UNIT 3

ORGANIZATION
FORMAL AND
INFORMAL
ORGANIZATION
Span of Control
 Definition
Span of control is simply the number of staff that
report to a manager.
Some companies also have an ideal span of control,
which is the number of reports they feel a manager can
effectively manage. In this case, if a manager has fewer
reports than the ideal, they may feel he or she is not
being effectively used, while if he or she is handling
more they may feel that the manager is over-stretched
and the reports will not receive enough direction.
DEPARMENTATION
 Significance of Departmentation
• Helps in organizational structure
• Flexibility
• Specialisation
• Sharing of resources
• Control
• Coordination
• Efficiency
• Responsibility
• Development of managers
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 TYPES OF
ORGANIZATION
AUTHORITY
DELEGATION
STAFFING
 Definition
• The selection and training of individuals for
specific job functions, and charging them with
the associated responsibilities.

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 Importance of Staffing
• Emphasis on human element
• Facilitates Leadership
• Facilitates control
• Motivation to Work
• Increase in overall efficiency
• Development of potential managers
• Enables organization to face competition