Organizing Ms. AshitaChadha
Organizing Process off determining the activities to be performed, arranging these activities to administrative units, as well as assigning managerial authority and responsibilities to people employed in the organization.
Organizing Definition “Organizing is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work more effectively together in accomplishing objectives”. Louis Allen
Importance of Organizing • Focus to facilitate the attaining of objectives • Arrangement of positions and jobs within the Hierarchy • Define responsibilities and line of authority of all levels • Creating relationships that will minimize friction • Classification of work and assigning it to different departments helps in bringing specialization in managerial functions
Characteristics of Organization • Division of labour : Organization deals with task of the business as a whole. The work is assigned to different persons for efficient accomplishment and specialization with the help of Organization structure. • Co-ordination : It helps in integrating and harmonizing various activities which in turn avoids duplication and delays.
Well defined Authority and responsibility relationship: An Organization consists of various positions arranged in a hierarchy with well defined authority and responsibility. • Co-operative Relationship: Relationship should be both vertical and horizontal among members. • Successful Goal Achievement The organization has the will and means for maintaining Clarity of Direction
Constituents of Organizing 1. Organization • Organization Design • Organization Structure • Departmentation • Organizational Relationship 2. Span of Control 3. Employee Empowerment • Centralization and Decentralization • Power an d Authority • Delegation 4. Organization Culture
Centralization and Decentralization • Centralization is the concentration of decision-making and action at high level management. • Decentralization is the consistent delegation of authority to the lower levels where the work is performed.
Delegation: • Process off assigning work from a top organizational level to a lower one or from superior to subordinate, and giving that person the authority to accomplish them. • Allocation of duties • Delegation of authority • Assignment of responsibility • Creation of accountability
Barriers to successful delegation • Lack of superior's ability to direct the subordinates • Lack of confidence in subordinate • Absence of control
Major causes of managers’ refusal todelegate • Tendency to do things personally • Desire to dominate the knowledge, information, and skills • Unwillingness to accept risks of wrongs
Principles of delegation • Responsibility can not be delegated • Authority and responsibility should be delegated in equal proportion.
Authority : • The right to take final decisions,, to act or to command action off others • It moves in a downward directiion.
Types of authority • Ultimate authority • Legal authority • Technical authority • Operational authority
Responsibility: • The obligation involved when one accepts an assignment. • It cannot be delegated, it may be continued or it may be terminated with the accomplishment of the goal.
Span of Control: • Number of subordinates that can be adequately supervised by one supervisor. Dimensions of span of control • Narrow span of control • Wide span of control
Narrow span of control Advantages: • Close supervision. • Close control. • Fast communication between subordinates and superiors. Disadvantages: • Superiors tend to get too involved in subordinates’ work. • Many levels of management. • High costs due to many levels.
Wide span of control Advantages: • Superiors are forced to delegate. • Clear policies must be made. • Subordinates must be carefully selected. Disadvantages: • Tendency of overload superiors to take most or all decisions. • Danger of superior’s loss of control. • Requires exceptional quality of managers.
Formal and Informal Organization Organizations can be categorized as informal or formal, depending on the degree of formalization of rules within their structures.
Management has determined that a comparatively impersonal relationship between individuals and the company for which the work is viewed as the best environment for achieving organizational goals. Subordinates have less influence over the process in which they participate, with their duties more clearly defined Formal Organization
Informal organizations • Informal organizations, on the other hand, are less likely to adopt or adhere to a significant code of written rules or policies. • Individuals are more likely to adopt patterns of behaviour that are influenced by a number of social and personal factors. • Changes in the organization are less often the result of authoritative dictate and more often an outcome of collective agreement by members. • Informal organizations tend to be more flexible and more reactive to outside influences.
1. Division of labour 2. Departmentalization 3. Appointing Suitable persons 4. Delegation of Authority STEPS IN ORGANIZING
DIVISION OF LABOUR Division of labour is the breakdown of labour into specific, circumscribed tasks for maximum efficiency of output, particularly in the context of manufacturing.
Departmentalization • Departmentalization refers to the process of grouping activities into departments. • Division of labour creates specialists who need coordination. This coordination is facilitated by grouping specialists together in departments.
Types of Departmentalization • Functional departmentalization - Grouping activities by functions performed. • Product departmentalization - Grouping activities by product line. • Customer departmentalization - Grouping activities on the basis of common customers. • Geographic departmentalization - Grouping activities on the basis of territory. • Process departmentalization – Grouping activities on the basis of different steps involved in the process of manufacturing or delivery of a product or service.
Functional departmentalization • Functional departmentalization groups people by expertise and resources used. It is the most widely used and accepted form of departmentalization . • This approach also enhances career development and training within the department, while also allowing superiors and subordinates to share common expertise.
Product departmentalization arranges your business along “product” lines . Product departmentalization can allow for quicker changes in a product line , more concern for customer demand, as the impact of customer demand can more easily be traced to a particular department. Product departmentalization
Place departmentalization is based on geographic area, and groups all functions for the area at one location under one manager. Advantages to the place approach are that managers develop expertise in solving problems unique to their location and get to know their local customer's very well. Place departmentalization
Customer departmentalization breaks the organization into groups based on the type of customer served. It is used to ensure a focus on customer’s needs expertise in solving problems unique to their location, know their local customer’s problems definitive identification of key customers Customer departmentalization
Departmentalization by process groups jobs on the basis of product or customer flow. Each process requires particular skills and offers a basis for homogeneous categorizing of work activities. Process departmentalization
When activities are divided into different functions , the next step will be to appoint suitable persons for various jobs. Experts are appointed as a head of Departments. Appointing Suitable persons
A person will be able to perform duty only when he is given adequate authority required for that job. If the work is assigned without delegating it is meaningless. Authority and responsibility always go together. Delegation of Authority
Line Organization Functional Organization Divisional Organization Matrix Organization Virtual organizations Forms of Organization Structure
Line Organization • An authority relationship in organizational positions where one person (a manager) has responsibility for the activities of another person (the subordinate). In such organization, top management has complete control, and the chain of command is clear and simple.
Owner Manager AssistantManager HourlyEmployee Line Structure Convenience Store
StaffOrganization • Staff refers to those members who perform purely advisory functions. • Staff personnel use their technical expertise to indirectly assist line personnel, aid top management and provide support, advice, and knowledge to other individuals in the chain of command. • For example, Human Resource department employees help other departments by selecting and developing a qualified workforce.
Line relationship PlantManager Staff relationship Engineering HumanResources ProductionManager Supervisor Supervisor Supervisor Supervisor Employees Employees Employees Employees Line-and-Staff Organization
FUNCTIONAL ORGANIZATION • Functional authority is referred to as limited line authority. It gives a staff person power over a particular function. It is given to specific staff personnel with expertise in a certain area. For example, members of an accounting department might have authority to request documents they need to prepare financial reports • Functional authority is a special type of authority for staff personnel, which must be designated by top management.