, an avid cyclist ,got into the bicycle business when he and his partner
Bennnet bought the struggling British company strida,which was having trouble making
enough quality bicycles to meet even minimum orders. The partners soon realized why strida
was struggling . The design for the folding bicycle was a clever engineering idea, but it was a
manufacturing nightmare .Bass and Bennet immediately turned over production engineering
and new product development to an American Bicycle designer, still with the intensions of
building bikes at the Birmingham factory. However, a large order from Italy sent them looking
for other options. Eventually ,they transferred all manufacturing to Ming Cycle company of
Taiwan ,which builds the bikes with parts sourced from parts manufacturers in Taiwan and
China.Finally, the last piece of the puzzle was to contract with the company in Birmingham that
would take over everything else-from marketing to distribution. Bass and Bennet concentrate
their energies on managing the partnerships that make the network function smoothly.
 With a network structure like this ,it is difficult to
answer the question ,” Where is the organization?”.
In traditional terms .The different organizational parts
may be spread all over the world. They are drawn
together contractually and coordinated electronically
,creating new form of organization. Much like
building blocks,parts of the network can be added or
taken way to meet changing need.
Which is an advantage of a network
structure?
Remote working & Work From Home ( WFH)

Assignment

Will provide assignment details and article by

17.09.2020. You will get 15 days time to complete
and turn in your work