This document discusses key concepts in organizing, including functional and divisional organization structures, formal and informal organizations, delegation, and decentralization. It explains that organizing involves dividing work, coordinating efforts, establishing reporting relationships, and setting common objectives. The benefits of specialization, clarity in roles, and optimum resource use are highlighted. Functional and divisional structures are compared, noting advantages like specialization and managerial efficiency as well as disadvantages like potential interdepartmental conflicts. Delegation, decentralization, and their importance for developing initiative and managerial talent are also summarized.
3. “Apoor organization could Run aGood Product into theground and
that a Good organization which has comparatively poor product
could runagood product out of theMarket” - Kenneth C. Towe
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4. Harmonious Adjustments of various partstoAchieveCommon Objective
Features of Organizing
Divisionof Work
Coordination
Pluralityof Persons
CommonObjectives
OrganizationisaMachineof Management
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5. Benefits of Specialization
Clarity in Working Relationship
Optimum Utilization of Resources
Adaption to Change
EffectiveAdministration
Development of Personnel
Expansion and Growth
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6. 1. Identification and Division of Work
2. Departmentalization
3 Establishing Reporting
Relations
2. Assignment of Duties
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8. Advantages of Formal organization
EasytoFixAccountability
NoOverlappingof Work
Unityof CommandPossible
EasytoGet Goals
StabilityinOrganization
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9. Limitations of Formal organization
DelayinWork
Lack of Initiative
Mechanizationof relations
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10. Informal Organisation: It referstothenatural groupings of
peopleinthework situationtomeet personal needs.
Characteristics of Informal Organization
BasedonFormal Organization
NowrittenRuleandProcedure,
Independent Channel of Communication
Not DeliberatelyCreated
NoplaceonOrganizational Chart
Personal
LacksStability
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15. Division of the whole organization according to the major
activities performed by it.
General Manager/CEO
Shareholders
Board of Directors
General
Manager/CEO
Sales Manager
Advertisemen
t Manager
Production
Manager
Market
research
Manager
Marketing
Manager
Finance
Manager Personnel
Manager
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16. Advantages:
Benefits of Specialization
Coordination is Established
Managerial Efficiency is Increased
Minimal Duplicationof Efforts
Training is facilitated equal weightageto all
functions
Suitability:
Largesizeof theunit
Specializationis required
Decentralization is needed
Singleproduct unit
Disadvantages:
Ignoranceof organizational Objective
Difficultyin inter-departmental Coordination
Conflict of Interest
HurdleinCompleteCoordination
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18. It referstotheprocess of entrusting responsibility andauthority,
creatingaccountability of thepersontowhomwork or
responsibility has beenhanded over.
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19. Responsibility
Assignment of jobtoasubordinate
Authority
Thepower totakedecision
Accountability
Answerabilityof thesubordinatetohissuperior for hiswork
performance
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24. DR.RAMESH SHARMA
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