The document discusses organization structure and different types of organization structures. It provides details on developing organization structure, determining structure type, roles of structure, designing structure, features of good structure, types of organization charts including vertical, horizontal and circular charts. It also discusses line organization, functional organization, line and staff organization, advantages and disadvantages of different structures.
It implies the number of people who are directly managed by a single individual. Span of management is also known as span of control, span of responsibility and span of authority.
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It implies the number of people who are directly managed by a single individual. Span of management is also known as span of control, span of responsibility and span of authority.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc
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A complete Overview Of Organizing in Principles Of Management.
A good Reference for people who are doing this topic presentation and also for the exams. I have covered almost every topic in organizing.
span of control in management
span of control formula
management span of control mckinsey
management span of control guidelines
span of control best practices
span of control ratio
manager span of control benchmark
examples of span of management
span of control formula
span of control guidelines
narrow span of control
types of span of control
span of control theory
what is span of management
average span of control ratio
span of control best practices
types of span of control
wide vs narrow span of control
management span of control guidelines
span of control formula
span of control in management
span of control benchmarks
span of control best practices
span of control ratio
A complete Overview Of Organizing in Principles Of Management.
A good Reference for people who are doing this topic presentation and also for the exams. I have covered almost every topic in organizing.
Topics :
Nature and purpose
Formal and informal organization
Organization chart
Organization structure -Types
Line and staff authority
Departmentalization
Delegation of authority
Centralization and Decentralization
Job Design
Human Resource Management – HR Planning, Recruitment, Selection, Training and Development, Performance Management, Career planning and management.
Organization is the backbone of management. Sound organization contributes greatly towards continuity & success of the organization.
Organizing is the process of integrating the physical, financial & human resources & establishing the productive relationship across them to accomplish the pre-determined goals.
It is concerned with the building up a stable framework or structure of various inter-related parts of the enterprise; each part having its own function & being centrally regulated.
Basic principles of organizing: Achievement of Goal
Division of work
Well defined jobs & Authority
Discipline
Co-ordination
Security & support
Better Human Relation
Adaptability
Formal organization consists of pre defined goal & well defined structure of the jobs having clear cut authority & responsibility.
It is based on basic rules, regulations, principles & practices where employees accomplish their task & achieve the goal of the organization.
In formal organization each & every employee is responsible for his/her own task & performance.
Examples: Production house & Service sectors
Informal organization values both personal & social relationship which is spontaneously established within the formal set up.
There is not any strict rules & regulations, but there is high scope of liberty & feelings.
The relationships are voluntary based on emotional set up. Therefore, no conscious effort is required to hold the relations.
Examples: friendship group.
Both formal & informal organizations play very vital role in organizational set up. Formal organizations work independently & informal organizations depend upon formal organizations.
Line organization is the most oldest & simplest form of administrative organization.
Line organization is also known as scalar organization as authority flows from top to bottom.
There is the line officer who has unified control and independent decision making power in their field.
Specialized or supportive services do not take place in line organizations.
There is also inadequate communication & some times lack of proper co-ordination due to one way communication.
Example: President, Vice President, Supervisor & Employees.
Line & Staff organization is a modification of the line organization & it is more complex than the pure line organization.
In this kind of organization, line officers & staff officers (Generalists & Specialists) work together. Line officers plan & execute the work whereas staff officers play advisory role.
Power of command remains with the line executives & staff serves only as counselors who reduce the burden of the line managers & help to take quick decision.
Centralization refers to the process in which organizations take decisions & plan. The decision making power is retained in the hand of the head of the organization & all other employees have to obey this.
Decentralization is just the opposite of centralization. It refers to delegation of decision making authority through out an organization.
Organisation charts and manuals are used to describe the organisation structure. It is a tool for management control and gives full information pertaining to the organization.
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1. ORGANIZATION STRUCTURE
The organization structure provides a framework which holds the
various functions together in accordance with the pattern determined
by managers. A planned structure outlines the required functions,
correlates in a systematic manners and assigns authority and
responsibility.
every business sets some goals to be achieved. In
order to achieve goals some activities are to be performed..these
activities are to be specified. classified and grouped. The
responsibility and authority is assigned activities are assigned to carry
out various activities. A system of proper co-ordination is established
to reach the organizational goals.The establishment of systematic
relationship among various activities and persons is the framework of
organisation structure.There may be problems and difficulties if the
structure is faulty.The structure should be suitable to the working of
the organisation and be helpful in achieving business goals.
2. DEVOLPING ORGANISATION STRUCTURE
Relations between senior and subordinate and
vice-versa
Relations between line position and specialists
Staff relations
Lateral relations
3. DETERMINING THE KIND OF STRUCTURE
Activities Analysis.
Decision Analysis.
Relation Analysis.
4. ROLE OF ORGANISAFACTION STRUCTURE
Encourages Efficiency
Communication
Optimum use of resources
Job satisfaction
Creative Thinking
Facilitates Management
6. FEATURES OF A GOOD ORGANISATION
STRUCTURE
Clear line of autthority.
Adequate delegation of authority.
Less managerial levels
Span of control
Simple and flexible
7. TYPES OF ORGANISATION CHARTS
There are three ways in which orginisation charts
can be shown:
▓ Vertical
▓ Horizontal
▓ Circular
8. VERTICAL OR TOP TO BOTTOM:
In this chart scaler levels run horizontally and
function run vertically.the supreme authority is
shown at the top while lowest authority at the
bottam.In this chart board of directors is at the top
of the orginisation.The chief executive controls
various functional managers,who in turn have
downward staff as the reqiuirement of respective
departments.
9. VERTICAL ORG.
Board of directors
Chief of Executive
Market Production Finance Personnel
Manager Manager Manager Manager
10. HORIZONTAL ORG.
Highest positions are put on the left side and those
with diminishing authority move towards the
right.The organisational levels are represented by
vertical columns,the flow of authority from higher to
lowr levels being represented by movement from
left to right.In other words it presents scaler levels
in a vertical position and functions horizontaly.The
same levels of authority s shown in vertical chart
cam be depicted in a left to right.
11. CIRCULAR ORG.
In circular chart the centre of the circle represens the position of supreme
authority and the functions radiate in all directions from the centre.The
higher the positions of authority, the nearer they are to the centre and
lesser positions of authority.more distant they are from the centre.The
pisitiond or relatuve equal importance are located at the same distance
from the centre.The lines forming different blocks of functions or
positions indicates the channels of formal authority,the same as in other
arrangements.the circular chart depicts the actual condition of outward
flow of formal authority from thr chief-minister Executive in many
directions.
Principles of organisation charts
The top management should fithfully follow the line of authority while
dealing with subordinates.Any attempt to bye pass the org. cchart will
make it meaningless.
The chart should define lines of position.
The undue concentration of duty at any point should be avoided.
The org. chart should not be influenced by personalities.
The org. chart should be simple and flexible.
12. ADVANTAGES OF ORG. CHART
► An org. chart is a managerial tool.Its helps in
specifying authority and responsibility of every
poisition.The relationship among different persons are
also established for smooth working of the org.
► A org. chart specifically defines authority and
responsibility of people in the enterprise there will be
no dublication and overlapping of duties etc.Even if it
happens in a particular instance it can be rectified
immediately.
► The org. chartr will be help in pointing out the
fault,deficiencies,dual command etc.The management
will able to take prompt remedial action in case of
certain lacuma.
► The org. chart acts as an information centre to the new
entrants and they can easily understand different
13. LIMITIONS OF ORG. CHARTS
The org. chart show the relationship of different
positions and not the degrees of authority and
responsibility.The size of boxes or circles in the
chart cannot show the level of authority etc.
A chart is only depicts formal org. relationship
whereas informal org.is ignored.
In chart shows org. position and status at diffirent
levels.it gives rise to superior inferior feeling among
people and it restards the feeling of team work.
14. TYPES OF ORGANISATION MANUALS
Policy Mannual,
Orjanisation Mannual.
Rules and Regulations.
Departmental Mannual.
15. ADVANTAGES OF MANNUALS
Written Information.
Helpful in day-to-day working
Avioding conflicts
Helpful to New Employees.
Quick Decisions.
17. TYPES OF ORGANISATION
Line organisation
Functional organisation
Line and staff organisation
Committee form of organisation
Matrix organisation
18. LINE ORGANISATION
It represent a direct vertical relationship through
which authority flows.This is simplest and
oldest,known as chain of command or scaler
principle.
TYPES OF LINE ORGANISATION
Pure Line Organisation
Departmental Line organisation
Pure Line organisation:In Line organisation all
persons at a given level performs the same type of
work.The divisios are soley for the purpose of
control and directions
19. DEPARTMENTAL PURE ORGINATION LINE
THE DEPARTMENTAL ORG. TYPE OF LINE ORG.DIVIDED THE
ENTERPRISE UINTO DIFFERENT DEPARTMENTS WHICH ARE
CONVENIENT FOR CON ROL PURPOSE.THE WHOLE ORG. IS PUT
UNDER THE CONTRROL OF DEPARTMENTAL OF CHIEF EXECUTIVE
WHO MAY BE CALLED THE GENERAL MANAGER .
CONDITION FOR SUCCESS
There should be a hiearchical arrangement of giving commands.The
subordinates shoulld get commnds only through their immidate superior.
There should ba a single line of command.One person should get order
from one supervisor only.
All persons at the same level of authority should be independent of one
another.
The number of subordinates should be such t5hat they are properly
supervised.
20. MERITS OF LINE ORGANISATION
Simplicity.
Identification of authority and responsibility.
Co-ordintion.
Effective Commuynication.Economical.
Quick decisions.
Unity of command.
Effective control and supervision.
Excutive department.
Flexibility.
21. DEMERIT OF LINE ORG.
Excess work.
Lack of co-ordination.
Improper c ommunication.
Lack of initative.
Lack of specialisation.
Favouritism.
Instability.
22. FUNCTIONAL ORG.
Iin functional org. the task management and direction of subordinates should be
divided according to the type of work involved.
Types of function org.
Office specialists:`design,`recording,planning.
Ifferent people:
Route lerck
Instruxctiion card clerk
Time and cost clerk.
Disciplinarium.
Shoo specialistss.
Gang boss
Speed boss
Repair boss
Inspector
23. ADVANTAGES OF FUNCTIONAL ORRG.
Specialisation
Increase of efficency.
Scope for growth.
Flexibility.
Relief to top execcutves.
Economy of operations.
Better supervision
Democratic Control
24. DISADVANTAGES OF FUNCTIONAL ORG.
Conflict in authority
Lack of co-ordination
Difficulity in fixing responsibility
Delay ion taking decisions .
Poor discipline.
Expensive.
Group Rivalaries.
25. LINE AND STAFF ORG.
Line org. is autocrati,on other hand ,has a loosae
cojntrol.aline manager is vested with executive
authority.he responsile for making important
decisions and is also accountable for the
impliucations.
Types of staff:Personal staff,Specialist staff and
General staff.
Function of staff Authority:Agency of control,Agency
of Co-ordination,Agency of service,Agency of
advice.
26. ADVANTAES OF LINE AND STAFF ORG.
Specialisation
Better displine
Balanced and prompt decisions
Growth and Expansiion
Devolopment of employees
Lesser burden on line officers
Quick Actions
27. DISADVANTAGES OF LINE AND STAFF ORG.
Conflict b/w line and staff personal
Lack of Responsibility
More depence on staff
Lack of co-odination
Ineffective Staff
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