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• Presented by:
– Mohd. Imran Ansari 06 – Nitesh Chavan 18 – Brijesh Dutta 28 – Manoj Gorivale 38
– James Mooney – Louis Allen
• Organization as a structure means the framework within which people work collectively in order to achieve certain well defined objective. • The form of every human association for the attainment of common purpose
Need & Importance of Organization
Facilitates coordination Optimum utilization of resources Encourages specialization Facilitates growth expansion and diversification • Optimum use of technology • Motivates people • Encourages initiative and innovation • • • •
Principles of Organization
• • • • • • •
Specialization Unity of objectives Delegation of authorities Coordination Unity of command Flexibility Span of control
• • • • • • •
Simplicity Scalar of chain Authority and responsibility Exception principle Proper balance Efficiently Separation of line and staff functions
Nature and Characteristics of Organization
• • • • • • • •
Common goals Structure of relationships Division of work Group of individuals Coordination Authority Rules and regulations Environment
Formal and Informal Organizational Structure
• Formal Organization Structure
– Chester Bernard
• An organization is formal when the activities of two or more person are consciously coordinated towards common objectives.
• Informal Organization Structure
– Informal organization is a network of personal and social relations not established or required by the formal organization but arising spontaneously as people associate with each other.
Steps in the process of Organizing
• Defining Org. Objectives. • Determination of Objectives to achieve goals. • Enumeration of activities. • Arranging for resources. • Allocation of duties. • Delegating Authority. • Estb. Of Superior-Subordinate Relationship. • Co-ordination.
• • • • • • •
Nature of Business. Degree of Control Desire. Amt. Of Capital Required. Degree of Risk & Liability. Division of Surplus. Duration of Business. Govt. Regulation & Control
Factors to be Considered in Selecting a Suitable form of Organization
• Managerial Requirements. • Flexibility of Operation. • Tax Burden. •
Forms of Project Organization
• • • • •
Line & Staff Organization Functional Organization Structure Divisional Organization Pure Project Organization Matrix Organization
Line & Staff Organization
• Project coordinator • Combines - Line & Staff Executives
Characteristics / Features
• Line Executives :
– Doers – Execution of Plans & policies – Absolute & clear authority for Execution of decisions
• Staff Executives
– Thinkers – Research & Planning Activities – Authority over subordinates
• Louis Allen
– Line: Responsibility, Authority & Accountable for accomplishment of primary objectives. – Staff: Responsibility & Authority for Advice & Service to the line in attainment of objectives.
Suitable for large-scale business Flexible Specialization Unity of command and control Sound decision-making Well defined authority & responsibility • Less burden on line executives • Training & development opportunities • • • • • • •
• • • • • • • E xp e n si o p e ra ti n ve o D e ci o n -m a ki g d e l ye d si n a La ck o f d i p l n e sci i S h i n g o f re sp o n si i i fti b l ty La ck o f a u th o ri ty To o m u ch d e p e n d e n ce o n sta ff C o n fl cts b e tw e e n l n e & sta ff i i
• Developed by F. W. Taylor • Work must be decided by functions and not by mere authority. • System of functional foremanship. • Principle – Separation of planning from execution. • Eight special foreman – Guide, direct & control the work •
• Division is based on functions – Functional organization. • 8 functional bosses.
– 4 at planning level. – 4 at shop floor level.
Foreman at Planning Level
• • • • • Route clerk Instruction card clerk Time & cost clerk Disciplinarian
Foreman at Shop Floor Level
• • • • • Gang boss Speed boss Repair boss Inspector
• • • • • • • Facilitate specialization Benefits of large-scale operations Facilitates coordination Flexibility Effective supervision Reduced pressure of duties
• No unity of command • Divided responsibility • Unsuitable to non-manufacturing activities • Expensive • Decision-making delayed • Foreman conflicts • Difficulty in coordination • Lack of training opportunities • Lack of discipline