Organization

Presented by
Manish Kumar Nagda
Meaning of
Organization

“An organization represents a group of

people who work together for the
achievement of common objective.”
“An organization comes into existence
when there are a number of persons in
communication and relationship to
each other and are willing to contribute
towards a common endeavor.”
Process of organization
 Determination of objectives.
 Division of Activities.
 Fitting Individuals.
 Developing relationships.
 Co-ordination.
Advantages of organization
 Effective Management.
 Co-ordination and communication.
 Growth and diversification.
 Optimum use of technical
innovations.
 Optimum use of human resource.
 Balance emphasis to various
activities.
Principles of organization
 Principle of objectives.
 Principle of division of work.
 Principle of unity of command.
 Principle of span of control.
 Principle of scalar chain.
 Principle of delegation.
 Principle of absoluteness of
responsibility.
Principle cont…
 Principle of parity of authority and
responsibility.
 Principle of co-ordination.
 Principle of flexibility .
 Principle of efficiency.
 Principle of continuity.
 Principle of exception.
 Departmentation
“Departmentation involves
grouping all operation tasks
into jobs, combining of jobs
into effective work
group,combining all groups
into division often termed as
departments.”
Advantages of
Departmentation
 Easier to fix accountability for the results.
 Increase in efficiency of management and
enterprise.
 Departmentation is a logical reflection of
functions.
 Maintains power and prestige of manor
functions.
 Departmentation simplify training.
Bases of the
Departmentation

1. Departmetation by function

C h ie f E x iq u it iv e

P r o d u c t io n M a r k e t in g F in a n c e H u m a n re s o u rc e
D e p a rtm e n t D e p a rtm e n t D e p a rtm e n t D e p a rtm e n t

P r o d u c t io n M a n u f a c tu r in g Q u a lity
p la n n in g c o n tro l

F o u n d ry L a th e A ssem by S to re s
2. Departments by Product

C h ie f E x iq u it iv e

P r o d u c t io n
D ir e c t o r

P la s t ic M a t a ls D iv is io n C h e m i c a ls
D iv is io n d iv is io n

P r o d u c t io n M a r k e t in g R e s e a rc h A c c o u n t in g P e rs o n n e l
3. Departmentation by
equipment or process

C h if E x iq u it iv e

G e n e ra l M a n a a g e r
{T A X T IL E }

S p in n in g W e a v in g C a la n d e r in g D y e in g P a c k in g
4. Departmentation by
Consumers.

C h ie p E x iq u it iv e

G e n e ra l M a n a g e r
{A U T O M O B IL E }

H e a v y D iv is io n L ig h t D iv is io n S c o o t e r D iv is io n
5. Departmentation by
Geographical location
L i f e I n s u r a n c e c o r p o r a t i o n o f I n d ia

H e a d O f f ic e
{B o m b a y}

E a s te rn C e n tra l N o rth e n S o u th e rn W e s te rn
{ c a lc u t t a } {K a n p u r} { D e lh i} {M a d ra s } {B o m b a y}

N e w D e lh i J a la n d h a r C h a n d ig a r h J a ip u r
D iv is io n D iv is io n D iv is io n D iv is io n

B ra n c h B ra n c h B ra n c h
U n it 1 U n it 2 U n it 3
 Conclusion

A good organization structure

is necessary to operate the
organization efficiently and
organization must be
structured according to the
type of the organization and
situations.