ORGANISING

TALL & FLAT STRUCTURES[A COMPARSION]

TALL STRUCTURE Close control Better coordination in case

of interlocking network Fewer mistakes due to close

supervision Good for staff desiring

detailed guidance

FLAT STRUCTURE Loose control Difficulty in coordination

More mistakes due to loose supervision

Good for staff requiring greater independence challenge and responsibility

CONCEPT OF ORGANISATION

STRUCTURE PROCESS

ORGANISATION

ORG. AS A STRUCTURE

Acc. To Mc Farland –

“An identifiable group of people contributing their efforts towards the attainment of goals.”

ORG. AS A PROCESS

Acc. To Haimann-

“Organizing is the process of defining and grouping the activities of the enterprise and establishing the authority relationship among them. In performing the organizing function, the manager defines, departmentalizes and assigns activities so that they can be most effectively executed.”

NATURE OF ORGANISATION

Common purpose. Division of labor. Authority structure. People. Communication. Co-ordination. Environment. Rules & regulation.

PRINCIPLES OF ORG..

Unity of Objective. Specialization / Division of Work. Span of Control. Scalar Principle. Functional Definition. Exception Principle. Unity of Command.

PRINCIPLES

Balance. Efficiency. Flexibility. Continuity. Facilitation of Leadership. Parity of Authority & Responsibility. Co-ordination.

FORMAL ORG.

It refers to the organization structure deliberately created by management for achieving the objectives of the enterprise. It is a pattern of activities, processes, human relationships, & roles planned & structured in order to accomplish organizational goals.

FEATURES OF FORMAL ORG.

POINT Origin Nature Size Continuity Focus Structure

FORMAL ORG. Created deliberately Planned & official Large Stable Built around jobs Definite structure-

mechanical & rational

FEATURES OF FORMAL ORG.

Goals

Influence processes Control process

Communication

Authority

charting

Profits & service to society

Legitimate authority Rigid rules and regulations

Official & well defined paths. One way & slow flow of information

Positional flows, top down Shown on organizational

chart

INFORMAL ORGANIZATION

It refers to the pattern of activities, interactions and human relationships which emerge spontaneously due to social & psychological forces operating at the work place. It arises naturally on the basis of friendship or some common interest which may or may not be related with work.

FEATURES OF INFORMAL ORG.

POINT Origin Nature Size Continuity Focus

Structure

INFORMAL ORG. Arise spontaneously Unplanned & unofficial Small Instable & dynamic Built around people &

their roles Structure less,

impersonal & emotional

FEATURES OF INFORMAL ORG.

Goals Influence processes Control process Communication

Authority charting

Satisfaction of members. Power. Group norms & values. Unspecified channels. Two

way & fast flow of information, grapevine.

Personal flows, bottom up. Not shown on organizational

chart.

COMPARISON

Distorted & delayed communication

Costly in terms of administrative overheads

Slows decision making Grater admm distance

b/w top level & workers

Speedy & improved communication

Reduced overhead costs & less supervisors

Faster decision making Lesser administrative

distance

COMPARISON

Little opportunity for dev of subordinates

Less pressure on managers

Easy application as less competent subordinates can be employed.

Forces managers to delegate leading to the dev of subordinates

Pressures on managers & heavy penalty for failure

Difficulty in application due to non-availability of competent & willing subordinates.

DELEGATION - MEANING

Delegation means assigning work to others & giving them authority to do it. It involves granting the right to decision making in certain defined areas & charging the subordinates with responsibility for carrying out the assigned tasks.

CHARACTERISTICS

It take place when a superior grants some discretion to subordinate.

A manager can’t delegate the entire authority to his subordinates.

Generally authority regarding routine decisions & for execution of policies is delegated to subordinates.

It doesn’t imply reduction in the authority of manager. It may be specific/general, written/implied,

formal/informal.

PROCESS OF DELEGATION

Determination of results expected

Assignment of duties

Granting of authority

Creating accountability for performance

PRINCIPLES OF DELEGATION

Functional definition. Delegation by results expected. Parity of authority & responsibility. Absoluteness of responsibility. Unity of command. Well-defined limits of authority. Authority level principles.

CENTRALIZATION & DECENTRALIZATION

Centralization & decentralization are opposite terms.

They refer to the location of decision-making authority in an org.

Centralization implies the concentration of authority at the top level of the org.

While Decentralization means dispersal of authority throughout the org.

CENTRALIZATION & DECENTRALIZATION

Centralization & decentralization are opposite terms.

They refer to the location of decision-making authority in an org.

Centralization implies the concentration of authority at the top level of the org.

While Decentralization means dispersal of authority throughout the org.

Centralization & Decentralization

Acc. To Allen, “Centralization is a systematic & consistent reservation of authority at central points within an org. Decentralization applies to the systematic delegation of authority in an org. wide context.”

ADVANTAGES OF DECENTRALIZATION

Relief to top executives. Motivation of subordinates. Quick decisions. Growth & diversification Executive development. Effective communication. Efficient supervision & control.

DISADVANTAGES

Expensive. Difficulty in co-ordination. Lack of uniformity. Narrow product lines. External constraints.

FACTORS DETERMINING DECENTRALIZATION

Size & complexity of the org.Dispersal of operations.Degree of diversification.History of the enterprise.Outlook of top management.

FACTORS

Availability of competent personnel.Nature of functions.Communication system.Planning & control procedures.Complexities of the situation.

FACTORS DETERMINING CENTRALIZATION

To facilitate personal leadership.To provide integration.To achieve uniformity of action.To handle emergencies. to improve efficiency.

ADVANTAGES

Effective utilization of talents of the top leader. All parts move together. A unifying force that

integrates all operations. A strong co-ordination top management team is

developed. Uniformity of policy and plans. Best arrangement to tackle emergencies. Duplication of functions & facilities is minimized.

DISADVANTAGES

Delays in decision-making & communication. Centralized power & authority may be

abused. Inhibit development of lower level people. Low motivation & moral of lower level people. Fortunes of the enterprise depend on the

health & vitality of top executives.

STAFFING

Staffing is that part of the process of management which is concerned with obtaining, utilizing, & maintaining a satisfactory & satisfied work force.

Its purpose is to establish & maintain sound personnel relation at all levels in the org so as to make effective use of personnel to attain the objectives of the org & to provide personal & social satisfaction which personnel want.

Definition

Acc. To Koontz & O’Donnell, “The managerial function of staffing involves manning the organizational structure through proper & effective selection, appraisal & development of personnel to fill the roles designed into the structure.”

FEATURES

It is a universal function. Every manager is continuously engaged in

performing the staffing function. It is a dynamic function. It cannot be entrusted fully to personnel dept

or any other service dept. It is a difficult function with extraordinary

problems of social, philosophical & psychological nature.

ELEMENTS OF STAFFING [FUNCTIONS OF PERSONNEL MANAGEMENT]

ProcurementDevelopmentCompensationIntegrationMaintenance

NEED FOR STAFFING

Increasing size of organizations. Advancement of technology. Long-range needs for manpower. High wage bill. Trade unionism. Human relations movement.