ORGANIZING

UNIT- 3
MG 6851- PRINCIPLES OF MANAGEMENT
 Definition of Organizing
Process of identifying and grouping the activities required to attain the objectives, delegating
authority, creating responsibilities and establishing relationships for people to work effectively.
Organizing:
Identification and classification of required activities

Grouping of activities necessary for attaining objectives

Assignment of each group to a manager with the authority necessary to supervise it.

The provision for coordinating horizontally ( on the same or similar organizational level) and vertically ( eg. b/w
corporate HQ, division & dept.)

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 Nature of organizing
 Common objective
 Specialisation or division of labour
 Authority of structure or chain of command
 Group of persons
 Co-ordination
 Communication
 Environment
 Rules & regulations

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 Process of organizing
 Determination of activities
 Grouping of activities
 Assignment of duties
 Delagation of authority
 Establishment of structural relationship
 Co-ordination of activities

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 Purpose or importance of organizing
To Facilitate administration
To increase the efficiency of management
To facilitate growth & diversification
To ensure optimum use of man & material resources
To facilitate co-ordination & communication
To permit optimum use of technological innivations

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 ORGANIZATIONAL CHART
• TOP- BOTTOM CHART

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 ORGANIZATIONAL CHART
• LEFT- RIGHT CHART ZONAL BRANCH
MANAGER 1 MANAGER 1 SALESMAN 1

MANAGING
PRESIDENT
DIRECTOR ZONAL BRANCH
MANAGER 2 SALESMAN 2
MANAGER 2

ZONAL BRANCH SALESMAN 3

MANAGER 3 MANAGER 3

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 ORGANIZATIONAL CHART
SUPERVISOR- III
• CIRCLE CHART
SUPERVISOR- II •.
PRODUCTI
MARKETIN
ON G MANAGER
SUPERVISOR- I MANAGER

CHAIRMAN

PERSONAL FINANCE
MANAGER MANAGER

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ORGANIZATIONAL DESIGN
• Work Specialization
• Departmentalization
• Chain of command
• Span of control
• Centralization and decentralization
• Formalization
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1. WORK SPECIALISATION
• Dividing work activities into separate job tasks.
• Effective use of the diversity of skills.
• Lower level skills

eg: To meet daily output goals, the workers specialize

in job tasks such as
molding, stitching and sewing, lacing, & so forth (ball)
Lacing is one of 13 separate tasks involved in
hand-crafting a Wilson Sporting Goods football.
The company uses work specialization in dividing
job activities as an organizing mechanism that
helps employees boost their productivity and makes
efficient use of workers’ diverse skills.
Source: Jeff Haynes/AFP/Getty Images/Newscom
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2. DEPARTMENTALIZATION
• The basis by which jobs are grouped together.

For instance, a hotel might have departments such

as front desk operations, sales and catering,
housekeeping and laundry, and maintenance.

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3. Chain of Command
• The line of authority extending from upper organizational levels
to the lowest levels, which clarifies who reports to whom.
 Authority- The rights inherent in a managerial position to
tell people what to do and to expect them to do it
 Responsibility- The obligation or expectation to perform
any assigned duties
 Unity of command- The management principle that each
person should report to only one manager

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 AUTHORITY
The view that authority comes from the willingness of subordinates to accept
it
• Acceptance theory of authority:
Barnard contended that subordinates will accept orders only if
the following conditions are satisfied:
1. They understand the order.
2. They feel the order is consistent with the organization’s
purpose.
3. The order does not conflict with their personal beliefs.
4. They are able to perform the task as directed.
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Line authority
• Authority that entitles a manager to direct the work of
an employee
• The term line is used to differentiate line managers
from staff managers.
• Managers whose organizational function
contributes directly to the achievement of
organizational objectives.
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Staff authority
• Positions with some authority that have been created
to support, assist, and advise those holding line
authority.
• To support, assist, advise, and generally reduce some
of their informational burdens.

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RESPONSIBILITY
• The obligation or expectation to perform any assigned
duties.
UNITY OF COMMAND
The management principle that each person should
report to only one manager.(Without unity of
command, conflicting demands from multiple
bosses may create problems)
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4. Span of Control
• The number of employees a manager can efficiently and
effectively manage.
• The traditional view was that managers could not—and
should not—directly supervise more than five or six
subordinates.
• Determines the number of levels and managers in an
organization.

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5. Centralization and Decentralization
• The degree to which decision making is concentrated at
upper levels of the organization- CENTRALIZATION
• The degree to which lower-level employees provide
input or actually make decisions -
DECENTRALIZATION

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6. Formalization
• How standardized an organization’s jobs are and the
extent to which employee behavior is guided by rules
and procedures

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 ORGANIZATIONAL STRUCTURE

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