Concepts & Nature

Organizing
 ORGANIZATION:

Organization is a deliberate arrangement of

people in defined roles/positions to work in a
given direction (objectives).
 Organizing
The process of management that identifies who
is supposed to do what.
It covers:
• The identification and classification of required
activities.
• Grouping of activities necessary for attaining
objectives
• Assigning managers to each group to supervise
• Provision of coordination (horizontally and
vertically).
 Formal Vs Informal Organization
• Formal Organization is one that has
intentional structure and roles in a formally
organized firm.

• Informal Organization is one that has a

network of interpersonal relationships that
arise when people associate with one another.
Formal Vs Informal Organization
Formal Vs Informal Organization
 Department
• The word department defines a separate area,
branch or division with a manager.

• Department is an organizational distinct

division which has specified distinctive
activities.
 Principle of Span of Management
• There is a limit of employees up to which a
manager can get the work completed
effectively.

• Span of management is also known as span of

control.

It tells that how many subordinates can be

handled by a manager efectively.
 Span of Management

Narrow Span of management Wide Span of management

Narrow Vs Wide Span of Control
 Narrow Span of Control
 Close supervision possible
 Close control
 Fast communication between supervisor and
subordinates
 High cost
 Excessive distance between lowest level and
top level.
 Too mush involvement of superiors in work.
 Wide Span of Control
 Authority is delegated
 Clear policies are to be made
 Subordinates are selected carefully
 Supervisors get overload, results in decision
bottleneck
 Chances of loss of control
 Exceptional qualities’ managers required