Organising
By:- Ranjana Singh
Assistant Professor of Management, UWSL
Concept of Organisation
• "Organisation may be defined as a group of individuals, large of
small, that is cooperating under the direction of executive
leadership in accomplishment of certain common object.”
~ Keith Davis
• “The process of identifying and grouping of the work to be
performed, defining and delegating responsibility and authority and
establishing relationships for the purpose of enabling people to
work most effectively together in accomplishing their objectives.”
~ Louis A. Allen
• “organization is the structuring of individuals and functions into
productive relationship”.
~ Pfiffner and Presthus
Concept of Organisation
• The term organisation is used in two senses:
1. Organization as a process
2. Organization as a structure
Organizing as a process
• Consists of following important steps:1. Determination of objectives
2. Identification of work
3. Grouping of Activities
4. Creation of Managership
5. Division of work within the Departmental Set up
6. Arrangement of Physical Facilities
7. Developing Relations
8. Provision of a channel of communication
9. Coordination of Various Activities.
10. Control and Corrective Action.
Principles of Organizing
~ by Ryndall Urwick
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Principle of delegation of Authority
Principle of Coordination
Principle of Continuity
Principle of Definition
Principle of Explanation
Principle of Equilibrium Balance
Principle of Flexibility
Principles of Organizing
~ by Ryndall Urwick
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Principle of Unity of Objectives
Principle of Responsibility
Principle of Specialization
Principle of Span of Control
Principle of Scalar Chain
Principle of Simplicity
Principle of Unity of Command
Principle of Unity of Direction
Principle of Uniformity
Principles of Organizing
~ by Ryndall Urwick
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Principle of Efficiency
Principle of Leadership
Principle of Exception
Principle of Joint Decision
Concept of Organizational
Chart
• “An organization chart is a diagrammatic form which shows
important aspects of an organization, including the major functions &
their respective relationship, the channel of supervision & the relative
authority of each employee who is in charge of each respective
function.”
~ George Terry
• It is a snapshot of an organization at a particular point in time which
shows the flow of authority, responsibility and communication among
various departments which are located at different levels of the
hierarchy.”
~ Tripathy & Reddy
There are three principal form of “Organization Chart”:~ Vertical Organization
~ Horizontal Organization
~ Circular Organization
~ Tree form of Chart
Vertical Chart
Horizontal Chart
Circular Organizational
Chart
Tree form of
organizational chart
Types of Formal Structure
Line and Staff Organization
Line and Staff Organization
Functional Organization
Matrix Organization
Concept of
Departmentalization
• “Departmentalization is a process which is used to group
activities into units for purposes of administration at all
levels.”
~ M.C.Shukla (Business Organization and Management)
• “Departmentalization designates a distinct area, division
or a branch of an enterprise over which a manager has
an authority for the performance of specified activities”
~Koontz & O’Donnell
• “Departmentalization is the process in which related functions are grouped into
manageable units to achieve the objective of the enterprise in the most efficient
and effective manner”.
Departmentalization
• Common forms of Departmentalization are:1. Functional Organizational Structure (E.g. Finance Department,
Marketing Department, HRD Department etc)
2. Product Divisionalization (E.g. Reliance Industries Limited has Several
product divisions: Textiles, Polyester, Fibre intermediates, Polymers, Chemicals etc)
3. Geographic Structure (E.g. Tata Global Beverage has adopted geographical
structure because the company expanded its activities in a large number of countries.
4. Process Manager
(Eg. In a Textile mill Manager Ginning, Manager
Spinning, Manager Weaving, Manager Dyeing and Printing
4. Customer Structure
(E.g. Industrial Customers & Retail customers of
various banks)
5. Time
(E.g. Doctors in Hospital, used extensively in public utilities like electricity
boards, railways.)
Consolidated Organizational Chart
Chain of Command
• It is the line of authority extending from upper
organizational levels to lower levels and clarifies who
reports to whom.
• Three components decides the chain of command:1. Authority
2. Responsibility 3. Unity of Command
Span of Control
• It suggests the number of employees that a manager can
efficiently manage.
• Determines the number of levels in an organization
• Traditional view suggests that a manager can not
directly supervise more than five or six subordinates.
• In recent trend the consideration is given to larger span
for:- Speedy managerial Decision making, increase flexibility,
get closer to employees, empower employees and reduce costs.
Centralization & Decentralization
• Centralization is the extent to which the decision making
takes place at the upper levels of the Organization.
• According to Allen, “Decentralization refers to the
systematic effort to delegate to the lowest level of
authority except that which can be controlled and
exercised at central points”.
• Factors which can affect managements decision to
centralize or decentralize are:- 1.Cost of decisions 2.Uniformity of
Policy 3.Competency Levels 4.Control Mechanisms and 5.Environmental
Influences.
Formalization/Standardization
• Formalization refers to how standardized an
organization’s jobs are and the extent to which employee
behavior is guided by rules and procedures.
• Firms with strong formalization rely on the chain of
command for decision making, communication and
control.
• Although some formalization is necessary for the
consistency and control, many organizations, at present,
rely less on strict rules and standardization to guide or
regulate employee behavior.