ORGANISING

Definition
• AP strong
• “ organizing is the process of integrating in view of coordinated structure of activities required to
achieve the objectives of an enterprise staffing this structure with qualified competent personnel and
supplying them with physical factors necessary to perform their functions’’
• Theo haimann
• “ organizing is the process of off defining and grouping the activities of the enterprise and establishing
the authority relationships among them in performing the organizing function the manager defines
departmentalize is and assigns activities so that they can be most effectively executed’’
• Koontz O Donnell
• “ it is the grouping of activities necessary to obtain enterprise objectives and the assignment of each
grouping to a manner with necessary to supervise it’’
• Terry
• “ establishing the effective authority relationships among selected works persons and workplaces in
order for the group to work together effectively’’
Nature of organizing
• Division of labor
• Social system
• Cooperative relationship
• Coordination
• Objectives
• Well defined hierarchy
• Communication
Importance of organising
• Increases the efficiency of management
• Ensures optimum utilization of human efforts
• Helps in growth of enterprise
• Place is proportionate importance to the various activities of the enterprise
• Facilitates coordination
• Provides facility for training testing and development of managerial personnel
• Prevents growth of intrigue use and corruption
• Consolidates growth and expansion
• stimulates creativity
• Adoption of new technology double
Process of organising
• Consideration of objectives
• Deciding organizational boundaries
• Grouping of activities in two departments
• Analyzing interdependent relationships and deciding which
department will be key department
• Determining levels at which various types of decisions are to be made
• Determining the span of management
• Setting up a coordination mechanism
Principles of organising
• Objectives • Authority
• SpecialIsation • Efficiency
• Span of control • Simplicity
• management by exception • Flexibility
principle • Balance
• Scalar principle • Unity of Direction
• Unity of command • Personal ability
• Delegation • Acceptability
• Responsibility
Span of management
• Efficient utilization of managers
• Effective performance
• Ability of the manager
• Ability of the employees
• Type of work
• Well defined Authority and responsibility
• Geographic location
• Sophisticated information and control system
• Level of management
• Economic consideration
Types Of
Organisation
Organisation Structure
Types of
Organisation
Organisation structure
• An organisation structure can be defined as the framework within
which managerial and operating tasks are performed. It specifies the
relationships between people, work and resources.
Types of Organisation structure
• Functional structure It is an organisational structure which is formed by grouping of jobs
of similar nature under various functional departments.
Advantages of functional structure are:
• It promotes control and coordination within a department.
• It is the most logical, time proven form of organisation structure.
• It leads to minimal duplication of effort, which results in economies of sacle and this lowers
cost.
• It ensures that different functions get due attention.
• Disadvantages of functional structure are:
• (a) It becomes difficult to hold a particular department responsible for any problem.
• It may lead to inflexibility as people with same skills and knowledge may develop a narrow
perspective.
• A functional structure places less emphasis on overall enterprise objectives than the objectives
pursued by a functional head.
• Divisional structure Under the divisional structure an organisation is divided into
different divisions or units on the basis of products or geographical area.
Advantages of divisional structure are:
• Decisions are taken much faster in divisional structure.
• It facilitates expansion and growth as new divisions can be added without
interrupting the existing operations.
• It leads to specialisation of physical facilities and human talent.
• Disadvantages of divisional structure are:
• There is a duplication of physical facilities and functions.
• It suffers from the under utillisation of plan capacity.
• Conflict may arise between different divisions on allocation of funds and other
resources.
Organising structure
• Network organization
• Virtual organization
• Committees
• Teams
Delegatio
n
•To Delegate means to authorize and send (another person) as one's
representative.
•The delegation of authority is the process by which a manager divides
and assigns work to his subordinates.
•The manager himself only performs the tasks that require his special
talents and expertize.
•The rest of the work and its responsibility he will divide and delegate to
his subordinates.
Delegation of
Authority
• Need / Advantages :
1. Relieves the manager from heavy workload,
2. Leads to better decisions,
3. Speeds up decision making,
4. Helps in training subordinates and building morale,
5. Helps in creating Formal Organisational Structure.
Delegation of
Authority
• Obstacles of Delegation :
A. On the part of the Manager :
1. Autocrat and unwilling manager,
2. Superiority complex,
3. Lack of confidence in subordinates,
4. Unfamiliar with the concept of Delegation of Authority,
5. Fear of the subordinate’s performance.
Delegation of
Authority
• Obstacles of Delegation :
B. On the part of the Subordinates :
1. May not like to take decisions,
2. May refuse to take authority,
3. No adequate sources available to discharge the responsibilities,
4. Lack of self-confidence,
5. No personal gains.
Decentralisation
•The tendency to disperse decision making authority in an organized
structure .
•It is the fundamental aspect of delegation to the extent that the
authority to be delegated is decentralized .
•According to Koontz and O’Donnell- decentralization is the systematic
effort to delegate to the lowest levels all authority except that can be
exercised at a central point.
Salient features of decentralization
• A relative concept- it is only the proportion between the reservation
of authority and delegation of authority by the top management
which determines the extent of decentralization .
• Pushing down decision making power.
• Democratic and participative.
Determinants of decentralization :-
• Significance of a decision.
• Desire for uniformity.
• Size of the business unit .
• Decentralization for performance .
• Business dynamics .
• History of the enterprise.
• Desire for independence.
• Availability of competent managers .
• Efficacy of control techniques .
• Nature of top management .
• Environmental influence
Advantages of decentralization
• Relieves top management .
• Encourages decision making and assumption of authority and responsibility
• Gives more freedom in decision making(uses broad controls that may increase
motivation).
• Makes the comparison of different organizational units possible.
• Facilitates setting up of profit centres .
• Facilitates product diversification .
• Promotes the development of managers .
• Aids adaptation of fast changing environment.
• Increases the feeling of involvement and belongingness to the organization
• Increases cooperative management and forms participative management
teams
Difference between Delegation and Decentralisation