CHAPTER-S ORGANIZING Organizing Organi forganiZinB vipce of OTEANIZINE ora ecting organizational Structure poh! vont Cont ing m ‘anizational Structures pris of OFE! Form organiza yn structure 7 Characteristics vy Advantages © pisadvantages jne and staff organization structure se Charactersties v¥ Advantages VY Disadvantages — Functional organization structure ¥ Characteristi v~ Advantages ¥ Disadvantages Committee organization Structure ¥ Characteristics ¥_ Principles of committee ¥ Advantages ¥ Disadvantages Matrix organization Structure ¥ Characteristics/Features ¥ Advantages ¥ Disadvantages EB Delegation of Authority Meaning of Delegation of authority Features of delegation of authority Principles of Delegation of authority Steps in Delegation of authority Obstacles to delegation process Importance of Delegation of authority + Decentralization . aC Meaning of Decentralization ‘Type of decentralization Importance of Decentralization Disadvantages of Decentralization Factors affecting Decentralization oordination Meaning of Coordination Characteristics of coordination Types of Coordination Purpose of Coordination Principles of Co-ordination Techniques of Coordination Importance of CO-ordination Scanned with CamScanneri the function of management which follows planning. It is the process of deg, ivi nto di ivi anit® * rouping them nt small unit” and asiging them to different individuals, ing tm Separiments? on th roa hority oF power to perf he basis of specialization, and along with the aut i eat reouce Ht irgnatan opeiit ‘organization (human, physical and financial Ny manner 19 achieve geal tne ‘as creating structure. It establishes working relationships among Ying’ Organizing invotves *+ Differentiation: This consists of division of work fr specialization purposes The work of ‘divided into tasks. The divided tasks are allocated to individuals and positions. the Created. Differentiation is needed because one person cannot handle all the work, Sang D. Integration: : Winvotves coordination of divided work. Its the diferentnted departmen Snsures harmony in the functioning of organization. Mechanisms are established to Achieve chy, Tore the degree of differentiating, the greater is the need for integration, ‘iy ght aan Pertorms organizing functions with the help of following steps 1. Wdentification of te is defi ing the content of work. All the activities which ‘be identified (first) to achieve goal. Some of them are ita, ting employees, maintain accounts, making sales, ete, is step manager tres to combine and group similar and relaggpo— department like accountng, finance, human resource, marketing ee) It should be done considering human factor, nature of activities md ne o ization and the people. my A structure is created i. establishes hierarchy of managerial piggy of management, chain of command & other relations, a Wis assigning authority and responsibility as per pre-determined aa have tobe Activities of various units and departments are integrated/synchron = of efforts. Organizing involves division of work, which activities concer, So, for bringing specialization, organizing is imme ‘Organizational structure helps in defining job Properly which clarifies they Peraon. This in tur helps in puting right men on righ job which en te Selecting people for various departments, according to theie q 3 help in bringing speak Scanned with CamScannerOrganizing Due to organizing, every person gets i 0,09) , gets independence i acest be performed are clear. Ths will provide Cage as the roles and velop his talents and flourish his knowledge ugh specs to «| manager to Clear division of work minimize i es duplicati i clear roles, responsibilities and author tie ae ion with It defines formal channels of circulation of information with in organization. Sey acne Ueinig to achieve goal of eganizaton win tne and ies an , : ee arristonris foals dal ates responsibility. So, Structure should be designed Larger the orgai Se poe ation becomes, the more complicated its structure. As an organization Be jes increasingly difficult to manage without more formal work assignments and some delegation of authority. Therefore, large organizations develop formal structure. So, nature of structure is guided by size of an organization. Structure must fit the strategy. E.g, Company may decide to be always the first on the market with newest and best product (differentiation strategy) or it may decide that it will produce a product already on the market more efficiently (cost-leadership strategy). Each of these requires structure, which differ from each other. ‘The environment in which the organization operates and the condition of which influence the organization may determine structure. ‘Advance in technology causes change in organization which in tum brings change in structure. This is because they generally result in greater efficiency and lower cost. Philosophy of top management Organization tends to persist in its rituals or culture. More autocratic organization wants to retain its practice. ‘Management thinking is also prime factor to determine organizational struct Traditional managers are cynic and martinet. But others value people and their aspirations. Organizational life cle Generally organization pass through the stages of birth, youth, midlife and maturity. AS, the organizations pass from one stage to another, it becomes bigger, more mechanistic, more decentralized, standard rules & regulation are made. ‘Attitudes, aspirations, experience ‘and roles of people in an organization also ‘influence its structure. Scanned with CamScannerGurukut ca B. Approaches to Organizing There re ssical approach, behavioral and coy. three major approaches to organizing, They are the classical app a which focuses on organ: ra jem of manager organi itionally accepted norms, values and system ol nization is viewed as @ py ay © ©f Production It is a rational and mechanistic approach. Organ ‘hie are a part of ‘Machine. It consist of 4) Scienti Management Approach b) Administrative inagement Approach ©) Bureaucratic Approach ®) Scientific Ma, wement Approach i Management focuses on ong Scientific management theory is developed by F.W. Taylor. s forming the task. The characters mee Creanizing. It is focuses on the use of, Scientific methods while pet ta are: Scientific ‘method of doing task best way of organizin, Sa Job standardiation any specalztion: Functional specialist hed depart Mechanistic approach Individualisti approach ») Admin t Approach ») Administer APP developed by Henry Fayol, focuses on the mana Planning, organizing, commanding, coordi ing and controlling, for achieving organiza ‘fficiently and fourteen universally accepted principles of management. erial functions tional goal ef Bureaucratic Approach Scanned with CamScannerOrganizing approach that states, organizing is dependent on situational factor. There should be match between fener ‘should be a match between situation and a manner of dealing. The important factors are yanization fo onal life cycle. Behavioral ‘Contingency _ Bottom-up Both Precise with work Ad hoc with loose structure | Based on needs specialization Formal hierarchy of authority | Based on acceptance and Based on need of situations competency Centralized at top, rigid Decentralized. Collaboration __| Situation driven ‘Autocratic style Democratic style Situational “Emphasis on lower level Emphasis on higher level ‘All needs required by needs, financial need, non-financial situation Restrictive and formalized, | Open and informal, free flow | Open as per demand lows downwards Formal and impersonal Information and personal Both formal and informal ‘Small, tall structure Large, flat structure Flexible “Many rules, standardized Few Rules, flexible Flexible rules Scanned with CamScannerGurukul ca ©. Principles oro The organizi Objectives 2 Specialization rganizing Function efficiently ifthe managers have certain guidelines So that the, the following principles of organization can be useq There must be unity of objective so that all efforts can be Concentrated oy nl objectives must be clearly defined of all levels of management thay Bach individual and member of an organization should be assign Speci ‘the basis sis of his/her ability and skill There must be harmonize relation and ¢ ‘co-operation among all a individuals with Y nye pee ome be good communication among sub-system so that hee is smoot formation and understanding for effective business performan, how Onsite Structure should be reviewable, modifiable and cae 7s ge of environment. It should not be rigid or inelastic ae one plan, one boss and head for whole organization, Scanned with CamScannerOrganizing of | organization Structure "sation Structure is skeleton of an organization. It is an expression of who i ho is performing the various functions ey Sa ear Aga — to one another. Organizational structure bacoipaces| list of ys job posit siness, and the reporting structure or chain of command among them. veation can be structured in many different ways, de structures can be of following forms earn en ee Cbjeeties ‘organization structure ‘and staff organization structure organization structure jttee organization structure organization structure. Traditional Structure ization re st and oldest form of organizational structure. In this structure, superior sub-ordinate relationship is t line and chain. Line of authority flows vertically downward from top to bottom and responsibility from throughout organizational chart. AN the major decision are made by the executives at the top and are to their immediate sub-ordinates who in turn break up the orders into specific instructions for the purpose of by another set of sub-ordinates. jg still popular in military and police Board of Directors Managing Director/General Manager || Marketing Manager Production t Works Manager E Foreman <2 Supervisor =r Workmen <4-7ord4c> Bee eu zo uums es of a simple organization are as follows; on the principle of scalar chain of command oes provides authority at all levels according to the posi ions with highest at top and least at bottom pave the right to appraise the subordinates and take suitable step against any deficiencies ‘of the channels of Communication. Scanned with CamScannerGuruhut CA + Sa jerstane at and definite Me ati | ar ei 2. Fived authority = = ae Fesponsibility | supe Vanity of command | One spies Geciston with ut. Jrordineate relat npkyees has only one Do ar the limit of authority. @ ‘suit changing. conditions, al itis efficient and most economrs : help develop the managers, flexible ure can be made f : Station, mononne Scanned with CamScannerOrganizing ig combine of line &s well as staff relationships, tn thi - s ide information, suggestion and guidelines eaization member with staff authority are regent hort responsible for making and implemenrrg ins discipline and stability and the ‘staff pron; have any power of ec ct ‘command in o i ee ee ee "Banization. They stand ready 10 Rive help and information to Chief Executive Officer Legal Advisor Finance Manager + a ae Foreman Foreman [ different staffs or 8. Here line authority remains the ime as it does Economist ‘Marketing Manager Production Manager Fire" male Worker Worker Line executive are assisted by expert staff. Thi It follows the unity of command principle adhere to. Authority flows downward from top to bottom, understand their accountability Staff personnel are experts in their respective fields, Their s an effective decision. is leads to specialization Subordinate has only one superior only to making it easy for the subordinates to support and advice helps in taking Staff provide expert advice that facilitates for effective decision making and specialization. So, efficiency increases. Staff specialists do not disturb the scalar chain of authority and unity of command. This facilitates discipline and stability Staff specialists take care of information collection and detailed analysis jobs. This provides balance to line member in terms of workload. Staff specialists can be added to line structure as and when necessary. This provides flexibility to organization design. z i Staff specialists help in improvising performance by providing advice. This provides ‘opportunities for development and advancement, 100 Scanned with CamScannerGurutut ca Desdvantares casei 1 Come | Over MBA Wali mambo tend to interfere line authority to member tend to blame staff member when things £0 "TOME. This crag } am 2 4 aaa | Tack of co-ordination between line and staff members may len —— [2 Con Se Overdependeace | Line menbon may become over-dependent on staff members for decisis [i —__| ons of initiative by line members a mS _! Staff members may lack practical k ~aesicieecy | This design can be expensive, because tO This structure : ; authority was developed to solve problem of lack of specialization im line organization manager ts ine snd staff stractare of staff. In this structure, specialist of related field & task are germ different sont Pesific authority is delegated to them to take decision All the organizational functigg et! ‘Sr0up and department on the basis of nature we are grouped according fo finction © 8. production, finance, Each functional head has limited access over others related to the pa Scanned with CamScannerOrganizing This structure doesn't adapt to environmental changes ental a = - Tmation — | It provides poor co-ordination across functional department delays | Decision making authority is concentrated at top. This causes delays in decision making. | Fost mace Fusnagerbave aef-centered narrow departmenel focus, This adversely affects Sf unity of | This structure violates the principle of unity of command, Sub-ordinates receive command from various bosses ted This structure is complicated in operations. Line and Staff Functional ‘Simple Structure, suitable for small organization ‘Complex structure for complex organization. ‘Complicated structure for complex organization General Manager General and Expert manager Functional expert as manager Formal authority; line manager decide in scalar chain Line manager decide staff manager advise Divided among functional manager according to specialty help ‘One person has one boss 1 person I boss expert advice _ | Unity of command available Prompt Better Decisions with expert | Delayed Decisions None; clarity of authority ‘Common staff manager interfere line manager Departmental Focus create conflict [Less costly; but lacks expert advice Expensive; two sets of employees needed ‘Specialization promoted Flexible to suit changing Flexible, staff experts can be High Flexibility conditions added Managers overburdened with | Balanced work load ‘No overburden of work work Efficient Co-ordination ‘Staff Expert help in co- Poor Co-ordination across 0 ordination function ae Scanned with CamScanner(OY Pha) es Aierien, decbsion on Preemie nation, Ss steteure 6 9 metbund 16 COMMNINLR Wt bis sin rr the pertorneenen of WA mrmernget ad contd : HUCHW8 0% widchy sad Son te graryore 1h Socata 00 WYMAN tion up very Wot The tn oh marian om commnities shonhd ran ba very barys. W ts aid Comunitian A vmerty, Aalibat te (hr) Commmmition 1A san, we perm wt (be A Nem, mers ye ey #/ shend bn necaypaie to es eyarinert wee Si1 sto Lo wham Bie Conmunitiens shorshd have representation if teieraeh ews 10 WTI Frey) —fhe ‘aod respemalbliny oA commrnitens sheriiA te Sealy Gefrnad, shew funesion om prrmcighe ih corerpetiiom V witness shank oe yard of Disccrens in commence LeYteveth ELLE Cnpay the, Vhey have stall authority. They camnun entonce Scanned with CamScannerOrganizing iso the modern structure, in this structure, a whole project is assigned to the general manager and different ‘and departmental manager are appointed to complete project within allowed time pat t manager is mo accountable for suecess of each project and functional manager is responsible for operational side of projet plea rivties of department. Project manager has authority over member of project teams which are drawn from rent. After the completion of project, project team is dissolved and they are returned to department. z, project manager's authority flows horizontally and functional manager's authority flows vertically trix organization sident I | I | Vice President || Vice president || vice President || vice President |) Vice President Design Manufacturing _|| Finance Marketing, Human resource | ‘This structure is able to adapt to changes in the environment. ity throughout the organization. Various skills can be brought ity This structure fosters flexi together. This structure facilitates efficient utilization of specialized resources. Projects share specialized resources with departments fon and | Projects foster participative management through high levels of m: commitment of member. The tasks become challenging. Co-ordination improv. This structure encourages delegation of author to day decision making, Th gement | allows top management to spend more time on planning and control Fmployees develop their skills and knowledge through inter-disciplinary interactions. Members get opportunities for personal development. jon and 104 Scanned with CamScanner] Wipiyees Rave mare than cae Boat They receive orders form Sara Project hes that result in conifict, confusion and frustration, Scanned with CamScannercA gation of Authority by which formal authority is transte By dons through other people. It en, put within the limit set by the superyi Organizing Tred to sub. ables the Sub-o) ved, it is the sharing of authoris ty with an Me tows from top to down Site for perfomance ofc ie ation vi Authority can be authority efficiently to take d people who have a misutilize it, Iris the duty of th bottom to top. The held responsible fo, © Person to complete the t middle and lower level mask h 1 a Job is answerable en aM4BEMENt hold more ne is bound for praises. While if 1 or: Ihe pert i . if | ms the task assigne: ecte pri he doesn’t accomplish ck assi pee nee igned as expected, then also he is nal responsibility is not delegated Autbority can be delegated only for organizational purpose Duties and responsibilities should be clearly identified for delegation, And he has to define the result expected from sub-ordinates Itis the process of offering power to use resources and to take decisions. Wis Torthe reason; every sub-ordinate should be given enough independence to carry tak given to him by his superiors. And itis done within the limits of delegated authority. Itis a process of developing answerability on the behalf of assigned responsibility and authority. It creates obligation to perform the jobs assigned. lll Scanned with CamScannerOO ——< Gurukul ca Principle of Deleg 1. Principle of _—_Fesult expected 2 Principle of Parity of authority and Fesponsibility g the powers to the subsp Th at every manager before dele oe fon teen, t suggests that every well as resus expected fom i — | to clearly define the pols manage? a keep a balance Bete According to this principle, the manne, ; | seopanalbty. Bosh of thon should e0 ee is given responsibility t0 perf ty | le, if a sul dence to carry out ui same time he s o the subordinates _ Exceasive euhory should not be given OT csponsibility cannot be a Principle of This says that the authority can be delegate Feed eed manager a pheetote to his subordinates which means r=sPor et thei superior, therefore Fesponsibility | acts of their sub-ordinates and are acco Jegated certain powers 1p ot @8ttg the blame to the sub-ordinates even if the as TS EiosEhe = er “Principle ofthis principle suggests that 8 aa perpminain autery authority level | jurisdiction/framework given. Manager shou! d ity hat on the oth, he authority to do tha Sr pti wna pe ifthey 4 3 asked to do. This principle emphasizes on the de, . the level up to which it has to be maintained. Factors which may resist delegation of authority i 1. Reluctance to delegate coe i.e, some managers feel that every task is important and they Prefer themselves 2. Lack of sufficient skill knowledge and ability of sub-ordinates to act Pe io authority 3. Fear to superior of losi importance in organization after delegation of au . ; 4. Manager who are unabie to contl and motivate their subordinate cannot delegate authority eet >. Itthe organization structure is complex, there is lack of proper organizational system, clear poie there may be problem in delegation of authority. , Lack of trust and lack of proper relation between superior & Sub-ordinate ‘When there is possibility of misuse of power, manager may think not to delegate Importance of Delegation of Authority Inany organization, no individual can perform all duties and accomplish all task by himself. The only way: more is through delegation. So, itis very important. Further, importance of it can be defined as a2 ‘The granting of authority and responsiblity motivates sub-ordinatesto perf éslegation reduce burden of work load of manager, which increase tine to Planning. So, it enables manager to get more work done. Delegation ¢ authority help develop sub-ordinates, By participating in _| re pe problems. They learn about overall operations rtise | Del hor onde tise Of sub-ordinates in iy have exper Scanned with CamScanneree Organizing ition of ceasing and distributing decison may i ‘way. It is modem philosophy o| level of management igo Dale S. Beach aligation means placing the authority and decision maki; NE Power management 4d) All level decision making is a major disadvantage of .... b) Line structure d) Functional structure structure Experts are added by dot line in the structure? ff ‘b) Matrix d) Functional er concentrates on a particular department with job specialization? ’) Functional d) Line & staff structure every manag -sructure defines too many levels from Top to lower position of organization? ) Functional 4) None of above le and multiple command system are disadvantages of ..... ‘b) Functional structure d) All of above the developer of functional structure? ‘ ) Stephen Robbins 4) FE. Fiedler Scanned with CamScannerGurukul ca 31. De legation of authority is an element of 4) Planni ing ©) Staffing 2.W hich one is key point of process of delegation = coehe Responsibilities eating accountability b) organizing d) Controlling of authority? b) Granting power 4d) All are processes 33. Granti inte Powers. cccceecsseeuStep of delegation of authority 3nd ae Bi Reins of tatance means im authority and bili i f control ok responsibility ») balance in span of con > ‘on work load 4) all of above b) Distributing power to members who are closest to actions. d) All of above ) more subordinates under a manager d) More work for subordinates b) more subordinates under a manager d)all of above b) Unity of action 4) all of above b) Co-operation 4) All are key Elements. Scanned with CamScannera Integrates work effort to achieve goa, Organizing >) Co-operation 4) management janede to fcilitate harmonization of individual grate b) delegation * With organizational goats, 4) None of above . jon of work is related with ) Co-ordination o ided work with ha monization b) divided ith harmonizat entization 4) Job enrichment one is key point of process of delegation of, authority? Responsibilities ) Granting a jecountability @)Allare prone -quone is not process of organizing? b) Co-ordination of control 4) Job design one is optional in organization? tralization b) Delegation ization 4) Co-ordination js/ are not suitable for specialized service ie ae b) Decentralization delegation & decentralization 4) Geographical diversification to Multiple choice Questions p 3 4 5 6 7 : 3 7 4 7 A £ 7 b a d 12 13, 14 15 16 17 ts 5 5 c a c c d c a 7 5 22 23 24 25 26 27 28 2 30 a b b a bd a A 5 - 32 33 34 35 36 37 38 39. 40. d b a d Bi d d d b 2 43 44 45 46 47 | 48 49 c a a b d c a © 120 Scanned with CamScanner