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ORGANIZING As one of the functions of mgt.

, organizing ensures smooth running of the enterprise & ensures continuity & success for the organization. Thus, it can be considered as the backbone of any organization. The term organization can be studied from different view points. They are o Organization as a group of persons o Organization as a structure of relationship o Organization as a function of management: o Organization as a process Organization as a group of persons: This is the most widely accepted way of looking at the term organization. It is defined as an identifiable group of people contributing their efforts towards the attainment of goals. An organization comes into existence when there are a number of persons in communication & relationship to each other & are willing to contribute towards a common endeavor. From the above definitions, we can identify the following common features – *Cooperative relationship between two or more employees *Common objectives *Communication among the group members *Presence of rules & regulations in order to regulate the behavior of group members Organization as a structure of relationship: Organization is no more than the framework within which the responsibilities of mgt. of an enterprise are discharged. It is a framework of duties & responsibilities through which an undertaking functions. It is dynamic entity consisting of individuals, means, objectives & relationships among the individuals. Organization as a function of management: By performing organization as one of the functions of mgt., the mgt. brings together human & non-human resources to form a manageable unit. Just as planning is applied to every other managerial function, the process of organization is also used in every aspect of mgt. It is a process of integrating & coordinating the efforts of human, financial, technological & other resources for the accomplishment of certain objectives Organization as a process: It is viewed as a process of establishing relationship among the members of the enterprise. Organization involves identification & grouping the activities to be performed & dividing them among the individuals & creating authority & responsibility relationships among them for the accomplishment of organizational objectives. Steps in organizing: o Determination of objectives o Identification & grouping of activities –there has to be proper division of major activities. o Assignment of duties – after classifying & grouping the activities into various jobs, they should be allotted to the individual employees. o Developing authority-responsibility relationships – every employee should know to whom he is accountable & at the same time who are the employees accountable to him. Nature of organization: o Group of persons – an organization implies group of persons. It may be defined as identifiable group of people contributing their efforts towards the attainment of goals. o Communication – the organizational members are able to communicate with each other in order

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o Cross relationships: it arises because of the mutual interaction of subordinates working under the common superior. Similarly. of group relationships Total no. to perform these tasks. the ideal span for a manager is six subordinates involving 222 relationships. o Stimulating creativity – creative thinking & initiative among members can be encouraged by providing well defined pattern of authority. It should be subject to change from time to time in the light of changes taking place in its environment. Goal oriented – the operations are divided & authority & responsibility are determined to achieve the predetermined objectives. of direct relationships no.o o o o to coordinate their activities. each position is delegated adequate authority. He has identified three types of superior-subordinate relationships.organising is done in relation to all other functions of mgt. o Authority & responsibility relationship – various positions are created & specific tasks are assigned to them. or span of control/ supervision/authority represents a numerical limit of subordinates to be supervised & controlled by a manager. Basic function of mgt. of cross relationships no. is performed by managers al all levels. has suggested the fixation of ideal number of subordinates based on mathematical calculation. o Direct single relationships: it arises from the direct individual contacts of the superior with the relationships: subordinates. Structure of relationship – organization gives rise to structure of relationship called formal organization. of relationship = n = n[n-1] = n[2n-1-1] = n[2n/2+(n-1)] According to Graicunas. . . Organization structure: An organization structure shows the authority & responsibility relationships between the various positions in the organization by showing who reports to whom. No organization can survive without an efficient system of communication. Activities of equal importance might be given equal levels in the structure to give equal emphasis. Span of management: Span of mgt. Continuous process – organising is not a one time activity. a French mgt consultant. Managers have to perform the function of organising & reorganising on a continuous basis. Significance of organization structure: o Clear-cut authority relationship o Pattern of communication o Location of decision centres o Proper balancing – activities which are more critical to the organization's success are placed higher in the structure. A good organization structure should not be static but dynamic. o Encourages growth – a flexible structure will help in meeting challenges & creating opportunities for growth. no. o Direct group relationship: it arises between the superior & his subordinates in all possible relationship: combinations. o Taking advantage of technological improvement –a flexible structure will modify the existing pattern to take advantage of technological improvements. Graicunas. this function mgt.

of subordinates under each supervisor. quality of performance might come down as one manager has to supervise large no. o Degree of decentralisation – higher the degree of decentralisation. communication. methods etc. Communication & coordination becomes more complicated as compared to wide span. they require less attention of their superior & span can be wider. This will make the org. However. The process of division of the enterprise into different parts is broadly called departmentation.. procedures. all these relationships are not equally important from management’s point of view. of levels is less. higher is the degree of span. practically. he has not considered other possibilities. of subordinates. o Nature of work – if subordinates perform similar functions. ensures better personal contact between superior & subordinates. there will be few subordinates under each manager & thus the structure will be very tall. can manage more number of subordinates & vice versa. especially standing plans clearly defining rules. better communication & coordination is possible & such a structure would be less expensive. he spends less time in managing his subordinates. Departmentation leads to grouping of both functions & personnel who are assigned to carry out allocated functions. structure wider as there will be large no. large number of subordinates can be supervised by the manager effectively. Further. Therefore. However. It consists of records of top management decisions. higher would be the degree of span of management. o Communication techniques – if it is mostly one-to-one. Factors affecting span of management: o Capacity of the superior – managers having more capacity in terms of qualities like leadership. of subordinates. as the manager clearly delegates his authority & defines it fully. o Degree of planning – higher the degree of planning.However. it requires more time on the part of superior & hence span cannot be too wide. Also ensures strict control & close supervision. Organization manuals: An organization manual is an authoritative guide to the company’s organization. Wide span of supervision: supervision: Span of supervision is wider when the number of executives needed to supervise the subordinates is less. o Supervision from others – when a subordinate receives supervision from other managers apart from his direct superior. Departmentation A department is a work group combined together for performing certain functions of similar nature. Since the no. control etc. Objectives/significance: 3 . standard practices & procedures & the descriptions of various jobs. It provides a bird’s eye view of the relationships between different departments/divisions of an enterprise & also the relationships between executives & subordinates at various levels. Narrow span of supervision: Under narrow span. they require lesser time of supervising & consequently. decision-making. because. o Use of staff assistance – provision for staff assistants for the manager saves time & he can supervise more no. Organizational chart: An organisational chart is a diagrammatical form which shows important aspects of an organisation including the major functions & their respective relationships. o Capacity of subordinates – if the subordinates need just broad guidelines & rest of the things can be performed by themselves. span based on mere number of relationships can not be fixed. to that extent the work-load of direct superior is reduced.

Forms of organization structure: Line organization – The line organization represents the structure in a direct vertical relationship through which authority flows. o Departmentation by product – suitable for large scale multi-product enterprises having capacity to produce & sell on a large scale. authority flows from top to bottom. the line executives are generalists & they do not possess specialised knowledge in problem handling.. While selecting a basis for departmentation. Thus. These specialists called staff stand ready with their specialised knowledge to serve line as & when required & these staff do not have any power of command. Under this. o Departmentation by functions – e. finance dept. Staff means a supporting function intended to help the line managers. In L & S org. particularly in small orgs. the line authority remains the same as it does in line org. together. matters. This form is very popular. The major difference between the two is that – In line orgs. specialists are attached to line managers to advise them on imp. i. there is no ideal pattern to suit all occasions & situations. it is not feasible to follow a single basis of departmentation.o o o o o Increases efficiency Fixation of accountability Development of managerial faculties Performance appraisal Better control Methods of departmentation: o Departmentation by number – whole org.. is divided into departments on the basis of number of employees. o Departmentation by process – practiced where operation involves uniquely identifiable processes. the authority flows vertically downward from top to bottom throughout the org. following factors may be considered. process etc. with few levels of authority having limited number of employees. . personnel dept. Most of the big organizations follow departmentation considering several basis like function. o Departmentation by customer – practiced where customers are the guiding force for grouping the activities.g. The use of staff can be identified with the need for help in handling details. product.. It is the simplest form of structure & is also known as scalar or military form of structure. In L & S orgs.e.. o Departmentation by territory – all the activities pertaining to a given territory or area are grouped together & put under one dept. o Degree of specialisation o Attention to key areas o Coordination o Control o Cost consideration o Human consideration Composite structure: In practice. Line & staff organization ( relationship): The line executives are often described as the individuals who stand in the primary chain of command & are directly concerned with the accomplishment of primary objectives of the org. gathering data & offering advice on specific managerial problems. production dept. Departmentation is done to cater to the needs of clearly defined groups of customers. customer. etc.

Drawing line of demarcation between the two is practically a difficult task. the allocation of duties between them is not clear. Major source for L & S conflict is the difference in their view points & perceptions.Advantages of L & S organization: o Specialised knowledge o Reduction of burden o Better decisions o More flexible o Unity of command Limitations: o o o o Gives rise to conflict between line & staff executives In most orgs. L & S form leads to the creation of ‘status problem’ in org. personnel. & are put under the charge of functional specialist. Staff members are often treated as second grade executives & line members ignore staff advice & act according to their own thinking. objectives etc. causes for line & staff conflict as reported by L & S executives are as under. finance. Imp. are classified according to certain functions like production. It means placing specialists in top positions throughout the org. Line members view themselves imp. Important features of functional organization are – o Entire org. Under functional organization. o Resistance to new ideas – line members resist new ideas & consider staff as a threat to their status & authority. o Lack of accountability o Limited outlook of staff executives – staff members often work in a compartmentalised set up. Line’s viewpoint: o Undermining line authority – staff executives encroach upon line authority. o Academic approach – staff members are too much academic oriented & do not consider the practical problems of the org. & first class managers as they directly accomplish the objectives of the org. interfere in the work of line authority. marketing. fail to see the problem from the system’s point of view. It confers upon the holder of function position limited power of command. Line & staff conflict: Most of the times. o Careful implementation of new ideas Functional organization: It lies in between L & S authority. The subordinates under this form receive orders & instructions from several functional specialists or they are accountable to different functional specialists. their advice is often ignored. activities are divided into specified functions like production. No proper standard to measure the performance of staff members. Staff’s viewpoint: o Ignoring staff – line managers do not make use of staff. o Stealing of credit – staff take credit for the success of line executives. finance etc. various activities of the org. 5 . personnel etc. o Lack of enough authority How to improve L & S relationship? o Well defined line of demarcation between L & S authority o Placing qualified & trained personnel for staff position o Giving due consideration to the advice of staff o Working in coordination with each other on policies.

: In pure project org. membership in task force is temporary. aeronautical industries etc. faces some unusual problem which cannot be solved by a single individual or single dept. o The tenure may not be very long. Matrix organization: Matrix org. In matrix org. completion of assigned task etc. *The project manager draws personnel from various functional departments. The project team consists of people drawn from various functional depts. to have a structure which is highly flexible & technically sound. *The project & functional managers have different roles to play in matrix organization. Committee: Literally. Since the tenure of task force is over when the task or mission is over.. o Problem cannot be solved by single individual or dept. a person remains as part of it till his skill & knowledge are required. This form of organization cuts across functional lines. The essential features of task force are – o It is a temporary creation of separate unit of the org.o o Each functional area put under the charge of a functional specialist Before taking any decision relating to a particular function. Features of committees: o It is a group of persons . committee means group of people under the leadership of chairperson to whom some matter or charge is committed. A task force differs from matrix form in the sense that matrix form appears almost on continuous basis & people are assigned responsibilities in different projects during different time periods. the project manager has to share the resources with the rest of the organization. Project organization: Project organization is usually structured to facilitate the completion of specific projects like planning & designing of new product. Matrix org. o Problem facing may be quite new to the org. also known as grid is of recent origin in order to achieve flexibility in its functioning. The project led by project manager consists of specialists drawn from different areas. It is created by merging the two complementary organizations – the project & the functional It represents combination of functional & project organization. Difference between project & matrix org. has been developed to meet the needs of large orgs. It is used in industries with highly complex products like space research. complete responsibility for the project as well as resource allocation for its completion lies with one person called project manager. the functional specialist should be consulted. is built around a specific project. Task force: A task force is made up of a group of people with different backgrounds who are assigned a specific task or mission. Important features of matrix organization o Matrix org. usually. That means there are two lines of authority in matrix org. to the project & also to their parent dept..e. A task force is formed when the org. organization. Can be defined as a body of persons appointed to meet on an organised basis for the discussion & dealing of matters brought before it. Individuals working on a project under matrix structure have duel assignments i.

most of the works are done by teams. o Translation of rights. o Precise definition of rights. While designing the structure.e. in IT companies. The traditional man-boss relationship disappears. Mechanistic system – characteristics o Specialised differentiation of functional tasks o Abstract (summary) nature of each individual task o Reconciliation of various distinct performances by the immediate superior. For e. 7 .. o Reinforcement of hierarchic structure where final reconciliation of distinct tasks & assessment is made. Free-form organization: This model is based on the assumption that an organization is an open system & the basic task of a manager is to facilitate change in the org. authority & communication. is a system which works within the broad framework of an environment. theory – contingency approach: The basic implementation of this approach is that there can not be a single model or org. suitable for two types of environment – mechanistic system suitable for stable environment & organic system suitable for dynamic environment. o Members of the committee draw authority through delegation. other formal units & on the organizational hierarchy. Modern org. & obedience to superiors. The major difference between team & task force is that a task force is created to solve unusual problems whereas a team is constituted quite frequently to complete the given assignments. obligations & methods into responsibilities of a functional position. o A committee may be formed at any level in the organization.g. Factors affecting org. superior & subordinate o Operation & working behavior to be governed by instructions & decisions of superiors. various factors should be taken into account. Free-form structure reduces the emphasis on positions. depts. constituted for completing certain assignments. obligations & technical methods attached to each functional position.o It can deliberate only on matters brought before it. This form of organizations are suitable for industries which have to work in highly dynamic environments characterised by high flexibility & ever-changing character. structure which can be applied in all situations. Researchers have identified two systems of mgt. o Hierarchic structure of control. Advantages of using committees: o Pooling of knowledge & experience o Facilitates coordination o Fear of too much authority in a single person o Transmission & sharing of information o Motivation through participation Team: A team is a group of people in the org. structure: o Environment o Strategy o Technology o Size o People Environment: An org. o Insisting on loyalty to org. o Vertical integration between members i.

structure is expected to reflect the thinking & the way of working of its framers & participants i. & the division of activities & the network of relationship in the org. the relationship between the two should not be viewed merely as one-way but as two way traffic. o Commitment to task more highly valued than loyalty & obedience.. environment is the major determinant of choice of strategy. . communication is simpler. The major impact of technology on org. the structure could be designed to suit the requirements.e. o Lateral rather than vertical direction of communication i. may play a critical role in influencing the choice of strategy. o Network structure of control. relates itself with its environment so as to achieve its objectives. Structure should be according to the needs of the strategy so as to implement it effectively. people in the org. At the same time. it is one of the components of environment. The structure is the result of personality effect of its framers. Though. ultimately depends on the forces in people which may be forces in superiors & forces in subordinates. o Spread of commitment beyond technical definition. is a major source of satisfaction or dissatisfaction for its people. misdirection & splintered efforts within the org. downwards or sideways as someone else’s problem. The form of org. The nature of structure. When the org. o Jobs to be performed in org. Theoretically. Size of the organization: Various research studies indicate that size of the org. broadly speaking. is small. & reporting system & thus finally the org. determined by technology used – it determines the specific kind of skill required. If no coordination between the two. Understanding of this relationship is important so that in implementing the strategy. Though. communication between people of different ranks more of consultation rather than command. less information is required in decision making & there is less need for formal structure & vice versa. depends to a great extent on the technology being used. o Communication consisting of information & advice rather than instructions & decisions. are – o Major cause for productivity increase – efficiency of human resource determined by the type of technology used. other factors like strength & weakness & other personal factors are also important. Reconciliation of this two-way interaction is very crucial.e.Organic system – characteristics o Contributing nature of special knowledge & experience to common task of org. structure. authority & communication. Technology: It is another factor affecting org. structure. the structure of the org. However. People: The form or org. control. Strategy-structure relationship: There is close relationship between the two. is an imp. in a major way. factor in determining the org. interaction is confined to relatively a small group. the likely outcomes are – confusion. influences its coordination. Strategy: Strategy is the course of action through which the org. structure. size of an org. o Realistic nature of individual task o Adjustment & continual re-definition of individual task o No posting of problems upwards. direction. its impact on structure can be studied separately as it affects the structure of the org. The structure of an org.

Managerial authority has the following features – *It is the right or power to command & control the subordinates *Granted to a position to achieve the organizational objectives *May be exercised through persuasion or sanctions. 9 . If subordinates do not obey. D. the superior has to convince the employee to get his acceptance. authority. a manager has authority if he gets obedience from his subordinates. but outside this zone. structure affects need satisfaction of people by providing or denying the opportunity to work freely & in autonomous way. Manager’s feelings about the degree of autonomy & freedom required for their subordinates will have a major impact. A successful structure is the one which integrates these forces. Acceptability of an order depends upon its relative consequences-both positive & negative. structure which satisfies their needs for autonomy. To conclude.Forces in superiors – the design of org. What might be a suitable structure for one org. Thus. structure is the result of several operating forces at the workplace.O. less direct control & participation in decision making. the org. In addition to the above conditions. the employ will not question the use of authority. The ultimate authority lies with the shareholders who are the owners. superior has the right to take disciplinary actions. may not be so for another org. Formal authority has no significance unless it is accepted by the subordinates. structure of an organization should be tailor-made.D. Zone of indifference indicates the limits set by an individual within which he will respond willingly to the exercise of authority over him. chief executive to departmental heads & so on. Not all the orders will be accepted with equal enthusiasm. acceptance theory & competence theory. acceptance of authority is also fostered by the zone of indifference or area of acceptance.. Acceptance theory – according to this authority is the power which is accepted by others. search for a typical structure is a vain. Such a structure may be clearly different from the traditional one. Within this zone. It is the sum of the powers & rights entrusted to make possible the performance of the work assigned. Professional people can be better managed by org. The person carrying the responsibility for the performance of a given task also has the authority to perform it. O. Delegation of authority: Authority – authority is the right to order or command & is delegated from the superior to the subordinate to discharge his responsibilities. hierarchy & flowing downward through the process of delegation. to chief executive. Shareholders delegate this authority to B. is influenced greatly by many forces operating within manager’s personality. This theory of acceptance has certain limitations – according to it. Forces in subordinates – org. but the manager is unable to know whether his order is obeyed or not. Formal authority theory – authority is viewed as originating at the top of an org. B. An individual will accept the authority if the advantages accruing to him from accepting plus the disadvantages accruing from not accepting the authority exceeds the advantages accruing from not accepting plus the disadvantages accruing to him from accepting the authority. Responsibility – the work or duties assigned to a person by virtue of his position in the org. Kinds of authority – o Authority of knowledge o Authority of position o Legal authority Sources of authority: Can identify – formal authority theory.

Elements of delegation of authority – o Entrustment of responsibility to another o Granting of authority for the accomplishment of responsibility o Creation of obligation or accountability on the part of the person to whom delegated i. Delegation of authority: Delegation means devolution of authority on subordinates to make them perform the assigned duties or tasks. he can keep the control mechanism with him & let the subordinates execute the policy decisions. A person may get his order or advice accepted not because he is having any formal authority. Competence theory – an individual derives authority because of his personal competence. written or unwritten. Reduces the burden of manager Ensures healthy relation between superior & subordinates. Shared or splintered authority – a situation when authority is delegated to two or more persons together. o o o o o o o Widely recognised as one of the best methods of getting better results through subordinates.Further. but he can not delegate his authority to take policy decisions to his subordinates. However. but it overlooks the influence of social institutions like trade unions.e. but because of his personal qualities. Sharing of work load Quick decision making Motivation to employees Training to future managers Difficulties in delegation of authority: Difficulties on the part of superior – o Lack of receptiveness – ‘I can do better myself’ o Lack of ability to delegate o Unwilling to let go – desire of dominance over the work of subordinates o Lack of trust in subordinates o Ineffective control Difficulties on the part of subordinates – o Lack of self-confidence o Desire to play safe o Lack of incentives o Overburden with duties . Significance/advantages of delegation: o Delegation of authority is the key to org. These qualities may be technical competence & social prestige. Types of delegation – delegation of authority may be specific or general. A manager should delegate the authority to do the routine work. It is a process by which a superior makes it possible for others to share the work of accomplishing organizational objectives. It refers to the assignment of work to others & granting them the requisite authority to accomplish the job assigned. the theory emphasises reward & punishment a superior can use. Delegation consists of granting authority or the right to decision-making in certain defined areas & charging the subordinates with responsibility for carrying through the assigned task. success. precise or vague. holding him answerable for final results. It is practiced when a problem can not be solved without pooling the authority delegations of two or more persons.

o Inadequacy of authority. retains minimum control & delegates the authority of control to the departmental managers. 11 . information & other facilities Difficulties on the part of organization – o Defective org. the top mgt. Delegation basically means. It refers to the systematic efforts to delegate to the lowest levels all authority except that which can only be exercised at central points. entrustment of responsibility & authority from one individual to another. it is something more than delegation. When decentralisation ? o Has to take quick & appropriate decision on the spot in order to cash the opportunity present o Has to reduce the communication work o Urge for growth & diversification o Physical dispersion of activities Decentratisation is not the same as delegation. but decentralisation means scattering of authority throughout the org. It is the systematic & consistent reservation of authority at central point within the org. Why centralisation? – advantages *To facilitate personal leadership *To promote uniformity in action *To provide for integration of efforts *While handling emergency/unexpected situation Disadvantages – *Delay in decision making as it is to be taken at the top *Delay in the communication of the decision taken *Delay in getting the work done from subordinates *No scope for the growth of middle & lower level executives *Fate of the org. control rests entirely with the delegant. Other major differences between decentralisation & delegation are – o Under delegation. but under decentralisation. depends only on few top executives Decentralisation of authority – means dispersal of decision-making power to the lower levels in the org. Centralisation & decentralisation of authority: Centralisation of authority – means concentration of decision-making power at the top hierarchy of mgt. structure o Lack of clarity in authority-responsibility relation o Inadequate planning o Splintered authority o Lack of effective control mechanism o Infringement of the principle of unity of command How to make delegation effective/successful? o Well-defined goals o Adequate control system o Effective communication o Assignment of duties in terms of results expected o Clarification of limits of authority o Incentive system to take up the responsibility o Unity of command o Parity of authority & responsibility – that much authority should be granted which is sufficient to fulfill the responsibility.

. but decentralisation can not take place without delegation. Coordination among various activities might become difficult Might result in inconsistency in action throughout the org. Informal organizations.o o o o o Delegation is the process of devolution of authority. Delegation is a must i. Delegation takes place between a superior & subordinate. each bearing a definite measure of authority. emotions. responsibility & accountability. accountability. Advantages of decentralisation – o Reduction in the burden of top executive o Quick decisions o Diversification of activities o Development of managerial personnel o Effective control & supervision o Improves the level of motivation & morale Limitations – o o o Increases administrative cost as personnel should be specially trained at various levels. may or may decide to disperse authority. dislikes etc. prejudices. also helps in determining the objectives of various departments *Ensures optimum use of resources & development of new technology *Better communication through well defined authority-responsibility relationship *Clear-cut division of work. decentralisation is optional in the sense top mgt. Network of personal & social relations not established or required by formal organization. avoids wastage of resources & conflict among members *Coordination among activities of different departments *Motivation to employees for personal advancement through promotion *Stability in the functioning of the enterprise through procedures. Delegation can take place without decentralisation. subordinates must be given sufficient authority to perform their work.e. policies. but arising spontaneously as people associate with one another. no duplication of efforts. whereas decentralisation is the end-result. rules & regulations. based on personal attitudes. Delegation creates superior-subordinate relationship while decentralisation results in diffusion of decision-making authority throughout the org. policies. Refers to the relationship between people in the org. goals. Such relations not developed based on procedures. to achieve the common goals *Structure is based on division of labor & specialisation in order to achieve efficiency *The structure concentrates on the jobs to be performed & not on the individuals *No scope for sentiments & emotions among members *Respect for authority-responsibility relationship Significance/importance: *Facilitates the attainment of org. rules & regulations etc. whereas decentralisation involves spreading of decision-making power throughout the org. likes. Characteristics – *Organization structure laid down by top mgt. – Chester I Barnard It is deliberately designed to achieve some particular objectives It refers to the structure of well-defined jobs. Formal organization: A system of consciously coordinated activities or forces of two or more persons.

(plays supplementary role) *Psychological satisfaction to members – platform to express their feelings If handled carefully. culture etc. will help in performing the activities in an effective & efficient manner. In order to be called a group. language. Objectives – *Overall improvement of quality of products produced *Improvement in the production methods & productivity of workers *Self-development of workers who take part in Q. problems. Informal relations are complementary to formal relations & procedures. language. culture etc. To conclude. *Membership is voluntary Significance – *Useful channel of communication (informal) which is faster than formal channel *Supports formal org. gives rise to informal groups called informal org. informal org. religion. Q.C. *Negative attitude *Lack of ability 13 . A highly cohesive group is more powerful & is more likely to act in unison (unanimity) when its expectations are not realised. dynamics. an aggregation of persons must fulfill the following conditions *People must interact with one another *Must be psychologically aware of one another *Should perceive themselves to be a member of the group.Large formal groups give rise to small informal or social groups based on common taste. *Encouragement for innovative ideas *Building high morale by developing team-work Benefits – *Encourages innovations & changes *Valuable tool for improving productivity.C. level of job satisfaction etc.C. It is concerned with interaction of individuals in a face-to-face relationship. are relatively autonomous units led by a supervisor or senior worker & organised as work units. Man being a social animal wants to have social interaction at the work place. Quality circle: A quality circle is a small group of employees doing similar or related work who meet regularly to identify. *Provides identification with the group to the workers Problems in implementing Q. analyse & solve product-quality problems & to improve general operations. The greater the degree of attachment. the greater is the likelihood that all the members will conform strictly to the group standard & that the leader will represent the feelings of all the members. Group cohesiveness: Refers to the degree of attachment of the members of a group. both formal & informal organizations are necessary for any group action just as two blades are essential to make a pair of scissors workable Group dynamics: The social process by which people interact face-to-face in small groups is called group dynamics. Features – *Informal relations arise spontaneously – unplanned *Formation is a natural process *Basically reflects human relationship *Based on common taste.

structure. In the context of org. traditions & values shared by the member of the org. conflict in org. *Inter-group conflict – conflict between different groups in the org.*Lack of mgt. The human relationists held the view that conflict is a natural occurrence in a group. commitment *Non-implementation of suggestion Organizational culture: Organizational culture is the totality of beliefs. conflict & consideration. behavior & performance of the members. They are – *Selection of employees *Actions of top mgt. *Inter-personal conflict – arises because of differences between the choices made by different individuals in the org. Intra-individual conflict means the individual is in a state of conflict in his mind as he is not able to take any decision in a given situation. Inter-individual conflict means two persons are unable to reconcile. *Socialisation – process of indoctrinating new employees Dynamics of conflict: Conflict may be viewed as a breakdown in the standard mechanism of decision making. & since it is inevitable. . it must be resolved amicably to achieve good human relation. groups org. It exercises a significant influence on the attitudes. This approach encourages conflict because. reward. It is concerned with how employees perceive the basic organizational characteristics like individual autonomy.inter group conflict results in solidarity among group members & higher degree of loyalty Types of conflict – *Vertical conflict *Horizontal conflict *Line-staff conflict Levels of conflict – *Intra-individual conflict – conflict within an individual *Role-conflict – arises when a person in a role is not able to respond to the expectations of other persons. Maintenance of organizational culture – once a particular type org. was viewed very negatively. a harmonious. culture is created. Modern view point is that conflict is not only a positive force. perceived that it could cause loss in productivity as there would not be cooperation among the group members. conflict arises when individuals are not able to choose from among the available courses of action Traditionally. there are three practices that can keep the culture alive. peaceful & cooperative group is likely to become static & non-responsive to the needs for change & innovation.. but is also necessary for the group to perform effectively. It is instrumental to increase production & satisfaction. customs. Positive aspects of change – *Release of tension – members get a chance to express their views & thus get psychological satisfaction *Creativity *Stimulation of change *Group cohesiveness.