Organizing as

Management
Function

Neelam Kaushal
 Introduction
Organizing as arranging and structuring work to accomplish
organizational goals.

It is harmonious adjustment of specialised parts for the accomplishment

of some common purpose or purposes. (Hanery)
 Nature of Organizing
– Division of Work
– Coordination
– Plurality of Persons
– Common Objectives
– Well defined authority and responsibility
– Organization is a structure of management
– Organization is machine of management
– Organization is universal management
– Organization is dynamic process
 Introduction
Importance or Significance
 Increase in managerial efficiency
 Ensures optimum utilization of human resources(right man at the right job)
 Sound communication possible
 Increase in specialization
 Facilitates coordination
 Helpful in expansion
 Checks on corrupt practices
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 Decreases employees’ turnover
 Consolidates growth for expansion
 Better human relations
 Training and development of employees
 Development of new ideas
 Facilitates promotions
 Process of Organizing
Knowing the objectives of the enterprises
Determining the various activities
Grouping and Departmentalization of activities
Determining key activities
Assigning responsibilities
Delegating authorities
Defining interrelationship
Providing right environment
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Approaches to organizing
The first approach is the functional approach. It is the most common approach. It
groups activities under the major headings such as production, marketing, finance,
and personnel etc.
The second approach is the geographic approach which groups the activities and
responsibilities according to the geographical location.
The third approach is the production line approach. This approach assembles the
activities of creating, producing, and marketing each product into one department.
The fourth approach is the customer approach which groups activities and resources
in response to the needs of specific customer groups.
 Line and Staff Relationship
One widely held view of line and staff is that line functions are those that have direct
impact on the accomplishment of the objectives of the enterprise.
On the other hand, Staff functions are those that help the line persons work most
effectively in accomplishing the objectives.
The people who adhere to this view almost invariably classify production and sales (and
sometimes finance) as line functions and accounting, personnel, plant maintenance,
and quality control as staff functions
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In order to understand the line and staff relationship we have to understand the
two basis of difference:

 Nature of work: The line executives function is to act and the staff executive’s
function is to think e.g: procedures and policies
 Authority-Relations: The line represents authority over man and the staff authority
over ideas
Causes of Conflicts between Line and Staff:
 Objections or complaints of line authorities
 Objections or complaints of staff authorities
 Other causes
 Objections or complaints of line authorities
– Advice not always sound
– Lack of accountability of staff
– Increase in unnecessary paper work
– Limited outlook of staff
– Hurdle in the work of line authorities
– Easier access of staff to top mgt
 Objections or complaints of staff authorities
– Inadequate use of Experts services
– Rejecting the advice by line authorities
– Resistance to new ideas by line authorities
– Lack of authorities to staff
– Wrong implementation of Experts views
– Non-cooperation of line authorities
Other Causes
 Attraction of promotion
 Ambiguity regarding authority regarding line and staff
 Use of experts by line authority for unimportant works
 Suggestions to resolve conflicts
– Appointment of competent staff and authority
– Proper use of experts services
– Staff should not be used as last solution
– New ideas should be accepted
– Providing all necessary information to staff
– Correct implementation of experts views
– Ambiguity regarding authority of line and staff should be removed
– Wide outlook of staff
– Keeping staff regularly informed of new plans
– Avoidance of conflicts should be the ultimate aim
 Benefits of line and staff
There are many advantages and benefits out of the use of staff. A few of them are:
– Handling complex managerial functions: The necessity of having the advice of
qualified staff specialists in various areas of an organization can scarcely be
overemphasized, especially as operations become more and more complex.
– Assisting in decision-making: Managers are now faced with the necessity of making
decisions that require expert knowledge in matters like environmental issues, strengths
and weaknesses of organization, so on and so forth.
– Relieving an over-burdened top executive: Staff specialists devote their time to think,
to gather data, and to analyze them on behalf of their busy superiors.
It is a rare top level executive, who has the time, or will take the time, to do those things
that a staff specialist can do so well.
 Span of Management
(It affects the efficient utilisation of managers and effective performance of their
subordinates)
 It is also called the span of control and span of supervision.
 It means that number of subordinates that an executive supervises.
Need of Span of Management
– Limited Energy
– Limited Time
– Limited attention power
Approaches
– Modern Approach
– Traditional concept: Hamilton, Graicunas, Urwick
– Direct relationship
– Group relationship
– Cross relationship
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 Types of Span of Management
 Wide Span of Management: Flat organization Structure
 Narrow Span of Management: Tall or Vertical Structure

Expanding On the Concept of Span of Control

– While we are addressing span of control, let’s also broaden our understanding to see it in
the context of the organizational structure levels of hierarchy.
– Width: Organization structures can be described as wide (with larger span of control) or
narrow (with smaller span of control.)
– Height: As there are levels of management, or hierarchy, an organization may be tall (with
many levels) or flat (with fewer levels.)
– Characteristics of a Flat Organizational Structure (Wide Span of Control)
– Pros
• Encourages delegation. Managers must better delegate to handle larger numbers of
subordinates, and grant opportunities for subordinates to take on responsibilities
• Agile. Improves communication speed and quality
• Reduces costs. More cost effective because of fewer levels, thus requiring fewer managers
• Helps prevent the workforce from disengaging by focusing on empowerment, autonomy
and self-direction
– Cons
• High managerial workload comes with high Span of Control
• Role confusion more likely
• May cultivate distrust of management
– Characteristics of a Tall Organizational Structure (Narrow Span of Control)
– Pros
• More rapid communication between small teams
• Groups are smaller and easier to control/manage
• There’s a greater degree of specialization and division of labor
• More and better opportunities for employee promotion
– Cons
• Communication can take too long, hampering decision-making
• Silos may develop and prevent cross-functional problem solving
• Employees may feel lost and powerless
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 Delegation of Authority
Chain of Command: It refers to an unbroken line of authority that extends from the upper
levels of the organization to the lowest levels and clarifies who reports to whom.
Thus delegation of authority refers to the division of work and assigning authority for the
successful work performance is called delegation of authority.
It refers to the process of entrusting responsibility and authority, and creating accountability
of person whom work or responsibility has been handed over.
It means assigning the work to others and giving them authority to do it.
ELEMENTS OF DELEGATION OF AUTHORITY
Responsibility: It is the obligation of a subordinate to properly perform the duty
Authority: It is the power to take decision. Decision can be related use of resources.
Accountability: It is the answerability of subordinate to senior for his work performance.
 Responsibility (It refers to an obligation to perform the duties)
It is the duty of the person to complete the task assigned to him. A person who is given
the responsibility should ensure that he accomplishes the tasks assigned to him. If the
tasks for which he was held responsible are not completed, then he should not give
explanations or excuses. Responsibility without adequate authority leads to discontent
and dissatisfaction among the person. Responsibility flows from bottom to top. The
middle level and lower level management holds more responsibility. The person held
responsible for a job is answerable for it. If he performs the tasks assigned as expected,
he is bound for praises. While if he doesn’t accomplish tasks assigned as expected, then
also he is answerable for that.
Features:
– It can be assigned to some other person.
– The essence of responsibility is to be dutiful.
– It gets originated because of superior-subordinate relationship.
 Authority
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, to take decisions and to give
orders so as to achieve the organizational objectives. Authority must be well- defined.
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, orders and get the
things done. The top level management has greatest authority.
– Authority always flows from top to bottom. 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. Authority should be accompanied with an equal amount of
responsibility. Delegating the authority to someone else doesn’t imply escaping from
accountability. Accountability still rest with the person having the utmost authority.
Features:
– It can be assigned to some other person.
– It is related to the post
– It makes implementation of decisions possible.
– It is key to managerial job.
 Accountability
It means giving explanations for any variance in the actual performance from the
expectations set. Accountability can not be delegated. For example, if ’A’ is given a
task with sufficient authority, and ’A’ delegates this task to B and asks him to ensure
that task is done well, responsibility rest with ’B’, but accountability still rest with ’A’.
The top level management is most accountable. Being accountable means being
innovative as the person will think beyond his scope of job. Accountability, in short,
means being answerable for the end result. Accountability can’t be escaped. It arises
from responsibility.
Features:
– Accountability cannot be delegated to some other person.
– It is only towards the delegators
– Its base is senior-subordinate relationship.
– It originates because of delegation of authority.
 Assignment of tasks and duties

Granting of authority

Creating responsibility and accountability

Creating responsibility and accountability

Assignment of tasks and duties

Granting of authority
Process of Delegation of Authority
Assigning
Responsibility

Granting
Authority

Fixing
Accountability
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– Assignment of Duties - The delegator first tries to define the task and duties to the
subordinate. He also has to define the result expected from the subordinates. Clarity of duty
as well as result expected has to be the first step in delegation.
– Granting of authority - Subdivision of authority takes place when a superior divides and
shares his authority with the subordinate. It is for this reason, every subordinate should be
given enough independence to carry the task given to him by his superiors. The managers
at all levels delegate authority and power which is attached to their job positions. The
subdivision of powers is very important to get effective results.
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Creating (fixing) Responsibility and Accountability - The delegation process does
not end once powers are granted to the subordinates. They at the same time have to
be obligatory towards the duties assigned to them. Responsibility is said to be the
factor or obligation of an individual to carry out his duties in best of his ability as per
the directions of superior. Responsibility is very important. Therefore, it is that which
gives effectiveness to authority. At the same time, responsibility is absolute and
cannot be shifted. Accountability, on the others hand, is the obligation of the
individual to carry out his duties as per the standards of performance. Therefore, it is
said that authority is delegated, responsibility is created and accountability is
imposed. Accountability arises out of responsibility and responsibility arises out of
authority. Therefore, it becomes important that with every authority position an equal
and opposite responsibility should be attached.
 Importance of Delegation of Authority
– Effective Management
– Employee Development
– Motivation of Employees
– Facilitation of Growth(Efficiency, Motivation and satisfaction)
– Basis of Management Hierarchy
– Better Coordination
– Leads to quick and better decisions
– Continuity in organization
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Importance
Obstacles
Suggestions for effective Delegation

JUST AS AUTHORITY IS THE KEY TO MANAGER’S JOB, DELEGATION

OF AUTHORITY IS THE KEY TO ORGANIZATION