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  1. 1. ORGANISING Its Nature and Purpose
  2. 2. <ul><li>‘ Organising’ is the part of managing that involves establishing an intentional structure of roles for people to fill in an organization. </li></ul><ul><li>It is intentional in the sense of making sure that all the tasks necessary to accomplish goals are assigned and, it is hoped, assigned to people who can execute them best. </li></ul><ul><li>Definition: </li></ul><ul><li>George Terry defines Organising as,” The establishing of effective authority relationships among selected work, persons and work places in order for the group to work together effectively.” </li></ul>M E A N I N G of O R G A N I S I N G
  3. 3. Organisation Structure <ul><li>ORGANISATION </li></ul><ul><li>The term ‘Organisation’ is derived from the word ‘Organism’ which means a structure of body divided into parts that are held together by a fabric of relationship as one organic whole . </li></ul><ul><li>‘ Organisation’ can be defined as a group of people working together to create a surplus. </li></ul><ul><li>An organisation structure is the design of positions, arrangement of positions and relationship of positions in an organisation. </li></ul><ul><li>In this sense, organisation structure refers to the network of relationships among individuals and positions in an organisation. </li></ul>
  4. 4. Organisation Structure <ul><li>Formal Organisation Structure </li></ul><ul><li>Formal Organisation is a network of official authority – responsibility relationships. </li></ul><ul><li>According to Chester Bernard,” An organisation is ‘formal’ when the activities of 2 or more persons are consciously coordinated towards a common objective.” </li></ul><ul><li>Formal organisation structure has official status and recognition. </li></ul><ul><li>Informal Organisation Structure </li></ul><ul><li>According to Keith Davis, “Informal Organisation is a is a network of personal and social relations not established or required by the formal organisation but arising spontaneously as people associate with one another.” </li></ul><ul><li>These are the relationships not appearing on an organisation chart and include the sixth floor group, the Friday evening bowling gang, the morning coffee regulars etc. </li></ul>
  5. 5. Organising Process <ul><li>THE PROCESS OF ORGANISING </li></ul><ul><li>Enterprise </li></ul><ul><li>Objectives </li></ul><ul><li>Supporting Identification Grouping of Delegation </li></ul><ul><li>Objectives, and classification of activities of </li></ul><ul><li>Policies, of required in light of Authority </li></ul><ul><li>and plans activities resources and </li></ul><ul><li>situations </li></ul>Horizontal and vertical coordination of authority and information relationships Staffing Leading Controlling
  6. 6. Span of control / management <ul><li>The term span of control / management refers to the number of subordinates who can be successfully supervised, directed and controlled by one supervisor or manager. </li></ul><ul><li>The span of control suggests the appropriate number of subordinates a manager can manage effectively. </li></ul><ul><li>TALL AND FLAT ORGANISATION STRUCTURE </li></ul><ul><li>A] Tall Organisation Structure : If the span is narrow, ie limited to 4 or less subordinates, many managers would be required in every unit of organisation and there would be many managerial levels. Such an organisation structure is known as a ‘Tall organisation ’. </li></ul><ul><li>Managing Director </li></ul><ul><li>General Manager </li></ul><ul><li>Manager Manager Manager </li></ul><ul><li>Supervisors Supervisors Supervisors </li></ul><ul><li>Workers Workers Workers </li></ul>
  7. 7. Span of control / management <ul><li>B] Flat Organisation Structure : </li></ul><ul><li>If the span of control is wide ie each manager directs relatively large number of subordinates (e.g. 6 or more) there would be fewer management levels. </li></ul><ul><li>Such organisation structure is known as a ‘Flat Organisation Structure’. </li></ul><ul><li>A wide span means fewer levels and flat/wide organisation. </li></ul><ul><li>Managing Director </li></ul><ul><li>General Manager </li></ul><ul><li>Manager Manager Manager Manager Manager Manager </li></ul><ul><li>Workers Workers Workers Workers Workers Workers </li></ul>
  8. 8. DEPARTMENTATION <ul><li>Departmentation is a process of dividing an organisation into convenient smaller units called departments. </li></ul><ul><li>According to Pearce and Robinson, “Departmentation is the grouping of jobs, processes and resources into logical units to perform some organisational tasks.” </li></ul><ul><li>BASES FOR DEPARTMENTATION / TYPES OF DEPARTMENTATION </li></ul><ul><li>A] Departmentation by Functions </li></ul><ul><li>B] Departmentation by Process </li></ul><ul><li>C] Departmentation by Products </li></ul><ul><li>D] Departmentation by Geographical Location </li></ul><ul><li>E] Departmentation by Customers </li></ul>
  9. 9. Delegation / Decentralisation <ul><li>Delegation of Authority </li></ul><ul><li>Delegation of authority is the transfer of certain responsibilities to subordinates and giving them the necessary power or authority which is necessary in order to discharge the responsibility properly. </li></ul><ul><li>According to F.C. Moore,” Delegation means assigning work to the others and giving them authority to do so.” </li></ul><ul><li>Decentralisation of Authority </li></ul><ul><li>Decentralisation of authority is the conscious/systematic effort to bring dispersal of decision-making power to lower levels of the organisation. </li></ul><ul><li>According to Henry Fayol,” Everything that goes to increase the importance of the subordinate’s role is decentralisation, everything that goes to reduce it is centralisation.” </li></ul>
  10. 10. Organisation Structure <ul><li>A] Line Organisation Structure : </li></ul><ul><li>In the line organisation, the line of authority moves directly from the top level to the lowest level in a step-by-step manner. </li></ul><ul><li>B] Line and Staff Organisation Structure : </li></ul><ul><li>A combination of line and functional organisations is made in order to create a new/superior organisation structure called Line and Staff organisation. </li></ul><ul><li>In line and staff organisation, line executives and staff are combined together. The line executives are ‘doers’ whereas staff refers to experts and act as ‘thinkers’. </li></ul>
  11. 11. Organisation Structure <ul><li>C] Matrix Organisation : </li></ul><ul><li>In matrix , two complementary organisation structures, i.e. the project organisation and functional organisation are merged together in order to create a matrix structure. </li></ul><ul><li>According to Koontz, O’Donnell and Weihrich, “The essence of matrix management, as one normally finds it , is combining of functional and project forms of departmentation in the same organisation structure.” </li></ul>
  12. 12. THANK YOU!!