Management process - organizing

Unit II – Management Process
Organizing
7 September 2020
1
Anju George , Associate Professor
SGCON ,Parumala

Definition- Organizing
• It is a function in which the synchronization and
combination of human, physical and financial resources
takes place.
• It is a function by which the management is able to define
the role, positions the jobs related and the co-ordination
between authority and responsibility. – Chester Bernard
• Organization is a system of co-operative activities of 2 or
more persons.
7 September 2020 2Anju George , SGCON,Parumala

Principles of Organization
1. Principle of chain of command/hierarchy:
– Communication flows through the chain of command or channel of
communication tends to be one way downward.
– In a modern nursing organization, the chain of command is flat, with
line managers, technical, clerical staffs that support the clinical staff.
– The communication flows freely in all directions, with authority and
responsibility delegated to the lowest operational level.
– The authority flows from top to bottom in order to be satisfying to
members, economically effective and successful in achieving the
goals.

2. Principle of unity of command: Also called principle of responsibility
– An employee has one supervisor / one leader and one plan for a
group of activities with the same objective.
– A subordinate should receive the instruction or direction from one
authority.
– In the absence of unity of command
• The subordinate may neglect his duties.
• It will result in the non completion of any work.
• There is no guidance available to the subordinates and there is no
controlling power for the top executives of the organization.
• Further some subordinates will have to do more work and some others
will not do any work at all.

3. Principle of span of control/span of management or
span of supervision:
– Span of control refers to the maximum number of members
effectively supervised by a single individual.
– The span of control enables smooth functioning of the
organization.
– The more highly trained the employee, the less supervision is
needed.
– Employees in training need more supervision to prevent
blunders.

4. Principle of specialization or division of work:
– Division of work means that the entire activities of the
organization are suitably grouped into departments and sections.
– The work is assigned to each person according to his educational
qualification, experience, skill and interests.
– He should be mentally and physically fit for performing the work
assigned to him. The required training may be provided to the
needy persons.
– It will result in attaining specialization in a particular work or
area.

5. Authority and responsibility
– Authority acts as a powerful tool for the manger to
achieve a desired objective.
– The superior should be held responsible for the acts of
their subordinates.
6. Delegation of authority
– It means conferring of a specified authority by a higher
authority . A successful manager normally does not perform
the jobs by himself or herself- he/she delegates it.

7. Integration vs disintegration
– Line functions should be separated from staff functions even
when they are supplementary in character.
– Line functions are directly connected with operations while staff
functions are auxiliary to the line functions.
– These functions should be co-ordinated when necessary but
normally they should be kept separate.
8. Centralization and decentralization
– Centralization refers to the concentration of authority and
decision making in one single position in the organization.
– Decentralization is one in which the lower levels are allowed the
discretion to decide most of the matter.

9. Co-ordination
– There should be proper co-ordination among the
departments and efforts of people working in an
organization to achieve unity and harmony in
operations.
10. Principle of flexibility
– The organization structure should be flexible and
not rigid to adapt changing situations and permit
expansion without major disruption.

11. Principle of simplicity
– The organization structure must be simple so that all employees can
understand and communicate.
12. Principle of balance and continuity
– Proper balance is necessary in the size and functions of departments,
centralization and decentralization of the organization, span of
control, chain of command and finally in human and material
resources.
13. Principle of leadership and efficiency
– There should be enough opportunity for the management
to effectively lead subordinates in the organization

Organization chart
• Definition
– Organization chart refers to the diagrammatical form which
shows the important aspects of an organization including the
major functions and their respective relationships, the
channels of supervision and the relative authority of each
employee who is in-charge of each respective function
–George Terry.
• It reveals the vertical operational responsibilities and horizontal
linkages.

Structure of an organization
chart
1. The boxes: these represent various important positions.
2. Title of the position: these are in the boxes.
3. Position in the hierarchy: the distance of the box from the top
indicates its position in the hierarchy .
4. Formal reporting relationship: the lines joining the various
positions represent the formal reporting relationship usually
between superior and subordinates.

Features of the organization
chart
a. Diagrammatic representation
b. Represents formal organization structure
c. Shows the line of authority in the organization
d. Indicates the channel of communication
e. Indicates who supervises whom and how various
units are interrelated.

Advantages of organization chart
1. Brings clarity to the organization relationship.
2. Serves as a quick method of visualizing an organization .
3. Easy way to visualize a large number of employees.
4. Useful in familiarizing and training new employees.
5. Provide a lot of information about the organization .
6. Provide specific departmental information .
7. Used to communicate and obtain feedback from the employees.
8. Helps to organize the workplace.
9. It enables the management to find out different positions of
authority and their relationship in the organization structure .
10. Indicates ways to utilize the available manpower in a better
way .

Limitations of the organizational
chart
i. Does not provide all the details of the organization structure created.
ii. It shows only the formal relationship.
iii. It does not show anything about the managerial style adopted.
iv. It emphasizes only the formal channels of communication .
v. It lacks flexibility .
vi. It destroys team spirit.
vii. It becomes outdated very quickly .

Types of organizational chart
I. Hierarchical
II. Matrix
III.Flat or horizontal

I. Hierarchical
• These type of charts indicate the formal structure of an organization.
• The number of boxes vertically represent the number of ranks.
• The horizontal boxes represent the number of departments or people
at particular level.
• A top level administrator is represented at the top rectangle box. The
level underneath contains high level managers and each succeeding
level includes the sub-ordinates of the line below.
• An executive position may have larger rectangle than a subordinate
position. The same level have boxes of similar size.

II. Matrix organizational chart
• In this the organization is divided in such a pattern
that the same skilled employees are pooled together
in a group reporting to the respective manager of
their group.
• The matrix has 2 axes- one that runs vertically which
is functional or divisional in nature, while the
horizontal one represents the group of people from
the various functional departments.

III. Flat or horizontal chart
• It may consist of only managers and the operation
level nurses .
• This type charts are possible only in small or
individual unit organizations
• This encourages employees in being a part of the
decentralized decision making process by
increasing their level of responsibility.

Other classifications are:
• Vertical charts – the highest job is shown at the top with other jobs
shown in a descending order connected by lines to show the authority
and the line of command.
• Horizontal charts – shows the organizational structure in the form of a
pyramid
• Circular chart the top management is shown at the centre of the circle
and other management levels are shown in concentric circles.
• Departmental chart –the chart is devoted exclusively to particular
department and gives details of relationships authority, responsibility
within the department

Organization structure
• Organization structure refers to the formal established
pattern of relationship among various parts of any
organization.
• In an organization, managers and employers work
together for achieving common objectives.
• It is the organization structure that binds them
together and brings proper co-ordination in their
work.

Definition
• Organization structure refers to the sum total of
the ways in which an organization divides its labor
into distinct tasks and then co-ordinates them.

Basic parts of an organization
• Strategic apex , middle line & operating core are in the single line of
hierarchical authority.
Strategic
Apex
Middle line
Operating core (Heart )

• Operating core
– It consists of all those who perform the basic work relating to production or services. It
is the heart of the organization that is concerned with the output.
• Strategic apex
– It comprises of the people with the overall responsibilities for the organization, ie, board
of chief executive and other top level managers.
– They are concerned with setting goals, plans, policies and develop strategies to
implement plans and accomplish goals.
• Middle line
– It is the linking pin between the strategic apex and the operating core. The chain runs
from superior managers down to the first line supervisors
• Technostructure and supporting staff are in the right and left of the
middle line7 September 2020 24Anju George , SGCON,Parumala

Elements of organization
structure
• Elements of organization structure vary
from one organization to another. They
either differentiate or integrate the work
of an organization.

• Elements of structure that differentiate the work of
an organization.
– Horizontal differentiation or specialization – refers to the
splitting up of work into tasks and sub-tasks at same
level.
– Vertical differentiation – refers to the division of work
according to the level of authority or hierarchy
– Spatial differentiation – refers to the geographic location
of different organizational activities

• Elements of structure that integrate the work of an organization :
– Formalization – it refers to the rules, policies, procedures and
other written documents that organization produce to
regulate behavior.
– Centralization – it refers to the place of decision making
within the hierarchy of an organization.
– Span of control – it refers to the number of sub-ordinate
positions that a higher position co-ordinates.
– Standardization – it refers to the mechanisms designed to
reduce uncertainty and unpredictability in the work of an
organization.7 September 2020 27Anju George , SGCON,Parumala

Types of organization structure
4 types
A. Formal organization
B. Informal organization
C. Divisional organization
D. Matrix organization

A. Formal organization
• Formal organization is that when the activities of 2 or more persons are
consciously co-ordinated towards a given objective.
• Features of Formal organization
– Very stable
– Clearly defined line of authority and responsibility
– Based on division of labor
– Consciously designed and officially stated
– Well defined chain of communication & chain of command
– Very rigid
– Performance of the job is the focus of the organization

• Advantages Formal organization
– Provide basic structure of division of work and responsibility.
– Goals are clearly defined, tasks done in time, objectives will be clear.
– Promotes discipline in the organization
– Encourage improved practices
– It gives clarity of what to expect from each employee
– It provides a structure for laying down pay scales and taking other
decisions linked to organizational levels.
• Disadvantages Formal organization
– No flexibility
– No room for long term planning
– Lessens scope of creativity

• Various forms of formal organization
are :
– Line organization structure
– Line & staff organization structure
– Functional organization structure

Director of
nursing
CNO
Nursing
superintendent
Shift nurse
• Line organizational structure
– According to ths type of
organization, the authority flows
from top to bottom in a step by
step manner.
– The responsibility moves in
upward direction .
– It is also known as military
type/scalar/vertical/departmen
tal organization.
– All major decisions are taken by
top level manager

Director of
nursing
CNO
Nursing
superintendent
Shift nurse
• Features of line organization
– Simplest form
– Authority is from top to bottom
– Line of responsibility and authority flows
in an opposite direction
– Principles of unity of command, direction,
discipline are strictly followed.
– Major decisions are taken by top level
administrators
– 2 way communication is transmitted from
top to bottom and vice versa
– Brings efficiency in communication and
stability

• Advantages of line organization
– Simple
– Scalar chain of command
– Better discipline
– Fixed and clear cut responsibility
– Flexible
– Prompt decision
– Economical
– Attraction of talented persons.

• Disadvantages of line organization
– Lack of specialization
– Overburden of top executive
– Inadequate communication of complaints of low
level employees to top level
– Favoritism
– Lack of co-ordination
– Misuse of authority
– Limited scope for expansion
– Rigidity

Nsg.Supdt
Staff
Nurse
Ward in
charges
Ward in
charges
• Line and staff organization structure
– Line refers to those position and
elements of the organization which
have the responsibility and authority
and are accountable for
accomplishment of the primary
objective.
– Staff elements are those which have the
responsibility and authority for
providing advice and service to the line
in the attainment of the objective

• Characteristics of line and staff organization
– Complex
– Combines line and staff authority
– Division of work and specialization
– Planning is concerned with the staff and execution functions are given to the
line executives
– Power of command remains with line executives, the staff officers lack
authority
– Staff provides guidance and advice to line executives
– The staff manager has authority over subordinates working in his department
– Wide scope for specialization
– Conflicts between line and staff executives are common

• Advantages of line and staff organization
– Encouragement to specialization
– Less burden on line executives
– Better decision making
– Clear distinction between counseling and execution
– Flexibility
– Encouragement to research and development
– Undivided responsibility
– Unity of command

• Disadvantages of line and staff organization
– Lack of understanding
– Dependency of line and staff executives
– Delay in taking decision because consultation
takes times
– Lack of accountability and staff
– Expensive
– Complexity

Nursing
service
• Functional organizational
structure
– In this type of organization
employees are classified
according to the functions
performed by them in the
organization or the job of
management is divided
according to specialization.
HRM Lab services
Organization
(Hospital)

• Characteristics of functional structure
– Specialization of work
– Head of each functional department is a
functional specialist
– Follows functional authority relationships
among various departments
– Clear cut line and staff division

• Advantages of functional structure
– Specialization
– High morale and sense of belongingness among staff
– Promote professional achievement and development
– Effective co-ordination
– Flexibility
– Effective supervision and better control
– Order and clarity
– Accountability
– Reduction of work load

• Disadvantages of functional structure
– Multiple command
– Lack of responsiveness
– Delay in decision making
– Interdepartmental confusion
– Narrow perspective
– Lack of co-ordination among functional or
departmental heads
– Economy
– Divided responsibility

B. Informal organization
• Informal structure refers to social groups or
friendships which people working together
may form
• It consists of unofficial personal relation ship
among employees that influence their
working effectiveness

Features
• Groups may evolve spontaneously and constantly.
• It is dynamic and responsive
• Excellent at motivation
• Treat individual as human being
• Cohered by trust and reciprocity
• Informal communication is present
• Emphasis is on personality, politics ,personal attitude
emotion, prejudice, likes, dislikes and other social factors
• Focus is on individual and group goals

• Disadvantages of informal organization
– Resistant to change
– Role conflict
– Rumors
– Conformity

CNO
NS
(Cardio)
Ward
Incharge
Staff
nurse
NS
(Neuro)
Ward
incharge
Staff
nurse
NS
(gastro)
Ward
incharge
Staff
nurse
C. Divisional organization
• It is a kind of organization that is characterized
by divisions inside an organization .

• Advantages of divisional organization
– Allows flexibility
– Enhances co-ordination across functional
departments
– Clear accountability of all divisions
– Brings out economy and efficiency in operations
– Ensures steady growth
– Gives sufficient autonomy to each department to act
– Each division can make use of centralized services
– Easy to access the outcome of each division

• Disadvantages of divisional structure
– Results in duplication of resources
– Creates unhealthy rivalries among operating units
– Lack of full utilization of resources by different
units
– Complicated structure
– Not suitable for small and medium organization

D. Matrix organization
structure• It combine functional and product
departmentalization in a dual authority system.
General
manager
Engineering
Project A
Project B
Project C
Manufacturing
Project A
Project B
Project C
Marketing
Project A
Project B
Project C

• Advantages
– Create shared responsibility
– Effective co-ordination among different functional units
– Authority and responsibility is shared
– Balance between time, cost and performance
– Better control
– Minimum conflict
– Suitable for large number of smaller projects
– Effective communication
– Better accountability
– Improved decision making
– Reduced workload at top managers

• Disadvantages
– Violates principle of command
– Chances of groupism among members
– Increased complexity

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