organising

1. Organizing
• Organizing is the second key management function,
after planning, which coordinates human efforts,
arranges resources and incorporates the two in such
a way which helps in the achievement of objectives. It
involves deciding the ways and means with which the
plans can be implemented.
• It entails defining jobs and working relationships,
assigning different tasks associated with the plans,
arranging and allocating resources, design a structure
which distinguishes duties, responsibilities and
authorities, scheduling activities, in order to maintain
smoothness and effectiveness in operations.

2. DEFINITION
• According to Koontz and O'Donnell,
• "Organization involves the grouping of activities
necessary to accomplish goals and plans, the
assignment of these activities to appropriate
departments and the provision of authority,
delegation and co-ordination."

3. Nature of organizing
• Division of Work: Division of work is the basis of an organization. In other words, there
can be no organization without division of work. Under division of work the entire work of
business is divided into many departments .The work of every department is further sub-
divided into sub-works. In this way each individual has to do the saran work repeatedly
which gradually makes that person an expert.
• Coordination: Under organizing different persons are assigned different works but the
aim of all these persons happens to be the some - the attainment of the objectives of the
enterprise. Organization ensures that the work of all the persons depends on each other’s
work even though it happens to be different. The work of one person starts from where
the work of another person ends. The non-completion of the work of one person affects
the work of everybody. Therefore, everybody completes his work in time and does not
hinder the work of others. It is thus, clear that it is in the nature of an organization to
establish coordination among different works, departments and posts in the enterprise.
• Plurality of Persons: Organization is a group of many persons who assemble to fulfill
a common purpose. A single individual cannot create an organization.
• Common Objectives: There are various parts of an organization with different functions
to perform but all move in the direction of achieving a general objective.
• Well-defined Authority and Responsibility: Under organization a chain is
established between different posts right from the top to the bottom. It is clearly specified
as to what will be the authority and responsibility of every post. In other words, every
individual working in the organization is given some authority for the efficient work
performance and it is also decided simultaneously as to what will be the responsibility of
that individual in case of unsatisfactory work performance.

4. • Organization is a Structure of Relationship: Relationship between persons
working on different posts in the organization is decided. In other words, it is
decided as to who will be the superior and who will be the subordinate. Leaving
the top level post and the lowest level post everybody is somebody's superior
and somebody's subordinate. The person working on the top level post has no
superior and the person working on the lowest level post has no subordinate.
• Organization is a Machine of Management: Organization is considered to be a
machine of management because the efficiency of all the functions depends on
an effective organization. In the absence of organization no function can be
performed in a planned manner. It is appropriate to call organization a machine
of management from another point of view. It is that machine in which no part
can afford tube ill-fitting or non-functional. In other words, if the division of
work is not done properly or posts are not created correctly the whole system
of management collapses.
• Organization is a Universal Process: Organization is needed both in business
and non-business organizations. Not only this, organization will be needed
where two or mom than two people work jointly. Therefore, organization has
the quality of universality. (9) Organization is a Dynamic Process: Organization is
related to people and the knowledge and experience of the people undergo a
change. The impact of this change affects the various functions of the
organizations. Thus, organization is not a process that can be decided for all
times to come but it undergoes changes according to the needs. The example in
this case can be the creation or abolition of a new post according to the need.

6. Process of Organizing
• Identification and division of work: Organizing process begins with identifying the work
and dividing them as per the plans. Basically, the work is classified into different
manageable activities, to avoid redundancy, and sharing of work is encouraged.
• Departmentalization: After classifying the work into different activities, the activities
having a similar nature are grouped together. This process is called as
departmentalization which facilitates specialization and forms the basis for creating
departments.
• Assignment of the task: After the formation of departments, employees are placed in
different departments under a manager, called as a departmental manager. Thereafter,
employees are assigned the jobs as per their skills, qualifications and competencies. For
the effectiveness of the performance, the manager must ensure that there is a proper
match between the job and the incumbent, i.e. the right person has to be placed at the
right job.
• Establishment of organizational hierarchy: Deployment of work is not all, the employees
must be aware of whom they have to report and who can give them orders. Hence, work
relationships need to be established clearly, which helps in the creation of a hierarchical
structure of the organization.
• Provision of resources to the members: Arrangement and deployment of resources such
as money, materials, supplies, and machine, etc. which are important to carry out day to
day operations of the organization.
• Coordination of efforts and scheduling of activities: The final step to this process is the
coordination of efforts and scheduling the activities in a logical and systematic manner so
that the common objectives can be achieved effectively.

8. Importance of Organizing
• Advantage of Specialization: Organizing helps in the classification of jobs
systematically amongst the workforce, which helps in the reduction of workload,
as well as improved productivity. This is because the organization will get the
benefit of specialization wherein workers will perform specific work on a regular
basis, according to their competency.
• Describes work relationships: The definition of work relationships describes the
flow of communication and determine the superior-subordinate relationship.
This removes confusion and chaos, in getting orders and instructions.
• Effective utilization of resources: Organizing function ensures the best possible
utilization of resources whether it is human, material, financial or technical. This
is because jobs are assigned to the employees which avoid overlapping and
duplication of work.
• Adaptation to change: Organizing process helps the organization to survive and
adapt the changes, by making substantial changes in the strategies, hierarchy,
relationships, etc.
• Development of personnel: Organising encourages creativity in executives.
Delegation of authority reduce their workload and they get time to identify new
methods to perform the work. It also enables them to explore new areas for
their growth and development.
• In a nutshell, with organizing the manager brings order out of disorder, removes
confusion with respect to work and responsibility, and frames an ideal
environment where all the members of the organization can work in tandem.

9. Bases of Departmentation
• There is no single best way of departmentation applicable to all
organizations or to all situations. The pattern that will be used
will depend on the given situation and what managers believe
will yield the best result for them in the situation they face.
However, there are a few basic methods for dividing
responsibilities within an organization.
• They are as follows:
• Functional basis.
• Territorial basis.
• Process basis.
• Product basis.
• Customer basis.
• Time basis.
• Number basis.

10. • 1. Departmentation by Function
• The most commonly accepted practice is the
grouping of the activities in accordance with the
functions of an enterprise. The basic enterprise
functions generally consist of production,
marketing, finance, etc. This method is more
logical and hence present in almost all enterprises
at some level.
• 2. Departmentation by Territories
• When the organization is large and geographically
dispersed, departmentation on territorial basis is
the best. This is also considered suitable where
the branches produce the same goods or perform
similar services at various locations.

11. • 3. Departmentation by Process
• Activities can also be grouped according to the process involved
or the equipment used, This form of departmentation is often
employed in manufacturing enterprises. It is also called
equipment departmentation. Large retail or marketing
enterprises may also have process departments for receiving
goods in stores, transportation, wrapping and delivery.
Departmentation by process is usually decided on the basis of
costs that is mainly on economic considerations.
• 4. Departmentation by Product
• This type of departmentation is desirable for large undertakings
which deal with a variety of products or product lines. To
departmentalise on product basis means to establish each
product or group of closely related products in a product line as
a relatively autonomous integrated unit within the overall
framework of the company. Under this method, an executive will
be in charge of and responsible for all the activities relating to a
particular product from production to distribution.

12. • 5. Departmentation by Customer
• Departmentation can also be made on the basis of customers served that
is customer departmentation. In this case, the firm shows its paramount
interest in the welfare of the customer and attention given to them. Under
this method, the customers are divided into separate categories, such as
distributors, retailers and consumers, and the task of satisfying the needs
of different categories of customers assigned to specific departments.
• 6. Departmentation by Time
• It is a common practice to departmentalize activities on time basis.
Enterprise engaged in continuous process can follow this pattern. We are
familiar with the second shift, third shift, or night shifts, etc. Under this
method, the activities performed in each shift are similar and almost
identical. But they are departmentalized on time basis. This kind of
departmentation is generally found in public utilities and manufacturing
establishments.
• 7. Departmentation by Number:
• In case of departmentation by number, activities are grouped on the basis
of their performance by certain number of persons. For instance, in the
army, soldiers are grouped into squaders, battalions, companies, brigades
and regiments based on the number prescribed for each unit. However,
this type of departmentation is not found in business concerns.

13. Span of Management
• Definition: The Span of Management refers to
the number of subordinates who can be
managed efficiently by a superior. Simply, the
manager having the group of subordinates
who report him directly is called as the span
of management.

15. Factors Determining Span of
Management
• The span of management can be determined on the basis of a number of relationships that
a manager can manage. These are:
• Capacity of Superior: Here the capacity means the ability of a superior to comprehend the
problems quickly and gel up with the staff such that he gets respect from all. Also, the
communication skills, decision-making ability, controlling power, leadership skills are
important determinants of supervisory capacity. Thus, a superior possessing such capacity
can manage more subordinates as compared to an individual who lack these abilities.
• Capacity of Subordinate: If the subordinate is trained and efficient in discharging his
functions without much help from the superior, the organization can have a wide span. This
means a superior can manage a large number of subordinates as he will be required just to
give the broad guidelines and devote less time on each.
• Nature of Work: If the subordinates are required to do a routine job, with which they are
well versed, then the manager can have a wider span. But, if the work is complex and the
manager is required to give directions, then the span has to be narrower.Also, the change in
the policies affects the span of management. If the policies change frequently, then the
manager needs to devote more time and hence the span would be narrow whereas if the
policies remain stable, then a manager can focus on a large number of subordinates.
Likewise, policies technology also plays a crucial role in determining the span.
• Degree of Decentralization: If the manager delegates authority to the subordinates then he
is required to give less attention to them. Thus, higher the degree of decentralization, the
wider is the span of management. But in case, subordinates do not have enough authority,
then the manager is frequently consulted for the clarifications, and as a result superior
spends a lot of time in this.

16. • Planning: If the subordinates are well informed about their job roles, then
they will do their work without consulting the manager again and again.
This is possible only because of the standing plans that they follow in their
repetitive decisions. Through a proper plan, the burden of a manager
reduces manifold and can have a wider span of management.
• Staff Assistance: The use of staff assistance can help the manager in
reducing his workload by performing certain managerial tasks such as
collecting information, processing communications and issuing orders, on
his behalf. By doing so, the managers can save their time and the degree
of span can be increased
• Supervision from Others: The classical approach to the span of
management, i.e., each person should have a single supervisor is changing
these days. Now the subordinates are being supervised by other managers
in the organization such as staff personnel. This has helped the manager to
have a large number of subordinates under him.
• Communication Techniques: The mode of communication also
determines the span of management. If in the manager is required to do a
face to face communication with each subordinate, then more time will be
consumed. As a result, the manager cannot have a wider span. But in case,
the communication is in writing and is collected through a staff personnel;
the manager can save a lot of time and can have many subordinates under
him.

17. DELEGATION AND
DECENTRALIZATION

18. Delegation
• Delegation is commonly defined as the
shifting of authority and responsibility for
particular functions, tasks or decisions from
one person (usually a leader or manager) to
another. While that is probably the most
common understanding of the term, there are
those who define the term more narrowly.

19. Elements of Delegation:
• Delegation involves following three elements:
• 1. Assignment of Responsibility:
• The first step in delegation is the assignment of work or duty to the
subordinate i.e. delegation of authority. The superior asks his subordinate
to perform a particular task in a given period of time. It is the description
of the role assigned to the subordinate. Duties in terms of functions or
tasks to be performed constitute the basis of delegation process.
• 2. Grant of Authority:
• The grant of authority is the second element of delegation. The delegator
grants authority to the subordinates so that the assigned task is
accomplished. The delegation of responsibility with authority is
meaningless. The subordinate can only accomplish the work when he has
the authority required for completing that task.
• 3. Creation of Accountability:
• Accountability is the obligation of a subordinate to perform the duties
assigned to him. The delegation creates an obligation on the subordinate
to accomplish the task assigned to him by the superior. When a work is
assigned and authority is delegated then the accountability is the by-
product of this process.

20. TYPES OF DELEGATION
• Delegation cm be of several types viz.,
• permanent or temporary,
• full or partially,
• conditional or unconditional,
• formal or informal,
• direct or indirect.

21. • Permanent and Temporary Delegation . Delegation
may be of permanent or temporary nature. In case of
permanent delegation the powers are delegated
forever subject to normal conditions. Only in
extraordinary circumstances this kind of delegation
might be revoked.
• Temporary delegation implies delegation of powers for
a short period for the accomplishment of some end.
When the end is achieved the delegation also ends.
• According to Erwin Haskell Schell, " the extent area of
delegation may vary depending upon circumstances.

22. • Full or partial delegation: delegation is full when no
conditions are attached to the delegation and the
person, whom powers are delegated, has the full
authority to make decision and take action.
• It is partial when the decision taken by him is to be
approved by the delegation authority.
• Conditional or unconditional: Delegation can be
conditional and unconditional. Delegation is
conditional when some conditions are imposed on the
person, on whom the delegation is conferred.
• It is unconditional when the subordinate is free to act
without any reservation.

23. • Formal and informal: delegation is formal
when embodied in written rules, by-laws or
order,
• It is informal when based on customs,
conventions and understanding.
• Direct and indirect: delegation is direct when
no intermediary is involved.
• When a third person or party is involved , it
may be called indirect delegation

24. Decentralization
• Decentralization or decentralisation is the process
by which the activities of an organization,
particularly those regarding planning and decision
making, are distributed or delegated away from a
central, authoritative location or group.
• Definition
• Decentralisation is referred to as a form of an
organisational structure where there is the
delegation of authority by the top management to
the middle and lower levels of management in an
organisation.

25. Basis Delegation Decentralization
Meaning
Managers delegate
some of their function
and authority to their
subordinates.
Right to take decisions
is shared by top
management and other
level of management.
Scope
Scope of delegation is
limited as superior
delegates the powers to
the subordinates on
individual bases.
Scope is wide as the
decision making is
shared by the
subordinates also.
Responsibility
Responsibility remains
of the managers and
cannot be delegated
Responsibility is also
delegated to
subordinates.

26. Freedom of Work
Freedom is not given to
the subordinates as
they have to work as
per the instructions of
their superiors.
Freedom to work can
be maintained by
subordinates as they
are free to take decision
and to implement it.
Nature It is a routine function
It is an important
decision of an
enterprise.
Need on purpose
Delegation is important
in all concerns whether
big or small. No
enterprises can work
without delegation.
Decentralization
becomes more
important in large
concerns and it
depends upon the
decision made by the
enterprise, it is not
compulsory.

27. Grant of Authority
The authority is granted
by one individual to
another.
It is a systematic act
which takes place at all
levels and at all
functions in a concern.
Grant of Responsibility
Responsibility cannot
be delegated
Authority with
responsibility is
delegated to
subordinates.
Degree
Degree of delegation
varies from concern to
concern and
department to
department.
Decentralization is total
by nature. It spreads
throughout the
organization i.e. at all
levels and all functions

28. Process
Delegation is a process
which explains superior
subordinates
relationship
It is an outcome which
explains relationship
between top
management and all
other departments.
Essentiality
Delegation is essential of
all kinds of concerns
Decentralization is a
decisions function by
nature.
Significance
Delegation is essential
for creating the
organization
Decentralization is an
optional policy at the
discretion of top
management.
Withdrawal
Delegated authority can
be taken back.
It is considered as a
general policy of top
management and is
applicable to all
departments.
Freedom of Action
Very little freedom to the
subordinates
Considerable freedom

29. Line organization
• Line organization points out direct vertical relationships
• superior-subordinate relationship connecting the positions at each level.
• It forms a chain of command or hierarchy of authority on scalar principles.
• A line relationship is simply known as a relationship of authority between
the superior and subordinates in a hierarchical arrangement.
• The direct line superior has control over his immediate subordinates.
• In this case, authority flows downward and accountability goes upward in
a straight line.
• The work also flows in a direct line.
• The line offices are responsible for accomplishing basic objectives, so that
they can issue orders and implement plans and policies with the help of
their subordinates.
• They are authorized to maintain discipline.
• The line organization maintains direct communication from the higher to
lower levels and vice versa.

30. Staff organization
• Staff organization is a specialized organization.
• It is purely advisory, having no authority of
functions.
• It helps the line organization in the effective and
efficient performance of business.
• Staff organization provides authority of
investigation, research and advice to persons at
the command of the functions.
• It provides technical or special advice to line
organization in the form of personal assistants,
personal secretaries, etc.

31. Line and staff organization
• Line and Staff organisation is in a way extension of line
organisation. Under this organization structure, two types of
authorities exist together , line authority and staff authority.
The function of line managers is similar to their functioning
under the line organization but some staff or experts are
also appointed as advisors to the line officers. The function
of line officers is to take decisions, while the function of the
staff officers is to advice them. Staff officers are experts in
their respective fields and offer useful advice after analyzing
the problems presented by the line officers. In this way the
work of thinking and execution is done by different persons
and this removes the main flaw of the line organization. It
can be adopted in case of medium to large business
enterprises.

32. Line and Staff Conflicts:
• Line and staff managers are supposed to work
harmoniously to achieve the organizational goals. But
their relationship is one of the major sources of
conflict in most organizations. Since such conflicts lead
to loss of time and organizational effectiveness, it is
always desirable to identify the sources of such
conflicts and initiate necessary action to overcome
them.
• Theoretically, it is impossible to differentiate between
line and staff functions and because of this, conflicts
cannot be avoided. However, line and staff conflicts
can be grouped into three categories—conflicts due to
line viewpoint, conflicts due to staff viewpoint, and
conflicts due to the very nature of line and staff
relationships.

33. Conflicts due to Line Viewpoint:
• 1. Lack of accountability:
• Line managers generally perceive that staff managers are not accountable for their actions.
Such lack of accountability on the part of staff leads to ignoring of the overall
organizational objectives. Staff takes the credit for achieving the results, which is actually
achieved by the line people. But if anything goes wrong, they blame the line. Such
perception among the line managers is one of the most important sources of line and staff
conflict.
• 2. Encroachment on line authority:
• Line managers often allege that staff managers encroach upon their authority by giving
recommendations on matters that come within their purview. Such encroachments influ-
ence the working of their departments and often lead to hostility, resentment, and
reluctance to accept staff recommendations.
• 3. Dilution of authority:
• Staff managers often dilute the authority and be- little the responsibilities of line
managers. Line managers fear that their responsibilities may be reduced and they even
suffer from a feeling of insecurity.
• 4. Theoretical basis:
• Staff being specialists, they generally think within the ambit of their specialization. They fail
to relate their suggestions to the actual reality and are unable to understand the actual
dimensions of the problems. This is because staff is cut-off” from the day-to-day opera-
tions. This results in impractical suggestions, making it difficult to achieve organizational
goals.

34. Conflicts due to Staff Viewpoint:
• 1. Lack of proper use of staff:
• Staff managers allege that line managers often take decisions without any
input from them. Line just informs staff after taking decisions. This makes
staff managers feel that line do not need staff. But even in such cases
(where line takes its own decisions without consulting staff), if anything
goes wrong, staff is made responsible.
• 2. Resistance to new ideas:
• Line managers resist new ideas as they feel implementing new ideas
means something is wrong with the present way of working. Such rigidity
of line managers dissuades staff from implementing new ideas in the
organization and adds to their frustration.
• 3. Lack of proper authority:
• Staff often alleges that despite having the best solutions to the problems
being faced in their areas of specialization, they fail to contribute to
organizational goals. This is because the staff lack the authority to
implement the solutions and are unable to persuade the line managers
(who have the authority) to implement them.

35. Conflicts Due to the Very Nature of
Line and Staff Relationships:
• 1. Different backgrounds:
• Line and staff managers are usually from different backgrounds.
Normally line managers are seniors to staff in terms of organizational
hierarchy and levels. On the contrary, staff managers are relatively
younger and better educated. Staff often looks down upon the line.
Such complexes create an atmosphere of mistrust and hatred
between the line and staff.
• 2. Lack of demarcation between line and staff authority:
• In practice it is difficult to make a distinction between line and staff
authority. Overlapping and duplication of work creates a gap
between the authority and responsibility of line and staff. Each tries
to shift the blame to the other.
• 3. Lack of proper understanding of authority:
• Failure to understand authority causes misunderstandings between
the line and staff. This leads to encroachment and creates conflict.

36. To overcome the line and staff conflict, it is necessary
for an organization to follow certain approaches:
• 1. Clarity in relationships:
• Duties and responsibilities of both line and staff should be
clearly laid down. Relationships of staff with the line and
their scope of authority need to be clearly defined. Similarly,
line managers should also be made responsible for decision
making and they should have corresponding authority for the
same. Line should enjoy the freedom to modify, accept, or
reject the recommendations or advice of the staff.
• 2. Proper use of staff:
• Line managers must know how to maximize organizational
efficacy by optimizing the expertise of staff managers. They
need to be trained on the same. Similarly, staff managers
should also help the line to understand how they can
improve their activities.

37. • 3. Completed staff work:
• Completed staff work denotes careful study of
the problem, identifying possible alternatives for
the problem, and providing recommendations
based on the compiled facts. This will result in
more staff work and pragmatic suggestions.
• 4. Holding staff accountable for results:
• Once staff becomes accountable, they would be
cautious about their recommendations. Line also
would have confidence on staff
recommendations, as staff is accountable for the
results.