An organization or organisation is an entity comprising multiple people, such as an institution or an association, that has a collective goal and is linked to an external environment
17. Voluntary Association
• It is an organization consisting of volunteers.
• They are able to operate without legal
formalities.
• But, they depending on jurisdiction of the
country.
17
19. Organizing
The process
of sourcing, allocating, and arranging of resources
and assigning the authority
to achieve the organizational objectives
effectively and efficiently
19
46. What can a manager learn from an
organizational chart?
• reporting arrangements
46
47. What can a manager learn from an
organizational chart?
• Base of the organization (function-
wise/customer-wise/department-wise)
47
48. What can a manager learn from an
organizational chart?
• Hierarchy in decision making.
48
49. What can a manager learn from an
organizational chart?
• Authority relationships.
49
50. What can a manager learn from an
organizational chart?
• Line and staff relationship.
50
51. What can a manager learn from an
organizational chart?
• Formal line of communication
51
52. What can a manager learn from an
organizational chart?
• Pay structure.
52
53. Limitations in Use of Organizational
Charts
• Organizational charts can use relationships
only in a formal organization.
53
54. Limitations in Use of Organizational
Charts
• It shows what should the structure be but not
the actual structure.
54
55. Limitations in Use of Organizational
Charts
• The chart can easily be outdated in a less
effectively managed organization.
55
56. Limitations in Use of Organizational
Charts
• Authority, responsibilities, and activities of
people in an organization may not be
adequately represented.
56
57. Limitations in Use of Organizational
Charts
• Informal channel of communication is not
visible.
57
58. Different Types of Organizational
Structure
• Departmentalization
• Matrix Organization
58
59. Different Types of Organizational
Structure
Departmentalization
The work is divided
into departments.
Managers
manage/coordinate
the activities of
each department.
59
60. Key Principles of Departmentalization
Unity of
Command
Span of
Control
60
61. Key Principles of Departmentalization
Unity of Command
Subordinate should
have only one superior
Orders should be given
by the immediate
supervisor
Words of the top
management should be
communicated through
immediate supervisor
61
62. Key Principles of Departmentalization
Span of Control
Number of
subordinates directly
under a superior
Narrow span of
control
Wide span of control
62
63. Benefits of Departmentalization
• Clarity in activities.
• Easy distribution of authority.
• Easy communication and coordination.
• Independency in each area of activity.
• Clear and demarcated area of responsibility for
managers.
63
89. Departmentalization by Products
• Suitable for organizations which need specific
resources for manufacturing.
• Suitable for organizations which need separate
distributional channels.
Marketing
Costumes perfumes
Agro
Chemicals
89
99. Departmentalization by Location
• Consideration is on transport cost
• Requirement to be close to customers
• Looking for cheap labour
• Access to resources
99
122. Advantages of Matrix Organizational
Structure
• Flexibility
• Cooperation between individuals and teams
• Cost effectiveness
• Proper utilization of skills
• Ability to face environmental changes
122
123. Disadvantages of Matrix
Organizational Structure
• Employees assigned to projects have two
superiors (Project Manager/Immediate
Supervisor)
• Too many instructions-violation of unity of
command.
• More time in discussions than implementation.
• Issue due to lack of skilled labour.
123
124. Advantages of a Tall Structure
• Controlling the subordinates is easy.
• Managers can plan well.
• Less mistakes by the employees due to more
advices from superiors.
• Authority is more centralized.
124
125. Advantages of a tall
structure are the
disadvantages of a
flat structure
125
126. Advantages of a Flat Structure
• Faster decision making.
• Less administrative cost due to few
management layers.
• Quick communication.
• Less coordination problems.
• More empowered decision making and
decentralized authority.
126
127. Principles of Organization
1. Span of Control – number of
subordinates directly under a supervisor.
“Only six employees can be efficiently
managed by a manager”
-Graicunas-
127
130. Unity of Command
• One superior to give orders to one employee
• Clear instructions.
• Higher efficiency.
• Matrix organizations – No unity of command.
130
131. Unity of Command
• One superior to give orders to one employee
• Clear instructions.
• Higher efficiency.
• Matrix organizations – No unity of command.
131
132. Chain of Command
(Scalar Chain/Scalar Principle)
• Flow of information, orders and instructions
from the highest level of the employee to the
lowest level of employees
132
133. Unity of Objectives
• The activities of the organization must be in
line with the goals of the organization.
133
134. Unity of Objectives
• The activities of the organization must be in
line with the goals of the organization.
134
135. Management by Expectations
• Policy by which management devotes its time
to investigate only those situations in which
actual results differ significantly from planned
results.
135
136. Management by Objectives (MBO)
• Policy by which management devotes its time
to investigate only those situations in which
actual results differ significantly from planned
results.
136
137. Responsibility
• A subordinate should be made responsible to
the superior only for the level of authority
given to the subordinate
137
138. Accountability
• The subordinates are answerable to their
superiors for the work they carry out.
• Accountability flows upwards
• Authority flows downward.
138
143. Authority
Delegation of Authority
A superior may delegate his work with the
necessary authority to a subordinate. This
authority transferred is called delegated
authority.
143