Unit-3: Organizing and Staffing

ORGANIZING AND STAFFING

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• The Nature and Purpose of Organizing:

1. The identification and classification of required
activities
2. The grouping of activities necessary for attaining
objectives
3. The assignment of each group to a manager with
the authority(delegation necessary to supervise it
4. The provision for coordination horizontally and
vertically

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Definition:

A formalized intentional structure of Roles and

Positions.

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Formal and Informal Organization:

1) Formal Organization: The intentional structure

of Roles in a formally organized enterprise.

2) Informal Organization: A network of

interpersonal relationships that arise when people
associate with each other.

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Organization Levels and Span of

Management:

Number of persons a manager can supervise

effectively

1. Narrow Span
2. Wider Span

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The structure and process of Organizing:

a) Objectives and Plans

b) Authority
c) Environment – premises – Economic,
technological, political, social or ethical
d) Grouping of Activities

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The Logic of Organizing:

a. Establish enterprise objectives

b. Formulating supporting objectives, policies and
plans
c. Identifying, analyzing and classifying the activities
d. Grouping activities
e. Delegating Authority – to perform
f. Horizontally and Vertically – group performance

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Organization Structure:

Departmentation:
1. By Enterprise Function
2. By Territory or Geography
3. By Customer Group
4. By Product

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Departmentation by Enterprise Function:

 Grouping of activities
 Eg: Production, Quality, Sales, Finance ………….

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Departmentation by Geography or Territory:

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Departmentation by Customer Group:

- Primary interest in customers

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Departmentation by Product:

- Grouping of activities according to products, product

lines ( Medium and Large Enterprises)

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Matrix Organization:

- Combining of functional and project or product

patterns of Departmentation in the same
organization structure

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Effectiveness:

a. Define objectives of the project

b. Roles, authority and responsibility of each member
c. Influence based on knowledge, information than
hierarchy
d. Reward managers, team development

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Authority and Power:

 Power: Ability of an individual to influence the

belief of other person ( group member in a group)
 Authority: Exercise discretion in making decisions
affecting others – or right in a position
 Empowerment: Employees at all levels in the
organization are given the power to make decisions
without asking their superiors for permission

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Line / Staff concepts and Functional

Authority:

Scalar Principle:
 Line authority gives a superior a line of authority
over a subordinate
 Responsibility for decision making

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Staff relationship is advisory:

 investigate, research and give advice

 Functional Authority:
- The right delegated to an individual or a department
to control specified processes, practices, policies by
persons in other departments

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Decentralization of Authority:

- The tendency to disperse decision making authority

in an organizational structure.

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Kinds of Centralization:

1. A company operating in a single performance

– eg: centralization location.
2. Departmental Centralization
3. Centralization of Management

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The Art of Delegation:

 Personal Attitude towards delegation:

a) Receptiveness
b) Willingness to let go
c) Willingness to allow mistakes by subordinates
d) Willingness to trust subordinates
e) Willingness to establish and use broad controls.

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Overcoming weak delegation:

 Define assignments and delegate authority in the

light of results expected
 Select the person in the light of the job to be done
 Maintain open lines of communication
 Establish proper controls
 Reward effective delegation and successful
assumption of authority

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Recentralization of Authority:

 To centralize authority that was once decentralized

 It is not complete reversal of decentralization
( only in certain types of activities or function)

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Assignments:

1. Employee Empowerment: what you think

about empowerment theory – explain with
examples whether it is effective or not?
2. Disempowerment and Dysempowerment –
differentiate with examples

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