Company and its classification

According to The Companies Act (Bangladesh), 1994 "company"

means a company formed and registered under this Act or an
existing company.

"existing company" means a company formed and registered

under any law relating to companies in force at any time
before the commencement of this Act, and is in operation after
commencement of this Act,
 Industry classification on basis of
Large Industry size
In manufacturing, large industry will be deemed to comprise enterprises with
either the value (replacement cost) of fixed assets excluding land and building in
excess of Tk. 300 million or with more than 250 workers.

Medium Industry
In manufacturing, medium industry will be deemed to comprise enterprises with
either the value (replacement cost) of fixed assets excluding land and building
between Tk. 100 million and Tk. 300 million, or with between 100 and 250
workers.
 Industry classification on basis of
Small Industry size
In manufacturing, small industry will be deemed to comprise enterprises with
either the value (replacement cost) of fixed assets excluding land and building
between Tk. 5 million and Tk. 100 million, or with between 25 and 99 workers.

Micro Industry
In manufacturing, micro industry will be deemed to comprise enterprises with
either the value (replacement cost) of fixed assets excluding land and building
between Tk. half a million and Tk. 5 million, or with between 10 and 24, or
smaller number of, workers.
Organization Structure
 What is Organization
A social unit of people systematically structured and managed to meet a need or to pursue
collective goals on a continuing basis.

After the objectives of an organization are established, the functions that must be
performed are determined.
Personnel requirements are assessed and the physical resources needed to
accomplish the objectives determined.
These elements must then be coordinated into a structural design that will help
achieve the objectives.
Finally, appropriate responsibilities are assigned.
 Organizational structure
It is a framework within which an Organization arranges it’s lines of
authorities and communications and allocates rights and duties.

Purpose of organizing
Divides work to be done into specific jobs and departments.
Assigns tasks and responsibilities associated with individual jobs.
Coordinates diverse organizational tasks.
Clusters jobs into units.
Establishes relationships among individuals, groups, and departments.
Establishes formal lines of authority.
Allocates and deploys organizational resources.
 Types of Organizational Structure
LINE ORGANIZATION:
The line organization is the simplest organizational structure.
 It is the "doing" organization, in that the work of all organizational units is
directly involved in producing and marketing the organization's goods and
services.
There are direct vertical links between the different levels of the scalar chain.
Since there is a clear authority structure, this form of organization promotes
greater decision making and is simple in form to understand.
 Types of Organizational Structure
LINE AND STAFF ORGANIZATION
When staff specialists are added to a line organization to "advise; "serve;” or
“support" the line in some manner, we have a line and staff organization.
These specialists contribute to the effectiveness and efficiency of the
organization. Their authority is generally limited to making recommendation to
the line organization.
Human resources management and research and development are typical staff
functions.
 Types of Organizational Structure
COMMITTEE ORGANIZATION
When a group of people is formally appointed to consider or decide certain
matters, this type of structure is a committee.
Committees can be permanent (standing) or temporary and usually supplement
line and staff functions.
Sometimes ad hoc or temporary committees are set up to deal with a specific
problem. Once this committee makes its recommendations, it is dissolved.
On the other hand, permanent committees usually act in an advisory capacity to
certain organizational units or managers.
An example is an executive committee of the board for compensation or for
succession planning.
 Organizational Chart
A process involving decisions about six key elements:

 Work specialization
 Departmentalization
 Chain of command
 Span of control
 Centralization and decentralization
 Formalization
 Organizational Chart
Work specialization:
The degree to which tasks in the organization are divided into separate jobs
with each step completed by a different person.
Over specialization can result in human diseconomies from fatigue, stress, poor
quality, increased absenteeism, and higher turnover.

Span of Control
The number of employees who can be effectively and efficiently supervised by a
manager. Width of span is affected by:
Skills and abilities of the manager
Employee characteristics
Characteristics of the work being done
Similarity of tasks
Complexity of tasks
Physical proximity of subordinates
Standardization of tasks
 Organizational Chart
Chain of Command
The continuous line of authority that extends from upper levels of an organization to
the lowest levels of the organization and clarifies who reports to who.

Centralization
The degree to which decision-making is concentrated at a single point in the
organizations.
Organizations in which top managers make all the decisions and lower-level
employees simply carry out those orders.

Decentralization
Organizations in which decision-making is pushed down to the managers who are
closest to the action.
 Organizational Chart
Formalization
The degree to which jobs within the organization are standardized and the extent to
which employee behavior is guided by rules and procedures.
Highly formalized jobs offer little discretion over what is to be done.
Low formalization means fewer constraints on how employees do their work.

Employee Empowerment
Increasing the decision-making authority (power) of employees.
 Organizational Chart
DEPARTMENTALIZATION
Grouping related functions into manageable units to achieve the objectives of the
enterprise in the most efficient and effective manner is departmentalization.
A variety of means can be utilized for this purpose. The primary forms of
departmentalization are by function, process, product, market, customer, geographic
area, and even matrix (also called project organization).
In many organizations, a combination of these forms is used.

FUNCTION
Perhaps the oldest and most common method of grouping related functions is by
specialized function, such as marketing, finance, and production (or operations).
 Organizational Structure Design
PROCESS
Departmentalization can also take place by process. This type of departmentalization,
which often exists in manufacturing companies

PRODUCT
Whenever specialized knowledge of certain products or services is needed,
departmentalization by product may be best. This usually occurs in large diversified
companies.
 Organizational Chart
CUSTOMER
Sometimes key or major customers warrant departmentalization by customer. This is often
the case in banks. Customers’ needs and problems can be met by specialists

GEOGRAPHIC AREA
When organizations are spread throughout the world or have territories in many parts of a
country, departmentalization by geographic area may provide better service to customers
and be more cost effective. A typical example for this form of departmentalization.
 Authority
Authority - It is the formal right given to a manager to command or to give orders to
perform a certain task.

Authority is given to a manager to achieve the objectives of the organization.

It is a right to get the things done through others.
It is a right to take decisions.
A manager cannot do his work without authority.
A manager gets his authority from his position or post. He gets his authority from
the higher authorities.
The lower and middle-level managers get their authority from the top-level
managers. The top-level managers get their authority from the shareholders.
Authority always flows downwards. It is delegated from the top to the bottom.
Personnel Management
 What is Personnel
Management
'Personnel management' is that part of management concerned with the
management of people at work. In recent years the term 'human resource
management' has frequently been used in preference to 'personnel
management'.

Most organizations have a specialist personnel department which gives support

to managers and supervisors, who have direct responsibility for the management
of people.
A wide range of people - personnel specialists, line managers and supervisors
practice personnel management.
There are a number of specialist management techniques which together
comprise personnel management.
The practice of personnel management varies greatly from one organization to
another.
 Function of Personnel
Management
Personnel management is that part of the management process concerned with:

recruiting people;
training and developing them for their work;
employee selection- ensuring that their payment and conditions of
employment are appropriate, where necessary negotiating such terms of
employment with trade unions;
Manpower planning- Engage right people on right place, advising on healthy
and appropriate working conditions;
 The encouragement of relations between management and work people.
 Role of Personnel Manager
Personnel manager is the head of personnel department. He performs both
managerial and operative functions of management. His role can be summarized as :
Personnel manager provides assistance to top management- The top management
are the people who decide and frame the primary policies of the concern. All kinds
of policies related to personnel or workforce can be framed out effectively by the
personnel manager.
He advices the line manager as a staff specialist- Personnel manager acts like a
staff advisor and assists the line managers in dealing with various personnel matters.
As a counsellor,- As a counsellor, personnel manager attends problems and
grievances of employees and guides them. He tries to solve them in best of his
capacity.
Personnel manager acts as a mediator- He act as a negotiator between
management and workers.
He acts as a spokesman- Since he is in direct contact with the employees, he is
required to act as representative of organization in committees appointed by
government. He represents company in training programmes.
Thank you