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Nature of organizing , formal and informal organization

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  • 1. NATURE OFORGANIZING
  • 2. Learning Objectives  Explain the Concept of Organizing  Describe the importance of Organizing  Explain the Element of Organizing  Process of Organizing  Explain the meaning, advantages and disadvantages of formal and informal Organization  Distinguish between formal and informal OrganizationJune 27, 2012 NATURE OF ORGANIZING 2
  • 3. What is Organizing The grouping of activities necessary for attaining objective. The process of creating an organization’s Structure . A Process that initiates implementation of plans by clarifying jobs and working relationship and effectively deploying resources for attainment of identified and desired resultsJune 27, 2012 NATURE OF ORGANIZING 3
  • 4. 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 most effectively together in accomplishing objectives. Louis AllenJune 27, 2012 NATURE OF ORGANIZING 4
  • 5. Importance of Organizing Benefits of specialization Clarity in working relationships Optimum utilization of resources Adaptation to change Development of personnel Expansion and growthJune 27, 2012 NATURE OF ORGANIZING 5
  • 6. Purposes of Organizing Divide work to be done into specific jobs and Departments Assign tasks and responsibilities associated with individual Coordinates diverse organizational tasks. Clusters job in to Units. Establish relationship among individuals , group , and departments . Allocates and deploys organizational resources .June 27, 2012 NATURE OF ORGANIZING 6
  • 7. Elements in Organizing process Work Specialization Departmentalization Chain of command Centralization and Decentralization Formalization Span of ControlJune 27, 2012 NATURE OF ORGANIZING 7
  • 8. Departmentalization The Basis by which jobs are grouped together Five common form of Departmentalization Functional Geographical Product Process CustomerJune 27, 2012 NATURE OF ORGANIZING 8
  • 9. Principle of the Span of managementThere is a limit to the number of personsan individual can effectively manage . Organization with Narrow Span Organization with Wide SpanJune 27, 2012 NATURE OF ORGANIZING 9
  • 10. Organization with Narrow Span A B C D E F G H I J K LJune 27, 2012 NATURE OF ORGANIZING 10
  • 11. Advantage Disadvantage Close supervision  Subordinates tend to get Close control involved in Subordinates Work Fast communication between subordinates  Many Levels of and superiors Management  High Costs due to many levels  Excessive distance between lowest level and top levelJune 27, 2012 NATURE OF ORGANIZING 11
  • 12. Organization with Wide SpanJune 27, 2012 NATURE OF ORGANIZING 12
  • 13. Advantages Disadvantage Superior are forces to  Tendency of delegate overloaded Clear polices must be  Danger of superiors made loss of control Subordinate must be  Requires exceptional carefully selected quality of Managers June 27, 2012 NATURE OF ORGANIZING 13
  • 14. Organizing Process Identifying, analyzing and classifying the activities necessary to accomplish the objectives Grouping these activities in the light of human and material resources available and the best way under the circumstances , of using them Delegation of authority (Assignment of duties ) Horizontal and vertical coordination of authority and information relationshipJune 27, 2012 NATURE OF ORGANIZING 14
  • 15. Organizing Process Feasibility studies and feedbackIDENTIFICATION GROUPING HORIZONTAL AND OF ACTIVITIES IN AND VERTICALCLASSIFICATION THE LIGHT OF DELEGATION COORDINATION OF OF RESOURCES AND OF AUTHORITY AUTHORITY AND REQUIREDS SITUATIONS INFORMATION ACTIVITIES RELATIONSHIPJune 27, 2012 NATURE OF ORGANIZING 15
  • 16. Common Errors In Organizing Unnecessary Lengthy Chain of Command Unsatisfactory Work Division Lack of parity between the Authority and Responsibility Lack of Coordination and Control Failure to Classify Relationship Confusion of authority and relationship with Informal Organization June 27, 2012 NATURE OF ORGANIZING 16
  • 17. Formal and InformalOrganization
  • 18. Formal Organization  The Formal Organization is a system of well-defined jobs, each bearing a definite measure of authority, responsibility and accountability. Louis Allen  Formal Organization is a system of consciously coordinated activities of two or more persons toward a common objective. Chester BarnardJune 27, 2012 NATURE OF ORGANIZING 18
  • 19. Features It is deliberately designed by the top management It places more emphasis on work to be performed than interpersonal relationships among the employees. It specifies the relationships among various job positions and the nature of their inter-relationship. It lays down rules and procedures essential for achievement of objective Efforts of various departments are coordinated, interlinked and integrated through the formal organisation.June 27, 2012 NATURE OF ORGANIZING 19
  • 20. Formal OrganizationsJune 27, 2012 NATURE OF ORGANIZING 20
  • 21. Features It is deliberately designed by the top management It places more emphasis on work to be performed than interpersonal relationships among the employees. It specifies the relationships among various job positions and the nature of their inter-relationship. It lays down rules and procedures essential for achievement of objective Efforts of various departments are coordinated, interlinked and integrated through the formal organisation.June 27, 2012 NATURE OF ORGANIZING 21
  • 22. Advantages  Easier to fix Responsibility  No ambiguity in the role . This also helps in avoiding duplication of effort.  Behavior of Employee fairly predicted  Unity of command through an established chain of command  Stability to the organizationJune 27, 2012 NATURE OF ORGANIZING 22
  • 23. Limitations The formal communication may lead to procedural delays Do not provide adequate recognition to creative talent More emphasis on Structure and Work, difficult to understand all human relationships in an enterprise as it placesJune 27, 2012 NATURE OF ORGANIZING 23
  • 24. Informal Organization  An Informal organization is an aggregate of interpersonal relationships without any conscious purpose but which may contribute to joint results. Chester Barnard  Informal organization is a network of interpersonal relationship that arise when people associate with one another . Keith DavisJune 27, 2012 NATURE OF ORGANIZING 24
  • 25. Features Originates from within the formal organisation as a result of personal interaction among employees. The standards of behavior evolve from group norms. Independent channels of communication without specified direction of flow of information are developed by group members. Emerges spontaneously and is not deliberately created by the management.June 27, 2012 NATURE OF ORGANIZING 25
  • 26. A B C C D E F G H I J K L M N 0 P Q R T U VJune 27, 2012 NATURE OF ORGANIZING 26
  • 27. Chess group Cricket lovers Bowling Team Morning coffeee regularsJune 27, 2012 NATURE OF ORGANIZING 27
  • 28. Advantages: It helps to fulfill the social needs . Sense of belongingness in the organisation Faster spread of information as well as quick feedback. It contributes towards fulfillment of organizational objectives. For example, employees reactions towards plans and policies can be tested through the informal network.June 27, 2012 NATURE OF ORGANIZING 28
  • 29. Disadvantages: It spreads rumors. This may work against the interest of the formal organisation. The management may not be successful in implementing changes if the informal organisation opposes them. Such resistance to change may delay or restrict growth. It pressurizes members to conform to group expectations.June 27, 2012 NATURE OF ORGANIZING 29
  • 30. Formal and Informal organisation: AComparative view Meaning Origin Authority Behavior Flow of Communication Nature LeadershipJune 27, 2012 NATURE OF ORGANIZING 30
  • 31. REFERENCES Koontz,O’ Donnel & Weihrich Management:A Global and Enterpreneurial Perspective Stephen P. Robbins and Mary Coulter :Management,Pearson EducationJune 27, 2012 NATURE OF ORGANIZING 31
  • 32. Any Query ?June 27, 2012 NATURE OF ORGANIZING 32
  • 33. THANKYOUJune 27, 2012 NATURE OF ORGANIZING 33

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