2. Meaning
•A process that initiate
implementation of plans by
clarifying jobs and wrking
relationships and effectively
developing resources for
attainment of objectives
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
3. Definition
• Organising is the process of identifying and
grouping the work to be performed, defining and
delegating responsibility and authority, and
establishing relationships for the purpose of
enabling people t work most effectively together
in accomplishing objectives. - Louis Allen
• Organising is the process of defining and groping
the activities of the enterprise and establishing
authority relationships among them – Theo
Haimman
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
4. Process of Oganising
1
• Identification and division of work
2
• Departmentalisation
3
• Assignment of duties
4
• Establishing reporting relationships
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
5. Identification and Division of
work
•The first step in the process of
organising involves identifying and
dividing the work
•Work is divided into manageable
tasks, so that duplication can be
avoided and workload can be
shared among employees.
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
6. Departmentalisation
•Once, work has been divided
into small and manageable
activities, then those activities
which are similar in nature, are
grouped together, this process
is called departmentalisation .
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
7. Assignment of duties
•Once the departments are
created, each department is
placed under the charge of an
individual, called departmental
head. Then each job is allocated
to an individual according to this
knowledge and skills.
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
8. Establishing reporting
relationships
• In the organisation, each employee has
some authority as well as responsibility. It
is necessary that every individual must
know whom he has to take orders from
and to whom he is answerable. This
creates superior subordinate hierarchy and
helps in coordinating various activities in
the organisation .
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
10. Benefits of specialisation
•It facilitates the systematic allocation
of work. This reduces the workload
las well as enhances productivity, as
each task is repetitively performed by
a worker which helps him to gain
experience and attain specialisation.
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
11. Clarity in working relationships
•No confusion regarding
performance of work, fixation of
responsibility and communication
.
•The lines of communication and
specifies who is accountable to
whom
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
12. Optimum utilisation of resources
• It leads to proper usage of all materials,
financial and human resources by proper
assignment of jobs
• Assignment of jobs to workers reduces
duplication of work, prevents confusion,
minimizes wastages and allows the best
possible use of resources.
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
13. Adaptation to change
• If facilitates modification in organisatinal
structure and revision of inter-
relationships among people in order to
adapt to environmental changes
• It also helps to provide stability and
growth despite of external changes
occurring in business environment.
MadanKumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
14. Effective administration
•It gives a clear description of duties
and responsibilities of each individual.
This helps to avoid confusion
regarding work and avoids duplication
of activities. Thus, it helps in bringing
efficiency in administration .
MadanKumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
15. Development of personnel
• It stimulates creativity amongst the managers,
effective delegation allows the managers to
reduce their workload by assigning routine jobs
to their subordinates
• This help subordinates to develop newer skills
and ability to deal effectively with emerging
challenges.
• Thus it helps in the development of personnel.
MadanKumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
16. Expansion and growth
•It helps in the growth and
diversification of an enterprise by
adding more job positions,
departments and new lines of
products
•This help in increasing sales volume
and profits of the enterprise.
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
17. Organisation structure
• Organisation is a structure of relationships
between various positions of the enterprise.
• This structure facilitates the flow of work and
communication in the enterprise
• It is the framework within which managerial and
operating task are performed.
• It specifies relationships between people ,work
and resources.
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
18. Span of management
• It refers to the number of subordinates
that can be effectively managed by a
superior.
• This determines the levels of movements
in the structure
• Larger the span, lesser the number of
levels of the organisation structure,
leading to a flat organisation
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
20. Functional structure
• An organisation structure in which
departments are created on the basis of
different functions performed in the
organisation is called functional structure
• Manufacturing concern is divided into four
departments as production, sales,
purchase ad finance.
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
21. • These departments may further be divided into sections, by
grouping similar or related jobs.
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
ManagingDirector
Human Resource
Research and
development
Marketing
Purchasing
22. Suitability of functional
structure
• It is most suitable when:
1. The size of the organisation is large,
generally with a single product or a small
number of similar products
2. Has diversified activities
3. Operations required a high degree of
specialisation
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
23. Advantages of functional
structure
• It leads to occupational specilisation
• It promotes control and coordination within a
department because of similarity in the task
performed
• It leads to increased efficiency and profit
• It leads to minimal duplication of efforts
• It makes training of employees easier as the
focus is only on a limited range of skills
• It ensures that all functions get due attention
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
24. Disadvantages of Functional
Structure
• Specialists working in different departments may
not be able to see the perspective of the
organisation as a whole
• It becomes difficult to hold a particular
department responsible for any problem
• When organization grows structure of
department becomes more complicated
• Conflict often arises between department
• There is lack of flexibility .
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
25. Divisional structure
•An organization structure in
which various departments are
created on the basis of products ,
territory or region is called
divisional structure .
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
27. Suitability of divisional
structure
•Organizational deals in a large verity
of products using different resources
•Growth prospects are high
•Organization wants to diversify into
different products and even expand
to different territories
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
28. Advantages of divisional
structure
• Brings integration and coordination in the activities
• Decisions are taken much faster in divisional structure
• It facilitates expansion and growth as new division can be
added without interrupting the existing operation
• Fixation of responsibility and accountability is easy
• It helps the managers to develop varied skills related to a
product and facilitates managerial development .
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
29. Disadvantages of divisional
structure
• It leads to increase in cost
• Greater autonomy to divisional heads may lead
to misuse of authority
• Managers in each division focus on their own
objectives without thinking of the organizational
goals
• Conflict may arise between different divisions on
allocation of funds and other resources
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
30. Difference –functional and
divisional structureBASIS FOR COMPARISON FUNCTIONAL STRUCTURE DIVISIONAL STRUCTURE
Meaning Functional Structure is one in
which the reporting
relationships of the
organization are bifurcated
according to their functional
area.
An organizational structure
wherein the organizational
functions are classified into
divisions as per product or
service lines , market, is called
Divisional Structure.
Basis Functional areas Specialized divisions
Responsibility Difficult to fix responsibility on
a particular department.
Easy to fix responsibility for
performance.
Autonomy of decisions Managers do not have
autonomy of decisions.
Managers have autonomy of
decisions.
Cost Economical, as the functions
are not repeated.
Expensive as it involves
repetition of resources.
Appropriate for Small and simple organizations. Large and dynamic
organizations.
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
32. Formal organisation
•An organisation is said to be formal
when the structure is designed and
established to achive systmeatic
working and eficient utilisation of
resources
•It is an official system of clearly
defined activities
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
33. definition
•The formal organisation is a
system of well-defined jobs,
each bearing a definite
measures of authority,
responsibility and
accountability .- Louis Allen
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
34. Features of formal organsiation
• It is means to active objectives specified in the
plans
• It facilitates interlinking of various departments,
levels and people in the organisation
• It is deliberately designed by the top
management
• It places more emphasis on work rather than
interpersonal relations
• It clarifies relationships and helps to know who
has to report to whom
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
35. Advantages of Formal
organisaton
• There is no confusion regarding work to
be done, by each individual
• Unity of command is maintained, which
avoids confusion and conflicts
• It helps in achievements of goals, by
emphasising systematic working
• It makes fixation of responsibility clear
and easier
• It provides stability to the organisation
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
36. Disadvantages of formal
organsiation
• It may lead to procedural delays and
delayed decision making due to stringent
rules and policies.
• Creativity gets reduced, as it does not
allow any deviations from the rigidly laid
down policies
• It does not fulfil social needs of the
employees, as the emphasis is on work at
all times .
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
37. Informal organisation
•Interaction among people at
work gives rise to a network of
social relationships among
employees is called informal
organisation
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
38. Definition
•An informal organsiation is an
aggregate of interpersonal
relationships without any
conscious purpose but which may
contribute to joint results –
Chester Barnard
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
39. Features of informal
organisation
• It originates form within the formal organisation, due to
interaction among employees
• The standard of behavior evolve from group norms
• Communication is free and independent
• It emerges spontaneously and not created deliberately
• It has no definite structure or form
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
40. Advantages of informal
organisation
• It facilitates quick feedback and spread information faster
• It provides a sense of belongingness and gives due respect to
social and psychological needs
• It provides the necessary environment for individual creativity
and innovation
• It contributes to fulfilment of goals, promoting the feeing of
cooperation among employees
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
41. Disadvantages of informal
organisation
• Informal organisation structure spreads rumors
• It opposes the policies and changes of
management
• It generally prefers status quo and existing work
routine
• It gives importance t individual interest at
compared to organizational interest
• It pressurizes members to conform to group
expectations
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
42. BASIS FOR COMPARISON FORMAL ORGANIZATION INFORMAL ORGANIZATION
Meaning An organization type in which the
job of each member is clearly
defined, whose authority,
responsibility and accountability
are fixed is formal organization.
An organization formed within the
formal organization as a network
of interpersonal relationship,
when people interact with each
other, is known as informal
communication.
Creation Deliberately by top management. Spontaneously by members.
Purpose To fulfil, the ultimate objective of
the organization.
To satisfy their social and
psychological needs.
Nature Stable, it continues for a long
time.
Not stable
Communication Official communication Grapevine
Control mechanism Rules and Regulations Norms, values and beliefs
Focus on Work performance Interpersonal relationship
Authority Members are bound by
hierarchical structure.
All members are equal.
Size Large Small
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
44. Delegation
•It refers to downward transfer of
authority from superior to
subordinate
•It is pre-requisite to the efficient
functioning of an organisation
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
45. definition
•Delegation of authority means
merely the granting of
authority to subordinates to
operate within prescribed
limits-Theo Haimman
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
46. Elements of Delegation
Basis Authority Responsibility Accountability
Meaning It means the right
to take decisions
and command
subordinates
It means the
obligation to
perform the
assigned task
It means being
answerable for
the final outcome
Origin It originates from
job position in the
scalar chain
It arises from
delegated
authority
It arises from
responsibility
Flow It flow
downwards from
superior to
subordinates
It flows upward It flow upward
Delegation It can be
delegated
It cannot be
delegated entirely
It cannot be
delegated at all
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
47. Importance of Delegation
•Effective management
•Employee development
•Motivation of employee
•Facilitation of growth
•Basis of management hierarchy
•Better coordination
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
48. Decentralisation
•It means systematic dispersal of
authority among all departments
and at all levels of managements
for taking decisions and actions
appropriate at the respective
levels.
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
49. definition
•Decntralisaion refers to systematic
effort to delegate to the lowest
level all authority except that
which can be exercised at central
points.- Louis Allen
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
50. Centralised organisaton
•They are those organisation in
which decision making
authority is retained by the top
management
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
51. Importance of Decentralisation
• Develops initiative among subordinates
• Develops managerial talent for the future
• Quick decision making
• Relief top management
• Facilities growth
• Better control
MadanKumarM.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
