This document discusses the process of organizing as a management function. It defines organizing as dividing work activities into departments and groups, assigning duties, and establishing authority and responsibility. The key steps in organizing are determining objectives, listing activities, grouping activities, determining positions, delegating duties, and establishing relationships between positions. Organizing establishes the formal organizational structure through departments, charts, and allocation of authority. Informal organization also occurs naturally through social groups.

1. Organizing
Course: BBA
Subject: Principles of Management
Unit: II

2. Topics
• Organizing: Nature, importance, process, formal &
informal organizations, Organizational Charts
• Departmentaion: Definition, Bases of
departmentation, Types of organization structure-
functional, divisional, project, matrix organization.
Authority: definition, types, responsibility &
accountability, delegation; definition, steps in
delegation, obstacles to delegation and their
elimination, what is decentralization and
centralization. (Ch.11 to 15 – Principles and
Practice of Management by L.M.Prasad)

3. What is organizing
• Planning focuses on deciding what to do -
Organizing focuses on how to do it
• Planning- obj/goal
• Organizing- organizing people and allocate
resources to carry out the plan

4. Definition
• When 2 or more persons work together towards
a common goal, authority & responsibilities are
allocated among them so that their efforts may
become effective.
Authority and
Responsibility
1 2

5. Definition
• It’s a mgt. function involves assigning duties, grouping
tasks, delegating authority and responsibility and
allocating resources to carry out a specific plan
• System of cooperative activities of two or more persons
• Urwick: ‘org. is the process of dividing up of the
activities which are necessary to any purpose and
arranging them in groups which are assigned to
individual’

6. A. & R.
• Authority:
A right inherent in a managerial position to tell people
what to do and to expect them to do it, right to make
decisions and carry out actions to achieve
organizational goals.
Ex. Taking decision of launching new product, decision of
giving holiday, signing a document
• Responsibility:
An obligation or expectation to perform and carry out
duties and achieve goals related to a position
Ex. To achieve the target/function, problem solving

7. Importance
• Helps individual about the tasks he or she is
expected to accomplish.
• creates channels of communication and thus
supports decision-making and control.
• Smooth flow of work activities
• efficient use of its resources and avoid conflict and
duplication of effort.
• harmonious relationships
• supports planning and control activities by
establishing accountability and an appropriate line
of authority.

8. Formal and informal organization
• Formal:
- For specific goal
- Definite authority, responsibility
- Ex. Marketing department, HR department
• Informal:
- Natural grouping of people on basis of similarity
in thoughts/beliefs, habits
- Ex. Lunch group, sports group, festival/events,
south Indian employees, smoke/music

9. Formal and informal org
Basis Formal org Informal org
Formation Planned and
deliberate
Spontaneous,
unknowingly
Aim To achieve goal Social interaction
Nature Official Unofficial
Focus Position Person
Leadership Superior Anyone
Source of power Delegated Given by group

10. Process Of Organizing
1. Determining the obj.
2.Preparing a list of activities
3. Grouping of activities
4. Determining the positions
5. Delegation of authority and responsibility
6. Establishing interrelationship

11. 1. Determining the obj.
• System / structure should be designed
ex. Structure of cement industry is diff. from
banking

12. 2.Preparing list of applications
• Activities must be decided
Ex. Functions and sub functions
• To know if any function is left or duplicated
Ex. In manufacturing units, Activities may be
purchase of raw material, prod., marketing,
advertisements, market Research, accounting. Etc.

13. 3. Grouping of activities
• Similar activity should be in a same group
Ex. Selling, advertising, distribution, m.r.
• Departmentation: Various activities are
classified in various groups to form departments

14. Departmentation:
• Based on function: production, marketing,
finance, acc.
• Based on geographical areas: govt org. i.e., post,
railways, telephone
- requirement of local people can be fulfilled
• Based on products:
• Based on customers:

15. 4. Determining the positions
• One official as in charge of each department
-Ex. Purchase officer for purchase section
• Departmental head

16. 5. Delegation of authority and
responsibility
• One person can not perform all function so its
divided to other persons(subordinates)
• To perform the task certain authority and
responsibility must be given
• Officer must be responsible for the performance
of his subordinates
• Decentralization: required if the size of the
business is greater

17. 6. Establishing interrelationship
• Interrelationship between various departments for
perfect coordination
• Manager must be informed about duties, authority
and inter-relationship with other departments
• Org chart can be prepared

18. Organizational charts
• Providing information about organizational
relationship
• It’s a diagrammatic representation of the major
functions and their relationship, channel of
authority

19. Organizational charts
3

21. References:
1. http://www.h-lapoal.co.il/wp-content/uploads/2014/07/9088529.jpg
2. https://lh5.ggpht.com/alEdnVq8WwbEN2PiJgT0sd2RY2hJ2L5CaOUxwSYIlL4Lr
g_-O9SKWzRehEAF3AuF_9ROxw=s85
3. https://lh4.ggpht.com/N0nt8asFlBNVM2_LF92wpQg_g-
I5ICGHVTqGkjUWXDQj5UhVft8PWOGgp6xATVvD6I9RPQ=s108