y Organizing is the function of management which follows planning. It is a function in

which the synchronization and combination of human, physical and financial resources takes place. All the three resources are important to get results. Therefore, organizational function helps in achievement of results which in fact is important for the functioning of a concern. According to Chester Barnard, ³Organizing is a function by which the concern is able to define the role positions, the jobs related and the co- ordination between authority and responsibility. Hence, a manager always has to organize in order to get results.

y y

A manager performs organizing function with the help of following steps:Identification of activities Departmentally organizing the activities Classify authority Co-ordination between authority and responsibility

Importance of Organizing Function Scope for new changes Specialization Well defined jobs Sense of security Growth and diversification Clarifies authority Effective administration Co-ordination .

y Principles of organizing Principle of Specialization Principle of Functional Definition Principles of Span of Control/Supervision Wide span of control Narrow span of control .

. It explains how a superior gets work done from his subordinate by clearly explaining what is expected of him and how he should go about it. All people who have the authority should know what is the scope of their authority is and they shouldn t misutilize it. Authority is the right to give commands.Delegation of Authority y Elements of Delegation y Authority . Authority must be well. Authority always flows from top to bottom. .in context of a business organization. authority can be defined as the power and right of a person to use and allocate the resources efficiently. orders and get the things done. Authority should be accompanied with an equal amount of responsibility. to take decisions and to give orders so as to achieve the organizational objectives. The top level management has greatest authority.defined. Delegating the authority to someone else doesn t imply escaping from accountability.

The top level management is most accountable. The middle level and lower level management holds more responsibility. but accountability still rest with ¶A¶. Responsibility flows from bottom to top. Accountability. then also he is answerable for that. in short. If the tasks for which he was held responsible are not completed. y Accountability . It arises from responsibility. If he performs the tasks assigned as expected. For example.y Responsibility . means being answerable for the end result. A person who is given the responsibility should ensure that he accomplishes the tasks assigned to him. Accountability can¶t be escaped. While if he doesn¶t accomplish tasks assigned as expected. Accountability can not be delegated. Being accountable means being innovative as the person will think beyond his scope of job. Responsibility without adequate authority leads to discontent and dissatisfaction among the person. and ¶A¶ delegates this task to B and asks him to ensure that task is done well. The person held responsible for a job is answerable for the duty of the person to complete the task assigned to him. then he should not give explanations or excuses. responsibility rest with ¶B¶. he is bound for praises.means giving explanations for any variance in the actual performance from the expectations set. if ¶A¶ is given a task with sufficient authority. .

.e creating various divisions.Departmentation y The first process of organizing the activities i. sections or groups in order to perform the task is known as departmentation. y The process of grouping the activities is commonly known as departmentation.

Better coordination Span of mgt Interpersonal relationship Job analysis Define authority & Responsibility Development of managers Facility in appraisal Feeling of self-sufficiency . No duplication.Need & importance Specialization All necessary activities are performed.

Bases of Departmentation Process Customer Functional Product Territory .

Functional y Functional Departmentation: .This is the simplest form of departmentation when grouping of departments is done on the basis of functions such as production finance marketing sales purchase and personnel etc. it is known as functional departmentation. CEO Production Finance HR Marketing T& D HRP Recruitment & Selection . So we can classify functions into two parts. Further sub divisions of the functions may be formed like marketing can be divided in to advertisement sales and after sales service.

.y Advantages: y · y · y · y · Advantage of specialization Easy control over functions Pinpointing training needs of manager It is very simple process of grouping activities. y Disadvantages: y · y · y · Lack of responsibility for the end result Overspecialization or lack of general management It leads to increase conflicts and coordination problems among departments.

When there are several product lines and each product line consists of a variety of items. it is called products departmentation. functional classification fails to give balanced emphasis on each product. y It is applied where there is a large range of products are manufactured. CEO HEAD TV DIVISION HEAD AC AND REFRIGERATION HEAD COMPUTER .y Products: .When grouping of activities and departments formed are given name on the basis of products manufactured in an organization.

y Advantages y · It ensures better customer service y · y · y · y · Unprofitable products may be easily determined It assists in development of all around managerial talent Makes control effective It is flexible and new product line can be added easily. y Disadvantages y · It is expensive as duplication of service functions occurs in various product divisions y · Customers and dealers have to deal with different persons for complaint and information of different products. .

insurance company use territorial departmentation. Marketing activities are very often subdivided on the basis of geographical areas.Like the products basis. For eg. Indian railways. . Units that are located at different areas are made so many self-contained divisions of the organization.y Territories: . geographical regions are adopted for main division as well as for subdivision purposes. This form of departmentation can be useful where business is on national or international level. When activities of an organization are physically dispersed in different locations territorial departmentation is adopted.

y Advantages y · y · y · Help to cater to the needs of local people more satisfactorily. . Distance between policy framers and executors It leads to duplication of activities which may cost higher. It facilitates effective control Assists in development of all-round managerial skills y Disadvantages y · y · y · y · Communication problem between head office and regional office due to lack of means of communication at some location Coordination between various divisions may become difficult.

it has the special merit of supplying goods in accordance with the peculiar needs of customers. HEAD MARKETING HEAD WHOLE SALE HEAD RETAIL HEAD EXPORT .yCustomers: yWhen departments are formed to cater different kind of customers it is known as customer departmentation this basis of classification is widely followed in subdividing activities of the marketing department. When the products are offered to market through various channels and outlets.

y Advantages y · It focused on customers who are ultimate suppliers of money y · y · Better service to customer having different needs and tastes Development in general managerial skills .

Process Manager Production Dyeing Weaving Finishing .

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