FUNDAMENTAL OF MANAGEMENT

BBA 1st SEMESTER & BCA 1st SEMESTER

UNIT 3

BY: Ms. Ruba Nasim

MANAGEMENT

Management can be defined as a process of getting the work or the task done that is
required for achieving the goals of an organisation in an efficient and effective manner.
Management.gets complete when planning, organising, staffing, directing and controlling are
applied for smooth functioning of an organization.

The basic yet important characteristics of the principles of management are planning,
organizing, directing, staffing, and controlling. A manager or authority must perform all these
duties simultaneously.
ORGANISING

Organising is a managerial activity that involves arranging and structuring of responsibilities

and work of the employees for attaining the desired result. The organising function requires
effective skills, a proper chain of command, authority, a delegation of work, and efficient
control.

It is defined in terms of allocating the duties and responsibilities to different employees of

various departments in a coordinated manner for a common purpose. Organising also involves
the integration of the various relationships among different activities and job responsibilities
for attaining the goals of an organization as a whole.

According to Stoner, Organising is the process of arranging and allocating work, authority, and
resources among an organisation’s members so that they can achieve the organisational goal.

Organising is an important function of management and requires various skilled managers and
employees for completing tasks.

The main activities involved in the organizing are:

 Division of work among employees

 Coordinated efforts of employees to achieve specific objectives
 Implementation of predetermined strategies

OBJECTIVES OF ORGANISING

The important objectives of organizing functions are:

 It helps to achieve organizational goals, both short term and long term.
 It ensures the optimum utilization of resources.
 It ensures an effective organizational structure.
 It facilitates the other function management such as planning, staffing, directing, and
control.
 It facilitates the growth, expansion and diversification.
PRINCIPLES OF ORGANIZING
The concept of organising is based on the following principles:

 Chain of command
 Delegation of authority
 Span of control

1. Chain of Command
The chain of command involves the hierarchical structure of the organisation and the line of
authority that connects them in the organisation.

The chain of command works on two basic principles, which are as follows:

a) Unity of command: This principle ensures that all the employees working in an
organization report to a single manager who is the functional authority. The line
of command is defined clearly and all the employees are supposed to follow that
line. Having to report to two or more managers can lead to conflicts at the time of
work.

b) Scalar principle: The principle of scalar chain means a straight line of authority
from top-level management to the ground level. At the core of this principle, the
information should be strictly communicated in a hierarchy either from top to
bottom or bottom to top. With the scalar chain principle, in an organization, a
clear path of communication is maintained.

2. Delegation of Authority
Effective organisation is possible through efficient delegation of authority. With the delegation of
authority, employees get the power to complete the assigned tasks in their own ways. The
process helps in increasing employee job satisfaction and leads to ensuring better job
performance.

3. Span of Control
The span of control is the method of ensuring control over the workforce by defining their roles
and responsibilities and monitoring their activities. It is easy for the authority to control the
limited number of people in the team that can improve the quality and prove the efficiency of the
work.
IMPORTANCE OF ORGANISING

The importance of organising are as follows:

 Promotes effective delegation and management

 Provides efficient administration
 Optimum use of human resources
 Growth and expansion
 Ensures flexibility and adapting to changes
 Ensures coordination and communication
 Ensures job satisfaction

i. Promotes effective delegation and management

A successful organisation works efficiently by proper planning for increasing managerial efficiency
and avoiding delays and duplication of work. They motivate the employees to work effectively by
reducing the response time.

ii. Provides efficient administration

Organising is an important tool that is used by different companies for achieving their goals. It also
helps in learning and improving the quality of employees, resulting in better administration
overall.

iii. Optimum use of human resources

An efficient method of organising ensures the accurate matching of roles and responsibilities for
the people in the organisation as per their knowledge, skills and abilities (KSA). The process of
matching jobs with their skills leads to better performance and better use of employees.

iv. Growth and expansion

Efficiency in work contributes to the growth of the organisation which leads to further
development of the nation.

v. Ensures flexibility and adapting to changes

An effective organising function enables employees respond quickly to changes that may take
place frequently in the business environment. This is because they follow a proper method to
learn and perform which makes their roots strong. For example, an organisation may adopt new
technology by being more creative and encouraging innovative ideas.
vi. Ensures coordination and communication
Organising is an important means of integrating and coordinating which supports in team building
and understanding each other. There are many activities which are completed by continuous
efforts of all employees.

vii. Ensures job satisfaction

The process of organising is based on the principle of participative management where employees
are involved in the process of planning. It makes the employees feel important and part of the
organisation which increases their level of productivity and job satisfaction.

PROCESS OF ORGANISING

(i) Identifying and Dividing the Work: Under organising, the very first step deals with
identifying the activities and dividing them according to the persons and defined
plans. The actions are divided as per the objectives. A clear division of work is done so
as to avoid any duplicity.

(ii) Creating Departments: Herein, the divided actions are further grouped into units
based on the similarity in nature. That is, similar activities are grouped together. Such
departmentalization promotes division and easy working. Each department
specialises in a particular task. Departments can be formed on the basis of several
criteria such as working profiles, regions, product, etc.

(iii) Assigning Duties: The third step under organising deals with assigning the roles and
responsibilities to the employees. Under each department work is allocated to
different members as per their skill and ability.

(iv) Establishing the Relationships: Any organisation needs good relations to work
smoothly. Every person should know how to make relations with team mates &
external clients.
WHAT IS AN ORGANIZATION?

An organization is an entity such as a company or an association that consists of one or more

people and has a specific purpose. The word is derived from the Greek word organ, meaning
instrument. An organization is a group of people who work together in an association, a charity, a
union, or a corporation.
There are five common types of organizations which are as follows-

TYPES OF ORGANIZATION

1. Line Structure Organization

Line structure organization is the simplest and oldest form of organization structure. It is
called as a scalar type of structure. Under this system, authority flows directly from the top of
the management to downwards, to different levels of managers, subordinates, operational
workers.

Advantages of Line Structure Organization: –

 Simple to understand and simple to operate.
 Communication is fast and easy.
 Feedback can be acted upon faster.
 Responsibility is fixed.
 It is a stable form of organization.
 Disadvantages of Line Structure Organization: –
 It is a rigid and inflexible form of organization.
 Line authority has a tendency to become overload at times.

2. Line and Staff Organization

A line and staff organization structure attempts to present a large and complex team in a more
flexible way. Staff groups help the organisation in analysing, researching, counselling,
monitoring, and in evaluating activities.

Advantages of Line and Staff Organization: –

 Line officers can mainly focus on the task as planning and checking.
 Since the organization includes line and staff functions, decisions can be made easily.
 Staff officers provide complete factual data to line officers. This will help to create more
coordination.
 It provides many opportunities for the advancement of workers.

Disadvantages of Line and Staff Organization: –

 Confusion and conflict may arise between the line and the staff.
 Since staff specialists demand high pay, it is expensive.
3. Functional Structure Organization
Functional Structure Organization is one of the most common structures of organization. They
are grouped based on their specific skills and knowledge. Under this structure, the employees
are divided into groups by the organization according to a particular or group of tasks.

Advantages of Functional Structure Organization: –

 The executive or the team leader has the knowledge and experience of that particular field.
 Because the employee has expertise in that particular field, the work gets more efficient
and simple. There are fewer mistakes.
 Since all team members come from similar backgrounds it allows them to share ideas and
come up with solutions. There is a sharing of knowledge, which is always beneficial.

Disadvantages of Functional Structure Organization: –

 In this structure, if the correct approach is not taken then conflicts may arise between the
employees regarding promotions or appraisals.
4. Matrix Structure Organization
A matrix organizational structure is a structure of organization in which some individuals
report to more than one supervisor or leader. For example, an employee may have a primary
manager they report to as well as one or more project managers they work under.

Advantages of Matrix Organization: –

 Since there is both vertical and horizontal communication, it increases coordination and this
leads to greater and more effective control over operations.
 As the matrix organization is handling many projects, the available resources will be fully
utilized.

Disadvantages of Matrix Organization: –

 Since, there is more than one supervisor for each worker, this causes confusion and conflict
and reduces effective control.
 There is continuous communication both vertically and horizontally, which increases paper
work and costs.

5. Project Structure Organization

A project structure organizational structure is used to determine the hierarchy and authority
of people involved in a specific project.
 Advantages of Project Structure Organization: –
 It helps in understanding the relationship between environment, strategy and structure.
 As experts from different organizations are ready to work together under the project
organization, it helps in coordination.

Disadvantages of Project Structure Organization: –

 The uncertainty can be attributed to the diverse background of the professional who is
deputed in the project.
 Project completion may be delayed.
 Effective project management can also be hindered by top management who may not be
fully aware of the problems in the project center