This document discusses the process of organizing within an enterprise. Organizing involves defining activities, grouping them into departments, and establishing authority relationships. It is important for effective administration, growth, adapting to change, and optimizing human resources. The organizing process involves differentiating activities and integrating them. Key steps include considering objectives, grouping activities, deciding key departments, determining decision levels, and setting up coordination mechanisms. The span of management refers to the number of subordinates that report to each manager. Factors like manager ability, employee ability, work type, and information systems impact the optimal span of management.

1. ORGANISING

2. Content
• Introduction
• Importance
• Process
• Span of Management

3. Introduction
• Organising is the process of defining and
grouping the activities of the enterprise and
establishing the authority relationships
among them.

4. Importance
• Effective Administration
• Growth and diversification
• Adaptation of New Technology
• Optimum Use of Human Resources
• Specialization
• Security and support
• Coordination and communication
• Training and development

5. Process of Organising
Organisation used in two different senses.
First sense - process of organising.
• defining and grouping the activities of the
enterprise and establishing the authority
relationship among them
• manager differentiates (departmentalization)
and integrates (achieving unity of effort) the
activities of his organisation
Second sense - result of that process, namely
organisation structure

6. Differentiation and Integration
• Consideration of objectives
• Grouping of activities into Departments
• Deciding the key department
• Determining levels at which various types of
decisions are to be made
• Determining the span of Management
• Setting up a coordination mechanism

7. Consideration of objectives
• Know the objectives of the enterprise.
• Objectives determine the various activities
which need to be performed and the type of
organisation which need to be built for this
purpose.

8. Grouping of activities
• Identify the activities necessary to achieve them
• Group the closely related similar activities into divisions
and departments.
• For example, the activities of a manufacturing concern
may be grouped into such departments as production,
marketing, financing and personnel.

9. Deciding the key department
• Which are rendering key activities, i.e activities
essential for the fulfillment of goals.
• Others exist merely to serve them.
• Which department needs to be emphasised
how much will depend on the company’s
objectives
• Eg: Advertising department / Advertising
section in sales dept

10. Determining levels
• Determine the level at which various major and
minor decisions are to be made.
• Decide for itself as to how much decentralization
of authority and responsibility it wants to have.
• Extreme decentralization - loss of control and
effective coordination
• Extreme centralization - wrong decisions at
wrong times and complete breakdown of the
morale of employees.

11. Determining the span of Management
• Determine the number of subordinates who
should report directly to each executive.
• The narrow span, the taller would be the
structure with several level of management
• Flat structure is generally desirable.

12. Setting up a coordination mechanism
• Emphasizing the importance of coordination in an
organisation
• As individuals and departments carry out their
specialised activities, the overall goals of the
organisation.

13. Span of Management
• Referred to as span of control, span of
supervision, span of authority or span of
responsibility
• Indicates number of managers who report
directly to a manager.

14. Determination of appropriate span
• Affects the efficient utilisation of managers and
the effective performance of their subordinates
• Too wide a span - managers - overstraining their
subordinates - too little guidance or control.
• Too narrow a span - managers are underutilized
and that their subordinates are over controlled
• There is a relationship between span of
management and organizational structure.

15. Factors Governing the Span of Management
• Ability of the Manager
• Ability of the Employees
• Type of the work
• Well-defined Authority and Responsibility
• Geographic Location
• Sophisticated Information and Control System
• Level of Management
• Economic Consideration