Organising Notes

1. ORGANISING:
Organisation: -
1. As a structure: An identifiable group of people contributing their efforts towards the
attainment of goal.
It refers to the network of relationship among individuals and positions in an
organisation.
2. As a process: Organising is the process of defining and grouping the activities of the
enterprise and establishing the authority relationships among them.
Determinants of Organisation Structure Design:
1. Goals.
2. Strategy.
3. Size.
4. People.
5. Technology.
6. Environment.
Significance of Organisation Structure:
1. Facilitates Administration.
2. Facilitates Growth and Diversification.
3. Permits optimum utilization of Technological improvements.
4. Encourages use of human beings.
5. Stimulates Creativity.
Formal Organisation:
1. Structure deliberately created by management.
2. It is a network of official authority, responsibility, relationship and communication
follows.
3. It is a pattern of activities, processes, human relationships, and roles, planned and
structured in order to accomplish organizational goals.
4. People are able to communicate with each other, are willing to act and share
purpose.
Informal Organisation:
1. It refers to the pattern of activities, interactions and human relationships, which
emerge spontaneously due to social and psychological forces operating at the
workforce.
2. It is an unintended and non-planned network of unofficial and social pattern of human
relationships.
3. Represents the pattern of interpersonal and inter-group relations that develop within
the formal organisation.

2. Types of Formal Organisation:
1. Line Organisation: It is the simplest, most direct type, in which each position has
general authority over lower positions in the hierarchy in the accomplishments of the
main operations of the firm.
2. Staff Organisation: It is purely advisory (either generalists or specialists) to the line
structure, with no authority to place recommendations into actions. Staff helps the
Line.
3. Functional Organisation: It has developed from the increasing complexity of
operations and the need for a great number of specialists for aiding line position. It
permits a specialist in a given area to enforce his directives within a limited and
clearly defined scope of authority.
Reasons for formations of Informal Groups:
1. Desire to socialize with others.
2. Job Satisfaction.
3. Source of Protection.
4. Support to formal Structure.
5. Communication Device.
6. Overcomes Managerial Limitations.
7. Training and development.
8. Co-ordination and Control.
Span Of Management / Span of Control / Span of Supervision:
It refers to the number of subordinates that report directly to a single manager or
supervisor. Hamilton stated that span of control is related to the degree of responsibility
exercised by the group members.
Factors determining Span of Management:
1. Nature of Work.
2. Type of Technology.
3. Abilities of the Manager.
4. Capacity of the subordinates.
5. Degree of Decentralisation.
6. Planning.
7. Staff Assistance.
8. Communication Technique.
9. Time.
10.Geographical Dispersion.
Line and Staff Organisation:
It is a combination of line and functional structures. Under it Line authority flows in a vertical
line in the same manner as in the line organisation. In addition staff specialists are attached
to line positions to advise them on important matters.

3. Organisation Chart:
An organisation chart is a diagrammatical form, which shows important aspects of an
organisation including the major functions and their respective relations, the channels of
supervision and the relative authority of each employee who is in charge of each respective
function.
Organisation charts are of three types:
1. In Vertical Chart the highest position is shown at the top and the lowest position at
the bottom. It is also known as top to down chart.
2. In Horizontal charts, the highest position is shown at the extreme left and the lowest
position at the extreme right.
3. In Circular Charts the highest position is shown at the center af the circle and the
lowest position at the outermost circle.
CENTRALISATION VS DECENTRALISATION:
Centralisation is systematic and consistent reservation of authority at central points within
an organisation.
Ddecentralisation applies to the systematic delegation of authority in an organisation wide
context.
Decentralisation refers to the systematic effort to delegate to the lowest levels all authority
except that which can only be exercised at central points.
Delegation of Authority:
Delegation of authority is the process a manager follows in dividing the work assigned to
him so that he performs that part which only he, because of his unique organizational
placement, can perform effectively and so that he can get others to help with what remains.