Organizing

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 Organizing
Determining how activities and resources are grouped

Determining the composition of work groups and the way

in which work and activities are to be coordinated

Process of combining and integrating human, physical

and financial resources in productive
interrelationships for the achievement of enterprise
objectives.

Organizing is the process of arranging an organization’s

structure and coordinating its managerial practices
and use of resources to achieve its goals.

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 Organizing
Involves following sub functions

• Identification of activities required for the achievement

of objectives and implementation of plans

• Grouping of activities so as to create self- contained

jobs

• Assignment of jobs to employees

• Delegation of authority so as to enable them to perform

their jobs and to command the resources needed for
their performance

• Establishment of a network of coordinating relationships

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 Principles of Organizing
 Fayol proposed following Principles for
designing organization structure (Classical
Approach)
– Division of work

– Unity of direction

– Centralization

– Authority and Responsibility

– Scalar Chain

The art of management lies in selecting the appropriate

principles for a given situation
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 Principles of Organizing
 Max Weber proposed following Principles for designing
organization structure (Bureaucratic Approach)
– All activities required for the attainment of organizational goals
should be divided into highly specialized jobs so that job holders
acquire special abilities in the performance of their jobs
– Jobs should be performed in accordance with definite policies,
rules and procedures
– Each job holder should be accountable to a superior in the
chain of command
– Decisions should be made in a formalistic and impersonal
manner
– Employment should be used on the criterion of merit

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 Principles of Organizing
 Peter Drucker proposed following
Principles for designing organization
structure
– Clarity

– The direction of vision

– Understanding one’s own task and the

common task
– Decision making

– Stability and adaptability

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 Span of Management
 The number of subordinates an executive can manage
effectively is called his “Span of Management” or “Span of
Control”
 Number of subordinate reporting directly to a given manager

 Span of Management is related to levels in the hierarchy

 A wider span generally results into fewer levels and narrower

span into more levels.

 Wider span of management with fewer levels of authority

results into a relatively flat organization, whereas narrow
spans with larger number of levels in the hierarchy lead to a
tall structure.

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 Span of Management
• Graicunas identified three types of superior-
subordinate relationships

– Direct single relationships

– Direct group relationship

He developed a mathematical formulae

n [ 2 n-1 + (n-1)] where n = number of subordinates

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 Levels of Authority

Levels of authority in an organization are determined by the span of

management.

Holding the employee number constant, wider span of management

results
into fewer levels than narrower span

Flat organizations

Tall organizations

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 Flat Organizations

Flat organizations have wider span of management and fewer hierarchical

levels which helps managers to delegate greater responsibility and authority
to
their subordinates.

It provides subordinates opportunities to take initiative and responsibility

and
utilize and develop their abilities. Thus it forces development of competent
and self reliant managers.

It shortens the channels of communication and makes it flow more freely

with
fewer distortions.

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 Tall Organizations

Tall organization are characterized by close supervision , lesser

delegation of
responsibility and authority and problems of upward and downward
Communication.

But coordination and control are easier and closer contact is possible
between
superiors and subordinates in such an organization

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 Narrow Span of Management
(Tall Organizations)
Advantages Disadvantages
• Close Supervision • Superiors tend to get
• Close control too involved in
subordinates work
• Fast communication
• Many levels of
between subordinates
and superiors management – high
cost, excessive
• Better coordination
distance between top
level and lowest level

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 Wide Span of Management
(Flat Organization)
Advantages Disadvantages
• Subordinates get • Danger of superiors
more authority and loss of control
free working hand • Complicates lateral
• Clear policies must be communication
made • Coordination more
• Shortens the channel difficult
of communication

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Factors determining effective span

• Superior Related Factors

• Subordinate Related Factors

• Organizational Related Factors

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• Superior Related Factors

• Ability and Competence

• Supervisory Style

• Delegation of Authority

• Subordinate Related Factors

• Ability and Competence

• Motivation and Commitment

• Need of Autonomy

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 Span of Management

• Organizational Related Factors

• Nature of Task

• Geographical Location

• Plans and Policies

• Objective Criteria of Performance Evaluation

• Rate of Change

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