It's the complete overview of organizing which covers entire aspect of organizing.
If there is needed any rectification. let me now guys because it's my first ppt of MBA that I honestly made
1. PRESENTED BY
JITENDRA KUMAR
SHARMA
ARVIND KUMAR
ARYA
SANJAY SINGH
ANJEETA SINGH
(I.B.M) MBA (FT) 1ST
SEMESTER
C.S.J.M UNIVERSITY
KANPUR, PIN CODE-
11/23/2017
2. CONTENT
ORGANIZATION-INTERVIEW (VIDEO)
CONCEPT OF ORGANIZATION
NATURE OF ORGANIZATION
IMPORTANCE OF ORGANIZATION
PROCESS OF ORGANIZATION
ORGANIZATIONAL THEORIES
FORMAL & INFORMAL ORGANIZATION
ORGANIZATIONAL STRUCTURE (VIDEO)
MATRIX ORGANIZATIONAL STRUCTURE
DEPARTMENTATION
BASIS OF DEPATMENTATION
DELEGATION & AUTHORITY
MOTIVATIONAL VIDEO 11/23/2017
3. Concept of Organizing
Organizing refers to the process of bringing together physical, financial and human recourses
and establishing productive relations among them for the achievement of the specific goals.
In other words, Organizing is that managerial process which seeks to define the role of each
individual (manager and operator) towards the attainment of enterprise objectives; with due
regard to establishing authority-responsibility relationships among all; and providing for
coordination in the enterprise-as an in-built device for obtaining harmonious groups action.
Koontz and O'Donnell, “ It is the grouping of activities necessary to attain enterprise objectives
and the assignment of each grouping to a manner with necessary to supervise it.”
G. R. Terry, “ Establishing the effective authority relationships among selected works, persons and
work-places in order for the group to work together effectively”.
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4. Nature of Organizing
Group of Persons
Common Objectives
Division of work
Cooperative Efforts
Communication
Central Authority
Rules and Regulation
Dynamic Elements
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NATURE OF ORGANIZING:
Group of Persons: An organization is a group of people working together for
the achievement of common objectives. The group may be large or small. An
organization is a system of cooperative relationships of two or more persons.
Common Objectives: Every organization has a common objectives distinct
from personal objectives of the members. The common goal is the basis of
cooperation among the members. The objectives of the organization are
usually are made explicit.
Division of Work: An organization comes into existence when the total task
is divided into the members of the group. Division of work is necessary not
only because one individual cannot do all the work but specialization results in
efficiency and effectiveness.
Cooperative Efforts: The members of an organization are willing to help
each other for the achievement of desired goals. Cooperative relationships are
stabilized both vertically and horizontally among different units of the
organization.
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Communication: People who form an organization communicates with
each other in order to integrate or coordinate there efforts. The structure
must be such that people can perform together efficiently.
Central Authority: In an organization, there is a central directing
authority which controls the concerted efforts of the group. The chain of
authority- responsibility relationships is known as the chain of command.
Rules and Regulations: For the orderly and systematic working of
the members, rules and regulations are laid down and enforced by the
central authority.
The Dynamic Element: An organization is not a mere mechanical
structure but a living organism arising out of the sentiments, attitudes, and
behavior of people. The people are the material of construction that holds
the structure together and gives it vitality.
7. Importance of Organizing
Benefits of Specialization
Clarity on Working Relationship
Optimum Utilization of Resources
Adaptation of Change
Effective of Administration
Development of Personnel
Expansion and Growth
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8. Important of Organizing:
Benefits of Specialization: Under organizing all the activities are subdivided into various
works or jobs. For all the sub works, competent people are appointed who become experts by
doing a particular job time and again. In this way, maximum work is accomplished in the
minimum span of time and the organization gets the benefit of specialization.
Clarity in Working Relationship: Organizing clarifies the working relations among
employees. It specifies who is to report to whom. Therefore, communication becomes effective.
It also helps in fixing accountability.
Optimum Utilization of Resources: Under the process of organizing the entire work is
divided into various small activities. There is a different employee performing every different
job. By doing so, there is no possibility of any activity being left out or any possibility of
unnecessary duplicating any job. Consequently, there is optimum utilization of all the available
resources (e.g., material, machine, financial, human resource, etc.) in the organization.
Adaptation to Change: Organizing process makes the organization capable of adapting to
any change connected with the post of the employees. This becomes possible only because of the
fact that there is a clear scalar chain of authority for the manager’s right from the top to the
lower level. Whenever a managerial post falls vacant, it is immediately filled up by promotion.
Since every subordinate is well aware of the working of his boss, there is no difficulty for his
taking up the new post.
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Effective Administration: It has generally been observed that there is
always a condition of doubt about the authority of the managers among
themselves. The process of organizing makes a clear mention of each and
every activity of every manager and also of their extent of authority. It is also
made clear as to whom a manager order for a particular job shall. Everybody
also knows to whom they are accountable. In this way, the confusion on
authority is put to an end. Consequently, effective administration becomes
possible.
Development of Personnel: Under the process of organizing, delegation
of authority is practiced. This is done not because of the limited capacity of
any individual, but also to discover new techniques of work.
It provides opportunities of taking decisions to the subordinates. By taking
advantage of this situation, they try to find out the latest techniques and
implement them. Consequently, it helps them to grow and develop.
Expansion and Growth: The process of organizing allows the employees the
freedom to take decisions which helps them to grow. They are always ready
to face new challenges. This situation can help in the development of the
enterprise. This helps in increasing the earning capacity of the enterprise
which in turn helps its development.
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Process of Organizing:
Identification of Activities: First step is to determine the tasks that must be
performed to achieve the established objectives. Activities and jobs are building blocks of
any organization. The activities to be performed depends upon the objectives, nature and
size of the enterprise.
Grouping of Activities: The various activities are the grouped into departments or
divisions according to similarity and common purpose. Such grouping is necessary for the
purpose of specialization, coordination and control. It may be grouped on various basis i.e.
functions products, territories, customers etc. depending on requirements.
Assignment of Duties: Groups of activities or departments are then allotted to different
positions. Every position is occupied by an individual best suited for it. The assignments of
activities creates responsibility and ensures certainty of work performance. The process
should be carried down to the lowest levels. It is basically done to avoid duplication of work
and over-lapping efforts.
Delegation of Authority: Every individual is given the authority required to carry out
the responsibility assigned to him. A chain of command is created through successive
delegation of authority. Different positions are linked vertically and horizontally by
establishing formal authority. Every individual must know to whom he is accountable and
who are his subordinates.
14. Classical Organization theory
It is based on organization as a machine and individuals working in it as
different components of this machine.
It believed that efficiency of organization can be increased by making
each individual more efficient.
It deals with formal organization structures.
It focuses on objectives and tasks and not on the human beings
performing the tasks.
It aims at maximizing control.
It emphasizes on the direction on the detection of errors occurred and
hen correction
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15. Neoclassical Organization theory
The organization is a social system composed of several interacting
subsystems.
The social environment on the job affect people and is also affected by the
people.
Integration between organizational and individual goals is a must.
Money is only one of the motivators but not the sole.
Human beings are not always rational. They behave rationally as far as
rewards from the job are concerned.
Two way communication is necessary for sound functioning of the
organization.
Team work is essential for cooperation and higher productivity. But it can be
achieved only through behavioral approach.
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16. Modern Organization theory
It considers organization as a system composed of many subsystems such as
managerial, technical, social sub system.
It regards individual as complex being who can be motivated in multitude of ways.
It is descriptive approach of studying organizations.
It is multi- disciplinary theory as draws concepts and principles from several
disciplines such as sociology, psychology, economics, engineering and so on.
It is dynamic in interaction with the structure. It is constantly subject to change as
environment changes. Organization adapts itself suitably to the changing
environment and it survives.
It is both macro and micro in its approach. It is micro when considered with respect
to the entire nation or industry. It is macro with respect to internal parts of the
organization.
It ensures better flow of communication at all the levels and ensures effective control
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It refers to the organization structure deliberately
created by management for achieving the objectives of
enterprise.
It is a network of official authority responsibility
relationships and communication follows.
It is an official and rational structure
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According to Chester Bernard, “Formal organization is
a system of consciously coordinated activities of two or
more persons towards a common objectives. The essence
of formal organization is conscious common purpose and
formal organization comes into existence when persons
(A) are able to communicate with each other (B) are
willing to act and (C) share a purpose.”
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Informal organization:
It refers to the pattern of activity interactions and human
relationship which emerge spontaneously due to social and
psychological forces operating at the work place.
It arises naturally on the basis of friendship or some common
interest which may or may not be related with work.
Definition :
According to Chester Bernard, “ Informal organization is
joint personal activity with out conscious common purpose
though contributing to joint result.”
24. Line authority and instructions are vertical, that is, they flow from the top to the bottom.
The unity of command is maintained in a straight line.
All persons at the same level of organization are independent of each other.
This structure specifies responsibility and authority for all the positions limiting the area of action.
Merits:
• Simplicity
• Discipline
• Prompt Decisions
• Orderly Communication
• Easy Supervision & Economical
Demerits:
• Lack of Specialization
• Absence of Conceptual Thinking
• Autocratic Approach
• Problems of coordination
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25. Line & Staff Organization Structure
Line & staff organization is a modification of line organization and it is more complex than line
organization. The power of command always remains with the line executives and staff supervisors
guide, advice and council the executives
Characteristics:
It refers to a pattern in which staff specialists advise line managers to perform their duties.
Line people will give advices
The staff people have the right to recommend, but have no authority to enforce their preference on other
departments
FEATURES:
This origin structure clearly distinguishes between two aspects of administration viz., planning and
execution.
Staff officers provide advice only to the line officers; they do not have any power of command over them.
The staff supplements the line members.
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26. As shown in following figure, specified staff position
in an organizational are:
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27. Functional structure is created by grouping the activities on the basis of
functional required for the achievement of organizational objectives
For this purpose all the functions required are classified into basic,
secondary and supporting functions
Features:
The whole activities of an organization are divided into various functions
Each functional area is put under the charge of one executive
For any decision, one has to consult the functional specialist
Limited span of control is there.
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29. Definition:-
A matrix organizational structure is a company structure in which
the reporting relationships are set up as a grid, or matrix, rather
than in the traditional hierarchy. In other words, employees have
dual reporting relationships - generally to both a functional
manager and a product manager.
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32. Meaning & Definition of Departmentation
Dividing work on the basis of the specialization is known as
Departmentation. Departmentation is a means of dividing a large
organization into smaller , flexible units.
According to Koontz and O’Donnell, “Departmentation is a process
of dividing the large monolithic
functional organization
into flexible
smaller and
administrative units.”
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Functional Departmentation
This is the simplest and most prevalent basis for depart mentation. Under this all the
functions of similar nature are divided in different units which are called departments.
EXAMPLE: The functions of manufacturing concern can be divided into production
department, marketing department, financial department and personnel department.
Again sub departments can be established in each department.
Product wise Departmentation
Product depart mentation involves the grouping together of all the activities necessary
to manufacture a product or product line.
EXAMPLE: In an automobile organization the depart mentation could be car division,
truck division, bus division.
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Territorial or Geographical Departmentation
*Departmentation by territory or geography means,
"Grouping of activities by area or territory is common
in enterprises operating over wide geographic areas.”
*Organizations which are involved in banking ,
insurance , transportation.
EXAMPLE: India could be divided into north , south ,
east , west , central zones. Further North Zone can be
divided into Chandigarh, New Delhi, Ludhiana.
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Process wise Departmentation
*In this process involved in production or various types of
equipment's used are taken as basis of depart mentation.
*The basic aim to do process depart mentation is to achieve
economic benefit.
EXAMPLE: Process depart mentation in case of textile
organization can be by dividing the production into
spinning, dyeing, weaving, finishing departments.
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Customer wise Departmentation
*Grouping of activities around marketing channels
involves making an organization structure reflect the
ways an organization reaches the ultimate customer.
*Advantage of this type is that it focuses on customer
who are the ultimate suppliers of money to the
organization.
EXAMPLE: In pharmaceutical companies different
customers could be doctors , hospitals , government ,
retail stores. Further it could be wholesale , retail ,
export.
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Time wise Departmentation
In some organizations where work is performed
through day and night , the work is divided into shifts.
Thus when an organization may operates on three
shifts, three different departments may exist.
39. DELEGATION OF
AUTHORITY
Delegation is the process which enable a person to assign a
work to other and delegate authority to do it. Delegation is
a process of sharing work & authority between manager and
his subordinates.
According to Louis A. Allen, “Delegation is the dynamics of
management. It is the process a manager follows in dividing
the work assigned to him so that he performs that part which
only he can perform effectively, so that he can get other to
help him with that remain”.
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40. Features & types of Delegation
Features:
a) Authorization to manager.
b) Retention of authority.
c) Flexible.
d) Created through process
of organizing.
e) Partial delegation of
authority.
f) Specific or general.
Types:
a) General or specific
delegation.
b) Written or unwritten
delegation.
c) Formal & informal
delegation.
d) Downward, upward &
sideward delegation.
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