organisational Management as per MSBTE SYLLABUS

1. Welcome
Topic 3:
Organization Management
Presented By
Mr. J.B.Shirote
Lecturer in Mechanical Engineering Department
Latthe Education Society’s
Polytechnic
P-41,M.I.D.C.,Kupwad,Sangli.

2. Organization
 an organized group of people with a
particular purpose
e.g.
Any Business Or Government

3. 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

4. Aims Of Forming
Organization
 Combined efforts
 Ordered way of thinking
 Team work
 Responsibility on all
 Optimum use of resources
 Effective work completion

5. Steps In Organization

6. Organization Structure
 Every organization has a definite
structure
 Formal pattern of groups and
relationships
 Structure is generally stable but it can
be modified

7. Essentials elements of
organization
 Organizational chart
 Predefined objectives
 List of activities
 Communication
 Delegation of work
 Integration
 Administration

8. The structure depends upon
 Goals
 Resources availability
 Scope of functions
 Relationship among the activities
 Type of product
 Communication expected

9. Types Of Organization
 Line
 Line & staff
 Functional
 Project

10. Line Organization

11. Line Organization (Scalar)
 Vertical type
 Also called as military organization
 Oldest and simplest organization
 Line of authority flows from top to
bottom.
 This always includes production and
sales, and sometimes also marketing

12.  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.

13. Merits of Line Organization
 Unity of Command
 Better discipline
 Fixed responsibility
 Flexibility
 Prompt and quick decision

14. Demerits of Line Organization
 Over reliance
 Authorities at the top become dictators
 Lack of specialization
 Inadequate communication
 Lack of Co-ordination
 Authority leadership

15. Applications
 Small firms
 Military departments
 Small workshops

16. Functional Organization
 Staff organization
 Specialization of function is main
characteristic
 It is horizontal in structure
 Each group is performing specific task
e.g. milling dept. performs only milling
operation on different products

17. Functional Organization

18. Advantages Of Staff Org.
 Efficiency
 Performance is better
 Correct decision is possible
 Helps achieve functional expertise
 Economy

19. Disadvantages Of Staff Org.
 Discipline is lacking(Low)
 Confusion
 Lack of Co-ordination
 Difficulty in fixing responsibility
 Conflicts- Ego Problems
 Costly
 Decisions are slow

20. Applications
 The functional organization is rarely
used in industrial sector.
 Used in:
Research development dept.
Educational institutes

21. Line And Staff Organization
 It is combination of line and staff
(functional) organization
 It is horizontal and vertical in structure
 It shows the characteristics and
advantages of both line and staff
structure.

22.  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.

24. Advantages
 Disciplined and specialized system
 Structure of organization is
customized as per requirement
 Decisions are quick and correct
 Confusion is less
 Overlapping and overloading of work
is reduced
 System work smoothly

25. Disadvantages
 Cost of carrying staff person is high
 Sometimes injustice to line people
 Discipline is poor compared to line
organization
 Inefficacy of one section may affect
other
 Conflicts and negative comments may
occur

26. Sr.N
o
Features Line Staff Line And
Staff
1 Decision Quick Slow but
correct
Quick And
Correct
2 Discipline High Low Moderate
3 Cost Low High Moderate
4 Degree Of
Specializati
on of work
No Available Available
5 Confusion Low High Moderate
6 Structure Vertical Horizontal Both
vertical and
horizontal

27. Project Organization
 It is temporary in nature
 Team members are drawn from the
organizations functional units to
perform specific task
 It is formed for the project purpose

28. Forms of project organization
 Functional organization
 Functional matrix- diff. functional
aspects
 Balanced matrix
 Project matrix

29. Advantages
 No interference from parent
organization
 Goal oriented Specialist activities
 Team work culture
 Work spectrum expands

30. Disadvantages
 Complications are more
 Experience of one project may not be
useful for other
 Consultation is difficult on new project
 Heavy work pressure

31. Depart-mentation
 It is process of dividing the large
organization into small and flexible
administrate units
 Horizontal differentiation of tasks or
activities into discrete segments

32. Aims of depart-mentation
 To channelize similar activities
 To give freedom for each function
 To distribute work
 To make people specialized
 To avoid intermixing of many functions

34. Depart-
mentation
By
product
By
Function
By
Process

35. Depart-mentation by Product

36. e.g. TATA
 Nano division
 Bus division
 Truck division

37.  Available in large organization
 Suitable If the product are more
 All function related to that product is
completed in concerned department

38. advantages
 Attention given to product is much
proper , correct
 Focused work on product is possible
 Creates brand in market
Bullet…..(who knows about Royal
Enfield)

39. Disadvantages
 Manpower requirement is high
 Similar facilities needed in every dept.
hence Investment is heavy
 Complete utilization may not be
possible
 Duplication of work may be possible

40. Depart-mentation by function

41.  Departments are made as per function
 Popular method

42. advantages
 Proper utilization of recourses
 Control on workforce and function is
easy
 More productivity
 Functional improvement is possible
 No duplication of work
 More concentration on similar
activities

43. disadvantages
 Inter functional expertise cannot be
developed
 Important products and less product
are handled similar ways
 Delays may be possible
 Department heads behave like
isolated power centers
 Extra work pressure on workforce and
machines

44. Depart-mentation by process
 Departments are made on the basis of
process of production
 This is suitable for job production kind
of work
Engineering company:
Heat treatment plant
Carburizing, nitrating

45. Depart-mentation by process

46. advantages
 No duplication of activities
 Specialization work is possible
 Workforce control is easy
 Division of work is easy
 Productivity and efficiency high

47. disadvantages
 Higher investment
 Running cost Is high
 Requirements of experts
 Multidisciplinary knowledge is not
possible