Professional Documents
Culture Documents
DEFINATION OF ORGANIZING
Definitions have been stated by authors such as: Louis A. Allen A.P Strong Haney Oliver Sheldon Mooney & Railey Koontz & O'Donnell "Organization is the process of identifying and grouping of the works to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most efficiently" - Louis A. Allen.
PRINCIPLES OF ORGANIZATION
Unity of objectives Efficiency Span of control or span of management Division of work Functional definition Coordination Scalar principle Unity of direction Unity of command Delegation
CONT..
Importance of Organization
Encourages specialization. Eliminates the problem of duplicating and overlapping. Brings order and cohesiveness. Improves administration. Stimulates creative thinking. Facilitates effective communication. Helps to build up and expand the enterprise. Helps in the smooth delegation of authority.
Types of Organizations
All
Formal Organization
& Informal Organizations.
Formal Organizations
The formal organization is formally divided into three broad Forms Line Organization Line and Staff Organization Functional Organization Line Organization: This organization is also known as scalar or military or vertical or departmental organization, it is one of the oldest form of organization.
Factory Superintendent
Foreman
Production Manager
Marketing Manager
Finance Manager
Plant Supervisor
Market Supervisor
Chief Assisstant
Foreman
Salesman
Accountant
Functional Organization
Functional or staff organization has come into existence n this form of organization authority becomes functional and specialized. Here authority does not flow downwards from the top, here single authority is done away with multiplicity of authority is introduced.
Informal Organization
It is a natural and spontaneous structure, arising out of the social tendency of people to associate and interact. Its values, goals and tasks predominantly centre around individual and group satisfaction, esteem. Affiliation, friendship, etc. It is shapeless It consists an unwritten system of reward or punishment. Organization is not enduring and is dependent on the sentiments of members.
Steps in organization
1. 2. 3. 4. 5. 6. 7.
Determine and formulate objectives, strategies, plans and policies. Determine the activities involved to accomplish the objectives. Grouping of similar activities into tasks, sections and departments. Define responsibility and accountability for every person. Delegate the required authority to perform the task. Integration of activities through authority relationships and communication networks. Provide adequate physical facilities to perform the tasks effectively.
Delegation of Authority
According to Louis A. Allen Delegation is the dynamics of management . Delegate and get things done.
Limitations of one mans ability and time Specialized and technological needs Tendency to diversify and decentralize organization Employee motivation
Managerial development
Management by exception
Advantages
Delegation
develops coordination
Reduction in the burden of the executives Development of subordinates Provide continuity Facilities expansion Provide motivation
Disadvantages
Superiors
unwillingness to delegate
authority
Superiors attitude
Inability
Fear
of criticism
Departmentation
Koontz and ODonnell Define A Department as a distinct Area, division or branch of an enterprise over which a manager has authority for the performance of specified activities
Advantages of Departmentation
Specialization:
specialization
Basis of Departmentation
Function
Product or Service
Customer
Location
Time
Process
Combination
Functional Specialization
Control Centre
Integration of Different activities Personnel factor
Benefits of centralization
Vital
Decision
Coordination Higher
Control
Emergency Duplication
Limitations of Centralization
Lack
Decentralization
Henry Fayol states that Everything that goes to increase the importance of the subordinates role is decentralization, everything which goes to reduce it is centralization Louis Allen states that Decentralization is the systematic and Consistence Delegation of authority to the levels where the work is performed
Benefits of Decentralization
Burden
of decision making More freedom and independence Increase motivation Comparison of performance Setting up of profit centers Product diversification Fast changing environment Authority & responsibility
Limitations of Decentralization
Uniform policy Complexity of coordination Loss occurs by control of upper level managers Inadequate control techniques
Span Of Management
Factors Determining Span of Management
Qualities
Nature
&significance of the tasks Capacity & quality of subordinates Levels of management Clarity of plans & responsibility
Different point of views Irresponsibility of staff Staff encroach line managers authority Staff are not responsible for failures
Staff Authority:
Different point of views Line command for support services Line resist ideas given by staff Line do not provide enough authority
The line and staff should understand their positions and functions in the organization. The line should be educated and encouraged to use the staff effectively The staff should work overcoming resistance to change The staff should realize that they command respect and reputation is due to their skills and expert knowledge. Constantly strive to increase proficiency
Committees
The Board of Directors constitute committee at the highest level. Involves policy making, decision making etc. Advantages: Benefits of specialized and collective knowledge of 2 or more people Helps in co-ordination and co-operation Different group interests will be accommodated
Limitations
Time consuming Process Tendency to compromise at every issue To manage and maintain is costly Aggressive groups may dominate.
SBUs are distinct little businesses set up as units in a larger company to ensure that a certain product or product line is promoted and handheld as though it were independent business.
Thank you.