This document discusses key concepts in organizing, including functional and divisional organization structures, formal and informal organizations, delegation, and decentralization. It explains that organizing involves dividing work, coordinating efforts, establishing reporting relationships, and setting common objectives. The benefits of specialization, clarity in roles, and optimum resource use are highlighted. Functional and divisional structures are compared, noting advantages like specialization and managerial efficiency as well as disadvantages like potential interdepartmental conflicts. Delegation, decentralization, and their importance for developing initiative and managerial talent are also summarized.

1. UNIT- 5
ORGANISING
DR.RAMESH SHARMA

2. Organising
 Concept
 Importance
OrganisingProcess
Structureof Organization:
 Functional andDivisional - concept
 Formal andInformal Organization -concept
Delegation
 Concept
 Elements
 Importance
Decentralization
 Concept
 Importance
DR.RAMESH SHARMA

3. “Apoor organization could Run aGood Product into theground and
that a Good organization which has comparatively poor product
could runagood product out of theMarket” - Kenneth C. Towe
DR.RAMESH SHARMA

4. Harmonious Adjustments of various partstoAchieveCommon Objective
Features of Organizing
 Divisionof Work
 Coordination
 Pluralityof Persons
 CommonObjectives
 OrganizationisaMachineof Management
DR.RAMESH SHARMA

5. Benefits of Specialization
Clarity in Working Relationship
Optimum Utilization of Resources
Adaption to Change
EffectiveAdministration
Development of Personnel
Expansion and Growth
DR.RAMESH SHARMA

6. 1. Identification and Division of Work
2. Departmentalization
3 Establishing Reporting
Relations
2. Assignment of Duties
o
R
G
A
N
IS
I
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G
P
R
O
C
E
S
S
DR.RAMESH SHARMA

7. General
Manager
Purchase
Manager
Purchase
Executive
Production
Manager
Production
Superintendent
Finance
Manager
Finance
Executive
Informal
organization
Formal
organization
DR.RAMESH SHARMA

8. Advantages of Formal organization
 EasytoFixAccountability
 NoOverlappingof Work
 Unityof CommandPossible
 EasytoGet Goals
 StabilityinOrganization
DR.RAMESH SHARMA

9. Limitations of Formal organization
 DelayinWork
 Lack of Initiative
 Mechanizationof relations
DR.RAMESH SHARMA

10. Informal Organisation: It referstothenatural groupings of
peopleinthework situationtomeet personal needs.
Characteristics of Informal Organization
 BasedonFormal Organization
 NowrittenRuleandProcedure,
 Independent Channel of Communication
 Not DeliberatelyCreated
 NoplaceonOrganizational Chart
 Personal
 LacksStability
DR.RAMESH SHARMA

11. Advantages of Informal organization
 EffectiveCommunication
 FulfilsSocial Needs
 FulfilsOrganizational Objectives
DR.RAMESH SHARMA

12. Limitations of Informal Organization
 Creates Rumors
 ResistsChange
 Pressureof GroupNorms
DR.RAMESH SHARMA

13. TheWrongOrganizationStructurewill seriouslyimpair Business
Performanceandmayeven destroyit” - Peter F. Drucker
DR.RAMESH SHARMA

14. Functional organisation
Divisional organisation
Lineorganisation
LineandStaff organisation
DR.RAMESH SHARMA

15. Division of the whole organization according to the major
activities performed by it.
General Manager/CEO
Shareholders
Board of Directors
General
Manager/CEO
Sales Manager
Advertisemen
t Manager
Production
Manager
Market
research
Manager
Marketing
Manager
Finance
Manager Personnel
Manager
DR.RAMESH SHARMA

16. Advantages:
 Benefits of Specialization
 Coordination is Established
 Managerial Efficiency is Increased
 Minimal Duplicationof Efforts
 Training is facilitated equal weightageto all
functions
Suitability:
 Largesizeof theunit
 Specializationis required
 Decentralization is needed
 Singleproduct unit
Disadvantages:
 Ignoranceof organizational Objective
 Difficultyin inter-departmental Coordination
 Conflict of Interest
 HurdleinCompleteCoordination
DR.RAMESH SHARMA

17. Advantages:
 Development of Divisional Heads
 Divisional Results canbeAssessed
 Quick Decision Making
 Easy Expansion
Disadvantages:
 Conflictsbetween Divisional Heads
 Duplicityof Functions
 SelfishAttitude
Suitability:
 Multi-product organizations.
 Growing organizations
DR.RAMESH SHARMA

18. It referstotheprocess of entrusting responsibility andauthority,
creatingaccountability of thepersontowhomwork or
responsibility has beenhanded over.
DR.RAMESH SHARMA

19. Responsibility
 Assignment of jobtoasubordinate
Authority
 Thepower totakedecision
Accountability
 Answerabilityof thesubordinatetohissuperior for hiswork
performance
DR.RAMESH SHARMA

20. AssigningResponsibility
 (Delegationof responsibilitytosubordinates)
Granting Authority
 (Delegatingauthoritytofulfil responsibility)
FixingAccountability
 (Demanding justificationbythesuperior)
DR.RAMESH SHARMA

21. EffectiveManagement
Employee Development
Motivation of Employees
Facilitation of Growth
Basis of Management Hierarchy
Better Coordination
DR.RAMESH SHARMA

22. It referstothesituation which exists asaresult of thesystematic
delegation of authority throughout theorganization.
DR.RAMESH SHARMA

23. Develops Initiativeamong Subordinates
Develops Managerial Talent for Future
Quick Decision Making
Relief to Top Management
Facilitates Growth
Better Growth
DR.RAMESH SHARMA

24. DR.RAMESH SHARMA
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