ANJUMAN-IISLAMS

ALLANA INSTITUTE OF
MANAGEMENT STUDIES

SUBJECT: PERSPECTIVE MANAGMENT

TOPIC: ORGANIZING MANAGMENT

SUBMITTED TO: Mr.JAYADEEP MANJESHWAR

SUBMITED BY: NILESH PATANKAR (41)
KHAWAJA QURESHI (36)
NAVED ANSARI (3)
ABDULLAH MIRZA (33)
IRFAN MOHAMMED (34)
MOHD AZHAR PATTALBAB (35)

ACADEMIC YEAR: 2015-2016

ACKNOWLEDGMENT
We would like to opportunity to acknowledge the support and guidance of our guide,
Mr.Jayadeep Manjeshwar towards the success of report. Without his knowledge and acumen the
efficiency of the report would have been very low. Furthermore this report is made from the
utmost sincerity and dedication of this group and any problem as such from it would be handled
by the same.
We are grateful to Dr.Lukman Patel (Director of the AIAIMS) for his guidance and providing
necessary facilities. We would like to express our deep gratitude towards our teaching and non
teaching staff for giving their valuable suggestion and co operation for doing our report and
presentation.
Finally we are very much indebted to our parents for their moral support. We would like to
thank all our friends for their help and constructive criticism during our project.

ABSTRACT
In our work we will try to show, according to recent and by scientific publicity accepted
attitudes, organizing management required in corporate sector with their description, principle,
characteristics, advantages as well as to try to identify the cases in which some of them could be
applied. In this sense we will analyze the functional organizational type, where the project is a
part of organization management in company.
According to the fact that each one of the models mentioned in a report has its own advantages,
importance & its own principle, in this work we will try to present the procedure for choosing
which model will be the most appropriate for implementation in various departments in
organization.

TABLE OF CONTENTS

Conte
nt

Page No.

Acknowledgment

Abstract

Chapter 1- Introduction
Organizing
Chapter management
2- Literature review

Chapter 3- Industry overview

12

Case study

18

References

19

Chapter 1
Organizing management
Introduction
Organizing is the function of management which follows planning. It is a function in which
the synchronization and combination of human, physical and financial resources takes place. All
the three resources are important to get results. Therefore, organizational function helps in
achievement of results which in fact is important for the functioning of a concern. According
to Chester Barnard, Organizing is a function by which the concern is able to define the role
positions, the jobs related and the co-ordination between authority and responsibility. Hence, a
manager always has to organize in order to get results.

Importance of organizing management

1. Specialization - Organizational structure is a network of relationships in which the work
is divided into units and departments. This division of work is helping in bringing
specialization in various activities of concern.
2. Well defined jobs - Organizational structure helps in putting right men on right job
which can be done by selecting people for various departments according to their
qualifications, skill and experience. This is helping in defining the jobs properly which
clarifies the role of every person.
3. Clarifies authority - Organizational structure helps in clarifying the role positions to
every manager (status quo). This can be done by clarifying the powers to every manager
and the way he has to exercise those powers should be clarified so that misuse of powers
does not take place. Well defined jobs and responsibilities attached helps in bringing
efficiency into managers working. This helps in increasing productivity.
4. Co-ordination - Organization is a means of creating co-ordination among different
departments of the enterprise. It creates clear cut relationships among positions and
ensure mutual co-operation among individuals. Harmony of work is brought by higher
level managers exercising their authority over interconnected activities of lower level
manager.
Authority responsibility relationships can be fruitful only when there is a formal
relationship between the two. For smooth running of an organization, the co-ordination
between authority- responsibilities is very important. There should be co-ordination
between different relationships. Clarity should be made for having an ultimate
responsibility attached to every authority. There is a saying, Authority without
responsibility leads to ineffective behavior.

5. Growth and diversification - A companys growth is totally dependent on how

efficiently and smoothly a concern works. Efficiency can be brought about by clarifying
the role positions to the managers, co-ordination between authority and responsibility and
concentrating on specialization. In addition to this, a company can diversify if its
potential grow. This is possible only when the organization structure is well- defined.
This is possible through a set of formal structure.
6. Sense of security - Organizational structure clarifies the job positions. The roles assigned
to every manager are clear. Co-ordination is possible. Therefore, clarity of powers helps
automatically in increasing mental satisfaction and thereby a sense of security in a
concern. This is very important for job- satisfaction.
7. Scope for new changes - Where the roles and activities to be performed are clear and
every person gets independence in his working, this provides enough space to a manager
to develop his talents and flourish his knowledge. A manager gets ready for taking
independent decisions which can be a road or path to adoption of new techniques of
production. This scope for bringing new changes into the running of an enterprise is
possible only through a set of organizational structure.

A manager performs organizing function with the help of following steps:1. Identification of activities - All the activities which have to be performed in a concern
have to be identified first. For example, preparation of accounts, making sales, record
keeping, quality control, inventory control, etc. All these activities have to be grouped
and classified into units.
2. Departmentally organizing the activities - In this step, the manager tries to combine
and group similar and related activities into units or departments. This organization of
dividing the whole concern into independent units and departments is called
departmentation.
3. Classifying the authority - Once the departments are made, the manager likes to classify
the powers and its extent to the managers. This activity of giving a rank in order to the
managerial positions is called hierarchy. The top management is into formulation of
policies, the middle level management into departmental supervision and lower level
management into supervision of foremen. The clarification of authority helps in bringing
efficiency in the running of a concern. This helps in achieving efficiency in the running
of a concern. This helps in avoiding wastage of time, money, effort, in avoidance of
duplication or overlapping of efforts and this helps in bringing smoothness in a concerns
working.
4. Co-ordination between authority and responsibility - Relationships are established
among various groups to enable smooth interaction toward the achievement of the
organizational goal. Each individual is made aware of his authority and he/she knows
whom they have to take orders from and to whom they are accountable and to whom they

have to report. A clear organizational structure is drawn and all the employees are made
aware of it.

Principle of organizing management

The organizing process can be done efficiently if the managers have certain guidelines so that
they can take decisions and can act. To organize in an effective manner, the following principles
of organization can be used by a manager.
1. Principle of Specialization
According to the principle, the whole work of a concern should be divided amongst the
subordinates on the basis of qualifications, abilities and skills. It is through division of
work specialization can be achieved which results in effective organization.
2. Principle of Functional Definition
According to this principle, all the functions in a concern should be completely and
clearly defined to the managers and subordinates. This can be done by clearly defining
the duties, responsibilities, authority and relationships of people towards each other.
Clarifications in authority-responsibility relationships help in achieving co-ordination and
thereby organization can take place effectively. For example, the primary functions of
production, marketing and finance and the authority responsibility relationships in these
departments should be clearly defined to every person attached to that department.
Clarification in the authority-responsibility relationship helps in efficient organization.
3. Principles of Span of Control/Supervision
According to this principle, span of control is a span of supervision which depicts the
number of employees that can be handled and controlled effectively by a single manager.
According to this principle, a manager should be able to handle what number of
employees under him should be decided. This decision can be taken by choosing either
from wide or narrow span. There are two types of span of control:a. Wide span of control- It is one in which a manager can supervise and control
effectively a large group of persons at one time. The features of this span are:i. Less overhead cost of supervision
ii.
Prompt response from the employees
iii. Better communication
iv. Better supervision
v. Better co-ordination.

b. Narrow span of control- According to this span, the work and authority is
divided amongst many subordinates and a manager doesn't supervises and control
a very big group of people under him. The manager according to a narrow span
supervises a selected number of employees at one time. The features are:i. Work which requires tight control and supervision, for example,
handicrafts, ivory work, etc. which requires craftsmanship, there narrow
span is more helpful.
ii.
Co-ordination is difficult to be achieved.
iii. Communication gaps can come.
iv. Messages can be distorted.
v. Specialization work can be achieved.

Factors influencing Span of Control

3. Managerial abilities- In the concerns where managers are capable, qualified and
experienced, wide span of control is always helpful.
4. Competence of subordinates- Where the subordinates are capable and
competent and their understanding levels are proper, the subordinates tend to very
frequently visit the superiors for solving their problems. In such cases, the
manager can handle large number of employees. Hence wide span is suitable.
5. Nature of work- If the work is of repetitive nature, wide span of supervision is
more helpful. On the other hand, if work requires mental skill or craftsmanship,
tight control and supervision is required in which narrow span is more helpful.
6. Delegation of authority- When the work is delegated to lower levels in an
efficient and proper way, confusions are less and congeniality of the environment
can be maintained. In such cases, wide span of control is suitable and the
supervisors can manage and control large number of sub- ordinates at one time.
7. Degree of decentralization- Decentralization is done in order to achieve
specialization in which authority is shared by many people and managers at
different levels. In such cases, a tall structure is helpful. There are certain
concerns where decentralization is done in very effective way which results in
direct and personal communication between superiors and sub- ordinates and
there the superiors can manage large number of subordinates very easily. In such
cases, wide span again helps.

Formal Organization:
When the managers are carrying on organizing process then as a result of organizing process an
organizational structure is created to achieve systematic working and efficient utilization of
resources. This type of structure is known as formal organizational structure. Formal
organizational structure clearly spells out the job to be performed by each individual, the
authority, responsibility assigned to every individual, the superior- subordinate relationship and
the designation of every individual in the organization. This structure is created intentionally by
the managers for achievement of organizational goal.
Features of Formal Organization:
(1) The formal organizational structure is created intentionally by the process of organizing.
(2) The purpose of formal organization structure is achievement of organizational goal.
(3) In formal organizational structure each individual is assigned a specific job.
(4) In formal organization every individual is assigned a fixed authority or decision-making
power.
(5) Formal organizational structure results in creation of superior-subordinate relations.
(6) Formal organizational structure creates a scalar chain of communication in the organization.

Advantages of Formal Organization:

1. Systematic Working:
Formal organization structure results in systematic and smooth functioning of an organization.
2. Achievement of Organizational Objectives:
Formal organizational structure is established to achieve organizational objectives.
3. No Overlapping of Work:
In formal organization structure work is systematically divided among various departments and
employees. So there is no chance of duplication or overlapping of work.
4. Co-ordination: Formal organizational structure results in coordinating the activities of
various departments.

Disadvantages of Formal Organization:

1. Delay in Action:
While following scalar chain and chain of command actions get delayed in formal structure.
2. Ignores Social Needs of Employees:
Formal organizational structure does not give importance to psychological and social need of
employees which may lead to demonization of employees.
3. Emphasis on Work Only:
Formal organizational structure gives importance to work only; it ignores human relations,
creativity, talents, etc.

Informal Organization:
In the formal organizational structure individuals are assigned various job positions. While
working at those job positions, the individuals interact with each other and develop some social
and friendly groups in the organization. This network of social and friendly groups forms another
structure in the organization which is called informal organizational structure. The informal
organizational structure gets created automatically and the main purpose of such structure is
getting psychological satisfaction. The existence of informal structure depends upon the formal
structure because people working at different job positions interact with each other to form
informal structure and the job positions are created in formal structure. So, if there is no formal
structure, there will be no job position, there will be no people working at job positions and there
will be no informal structure.

Features of Informal Organization:

(1) Informal organizational structure gets created automatically without any intended efforts of
managers.
(2) Informal organizational structure is formed by the employees to get psychological
satisfaction.
(3) Informal organizational structure does not follow any fixed path of flow of authority or
communication.

Advantages of Informal Organization:

1. Fast Communication:
Informal structure does not follow scalar chain so there can be faster spread of communication.
2. Fulfills Social Needs:
Informal communication gives due importance to psychological and social need of employees
which motivate the employees.
3. Correct Feedback:
Through informal structure the top level managers can know the real feedback of employees on
various policies and plans.
Strategic Use of Informal Organization. Informal organization can be used to get benefits in the
formal organization in the following way:
1. The knowledge of informal group can be used to gather support of employees and improve
their performance.
2. Through grapevine important information can be transmitted quickly.
3. By cooperating with the informal groups the managers can skillfully take the advantage of
both formal and informal organizations.

Chapter 2
Literature review
Improving the organization and management of extension
M. W. Waldron, J. Vsanthakumar, and S. Arulraj

Organizing
Once strategic planning and management planning are implemented, organizing to get the job
done is next. Organizing is the process of establishing formal relationships among people and
resources in order to reach specific goals and objectives. The process, according to Marshall
(1992), is based on five organizing principles: unity of command, span of control, delegation of
authority, homogeneous assignment, and flexibility. The organizing process involves five steps:
determining the tasks to be accomplished, subdividing major tasks into individual activities,
assigning specific activities to individuals, providing necessary resources, and designing the
organizational relationships needed.
In any organizing effort, managers must choose an appropriate structure. Organizational
structure is represented primarily by an organizational chart. It specifies who is to do what and
how it will be accomplished. The organizing stage provides directions for achieving the planning
results. There are several aspects to organizing - time, structures, chain of command, degree of
centralization, and role specification.
Time Management
Managers must decide what to do, when, where, how, and by or with whom. Time management
is the process of monitoring, analysing, and revising your plan until it works. Effective planning
is a skill that takes time to acquire. It is difficult to implement because you have no one but
yourself to monitor how effectively you are using your time. Everyone has the same amount of
time - 168 hours per week. How that time is managed is up to the discretion of each person. One
extension agent joked that he was so busy taking time management courses, he had little time left
to manage. Effective time management involves philosophy and common sense. Time is not a
renewable resource - once it is gone, it is gone forever. To function effectively, managers have to
be able to prioritize and replace less important tasks with more important ones. Most of us work
for pay for only 1,800 hours per year. Effective and efficient time management encourages us to
achieve and be productive while developing good employee relations.

Goals should be specific, measurable, attainable, realistic, and timely (SMART). Once the goals
are known, it is important to think about how they can be achieved. Effective time managers
facilitate planning by listing tasks that require their attention, estimating the amount of time each
task will take to complete, and prioritizing them - deciding what tasks are most important to do
first and numbering them in rank order. It is essential to know what is crucial and what is not.
Some activities have relatively low levels of importance in completing a given task. By planning
ahead, managers can decide what to do and take the time to come up with ideas on how to do it.
They can make their own list of steps to eliminate or reduce time wasters. Maintaining a daily
"To Do" list with priorities attached and maintaining a daily, weekly, monthly, and yearly diary
is helpful. Managers should analyse their daily activities to see which are directed toward results
and which simply activities are. They could learn how to manage meetings more effectively
since considerable management time seems to be wasted in no directional formal meetings.
One of the methods that helps allocate time according to priorities is Pareto's Law or the 80/20
rule: if all items are arranged in order of value, 80 per cent of the value will come from 20 per
cent of the items. For example, 80 per cent of the complaining in your department is likely to be
done by 20 per cent of your staff. Four suggestions for better time management are (1) never
handle the same piece of paper twice; (2) learn how to say "no" without feeling guilty about
requests that do not contribute to the achievement of your goals; (3) when a visitor drops in to
your office, stand up while you have your discussion to ensure that only a brief period of time
will be consumed by the visitor's interruption; and (4) avoid being a slave to the telephone. By
managing time well, managers are better able to solve problems quickly, make decisions, avoid
frustration, keep from getting bogged down in day-to-day tasks, handle crises, work on their
goals and priorities, and manage stress.
Structures: Centralized versus Decentralized, Line versus Staff
Working productively and developing feelings of cooperation and effectiveness are related to
having the right people doing the right jobs. Structure, then, can be defined as a system of
interrelated jobs, groups of jobs, and authority. There is no standard organizational structure, but
most organizations and agencies follow the "Christmas Tree" system with the star (e.g.,
president, minister) at the top, smaller branches at management levels, and bigger branches at the
production levels. Some would claim that the lower branches support the upper branches, but as
in the tree, the branches are supported by a single trunk, which can be thought of as the
organizational mission and objectives. Each part of the tree has its specific function. When all
parts work together, the system survives, functions productively, has balance, and is a pleasure to
see! There are four primary elements in designing an organizational structure:
1. Job specifications - what each division/office/unit is responsible for.

2. Departmentalization - the grouping of jobs and responsibilities in common sectors with the
objective of achieving coordination
3. Span of control - a definition of how many job roles should be in each unit and which roles
require coordination by a unit manager
4. Delegation of authority - assigning the right to make decisions without having to obtain
approval from a supervisor
The resulting organizational structure will vary according to these four elements. An
organization with decentralized authority and very heterogeneous departments will appear very
different from one with centralized authority and a very homogeneous product.
Chain of Command
Once an organization starts delegating authority, then there is automatically a chain of command,
"the formal channel which specifies the authority, responsibility and communication
relationships from top to bottom in an organization" (Ivancevich, Donnelly, & Gibson, 1980).
Thus authority flows from presidents to vice-presidents to divisional managers, from ministers to
deputies to directors, from principals to vice-principals to deans, etc. In complex organizations,
there may be bridges from one level to another and there will be complex procedures for
maintaining the chain of command. Adult and extension educators, if working for an
organization or agency, will be part of a structure and part of the chain of command. One cannot
often make major changes in these two elements; it is wise, however, to be very aware of the
organizational structure and chain of command if you wish to accomplish things efficiently.
Centralized organizations are those in which the key authority and decision-making role is
focused on one or a very few individuals. Where authority is distributed among many managers,
then one can see a decentralized structure. As the organization's various roles become more
diverse in terms of programmed, product, or geographical location, one can see a more
decentralized organizational structure with authority being delegated to those who are closest to
the action. Centralization refers to authority, whereas centrality refers to the proximity to the
organization's stated mandate and objectives. One could have a very decentralized organization
with each unit being responsible for programmers, staffing, and budget, and yet be very close to
the main mission and objectives of the organization.
Another important point in terms of structure is the concept of line and staff functions. Line
functions are those involved in creating, developing, and delivering a programme.

Chapter 3
Industry overview
Parveen Industries Pvt.Ltd
Introduction
Parveen Industries Pvt. Ltd., a closely held company founded in Delhi in 1960 by Shri.
Shimbhou Nath Gupta to manufacture steel pipes/conduits for buildings and power projects.
Parveen began serving the oilfield in 1974 and today is considered a top manufacturer and global
marketer of oilfield equipment for the oil & gas industry.
Innovative products and unmatched service has allowed the Company to become an industry
leader in oilfield equipment.
The Companys customers include major and independent oil producers all over the world.
Through dedicated research and development, Parveen continues to innovate in order to better
serve customer needs. The Companys latest manufacturing facility has the potential to be a
game changer

Organizing management in Parveen Industries Pvt.Ltd.

Total plants in India- 9
Mumbai-3
Sonipat (Haryana) -3
Kundali (Haryana) -3
Organizing is establishing the internal organizational structure of the organization. The focus is
on division, coordination, and control of tasks and the flow of information within the
organization. It is in this function that managers distribute authority to job holders. In today's
society it is important that management considers the employees and customers as the most
important asset of the organization. Having a rigid structure undermines the creativity of the
employees, thus the culture of empowerment and delegation is what currently prevails in the
competitive environment.
Parveen industries pvt. Ltd uses the collaborative management approach which connects all the
manufacturing plants in India under the umbrella of single company name. Management
encourages the practice of working and assisting with each other's franchisees to give the best
product i.e. steel pipes for power project to their customers by coping up with external
challenges and representing a collaborative responsible culture. In order to ensure consistent
quality of the manufacturing product, the standards are uniform for all plants in India.
Thus a centralized structure prevails in terms of training programs, supplies and operations. The
formal structure at Parveen industries pvt. Ltd. divides the organization in the various
departments i.e. design, production, purchase, quality, & stores department and every individual

knows his tasks well at which he needs to be specialized. However, these standard procedures do
not give rise to bureaucratic rigidity in the organization; each employee is committed to achieve
their goals.

Organization used in Parveen industries pvt.ltd.

1. Formal Organization - This is one which refers to a structure of well defined jobs each
bearing a measure of authority and responsibility. It is a conscious determination by
which people accomplish goals by adhering to the norms laid down by the structure. This
kind of organization is an arbitrary set up in which each person is responsible for his
performance. Formal organization has a formal set up to achieve pre- determined goals.
Line organization is the oldest and simplest method of administrative organization.
According to this type of organization, the authority flows from top to bottom in a concern. The

line of command is carried out from top to bottom. This is the reason for calling this organization
as scalar organization which means scalar chain of command is a part and parcel of this type of
administrative organization. In this type of organization, the line of command flows on an even
basis without any gaps in communication and co-ordination taking place.
Features of Line Organization
1.
2.
3.
4.

It is the simplest form of organization.

Line of authority flows from top to bottom.
Specialized and supportive services do not take place in this organization.
Unified control by the line officers can be maintained since they can independently take
decisions in their areas and spheres.
5. This kind of organization always helps in bringing efficiency in communication and
bringing stability to a concern.

Line and Staff Organization

Line and staff organization is a modification of line organization and it is more complex than line
organization. According to this administrative organization, specialized and supportive activities
are attached to the line of command by appointing staff supervisors and staff specialists who are
attached to the line authority. The power of command always remains with the line executives
and staff supervisors guide, advice and council the line executives. Personal Secretary to the
Managing Director is a staff official.
Features of Line and Staff Organization
1. There are two types of staff :
a. Staff Assistants- P.A. to Managing Director, Secretary to Marketing Manager.
b. Staff Supervisor- Operation Control Manager, Quality Controller, PRO
2. Line and Staff Organization is a compromise of line organization. It is more complex
than line concern.
3. Division of work and specialization takes place in line and staff organization.
4. The whole organization is divided into different functional areas.
5. Efficiency can be achieved through the features of specialization.
6. There are two lines of authority which flow at one time in a concern :
a. Line Authority
b. Staff Authority
7. Power of command remains with the line executive and staff serves only as counselors.

Functional organization has been divided to put the specialists in the top position throughout
the enterprise. This is an organization in which we can define as a system in which functional
department are created to deal with the problems of business at various levels. Functional
authority remains confined to functional guidance to different departments. This helps in
maintaining quality and uniformity of performance of different functions throughout the
enterprise.
The concept of Functional organization was suggested by F.W. Taylor who recommended the
appointment of specialists at important positions. For example, the functional head and
Marketing Director directs the subordinates throughout the organization in his particular area.
This means that subordinates receives orders from several specialists, managers working above
them.
Delegation of Authority - Meaning, Importance and its Principles
Elements of Delegation
1. 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 welldefined. All people who have the authority should know what is the scope of their
authority is and they shouldnt 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 doesnt imply escaping from accountability.
Accountability still rest with the person having the utmost authority.
2. Responsibility - 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 doesnt accomplish tasks assigned as expected, then
also he is answerable for that.
3. Accountability - 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 cant be escaped. It arises from
responsibility.
For achieving delegation, a manager has to work in a system and has to perform following
steps: 1. Assignment of tasks and duties
2. Granting of authority
3. Creating responsibility and accountability
Delegation of authority is the base of superior-subordinate relationship, it involves following
steps:1. 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.
2. 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.
3. Creating 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. Therefore every manager, i.e., the delegator has to follow a system to finish
up the delegation process. Equally important is the delegates role which means his
responsibility and accountability is attached with the authority over to here.

Centralization and Decentralization

Centralization is said to be a process where the concentration of decision making is in a few
hands. All the important decision and actions at the lower level, all subjects and actions at the
lower level are subject to the approval of top management. According to Allen, Centralization
is the systematic and consistent reservation of authority at central points in the organization. The
implication of centralization can be :1. Reservation of decision making power at top level.
2. Reservation of operating authority with the middle level managers.
3. Reservation of operation at lower level at the directions of the top level.
Under centralization, the important and key decisions are taken by the top management and the
other levels are into implementations as per the directions of top level. For example, in a
business concern, the father & son being the owners decide about the important matters and all
the rest of functions like product, finance, marketing, personnel, are carried out by the
department heads and they have to act as per instruction and orders of the two people. Therefore
in this case, decision making power remain in the hands of father & son.
On the other hand, Decentralization is a systematic delegation of authority at all levels of
management and in all of the organization. In a decentralization concern, authority in retained by
the top management for taking major decisions and framing policies concerning the whole
concern. Rest of the authority may be delegated to the middle level and lower level of
management.
The degree of centralization and decentralization will depend upon the amount of authority
delegated to the lowest level. According to Allen, Decentralization refers to the systematic
effort to delegate to the lowest level of authority except that which can be controlled and
exercised at central points.
Decentralization is not the same as delegation. In fact, decentralization is all extension of
delegation. Decentralization pattern is wider is scope and the authorities are diffused to the
lowest most level of management. Delegation of authority is a complete process and takes place
from one person to another. While decentralization is complete only when fullest possible
delegation has taken place. For example, the general manager of a company is responsible for
receiving the leave application for the whole of the concern. The general manager delegates this
work to the personnel manager who is now responsible for receiving the leave applicants.

Chapter 4
Case Study: Procter & Gamble
Introduction
Procter & Gamble (P&G) is Americas leading manufacturer of household products (Degen,
2012). It was instituted by William Procter, an Irish candle manufacturer, who launched Procter
& Gambles operations in 1837 in Cincinnati, Ohio. The general emphasis of the firm is
innovation in product development. It is the first manufacture to conduct direct sales in 1919 and
is currently the largest product advertisers. It has over 250 brands of products in the world
market. The firms core values include leadership, people, ownership, integrity, trust, and
passion for winning. Procter & Gamble has 24 products with more than $ 1 billion dollars in net
sales. The purpose of this paper is to define and describe managerial functions and provides a
brief summary of the activities in reference to the four managerial functions at Procter &
Gamble.

Organizing Function
Organizing is the process of establishing what tasks need to be done, persons responsible for
each task and the process of management and coordination of the tasks (Lewis, Goodman, Fanot
& Mitchlitsch, 2007). Organizing links organizational mission and goals and objectives through
the development of the foundation (tasks and work relationships) and organizational design
(focus of decision making, organization of members and integration system). The work
relationships that exist between the various components of organizational function determined
how activities are coordinated and accomplished. The relationships are defined by the chain of
command, span of control, line and employee roles, and delegation.
Organizational design is an important aspect of the organizing function. Organizational design is
a plan for the arrangement and coordination of activities for the purpose of realizing its mission
through achievement of goals and objectives. General design of an organization is determined by
three dimensions: organizational structure, integrating mechanism and locus of decision making.
Functional structure, divisional structure, matrix structure and network structure are the four
forms of structure.

P&Gs Organizational Structure

Procter & Gamble is international company with presence in several countries the overall
management is led by the Chief Executive Officer with regional president representing each
region. The chart given below refers to the organizational structure of the US unit of Procter &
Gamble which is a matrix type of organizational structure (Mntzberg, 2007).

References
[1] R. Batra and O. T. Ahtola, management Text & Cases, Vol. 2, pp. 159-170,1990.
[2]Allen, Louis, A., Management and Organization, McGraw-Hill, New York, 1980
[3]Prasad, L.M. Principles and Practice of management, Sultan chand & Sons, New Delhi,1990
[4]Koontz, Harold, and Cyril O'Donnell. Principles of Management. McGraw-Hill, 1995.

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