3. Definition of Organisation
“Organisation is the process of combining the work which
individuals or groups have to perform with facilities necessary for
its execution, that the duties so performed provide the best
channels for efficient, systematic, positive and co-ordinated
application of available effort”
- Sheldon
4. Definition of Organizing
“To organize a business is to provide it with everything,
useful to its functioning- raw materials, machines, tools,
capital and personnel”
- Henry Fayol
5. Nature of Organization
• Organization as a process
• It is a creative ideology
• Organization as a group
• Organization as a mechanism management
• Organization a is a function of management
• Organization is a system
• It is a structure of relationships
• It is a means to an end
6. Features of Organization
• It outlines the objectives- both long term and supportive
• It identifies and enumerates the activities- division of work (between the
departments)
• It helps in assessing the duties – Once the tasks are fixed, it should be
allocated within the departments
• It helps in defining and granting the authority- Authority and responsibility
• It helps in creating authority relationship- Both formal and informal
relationship (deciding authorities and subordinates)
7. Importance of Organizing
• It facilitates administration and management
• It facilitates the growth of organization
• Optimum utilization of all the resources
• Stimulation of creativity
• Tool for achieving the organizational objectives
• Prevents corruption
• Helps in co-ordination
• Elimination of overlapping / duplication of work
8. Organizing Process
1.Setting of a common objective by the top management
2.Identifying all the activities required to achieve the objectives set
3.Grouping of activities to their departments
4.Define duties and responsibilities of all the staff members (employees)
9. 5.Delegation of authority
6.Establishing authority relationships between superiors and
subordinates
7.Provide with all the resources to achieve the objectives
8.Co-ordination of the efforts and directing towards the achievement of
objective
10. Types of Organization (Organization
structure)
Organization
types
Formal
Organization
Informal
Organization
Formal Organization: refers to the structure of
jobs and positions with clearly defined
functions and relationships as prescribed by the
top level management.These structures are
indented towards achieving the organizational
objectives.
Informal Organization: refers to the personal
and informal relationship among the
employees
11. Features of Formal Organization
• Laid down by the top management for achieving organizational goals
• Establishes formal relationships among the employees
• The structure if consciously designed
• Concentrates on the job to be performed and not on the individual performing it
• Individuals are fitted into jobs and positions based on the management’s decision
• They are bound by rules and regulations
• The authority and responsibility is clearly defined at each level
• It is impersonal.The sentiments of the workers are not considered
• The structure is to be honored and followed by everyone
12. Advantages and Disadvantages of Formal
Organization
Advantages / Merits
• Bound by rules, regulations and
procedures.Therefore, ensures law
and order.
• Formal structure helps the people in
the organization to work together for
accomplishing common objectives.
• It clearly defines the task to be
performed and makes sure
everybody are given a responsibility.
Disadvantages / Demerits
• Designed only to achieve
organizational goals.Thus, it may
ignore individual goals.
• The rules and regulations are rigid
and strict which may not put them in
advantage at times.
• Does not take into consideration the
sentiments of the employees.
13. Types of Formal
Organization Structure
Line
Organization
Functional or
Staff
Organization
Line and Staff
Organization
Matrix
Organization
14. Refer to Organization structure pdf (Line,
Staff/Function and Line & Staff)
Refer to your textbook for Matrix form of
organization
16. Matrix Organization
• Matrix organization structure is a technique of managing an organization
through a series of “dual-reporting” relationships rather than traditional
system of management.
• It is usually a combination of two or more organization structures.
• This type of an organization structure is usually associated with highly
collaborative and complex projects such as building aircraft, but is also used
widely in many product/project management situations.
17. Matrix Organization
Advantages/Merits
• Resource co-ordination
• Specialization
• Breadth of skill
• Communication
• Flexibility
Disadvantages/Demerits
• Heavy pressure on project team
members as it is a dual-reporting
system.
• Due to the complexity of the matrix,
there wont be accountability.
• Difficulty in co-ordination
• Time consuming for the members to
adjust
18. Limitations of Organization
• It becomes outdated after a period of time.
• Organizational charts / structures depict only the formal authority
relationships but do not consider any other informal relationships which
might be significant.
• The organization charts do not indicate the quantum of authority existing
at different managerial positions.
• Organization charts may sometimes mislead the rank or status of the
employees.
• An organization might be disturbed due to other factors such as
unexpected resignations, firing, rapid promotion or demotion etc.
19. FLAT ORGANIZATION
• A flat organization has an organizational structure with few or no levels of middle
management between staff and executives.
20. Relevance of Flat Organization
• Trust
• Transparency
• Confidence
• Passion
• Autonomy
• Fail Fast
• No single point of failure
• Agility
21. Trends of Flat Organization
• Learning in the core business
• The breakthrough of AI
• Sense making
• Purpose-based employee involvement
• The change processes to continuous development
• Implementing change is about facilitation
22. Work From Home Prospects
Advantages
• Improved employee retention
• Access to a wider pool of applicants
• Possible productivity gains
• Increased staff motivation
• Financial benefits
• Convenience
• Better work-life balance
Disadvantages
• Difficulty in monitoring performance
• Cost of working from home
• Problems with staff development
• Information security risk
• Increased telecommunications costs
• Communication problems
• Decreased staff morale
• Not all jobs suitWFH
• Not all personality types suitWFH
• Instable network / internet
23. Growth in Organizations (increase in number, size, value
and strength etc)
JointVenture Licensing Franchising
New markets
New product
development
Outside
financing
Ways of Growth in Organizations
24. Task Force
• Group of people who come together from diverse branches, positions and
points of view to facilitate the development of ideas, create new
opportunities, answer questions or solve a problem.
Characteristics of
aTask Force
Project
oriented
Concise Temporary
Cross-
programmatic
25. Centralization and Decentralization
• Centralization refers to extent which authority is concentrated with the top
level management and little delegation of authority in the hands of lower
level management.
• Decentralisation of authority means dispersal of authority to take decisions
to the lower levels of organization. It implies some reservation of authority
regarding planning, organizing, directing and controlling is retained at top
level management and other functions are delegated at lower levels.
Decentralization transfers authorities to subordinates and thus the
authority being centralized in few hands is spread over a number of
employees.
26. Centralization v/s Decentralization
Centralization
• Retention of authority in the hands of top
level management.
• Systematic and consistent reservation of
authority.
• Vertical flow of communication.
• Decision making is slow.
• Good co-ordination and leadership.
• Suitable for small sized organization.
Decentralization
• Dissemination of author to various levels
of management.
• Systematic dispersal of authority.
• Communication is both horizontal and
vertical.
• Decision making is comparatively faster.
• Burden and responsibilities are shared.
• Suitable for large sized organozations.
27. Delegation
• Delegation is the process of transferring authority from a superior to his
subordinate. It is essential for smooth functioning of a business because any
manager, no matter how capable he is, cannot perform all the functions on his own.
Thus, authority has to flow from top to bottom i.e, superior to subordinate.
• The elements of Delegation are:
Authority
Responsibility
Accountability
