The document discusses various aspects of organizing and organizational structure. It defines organizing as the process of determining activities, arranging them into units, and assigning authority and responsibilities. It also discusses different types of organizational structures like functional, divisional, matrix structures. Some key points made are: 1) Organizing involves establishing objectives, identifying and grouping tasks, and delegating authority. The outcome is the organizational structure which can be formal or informal. 2) Common structures include functional (by department), divisional (by product/region), and matrix (combining functional and divisional). 3) Contemporary structures are less hierarchical and include virtual teams, network and boundaryless organizations with more flexible structures. 4

1. ORGANIZING
Definitions “Process of determining the activities to be performed, arranging these activities to
administrative units, as well as assigning managerial authority and responsibilities to people
employed in the organization.”
 Heney – A harmonious adjustment of specialised parts for the accomplishment of some
common purpose
 McFarland- An identified group of people contributing their efforts towards the attainment of
goals
 Allen – Identifying and grouping work to be performed, defining and delegating responsibility
and authority and establishing relationships to work effectively
 Chester Bernard – A system of cooperative activities of two or more persons
 G.R.Terry – Establishing effective behavioural relationships among persons
 Joseph L Massive – Structure and process by which a cooperative group of human beings
allocates its tasks among its members, identifies relationships and integartes its activities
 Organising – Differentiating and Integrating activities for attaining common objectives
 Attainment of the objectives of the enterprise
 Optimum utilisation of resources
 Growth and diversification
 Creativity and innovation
 Effective communication
 Better relations between labour and management
 Increase employee satisfaction and decreases employee turnover
 Organisation as a process
 Organisation as structure or framework of relationships ( Results of the process)
 Organizing- the process of creating an organization’s structure
 Organizational structure- the formal framework by which job tasks are divided,
grouped, and coordinated
 Organizational design- process of developing or changing an organization’s structure

2.  PROCESS OF ORGANIZINGEstablishing enterprise objectives.
 Formulating supporting objectives and plan.
 Identifying , analyzing and classifying.
 Grouping of activities.
 Delegation of authority.
 Horizontal and vertical coordination.
 Every Organization has a StructureBut structures can differ
Due to choice
 The words used to describe them also can differ
Organization chart, design, structure
The Structural Configuration
 Is the skeleton of the organization
 Reflects corporate governance
 Is intended to meet organizational objectives
 Arises out of strategic directions
 And causes managers to ask:
 What structure will best aid us in meeting our strategy and objectives?
Restructuring Occurs for Many Reasons
 Turnover in top management
 Competitive positioning
 Mergers and/or acquisitions
 Cost-savings
 Even the illusion of managerial control
ORGANIZATIONAL ROLES
Organizational role incorporates :

3.  Verifiable objectives.
 A clear idea of the major duties or activities involved .
 An understood area of discretion or authority.
 The person filling the role knows what he or she can do to accomplish goals.
Organization Chart
“A chart that shows the structure of the organization including the title of each manager’s position
and, by means of connecting lines, who is accountable to whom and who has authority for each area.”
Advantages of Organisation
 Adoption of new technology
 Better human relations
 Check on corrupt practices
 Coordination
 Creativity , initiative and innovation
 Enhancement of managerial efficiency
 Growth ,expansion and diversification
 Proper weightage to all activities
 Specialisation
 Training and development
FORMAL & INFORMAL ORGANIZATION
On the basis of relationship:
FORMAL ORGANIZATION refers to:
 Structure of well defined jobs.
 Definite measure of authority, responsibility and accountability.
 Each individual consciously combine their effort to accomplish common task.
INFORMAL ORGANIZATION refers to:

4.  It is a joint personal activity without conscious joint purpose even though contributing to joint
results.
 The relations are not developed according to procedures and regulations.
FUNCTIONAL ORGANIZATION STRUCTURE
“Refers to grouping activities in accordance with the functions of an enterprise, embodies what
enterprises typically do.”
 Most widely employed at some level of organization.
 The characteristics of various departments are recognised & thoroughly understood.
 Coordination of activities.

6. ADVANTAGES:
 Is logical reflection of functions
 Simplifies training
 Furnishes means of tight control at top.
DISADVANTAGES:
 Deemphasis of overall company objectives
 Overspecialises & narrows viewpoints of key personnel
 Reduces coordination between functions
 Responsibility of profits is at the top only.

7. DIVISIONAL ORGANIZATION STRUCTURE
“Divisional structure groups together people who work on a similar product, work in the same
geographical region, or serve the same customers.”

13. ADVANTAGES:
• Expertise focused on special products, customers, regions.
• Better coordination across functions within divisions.
• Better accountability for product or service delivery.
• Easier to grow or shrink in size as conditions change.
MATRIX ORGANIZATION STRUCTURE
“Combining of functional & product patterns of departmentation in the same organization structure.”
 ‘Grid’ or ‘project’ or ‘product management’’.
 A matrix is a highly flexible form that is readily adaptable to changing circumstances.

14. ADVANTAGES:
 Is oriented towards end result.
 Professional identification is maintained.
 Pinpoints product profit responsibility.
DISADVANTAGES:
 Conflict in organization authority exists.
 Possibly of disunity of command exists.
ORGANIZATION LEVELS & SPAN OF MANAGEMENT
Organizational levels exist because there is a limit to number of person a manager can supervise
effectively.
The relationship between organizational levels & Span of management is

15. classified as:
 Wide Span of Management
 Narrow Span of Management
Span of Management
(normally called Span of Control)
 The number of employees reporting to a supervisor.
 Traditional view, 6 or so per manager.
 Many organizations today, 30 or more per manager.
 Generally if supervisors want to be closely involved with employees span should be small.
 Hamilton- An average human brain can handle only 3-6 other
human brains
 Urvick – 4 For superior authorities,

16. - 8-12 at the bottom level
ADVANTAGES:
 Superiors are forced to delegate
 Clear policies must be made
 Subordinates must be carefully selected.
DISADVANTAGES:
 Many levels of management.
 High costs due at many levels.
 Excessive distance between lowest level & top level.

17. ADVANTAGES:
Close Supervision
Close control
Flat communication between subordinates & superiors
DISADVANTAGES:
 Tendency of overloaded superiors to become decision bottlenecks.
 Danger to superior’s loss of control.
 Requires exceptional quality of managers.

18. PROBLEMS WITH ORGANIZATIONAL LEVELS
 Levels are expensive
 Complicate communication
 Complicate planning and control
FACTORS DETERMINING EFFECTIVE SPAN
 Subordinate training
 Clarity of delegation of authority
 Clarity of plans
 Use of objective standards
 Rate of change
 Communication techniques

19.  Amount of personal contact needed
 A person should have one and only one manager to whom he or she is directly responsible.( a
traditional management style)
 Contemporary management methods have broken away from the principle through the
developments such as ‘team working’
Contemporary Organisations
VIRTUAL ORGANIZATIONS
 An organization that has few on-site employees and does most if its interactions online.
The Virtual Organization
 A rather loose concept of a group of independent firms or people that are connected often
through information technology.
 These firms may be suppliers, customers, and even competing companies.
Team Structure
Team-Based Structures - entire organization is made up of work teams
 employee empowerment is crucial
 teams responsible for all work activity and performance
 complements functional or divisional structures in large organizations
-allows efficiency of a bureaucracy
-provides flexibility of teams

20. Network structure
A recent innovation in organizational architecture is the use of network structures.
A network structure is a cluster of different organizations whose actions are coordinated by
contracts and agreementsrather than through a formal hierarchy.
Network structures often result from outsourcing.
Outsourcing is the process of moving activities that were previously performed inside the
organization to the outside (where they are done by other companies).
Boundary less Organization
 Jack Welch, former CEO at GE (General Electric), stated his vision for the company as a
boundary less company, an “open, anti-parochial environment, friendly toward the seeking
and sharing of new ideas, regardless of their origin.”.
 Boundary less Organization- design is not defined by, or limited to, the horizontal,
vertical, or external boundaries imposed by a predefined structure ( Eg: walmart)

21.  strategic alliances break down barriers between the company and its
customers and suppliers
 seeks to eliminate the chain of command, to have limitless spans of control,
and to replace departments with empowered teams
 flattens the hierarchy by removing vertical boundaries
 horizontal boundaries removed by organizing work around processes instead
of functional departments
Delegation
 Manager assigning some part of his work to his subordinates and also giving them necessary
authority to make decisions within prescribed limits
 This downward pushing of authority to make decisions is delegation
Advantages of delegation
 Relieves the manager of his heavy work load

22.  Leads to better decision making as employees close to scene of action have better view of
facts
 Speeds up decision making
 Training ground for subordinates
 Builds morale
Barriers to effective delegation
 Reluctance from Manager’s side:
- Fear of loss of power
- I can do it better by myself
- Lack of confidence in subordinates
- Fear of subordinates overtaking the boss
- Difficulty in briefing( Lack of communication power)
Barriers to effective delegation
 Reluctance to accept delegation from Subordinates:
- Fear of criticism
- Lack of adequate information and resources
- Lack of self confidence and initiative
- Absence of positive personal gain
Empowerment
 Is a term used to express the ways in which non-managerial staff can make autonomous
decisions without consulting a boss/ manager
 How?
- Demonstrating your concern for people
- Sharing leadership vision
- Sharing goals and direction
- Trusting people

23. - Providing information fro decision making
- Delegate work as well as authority
- Provide frequent feedback
- Point out problems and not people
- Listen and provide guidance
- Help employees feel empowered
Types of organization
 Org. is designed on the basis of principles of division of labour, span of management, nature ,
scale and size of business
 Line and staff Organisations
Organisation design and configuration
 Org. Design- Process of creating structure for the organisation which will help to achieve org.
mission and objectives
 Org. Configuration – A frame work to understand org. structures. 6 components. Henry
Mintzberg.
- Operating core, strategic apex, Middle line, techno-structure, support staff, ideology