Made By: Ankur Tripathi Prakhar Rastogi Arun Kumar

Saurabh Singh Dungun

Organisation is the detailed arrangement of work and working conditions in order to perform the assigned activities in an effective manner.

An identified group of people contributing their efforts towards the attainment of goals is called an organisation

- Mc Farland
"Organisation 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

Organising helps Organisations to reap the benefit of specialization. Organising provides for Optimum utilization of resources. Organising helps in Effective administration. Organising channels for Expansion and growth. Organising achieves co-ordination among different departments. Organising creates scope for new change.

Division of work: The first process of Organising includes identification and division of work which shall be done in accordance with the plans that are determined previously. Departmentation: once the work of identifying and dividing the work has been done those are similar are to be grouped. Linking departments: When the process of departmentation was completed, linking of departments has to be done so that those departments operate in a co-ordinated manner which gives a shape to overall organisation structure. Assigning Duties: On completion of departmentation process assigning duties i.e. defining authority and responsibilty to the employees on the basis of their skills and capabilities has to be done, which in consequence magnifies efficiency with regard to their work. Defining hierarchal structure: Each employee should also know from whom he has to take orders and to whom he is accountable/responsible.

Organisation structure is the pattern of relationships among various components or parts of the organisation which prescribes the relations among various activities and positions. An effective structure will result in increased profitability of the enterprise. whenever an enterprise grows in size or complexity it needs an adequate organisation structure.

Line Organisation Structure: Hierarchy derived from a scalar process. Organisation is quite simple in understanding and implementation. this does not offer scope for specialization. Line and Staff Organisation Structure: Staff personnel generally specialists in their fields advice line managers to perform their duties. Staff personnel have right to recommend, but have no authority. Functional Organisation: Grouping of activities on the basis of functions required for the achievement of ultimate objectives. Divisional Organisation Structure: Several fairly selfcontained autonomous units were created. Each unit was headed by a manager and is directly accountable to the organisation.

Identification of activities - All the activities which have to be performed in a concern have to be identified first Departmentally organizing the activities - In this step, the manager tries to combine and group similar and related activities into units or departments Classifying the authority - Once the departments are made, the manager likes to classify the powers and its extent to the managers.

Co-ordination between authority and responsibility Relationships are established among various groups to enable smooth interaction toward the achievment of the organizational goal.

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.

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.

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

Principle of Scalar Chain

Scalar chain is a chain of command or authority which flows from top to bottom. With a chain of authority available, wastages of resources are minimized, communication is affected, overlapping of work is avoided and easy organization takes place.

Principle of Unity of Command

It implies one subordinate-one superior relationship. Every subordinate is answerable and accountable to one boss at one time.

Organisation as a Structure
Organisation, as a structure, has the following features: Two or more persons

Common goals
Cooperative efforts Division of work Communication Rules and regulations Pyramidal shape

Organisation as a Process (Organising)

Organising is the process by which employees, facilities and tasks are related to each other, with a view to achieve specific goals. It refers to the way, work is arranged and allocated among members of the organisation, so as to achieve the goals. As a process, organisation, thus refers to one of the important functions of management, i.e., organising. The process of organising, thus, involves the following steps:

Identifying the work

Grouping the work Establishing relationships Delegating authority

Providing for coordination and control

Importance of Sound Organisation

Enlarges abilities Facilitates administration Facilitates growth and diversification Permits optimum use of resources Stimulates creativity

Facilitates coordination

Principles of Organization

Unity of Objectives Specialization or Division of work Span of Control Scalar Principle Functional Definition Exception Principle Unity of Command Balance

Efficiency Flexibility Continuity Facilitation of Leadership Coordination

Organization Structure
An organization structure shows the authority and responsibility relationships between the various positions in the organization by showing who reports to whom.

Forms of Organization Structure

Line Organization Line and Staff Organization Functional Organization Project Organisation Matrix organisation

Line Organization
General Manager Production Manager Superintendent Finance Manager Asstt. Finance Manager Accountants Marketing Manager Asstt. Marketing Manager Sales Supervisors

Foreman

Workers

Clerks

Salesmen

Line Organization
It consists of an uninterrupted series of authority steps and forms a hierarchical arrangement. It not only becomes the avenue of command to operating personnel but also provides the channel of communication, coordination and accountability in enterprise.

Line and Staff Organization

Board of Directors Executive Committee----- Managing Director-------- ----Controller of Finance -Asstt. To Managing Director

Manager Division A

Manager Division B

Manager Division C

Line Organization

Right to decide and command Contributes directly to the accomplishment of objectives Flows downward from a superior to subordinate Creates superior-subordinate relationship Bears final responsibility for results Provides channel of communication

Staff

Right to provide advice, assistance and information Assists line in the effective accomplishment of organizational objectives Possessed by specialists Extension of line and supports line Provides ideas for decision Does not bear final responsibility Thinking function No channel of communication is created

Functional Organization
Managing Director Production Manager Engineer Superintendent of Production Chemist

Foreman

Foreman

Foreman

Foreman

Workmen

Workmen

Workmen

Functional Organization

This is based on the concept of functional foremanship. In this Organization is divided into a number of functional areas. Each function is managed by an expert in that area.

Project Organization
Managing Director Manager Project Division II

Manager Project Division I Engineer R&D A/c officer Manager

Engineer

R&D Manager

A/c officer

Project Organization

Oriented towards the completion of a project Moulding the organization around a specific project It is usually structured to facilitate planning and designing of the product, completion of the task and phasing out of the project Need for project organization is felt when an organization is to execute a project which is subject to high standards of performance Assignment presents a unique or unfamiliar change

Matrix Organization
Division X

Production Proj. Mgr. I Prod Grp

Engineering Finance Engg Grp Fin Grp

Personnel Pers. Grp Pers. Grp

Proj Mgr II

Prod Grp

Engg Grp

Fin Grp

Matrix Organization

It is created by merging the two complementary organizations the project and the functional projects cut across the functional line project teams are composed of people from functional departments who are assigned to the project for a specific period or for the duration of the project After the project is finished they return to the functional departments

Departmentation
Departmentation or departmentalization is the process of grouping tasks into jobs, the combining of jobs into effective work groups and the combining of groups into identifiable segments or departments. A department is a division ,branch, regiment or some other organizational unit over which a manager has authority for performance of task.

Need and Importance of Departmentation

Specialization Expansion Autonomy Fixation of responsibility Appraisal Administrative Control

Types of Departmentation

Departmentation by Functions Departmentation by Products Departmentation by Territory Departmentation by Customer Departmentation by Process Departmentation by Time and Numbers Composite Departmentation

Functional Departmentation
Board of Directors Managing Director

Marketing

Production

Finance Repairs and Maintenance

Quality Control

Processing Material

Functional Departmentation

Each major function is organized as a separate department Basic or organic functions are the functions whose performance is vital and essential to the survival of the organization. A major function may be divided into minor or sub functions Exists almost in every organization at some level

Product Departmentation
Board of Directors Managing Director Plastic Division Chemical Division Metals Division

Finance

Production

Sales

Personnel

Product Departmentation

Every major product is organized as a separate department Each department looks after the production, sales and finance of one product Useful when product expansion and diversification, manufacturing and marketing characteristics of the product are of significance

Departmentation by Territory
Board of Directors Managing Director East Zone North Zone South Zone West Zone

Branch -I

Branch - II

Branch -III

Departmentation by Territory

Used when several units are geographically dispersed All activities in a given territory are grouped together

Departmentation by Process
Chief Executive General Manager

Spinning

Weaving

Dyeing

Packing

Departmentation by Process

Departmentation of manufacturing process may be done on the basis of production processes or equipment involved

Manpower and material are brought together in such a department to carry out a particular operation

Authority

Authority may be defined as the power to make decisions which guides the actions of others

Characteristics of Authority

Legal and legitimate No unlimited rights Relationship between two individuals Used to achieve organizational goals key to managerial job right to decision making

Responsibility

Responsibility is the duty to which a person is bound by reason of his status or task.

Characteristics of Responsibility

Can be assigned to humans only Arises from superior-subordinate relationship Continuing obligation or confined to the performance of a single function Defined in terms of functions or targets or goals Derivative of authority

Absolute and cannot be delegated Flows upward

Formal Organization

Consciously created to achieve organizational objectives Official hierarchy of relations Formal relations are well planned and are created deliberately Follows official chain of command Usually stable Formal authority is institutional Reflects technological aspect and not human sentiments

Follows a rigid structure of relationships Prescribed pattern of behaviour for its members

Informal Organization

Has no predetermined objectives Structure is based on human emotions and sentiments Relations are unplanned Does not have a fixed chain of command Life of informal groups is short Informal authority is personal Leaders are not appointed Reflects human aspect

Loosely structured and is highly flexible Develops social norms of behaviour through mutual consent

Delegation

The process a manager follows in dividing the work assigned to him so that he performs that part which only he, because of his unique organizational placement, can perform effectively and so that he can get others to help with what remains.

Characteristics of Delegation

Takes when superior grants discretion to subordinate Cannot delegate entire authority Does not imply reduction in the authority of manager May be specific or general, written or implied, formal or informal

Process of Delegation

Determination of result expected Assignment of duties Granting of Authority Creating accountability for performance

Centralization

Centralization is systematic and consistent reservation of authority at central points within an organization.

Disadvantage

Disadvantages

Delay in communication Inhibits development of lower level employees Low motivation and morale of lower level people

Decentralization

Decentralization refers to the systematic effort to delegate to the lowest levels all authority except that which can only be exercised at central authority. It is the distribution of authority throughout organization.

Disadvantage

Nature of Staffing

Staffing is a universal function Continuous process Dynamic process Cannot be entrusted to the personnel department only

Scope of Staffing

Procurement Development Compensation Integration Maintenance

Importance of Staffing

Helps in discovering competent employees Higher performance due to right person on the right job improves job satisfaction and morale of the employee Facilitates optimum utilization of human resources

Need for Staffing

Increased size of organization Advancement of technology Long range need for manpower Human relation movement

Thank you