Welcome Topic 3:

Organization Management

Presented ByMr. J.B.Shirote

Lecturer in Mechanical Engineering DepartmentLatthe Education Society’s Polytechnic

P-41,M.I.D.C.,Kupwad,Sangli.

Organizationan organized group of people

with a particular purpose

e.g.Any Business Or Government Department

Difference Between Organization And Organisation

Organization with the "Z" - commonly used when writing using US English

Organisation with the "S" - commonly used when writing using UK English

Aims Of Forming OrganizationCombined effortsOrdered way of thinkingTeam workResponsibility on allOptimum use of resourcesEffective work completion

Steps In Organization

Organization StructureEvery organization has a definite

structureFormal pattern of groups and

relationshipsStructure is generally stable but

it can be modified

Essentials elements of organizationOrganizational chartPredefined objectivesList of activitiesCommunicationDelegation of workIntegrationAdministration

The structure depends uponGoalsResources availabilityScope of functionsRelationship among the activitiesType of productCommunication expected

Types Of Organization

LineLine & staffFunctionalProject

Line Organization

Line Organization (Scalar)Vertical type Also called as military

organizationOldest and simplest organizationLine of authority flows from top

to bottom. This always includes production

and sales, and sometimes also marketing

Specialization work do not take place in these organization.

line officers can independently take decisions in their areas and spheres.

This kind of organization always helps in bringing efficiency in communication and bringing stability to a concern.

Merits of Line Organization

Unity of CommandBetter discipline Fixed responsibilityFlexibilityPrompt and quick decision

Demerits of Line Organization

Over relianceAuthorities at the top become

dictatorsLack of specializationInadequate communicationLack of Co-ordinationAuthority leadership

ApplicationsSmall firmsMilitary departmentsSmall workshops

Functional OrganizationStaff organizationSpecialization of function is main

characteristicIt is horizontal in structureEach group is performing specific

taske.g. milling dept. performs only milling operation on different products

Functional Organization

Advantages Of Staff Org.EfficiencyPerformance is betterCorrect decision is possibleHelps achieve functional

expertiseEconomy

Disadvantages Of Staff Org.Discipline is lacking(Low)ConfusionLack of Co-ordinationDifficulty in fixing responsibilityConflicts- Ego ProblemsCostlyDecisions are slow

ApplicationsThe functional organization is

rarely used in industrial sector.Used in:Research development dept.Educational institutes

Line And Staff OrganizationIt is combination of line and staff

(functional) organizationIt is horizontal and vertical in

structureIt shows the characteristics and

advantages of both line and staff structure.

Line authority is the right to carry out assignments and exact performance from other individuals

Staff authority is the right to advise or counsel those with line authority.

Advantages Disciplined and specialized

systemStructure of organization is

customized as per requirementDecisions are quick and correctConfusion is lessOverlapping and overloading of

work is reducedSystem work smoothly

DisadvantagesCost of carrying staff person is

highSometimes injustice to line

peopleDiscipline is poor compared to

line organizationInefficacy of one section may

affect otherConflicts and negative comments

may occur

Sr.No

Features Line Staff Line And Staff

1 Decision Quick Slow but correct

Quick And Correct

2 Discipline High Low Moderate3 Cost Low High Moderate

4 Degree Of Specializat

ion of work

No Available Available

5 Confusion Low High Moderate6 Structure Vertical Horizontal Both

vertical and

horizontal

Project OrganizationIt is temporary in natureTeam members are drawn from

the organizations functional units to perform specific task

It is formed for the project purpose

Forms of project organization

Functional organizationFunctional matrix- diff. functional

aspectsBalanced matrixProject matrix

AdvantagesNo interference from parent

organizationGoal oriented Specialist activities Team work cultureWork spectrum expands

DisadvantagesComplications are moreExperience of one project may

not be useful for otherConsultation is difficult on new

projectHeavy work pressure

Depart-mentationIt is process of dividing the large

organization into small and flexible administrate units

Horizontal differentiation of tasks or activities into discrete segments

Aims of depart-mentationTo channelize similar activitiesTo give freedom for each functionTo distribute workTo make people specializedTo avoid intermixing of many

functions

Depart-mentation by Product

e.g. TATANano divisionBus divisionTruck division

Available in large organizationSuitable If the product are moreAll function related to that

product is completed in concerned department

advantagesAttention given to product is

much proper , correctFocused work on product is

possibleCreates brand in marketBullet…..(who knows about Royal Enfield)

DisadvantagesManpower requirement is highSimilar facilities needed in every

dept. hence Investment is heavyComplete utilization may not be

possibleDuplication of work may be

possible

Depart-mentation by function

Departments are made as per function

Popular method

advantagesProper utilization of recoursesControl on workforce and

function is easyMore productivityFunctional improvement is

possibleNo duplication of workMore concentration on similar

activities

disadvantagesInter functional expertise cannot

be developed Important products and less

product are handled similar waysDelays may be possibleDepartment heads behave like

isolated power centersExtra work pressure on workforce

and machines

Depart-mentation by processDepartments are made on the

basis of process of productionThis is suitable for job production

kind of workEngineering company:Heat treatment plantCarburizing, nitrating

Depart-mentation by process

advantagesNo duplication of activitiesSpecialization work is possibleWorkforce control is easyDivision of work is easyProductivity and efficiency high

disadvantagesHigher investmentRunning cost Is highRequirements of expertsMultidisciplinary knowledge is not

possible