The document discusses the concept of organization, defining it as a group of people cooperating towards common goals under leadership, with a focus on both formal and informal organizational structures that impact effectiveness and communication. It contrasts formal organization, characterized by clear roles and fixed authority, with informal organization, which arises from personal relationships and fulfills social needs. Additionally, it covers various organizational issues, including employee problems, work specialization, span of management, delegation, unity of command, and departmentation methods.

2. SYLLABUS

3. What Is Organisation ?
 Group of people who cooperate under direction of
leadership, for accomplishment of common goal.
In form of
planning
Achieve by
acquiring &
allocating
resources
Goal

4. Organisational Structure
 Relationships b/w functions and positions, subdivides roles,
responsibilities and authority to carry out defined tasks
 Impacts effectiveness and efficiency (Right man at right job)
 Reduces redundant actions
 Improves communication

5. FORMAL ORGANISATION &
INFORMAL ORGANISATION
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.
Informal organization refers to the relationship
between people in the organisation based on
attitudes, emotions, likes and dislikes,etc.
Creation Intentionally by top management. Spontaneously by members.
Purpose
To fulfill, 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 (gossip)
Control mechanism Rules and Regulations Norms, values and beliefs
Focus on Work performance Interpersonal relationship
Size Large Small

6. FORMAL ORGANISATION &
INFORMAL ORGANISATION
• Systematic Working
• Achievement of Organisational
Objectives
• No Overlapping of Work
• More Emphasis on Work
Advantage
• Delay in Action
• Ignores Social Needs of
Employees
• Emphasis on Work Only
Disadvantage
• Fulfills Social Needs
• Fast Communication
• Less supervision
Advantage
• Function as carrier of rumour
• Resist Change
• No Systematic Working
Disadvantage
Formal Informal

7. Line and Staff relationship
 Line structure consist of
direct vertical relationship
which connects the
position and task of each
level.
 The line identifies those
positions that possess
authority to make
decisions.
 Staff do not command a
decision making
authority.
 Staff advice, assistance
and support to the line
authority to enable them
to perform their duties.
Line managers take final decision with respect to the given
advice.

8. Line and Staff relationship

9. CENTRALIZATION VS
DECENTRALIZATION
BASIS FOR
COMPARISON
CENTRALIZATION DECENTRALIZATION
Meaning
The powers and authority with
respect to planning and decisions,
with the top management
Several individuals responsible for
making business decisions
Communication
Flow
Vertical Open and Free
Communication Slow Comparatively faster
Decision making Lies with the top management. Multiple persons
Best suited for Small sized organization Large sized organization

10. Basics Issues in organisation
 Employee issues.(supervisor issues)
 Team problems.(Conflict in team member)
 Organisation wide problems.

11. Work Specialization
 The entire job is broken down into steps. Each step completed
by separate individual.
 Specialize in doing part of an activity
Easy to
focus
Skill Understand
Easily
Fatigue Boredom Absenteeis
m
Stress

12. Span of management
 Span of control refers to the number of
subordinates a supervisor has.

13. Chain of common deligation
 Deligation means flow of Authority & Responsibility
 At every Level - From Top to Bottom within organisation
Authority The rights
inherent in a managerial
position
•Line Authority
•Staff Authority
Responsibility –
Managers use their authority
to assign task
Subordinate is willing to feel
obligation
Unity of Command –
A person should report
to only one manager

14. Departmentation:
 The process of grouping of activities into units for the purpose
of administration is called departmentation.
 Departmentation provides scope for organisation’s growth and
expansion
 A) Departmentation by Functional
– Grouping jobs by functions performed

15. Departmentation:
B) Departmentation by
Geographical
– Grouping jobs on the basis
of territory or geography
C) Departmentation by Product
– Grouping jobs by product line
D) Departmentation by Customer
– Grouping jobs by type of
customer and needs

16. E) Departmentation by Process
– Grouping jobs on the basis of product or customer flow
Departmentation: