ORGANIZING AND STAFFING

MEANING OF ORGANIZING
 Jones, George and Hill: “organizing is a
process by which managers establish the
structure of working relationship among
employees to allow them to achieve
organizational goals efficiently and
effectively”
 Louis Allen: “organizing in management
refers to the relationships between people,
work and resources used to achieve
common goals”
PRINCIPLES OF ORGANIZING
 Clarity about objectives: The purpose for which
organization exists is clearly defined or explained
 Division of work: Specific task is assigned to specific
worker so as to generate specialization and
efficiency at work and ultimately higher productivity
 Unity of command: Each person in an organization
should receive orders from a single superior so that
confusions and dilemma at work can be prevented
 Scalar chain: There must be clear lines of authority
running from top to bottom and to avoid confusion,
authority and responsibility of each supervisor
should be clearly explained in written
…CONT
 Span of control: The number of subordinates who
directly report to a manager is called span of control.
There should be effective leadership in organizing to
perform different tasks effectively
 Co-ordinate: There should exist a great coordination
among different departments for effective and
efficient achievement of goal
 Authority and responsibility: The employees should
be given authority and responsibility in balanced
manner
 Separation of line and staff function: Line function are
those which enable to achieve organizational goals
while staff function
DELEGATION
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 ORGANIZATIONAL
ARCHITECTURE

 The terms architecture refers to the structure and

form by which an organization operates.

 Organizational architecture makes best use of

goods and services in order to fulfill the customer
wants.

 Architecture is the combination of organizational

structure , control system, culture ,and human
resources mgmt system that determines how
efficiency and effectively organizational resources
are used.

 It is the network of relationships among these

ORGANIZATIONAL
ARCHITECTURE

PEOPLE
 The organizational architecture is classified
into two building blocks:-
1. Differentiation (allocation of employees to
perform specific task)
2. Integration ( coordination between employees or
functions or departments)

Differentiation is further divided into two types:

Horizontal Differentiation

Vertical Differentiation
VERTICAL
DIFFERENTIATION
 Related to distribution of decision making.
 It is the hierarchical structure consisting of
vertical dimensions of different level of
authority and responsibility.
 Vertical differentiation determines reporting
relationships and the nature of structure it
resembles are:
 Tall structure
 Flat structure
Tall Structure

 A tall organization have many level of authority.

 It is resulted due to the growth in organizational
size

1
Flat structure
 Wider span of control
 The management trusts the employees and
authority is delegated to them
 Democratic style of organization

1
 Horizontal Differentiation
 The allocation of different units at a same level
 Organization tends to become more complex
 Prioritizes specialization and departmentation

function Multi-divisional matrix team netwo ?

al rk

mechanistic organic
units under horizontal
differentiation

function Multi-divisional matrix team netwo ?

al rk

mechanistic organic
Functional structure

 The creation of units and sub-units of activities in

an organization on the basis of functions is known
as functional structure
 Whole activities of organization are divided into
different functional area and different specialists
are appointed for each functional area
 Subordinates are responsible for the activities
inside their department
 It lacks command among employees
Sales persons Office employee
Plant employee
Multi-Divisional Structure
 It is undertaken when organization increases
in size
 Creation of a series of business units
 Each unit concerned for specific kind of
purpose
The types of units under this structure are:
1. Product
2. Market
3. Geographic
Product Structure

GM

Heavy duty lorry

Two wheeler division Four wheeler division
division

functions
Product structure
 Created to fulfill diverse demand of
customers with ease
 Manufacture of each product is designated
to a particular division
 Each unit is controlled by a different
manager
Market structure

GM

Large business Small business Educational Individual

customer customer institution customer

functions
Market structure
 Concerned with marketing of goods
 Study on specific costumer for each
product
Geographical structure

GM

Northern region Southern region Eastern region Western region

functions
Geographical structure
 An example of territorial departmentation
 The market of a particular area is delegated
to a single unit
 Most widely applicable for multinational
companies
 Product
Product team manager

Team A

Product
Team B

Product
Team C

Product
Team D
Matrix structure
 Matrix organization is also called project
organization, grid organization or multiple
command system.
 Provision of project and functional manager
 Integration of the efforts of functional authority
and project authority for achieving the goal
 In this type of structure, general manager
delegates his authority to the functional
manager, who further instructs and guides
other subordinates
 Responsibility & Authority

1. Responsibility
 The duty discharged to carry out delegated
work in a satisfactory way
 An obligation to perform the task as directed
or ordered by high level body
Establishing Task and Reporting
Relationships
 Establishing task is the process by which
manager decides how to divide the work into
specific tasks that have to be performed by the
division or department

 Creating specific task for the each employee is

the first responsibility of manager.
 Result of establishing task is a division of
labour among employees.
 Interesting n motivating types of task should
be given to employee to increase the efficiency
.Too much simplification may reduce efficiency
rather than increase it.
 Reporting Relationship is often called the chain of
command, which is the unbroken line of authority
that links all employees in an organization and shows
who reports to whom.

 Once the tasks are defined, the next step is how

those activities and tasks should be fit together in
the organization level.
There are two types of reporting relationship:

 Direct ( solid –line) Reporting

 Indirect (Dotted –line)

Creating Accountability culture in
organization
 “Accountability is the obligation to one’s
superior to carry out the assignment in a
satisfactory manner.”
 To perform the delegated work satisfactorily
and give answer to the superior about the
performance is accountability.
 The culture of a company takes on an element
of accountability when employees are self-
motivated to contribute to the overall success
of the company.
 In a culture of accountability , people at every
level of the organization are personally
committed to achieving key result targeted by
the team or organization.
Ways to create culture of accountability
 All the subordinates should be oriented
towards a same goal
 Responsibilities should be clear and lots of
interaction is required
 Good supervision is needed
 Employees should be known about the status
of their organization and outcome of their
efforts
 Cooperative environment in organization
should be created
 Drawbacks should be checked and success
should be rewarded and celebrated
 Employees should develop the feeling of “what
2. Authority
 Necessity to exercise the responsibility
 The right to act the power to make decisions,
issue orders and allocate resources to achieve
desired organizational outcomes
 A person with authority influences the activity or
behavior of another individual or group
 Every manager has certain authority towards their
own related department
 Authority relationships are the base for
organizational structure and can be classified
into two categories:
 Line Authority: It is the direct type of authority,
which a superior exercises over his or her
subordinates
 Scalar or military type of structure
 Each manager takes a complete charge of work
assigned to him/her

salespersons Office employee

Plant employee
Staff Authority
 This type of authority involves in giving advice
and counsel to line manager to carry out their
operations.
 Restricted to the designated functional area
 Staff authority is required for the efficiency and
economy of operation
 Some staff specialists are employees to assist
the line managers. so it is converted into the
line-staff organization.
 Line-staff authority

salespersons Plant employee Office employee

Delegation Of Authority
 The process of granting authority to the
subordinate level employees

 The process of entrusting work to others who

are qualified to accept responsibility for doing
the work
 Basic requirement to get responsibilities
fulfilled
Advantages of Delegation of
Authority
 Minimizes workload of Manager
 Provides Motivation to Employees
 Leads to the better decision
 Facility of growth and expansion
 Important method of developing managers
and staff
 Basis of organizing
Problems Associated with
Delegation of Authority
 Incompetent subordinate
 Unwillingness to delegation of authority
 Fear of competition among subordinates
 Employees may try to avoid or accept
additional responsibilities .
 Lack of confidence
 The vague job descriptions often confuse
the manager.
Centralization
 The systematic reservation of decision
making authority at the top level
management
 Top level management have direct
control over each and every activity of
the organization.
 Suitable for small organization.
 According to R.W Griffin “ centralization
is the process of systematically retaining
power & authority in the hands of high
level managers.”
Advantages
of Centralization
 Quick Decision
 Uniformity in Action
 Simplified organizational structure
 Minimization of the economy in operation
 Suitable for small firms
Disadvantages
 Unsuitable for large Firms
 Create high burden to managers
 Possibility of power misuse
 Lack of Motivation
 Inappropriate for routine decisions
Decentralization and
Devolution
 Decentralization is the philosophy of
systematic delegation of managerial authority
to the middle and front line level manager.
 Devolution is the power of elaborating and
implementing their own policies and straggles,
and of allocating resources to different
activities within the domain assigned to them.
 According to Dales S.Beach “
Decentralization means placing the
authority and decision making power as
close as possible to the level at which
the work is done”
Advantages

 Reduction of work load of managers

 Possibility of better decision
 Effective Control
 High Motivation
 Development of Capable managers
 The development of generalists rather than
specialist is encouraged
Disadvantages
 Increase in expenses
 Effective communication is needed
 More possibility of duplication of work
 Not suitable for small organization
 Problem in coordination and control
 Difficulty in emergencies
Emerging Concepts in
Organizing and Design

1. Boundary less organization concept

2. Learning organizational concept
3. Team based organizational concept
4. Matrix and project structure concept
5. Autonomous internal units
Staffing
 The arrangement of necessary manpower for an
organization
 The task of supplying human resources to
different posts according to quality and
experiences as needed by the structure of the
organization
 The planning of all kinds of the necessary
manpower for the organization
 Includes all the activities relating to selection,
recruitment, placement, development, training,
remuneration/ compensation , rewarding,
motivating, etc of all the necessary manpower for
the organization
Definitions
 According to Koontz and Weihrich –
“Staffing is the filling and keeping filled
position in the organization.”
 “filling positions in an organizational
structure through identifying workforce
requirements, inventorying the people
available, recruitment, selection,
placement, promotion, appraisal,
compensation and training of needed
people”
-Harol Koontz and Cyril
O’Donnell
Importance of staffing
 Basic function for managing staff and
enhancing their performance
 Ensures the selection of right people for
each job
 Provides planning for effective utilization of
potential and efforts of staffs
 Enables to have specialization at work
 Maintains positive vision towards job in
staffs through trainings and promotions
 Ensures social justice by providing special
consideration for unique capacities of
employees
 Maintains pleasant working environment
Components of staffing
Recruitment
and selection

HR Training and
planning development

Pay and Appreciation

benefits and feedback