ORGANISING

What is Organising?
• Social unit or human grouping deliberately
structured for purpose of attaining specific
goals.

• The process of coordinating and allocating

a firm’s resources so that the firm can carry
out its plans and achieve its goals
PURPOSE OF ORGANISING
• Implementation of plans, Strategies.
• To increase efficiency of work.
• Personal Identity
• Determination of responsibility
• Determination of Authority
• Coordination.
• Optimum staff use.
• Specialization.
• To study human behavior.
PROCESS OF ORGANISING
ORGANISING

Identification of Activities Division of Work

Grouping of Activities Departmentation

Assigning Activities Hierarchy

Decentralization
Delegation of Authority
Co-Ordination
PRINCIPLES OF ORGANISING
• Objectives
• Specialization
• Span of Control
• Exception
• Scalar Principle
• Unity of Command
• Delegation
• Responsibility
• Authority
• Efficiency
• Simplicity
ORGANIZATION DESIGN
6 important things
• Work specialization
• Departmentalization
• Chain of command
• Span of control
• Decision-making authority
• Formalization
 DEPARTMENTATION
The process of grouping jobs together so that
similar or associated tasks and activities can be
coordinated

Departmentation

functional Product Customer Geography Process Time

1. FUNCTIONAL
PRESIDENT

VICE PRECIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT

Production Marketing Finance HR

Advantages Disadvantages
•Logical reflection of functions •De- emphasizes overall objective.
•Maintain Power & prestige. •Narrow view point of key persons
•Occupational specialization •Reduction in co-ordination.
•Simplifies training •Responsibility of profit at Top
•Furnishes means of Tight control at top. •Slow adoption to changes.
2. PRODUCT/MARKET

PRESIDENT

GENERAL MANAGER
GENERAL MANAGER GENERAL MANAGER
Cosmetic
Pharmaceutical Customer
Products
Products Products
 3. GEOGRAPHY/AREA

PRESIDENT

GENERAL MANAGER GENERAL MANAGER GENERAL MANAGER GENERAL MANAGER GENERAL MANAGER
NORTH INDIA SOUTH INDIA EAST INDIA WEST INDIA CENTRAL INDIA

Advantages
•Responsibility at a lower level.
•Emphasis on local market & Problems.
•Improves co-ordination in a region.
•Better face to face communications.
Disadvantages
•More persons with manager ability.
•Increases problem at top level.
•Tends to make maintenance of central
services difficult.

•Take advantages of local economies.

4. CUSTOMER

PRESIDENT

VICE PRECIDENT VICE PRESIDENT VICE PRESIDENT

Industrial Consumer Military
products Products Products

Advantages Advantages

•Focus on Customer needs. •May be difficult to coordinate operations

•Gives customer a feeling that they have
an understanding supplier..
•Develops expertness in customer area.
between competing customer demands.
•Requires managers & staff expert in
customer problems.
•Customer groups may not be always
defined
5. PROCESS

PLANT SUPRITENDENT

Cutting & Treatment Furniture Assembly Furniture Assembly Shipping

LINE & STAFF AUTHORITY
PRESIDENT

Assistant

VP VP VP VP
Finance Administration HR Production

VP & GM VP & GM VP & GM VP & GM

Division C Division D Division B Division A

ASSISTANT ASSISTANT ASSISTANT ASSISTANT

SPECIALIED STAFF PERSONAL STAFF LINE POSITIONS

Line Positions
• all positions in the organization directly
concerned with producing goods and
services and which are directly connected
from top to bottom
• Typically found in areas such as:
– production
– marketing
– finance
Staff Positions
positions in an organization held by
individuals who provide the administrative
and support services that line employees
need to achieve the firm’s goals

• Typically found in areas such as:

– legal counseling
– public relations
– human resource management
 Mechanistic vs. Organic
Structure
Structural Mechanistic Organic
Characteristic
Job specialization High Low
Departmentalization Rigid Loose
Management Tall (many Short (few
hierarchy levels) levels)
Span of control Narrow Wide
LINE ORGANISATIONS Matrix Organization
Decision making Centralized
HorizontalDecentralized
Organization
BUROCREACY
authority Virtual Organization
Chain of command Long Short
MECHANISTIC ORGANISATION

an organization characterized by
• A relatively high degree of work
specialization,
• Rigid departmentalization,
• Many layers of management,
• Narrow spans of control,
• Centralized decision- making, and
• A long chain of command.
ORGANIC ORGANISATION
an organization characterized by
• a relatively low degree of work
specialization,
• loose departmentalization,
• few levels of management,
• wide spans of control,
• decentralized decision-making, and
• a short chain of command
MATRIX ORGANISATION
• Advantages • Disadvantages
– teamwork – power struggles
– efficient use of – confusion among
resources team members
– flexibility – lack of cohesiveness
– ability to balance
conflicting objectives
– higher performance
– opportunities for
personal and
professional growth
 DELEGATION OF
AUTHORITY
• Power & Authority.
Process
• Assigning Responsibility.
• Granting Authority.
• Creating Accountability.
ADVANTAGES
•Maximum effectiveness of Organization.
•Improvement of self confidence & willingness to take
initiative ,high morale.
•Better & Speedy decisions.
•Simplifies problem of management succession
DECENTRALISATION
The process of pushing decision-making
authority down the organizational hierarchy,
giving lower-level workers more responsibility
•History of organization
•Philosophy of organization
•Availability of competent subordinates
•Dispersal of operations.
•Size of organization.
•Degree of diversification.
 DECENTRALISATION
Complete Complete
centralization
Decentralization
No Organizational
structure No Organizational structure

Authority delegated

Disadvantages: Authority not delegated

•Problems of Co-Ordination.
•Increase in Administrative Cost.
•Scope of unhealthy Competition.
•Communication Gap between levels.
 SPAN OF MANAGEMENT
•SPAN OF CONTROL is the number of people
who report to one manager.

•Ability of Subordinates.
•Nature of Work
•Degree of team work.
•Faith & trust in Subordinates
NARROW SPAN

PRESIDENT

MANAGER 1 MANAGER2 MANAGER 3

EMPLOYEE EMPLOYEE EMPLOYEE EMPLOYEE EMPLOYEE EMPLOYEE

EMPLOYEE EMPLOYEE EMPLOYEE EMPLOYEE

 WIDE SPAN

MANAGER 1

EMPLOYEE EMPLOYEE EMPLOYEE EMPLOYEE EMPLOYEE EMPLOYEE EMPLOYEE EMPLOYEE EMPLOYEE

EMPLOYEE EMPLOYEE EMPLOYEE EMPLOYEE EMPLOYEE EMPLOYEE EMPLOYEE

TALL ORGANISATION
& FLAT ORGANISATION
PRESIDENT
FLAT ORGANISATION
PRESIDENT
FORMAL & INFORMAL
ORGANISATION
FORMAL
PRESIDENT

INFORMAL
INFORMAL ORGANISATION
• The network of connections and channels of
communication based on the informal relationships of
individuals inside an organization

• Give employees more control over their work

environment by delivering a continuous stream of
company information, helping employees stay informed

FUNCTION
• Friendships and social contact
• Information and sense of control over their work
environment
• Source of status and recognition
COORDINATION 2. INCREASE
COORDINATION
POTENTIAL

d. Vertical
Information
1.BASIC System.
MANAGEMENT e. Lateral
TECHNIQUE Relationships.
a. Management
Hierarchy.
b. Rules & 3. REDUCE
Procedure. NEED FOR
c. Plans & Goals. COORDINATION

f. Slack
Resources
g. Independent
Units.
TRENDS IN ORGANISATION
• Virtual corporation
– technology
– opportunism
– excellence
– trust
– no borders
• Structural issues for global mergers