Organizing

Varun Chittezhath Anilkumar - B190621CS

Venkata Akhil Chinthala - B190157CS
Vishnu Ajay - B190368CS
Vishnu C - B190402CS
Contents

● What is Organizing?
● What are the steps involved in Organizing?
● Formal Organization
● Informal Organization
Organizing

● It is the second function of management after planning.

● It is the process of determining the activities to be performed,
arranging these activities to administrative units as well as assigning
managerial authority and responsibilities to people employed in the
organization.
● It establishes the orderly use of all resources within the management
system of the organization.
● It involves the process of identifying and grouping the work to be
performed, defining and delegating responsibility and authority, and
establishing relationships for the purpose of enabling people to work
effectively together to achieve objectives.
Organization Structure

● Organizing involves developing an organization structure to clearly

define the tasks and responsibilities.
● Organization structure is defined as the framework within which
managerial and operating tasks are performed.
● It specifies relationships between people, work and resources.
Steps involved in Organizing

1. Identification & Classification of activities

2. Departmentalization
3. Classification of authority
4. Coordination between authority and responsibility
 1. IDENTIFY & CLASSIFY ACTIVITIES

Organizing begins with identifying

the work and dividing them as per
the plan. The total work involved is
classified into manageable
activities and functions and
allocated to an individual or a
group of people. This step helps in
avoiding redundancy and shares
the burden of work among the
employees.
 2. DEPARTMENTALIZATION

After classifying work into different

activities, similar and related
activities are grouped together into
units. This process facilitates
specialization and forms the basis of
creating departments.Can be done on
the basis of function, product,
territory, customers, etc.
 3. CLASSIFYING THE AUTHORITY

Once the departments are made, the manager

likes to classify the powers and its extent to
the managers. This activity of giving a rank in
order to the managerial positions is called
hierarchy.The top management is into
formulation of policies, the middle level
management into departmental supervision
and lower level management into supervision
of foremen. The clarification of authority help
in bringing efficiency in the running of a
concern. This helps in avoiding wastage of
time, money, effort, in avoidance of
duplication or overlapping of efforts and this
helps in bringing smoothness.
 4. CO-ORDINATION BETWEEN AUTHORITY AND
RESPONSIBILITY

Relationships are established among

various groups to enable smooth interaction
toward the achievement of the
organizational goal. Each individual is made
aware of his authority and he/she knows
whom they have to take orders from and to
whom they are accountable and to whom
they have to report. A clear organizational
structure is drawn and all the employees are
made aware of it.
FORMAL ORGANIZATION
FORMAL ORGANIZATION
A formal organization is an organization with a
fixed set of rules of intra-organization procedures
and structures, which is usually formulated in
writing.

Examples: Businesses, governments, schools,

hospitals, companies, etc.
 FEATURES OF FORMAL ORGANIZATIONAL
STRUCTURE
The formal organisational structure is
created intentionally by the process of
organising.
The purpose of formal
organisation structure is
achievement of organisational
goal.
In formal organisational structure
each individual is assigned a specific
job.
In formal organisation every individual
is assigned a fixed authority or
decision making power.
Formal organisational structure
results in creation of
superior-subordinate relation.
 Advantages of Formal Organisation
Structure
SYSTEMATIC WORKING NO OVERLAPPING
Formal organisation structure results in
OF WORK.
systematic and smooth functioning of an
organisation. In formal organisation structure work
is systematically divided among
various departments and employees.

ACHIEVEMENT OF
ORGANISATIONAL CO-ORDINATION
Formal organisational structure
OBJECTIVES results in coordinating the activities
Formal organisational structure is of various departments.
established to achieve organisational
objectives.
Disadvantages of
Formal
Organisation
Structure
IGNORE SOCIAL NEEDS
EMPHASIS ON
OF EMPLOYES
DELAY IN ACTION WORK ONLY
Formal organisational
While following Formal organisational structure does not give
scalar chain and structure gives importance importance to psychological
chain command to work only; it ignores and social need of employees
actions get delayed human relation, creativity, which may lead to
in formal structure. talents etc.. demotivation of employees.
INFORMAL
ORGANIZATION
INFORMAL ORGANIZATION
An informal organization is a group of people who share a common
identity and are committed to achieving a common purpose.
Informal organizations are created by the will and shared identity
of their members. The operation of an organization, in reality, is
known as an informal organization as opposed to a formal
organization, which is based on roles and responsibilities.
Informal organizations emerge from the interaction or
communication between employees irrespective of their
designations and hierarchies. It runs parallel to a formal
organization.
 Scenarios

We can consider a scenario of a company where the financial department

executive have to submit a weekly transaction report to the manager and to
get the stats and data he/she would have to constantly interact with an
employee at the sales department this constant interaction which was initially
based on a formal organization guidelines can lead to their friendship and spurt
out an informal organization

When few of the people who work under the same firm often go out to play
or enjoy a hobby of common interest this is example of an informal
organization

Eg : football , carepool ..
 DEFINITIONS

Chester Bernard:
An informal organization is an aggregate of interpersonal relationships
without any conscious purpose but which contribute to joined result

Keith Davis:
Informal organization is a network of personal and social relations
not established or required by the formal organization but arising
simultaneously as people associate one another
 FEATURES OF INFORMAL
ORGANIZATION

They are emerging spontaneously due to

Organization from within a formal organization
basic human nature, and not deliberately
as a result of personal interaction and not
forged as in the case of formal
governed by any predefined rules or guidelines
organization
or policies but by group norms and morals

They emerge in every firm in one way or the

There is not hierarchy and the flow of
other and are mandatory for satisfying the
information is not unidirectional or abided
social needs of individuals, a properly regulated
to protocols
informal organization can help boost up the
productivity if a firm as a result of which many
companies are promoting healthy and smooth
informal organizations
 FUNCTIONS OF INFORMAL
ORGANIZATION
Helps create good interpersonal relationships
and hence establish a contact with the
company hence creating a sense of belonging
and control in their work environment
Provide status and recognition as a individual
rather that the designation and position
granted by the formal organization
Helps provide more representation for opinions
Helps broadcast information throught the
informal network which is not constraint by the
formal hierarchy and can reach places which
cannot be reached by the formal system , it
also initiates a quicker feedback
Helps socialize with new employees so that
they can be guided or helped in getting started
with their new roles and responsibilities
Advantages of
Informal Organisation
FULFILLS
IOS does not follow scalar chain ,
SOCIAL NEEDS
Informal communication gives
due importance psychological
and social need of employees
which motivates the employees
CORRECT
FAST
FEEDBACK
COMMUNICATION
The top level managers can know
the real feedback of employees on
since there is no hierarchy the
various policies and plans. They can
informal network developed can
get use this as a means to know the
broadcast information
grievances and complaints of the
to places not accessed workers
easily by formal organisation
 Disadvantages
of IOS
CONFLICT
Infromal organization can lead to the creation of
multiple sets of groups and they might end up
conflicting each other in some sort of ideologies
Often these conflicts might influence their formal
organization timelines and hence might become anti
productive
SPREADING
RUMORS
As informal organization develops a faster way of
communication the channel is not filtered and
hence there are huge probability that false
information or rumors can spread like wildfire
amongst the employees
These in most case can cause emotional damage
to many of the employese causing a decline their
health and productivity
Disadvantages
of IOS
CONFORMITY
RESISTANCE
People often form groups based on common interest but often
Often the infromal organization may rise up to their
when people who are not part of this so called “common
superiors as a resistance to certain policies that interest” joins the group they are at times forced to take part in
they are not happy to see implemented , hence these because of the organizational interest
makig it difficult for the management to implement
new norms and policies “ a great example would be the custom of smoke breaks where
a huge number of people who smokes often forms an informal
organization and those who are not into habit of smoking but
This might often create a disrupt in the formal
trying to fit in would try to indulge in the activity to conform with
structure of organization and decline the
the informal organization ”
productivity of the firm
Thank You