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1. Module 3

2. Organizing
Meaning and Definition of Organizing
Organizing is the process of identifying and grouping the work to be performed, defining
responsibilities, delegating authority, and establishing relationships to achieve organizational
goals.
•Definition by Louis Allen:
"Organizing is the process of identifying and grouping the work to be performed, defining
responsibility and authority, and establishing relationships for the purpose of enabling
people to work effectively together in accomplishing objectives."

3. Nature of Organizing
•Goal-Oriented: Organizing aims to align resources to achieve organizational goals.
•Systematic: Involves a structured approach to define roles, responsibilities, and authority.
•Dynamic Process: Adapts to changes in the external and internal environment.
•Foundation for Other Functions: Organizing sets the stage for staffing, leading, and controlling.

4. Principles of Organizing
•Unity of Objectives: All activities should contribute to organizational goals.
•Example: A hospital’s departments (surgery, radiology, pharmacy) aim to deliver quality
healthcare.
•Specialization: Dividing work into tasks allows individuals to focus on specific areas of
expertise.
•Example: An IT company may have separate teams for development, testing, and
support.

5. •Authority and Responsibility: Authority must match the assigned responsibilities.
1. Example: A project manager must have the authority to allocate tasks and resources.
• Span of Control: Refers to the number of subordinates a manager can effectively
supervise.
1. Example: In a call center, a team leader might supervise 10 agents, ensuring
manageable oversight.
•Flexibility: The structure should adapt to changing circumstances.
1. Example: A startup may shift from a flat structure to a functional structure as it
grows.

6. 2. Organizational Structure
Definition
An organizational structure defines how activities like task allocation, coordination,
and supervision are directed toward achieving objectives.

7. Types of Organizational Structure
Functional Structure:
•Definition: Organizes departments based on functions like marketing, finance,
operations, and HR.
•Advantages: Specialization, operational efficiency.
•Disadvantages: Limited coordination between departments.
•Example: A manufacturing company with separate marketing, production, and R&D
departments.

8. Divisional Structure:
•Definition: Divides the organization based on products, markets, or geographic
regions.
•Advantages: Focused attention on products or markets.
•Disadvantages: Duplication of resources.
•Example: A company like Nestlé, which has divisions for beverages, dairy products,
and confectioneries.

9. Matrix Structure:
•Definition: Combines functional and divisional structures, allowing employees to
report to multiple managers.
•Advantages: Flexibility, balanced decision-making.
•Disadvantages: Role confusion due to dual authority.
•Example: An aerospace company where engineers report to both project and
functional managers.

10. Flat Structure:
•Definition: Fewer hierarchical levels with broader spans of control.
•Advantages: Faster decision-making, less bureaucracy.
•Disadvantages: Overburdened managers.
•Example: Startups often use a flat structure for quick adaptability.

11. Hierarchical Structure:
•Definition: Traditional pyramid-shaped structure with clear authority levels.
•Advantages: Clear chain of command.
•Disadvantages: Slow decision-making.
•Example: Government organizations or military.

12. Span of Control
Definition
Span of control refers to the number of subordinates directly supervised by a manager.
Types
1.Narrow Span: A manager supervises a few subordinates.
1. Example: In a specialized hospital, a surgeon supervises a small team of
assistants.
2.Wide Span: A manager supervises many subordinates.
1. Example: In a retail store, a manager might oversee all sales staff.

13. Factors Affecting Span of Control
1.Nature of Work: Complex tasks require a narrow span.
2.Competence of Employees: Skilled teams enable a wider span.
3.Manager’s Competence: Experienced managers can handle a broader span.
4.Use of Technology: Communication tools like Slack enable wider spans of control.

14. 4. Delegation
Meaning and Definition
Delegation is the process by which a manager assigns tasks, grants authority, and
creates accountability for results.
•Definition by Theo Haimann:
"Delegation is the process of assigning responsibility and authority to subordinates in
order to complete a task while retaining accountability."
Elements of Delegation
1.Authority: Power to make decisions and command resources.
2.Responsibility: Obligation to complete tasks assigned.
3.Accountability: Being answerable for results.

15. Example of Delegation:
In a marketing campaign, a manager delegates the task of designing promotional
materials to a subordinate while retaining overall accountability for the campaign's
success.
Benefits of Delegation
1.Frees up time for strategic tasks.
2.Develops subordinates' skills.
3.Enhances decision-making efficiency.

16. 5. Departmentation
Meaning
Departmentation is the process of grouping related activities into manageable units for
efficiency and focus.
Types and Examples
1.By Function: Activities grouped by specialization (e.g., HR, IT).
1. Example: A university with teaching, research, and administration departments.
2.By Product: Separate units for each product line.
1. Example: Tata has divisions for cars, steel, and software services.
3.By Geography: Grouping based on regions.
1. Example: A global company with divisions for Asia, Europe, and America.
4.By Customer: Tailored units for different customer types.
1. Example: Banks with separate divisions for retail and corporate customers.

17. 6. Staffing
Meaning and Definition
Staffing involves attracting, selecting, developing, and retaining the right people for the right roles.
•Definition by Koontz and O’Donnell:
"Staffing is the process of filling and keeping filled the positions in the organization structure."
Importance of Staffing
1.Ensures Right Talent: Helps recruit individuals with required skills.
2.Increases Productivity: Places individuals in roles that match their skills.
3.Supports Growth: Provides a talent pipeline for leadership roles.
4.Enhances Employee Morale: Ensures job satisfaction through proper placement and development.
Example:
In a tech company, staffing involves hiring software engineers, providing them with onboarding, and
offering continuous training.