This document provides an overview of organizing principles and processes. It defines organizing as structuring work relationships and responsibilities to achieve objectives. The key principles discussed include clearly defining objectives, dividing work, establishing appropriate spans of control, delegating authority proportionate to responsibility, maintaining flexibility, and decentralizing decision-making. The organizing process involves identifying goals, classifying work, establishing relationships, delegating authority, and coordinating activities. The document also discusses organization architecture, including vertical and horizontal differentiation.

2. Presented By:
• Anjali Joshi
• Dhan Bahadhur Bohara
• Manoj Raj Sharma
• Ramesh Pant
• Keshav Nayak
• Prerna Shah
• Heera Chalaune

4. Meaning And Definition Of Organizing
Organizing refers to the relationship
between people, work and resources
used to achieve the common
objectives.
Organizing is also structuring of a work
system.
By structuring we mean coordinating,
establishing relationships and
assigning task responsibilities.

5. ”Organizing is the process of defining
and grouping the activities of the
enterprise and establishing the
authority relationships among them.”
According to
Theo Haimann

6. Principles Of Organizing
A principle is a rule which is generally accepted by all. It is a
guideline for solving problems and difficulties. The principles of
organizing are as follows.
Objectives:- The objectives of the organization should be clearly
defined. Every individual in the organizations should understand
those objectives. This will enable them to work efficiently and
help the organization to achieve its objectives.

7. • Division of work:- There should be division of work in
the organization. This will increase the efficiency,
productivity, and profitability of the organization.
• Span of control:- Span of control means maximum
number of subordinates which one superior can
manage effectively. It depends on many factors such
as nature of job, ability of superior, skill of
subordinates.

8. • Authority and Responsibility:- Every individual should
be given authority(power) to perform his
responsibilities(duties). It describe as “top-down” function
in organization.
• Flexibility:- The organization should be flexible so that it
can be adjusted to changing conditions. Due to the
change in external environment the organization is also
changed.

9. • Simplicity:- The organization should be kept as
simple as possible. A complex organization can be a
source of big confusion and can be a difficult to
accomplish the objectives.
• Decentralization:- It refers to the process of pushing
decision making to lower levels of the organization.
The principle is that decision making power should be
placed as nearer the scene of action as possible.

10. Process Of Organizing
• Identify organizational goals:- In this step
organizational goals, plans and work activities must be
identified. Organizational goals and plans describe
something which has to be accomplished.
• Classify and group the necessary work:- In this
step group activities is done which is based on
department. Then manager should assign the defined
work activities to specific individuals and group.

11. • Establish relationship:- In order to secure
compliance to organizational directives, reporting
relationship must be specified. Manager should
determine the vertical and horizontal relationships of
the organizational as a whole.
• Delegate authority:- In the fourth step. The authority
to carry out the assigned task to be assigned to
individuals and group.

12. • Provide for coordination and control:- Finally, the
activities and efforts of various individuals, groups and
units must be coordinated. Coordination brings activities
or group of activities into proper relation.

14. Organization architecture comprise :
 Vertical differentiation
 Horizontal differentiation
Organization Architecture

15. Vertical differentiation
 Vertical differentiation is related to
distribution of decision making.
It consist of a vertical dimension of different
level of authority and responsibility .
It is basically differentiation by degrees of
authority .
 It cab be two types :
(I) Tall hierarchy
(II)Flat hierarchy

16. (I) Tall hierarchy : this is the traditional pyramid shaped
structure . It’s feature are:
• Narrow span of control with too many hierarchical levels.
Features:
• Long channels of communication .
• Centralization authority at the top .
• Close superior subordinate contact .

17. (ii) Flat hierarchy : this is the emerging organization.
Information technology and professional management
have made it possible.
Features:
• Wide span of control with few hierarchical levels .
• Short channel of communication .
• Decentralized authority to subordinates .

18. Horizontal differentiation
 Horizontal differentiation is concerned with the
distribution of function . It is wide division of work into
department . This differentiation is often refreshed to as
de departmentalization .

19. Horizontal Differentiation:
It consist of :
 Functional structure : it is grouping of activities by
functions performed. It focuses on work specialization.
 Multi-dimensional structure: It is grouping of activities by
product. All function of a product line are put under one
division. For e.g. All food item under food division.

20.  Geographical structure: It is grouping of activities by
territory. All activities of a specified territory are assigned
to a manager.
 Matrix structure: It super impose multi divisional structure
of functional structure. This is widely used for project
management.

22. Forms of organizational structure
1. Line structure
2. Line-and-staff structure
3. Functional structure
4. Committee structure
5. Matrix structure

23. Line structure
The line form of organization is simple. It is the
oldest form of organization structure.
It is also known as the scalar or military type of
structure.
In this form of organization, each manager is
given complete charge of the work assigned to
him or her.
In the line structure,authority flows from the top
most executive to the subordinate at the lowest
level in a more or less straight line.

24. Advantage
Simplicity:- The line structure is simple. It has
a clear demarcation of lines of authority,
responsibility, and accountablity. Employees
easy understand this structure.
Quick decision making:- Since there are few
people to consult when problems arise,the
answer can be obtained quickly. Many times
the speed of making decision is highly
required than anything else.

25. Flexiblity:- Quite often, this structure
provides more flexiblity because on-the-
spot options can be made use of.
Unified control :- The advantage of unified
control is the result of the direct line of
command.

26. Line-and-staff -structure
 The line- and- staff organization is similar to a line
organization in that each person reports to a single
supervisor.
 However, in line- and- staff organization ,there are
also staff specialists who perform specialized services
or act as management advisers in special areas.
 It is the most widely used form of organization
structure.
 It has evolved as the best all around type of structure.

27. Advantages
 Making use of specialization:- A line manager receives
expert advice from the staff managers. Thus, he or she
can concentrate upon his or her primary responsibilities.
The line managers are not burdened with all the varied
duties that they would have under the line form of
organization.
 More operating efficiency:- As the work is divided into line
and staff functions.This adds to the effciency of their work.
 Prospects of career development:- It provides opportunity
to employees to specialize in their areas.This provides
them better prospects for promotion and career
advancement.

28. Functional structure
F.W. Taylor orginally develop the conept
of functional structure or functional
organization.
In functional organization the whole task
of an organization is divided according to
the types of work involved.
An expert handles each function.

29. Advantages
Use ofspecialist skills:- The specialists
skills of expert in charge of activities can
be used throughout the organization.
Command authority:- The functional staff
specialist becomes the command
authority not merely the advisers.
Jop specialization:- The specialist feels
that he or she is making more contribution
to the work than would be possible from a
simple staff position.

30. Committee structure
The committee organization is a variation
of the line and staff structure. A set of
committees is added to the functioning of
the line and staff organization
Such committees are formed to help
managers reach necessary decisions by
exploring the pros and cons of a given
situation.

31. Advantages
Employees often reach more favourably to
and accept a committee decision than the
decision of one person.
Members of the committee actively
participate in the discussion.Thus ,better
teamswork and communication is
provided.
Boarder understanding of dicision is
developed since the committee examines

32. Matrix structure
Matrix organization is alsocalled project
organization or multiple command system.
It is a mixed form of organization in which
functional and departmental forms overlap.
Thus in matrix structure manager group
people and responsibilities in two ways
simultaneously: by function and by productor
work project.

33. Advantages
The matrix structure is an efficient means
for bringing together the diverse
specialized skills required to solve a
certain problem.
It gives organization a great deal of cost
saving.
It avoids unnecessary duplication in the

34. Functional organization structure
Function organization the functional specialist
communicate with each through general manager. Here
no functional specialist can provide direct instruction or
suggestion to another functional specialist. The
functional specialist interact with each other through
general manager to chief executive of the enterprise.
Advantages
• Benefits of specialization
• Increase efficiency
• Healthy competition among experts
• Relief to expansion
• Suitable for present environment

35. Matrix organization structure
• Matrix organization structure is a special types of
problems solving form of organization.
• Matrix organization is a combination and
interaction of functional and project managers.
Advantage
• Better coordination and control
• Adoptable to dynamic environment
• Maximum use of resource
• Participative management
• Sufficient time to top management
• Excellence in inter-disciplinary specialization
• Development of team work

37. Responsibility
• The duty to perform the task or activity an
employer has been assigned.
• Responsibility is the duty
to which a person is
bound by reason of his
status or task.
Responsibility

38. Responsibility
Responsibility is the obligation of a subordinate to
properly perform the assigned duty. When a
superior assigns a job to his subordinate it
becomes the responsibility of the subordinate to
complete the job.
Features :-
 Responsibility can be assigned to some other
person
 The essence of responsibility is to be dutiful
 It gets originated because of superior-subordinate
relationship.

39. Establishing Task
 The first step in the responsibility system to create specific task
for each employee.
 Establishing tasks in the process by which managers decide
how to divide the work into specific tasks that have to
performed by the division or department.
 The result of establishing tasks process is a division of labour
among employees. Establishing an appropriate division of
labour among employees is vital to increasing efficiency and
effectiveness.
 When deciding how to assign tasks to individual jobs, manager
must be careful not to oversimplify tasks.
 A job description identifies essential and non-essential tasks
that are assigned to a specific position and also identifies
reporting relationships and may also describe required
qualification, min. requirements, working conditions, and
desirable qualification.

40. Reporting Relationship
 Once required work activities and tasks are defined,
the next step is how these activities and tasks should
fit together in the organizational hierarchy.
 It often called the chain of command, are represented
by vertical lines on an organizational chart. And the
chain of command should be an unbroken line of
authority that links all person in an organization and
shows who reports to whom.

41. Types of reporting relationships
Direct (solid-line) Reporting
 It describes a relationship between an employee and
his/her direct supervisor/leader.
 Supervisor provide primary guidance to the employee,
controls the major financial resources the employee
relies on to perform his/her work, conduct
performance reviews with the subordinate, and
provide all other direct supervision.

42. Indirect (dotted-line) Reporting
 It describes a relationship between an employee and a
secondary supervisor/leader that provide additional
oversight and guidance to the employee in the
execution of his/her work.
 The intent of the dotted-line relationship is to ensure
that the dotted-line supervisors/leaders has the
authority to provide some level of influence and
leadership over the employee.

43. Accountability
The fact that the people with authority and
responsibility are subject to reporting and
justifying task to those above in the chain of
command.
• Accountability is defined
as being answerable for
one’s own action or lack
of action.
Accountability

44. ACCOUNTABILITY
• Accountability means the answerability of the
subordinate to his superior for his work
performance.
Features:-
 Accountability cannot be delegated.
 It originates because of delegation of authority.
 It is only towards the delegators.
 Its base is senior – subordinate relationship

45. Authority
The power to
make decision
which guides
the action of
others
Definition
A Right & a
Power to
influence the
behavior or
efforts of other
persons
Authority: The right in the position and hence the right
in the person occupying the position to exercise
discretion in making decisions affecting others and the
performance of individuals and others

46. AUTHORITY
It means the power to take decisions. Decision can
be related to the use of resources and to do or not
to do something.
Features:-
 Authority can be assigned to some other person.
 It is related to the post (with the change of post,
even authorities change).
 It makes implementation of decisions possible.
 It is the key to a managerial job, because a post
without authority cannot be a managerial post.

47. Authority
The formal and legitimate right of a manager to
make decision, issue orders, and allocate
resources to achieve desired outcomes.
• Authority may be defined
as the power to make
decisions which guides the
actions of others
Authority
Types of Authority
1.Line Authority
2.Staff Authority

48. Authority that entitles a manager to direct the work of a
subordinate.
The position authority (given and defined by the
organization) that entitles a manager to direct the work of
operative employees.
Line authority means that managers have formal authority
to direct and control immediate subordinates.
Line authority is the power of command that is exercised by
a person over his direct subordinates in the formal
structure, such as power to supervise, direct and
evaluate the work of his subordinates.
Line Authority

49. General
manager
Employs Employs Employs
Employs
EmploysEmploys
Employs
Sales
manager
Manager of
logistics
Production
manager
Employs
Employs

50. Authority given to individuals who support, assist
and advise others who have line authority.
Positions that have some authority (e.g., organization
policy enforcement) but that are created to support,
assist, and advise the holders of line authority.
Staff authority is generally more narrow than line
authority
Staff authority includes the right to advise,
recommend, and counsel in the staff specialists'
area of expertise.
Staff Authority

53. Delegation of authority
 Delegation is the process of transferring of authority from a
manager to the sub-ordinates to enable him/her to make
decisions, to use their own skills and to use various resources.
 Delegation of authority is the downward process.
 By delegating authority, the superior can perform more
important tasks.

54. Task of Effective Delegation
 Decide which tasks can be delegated
 Decide who should get the assignment
 Provide resources for carrying out the
delegated tasks
 Delegate the assignment
 Be prepared to run the interference, if
necessary
 Establish a feedback system

55. CENTERALIZATION
• The concentration of decision –making authority in upper
management
• In a centralized organization, the decision making has
been moved to higher levels or tiers of the organization,
such as a head office, or a corporate center.

57. DECENTRLIZATION AND DEVOILUTION
Meaning:
As the organization grows in size and complexity,
decentralization tends to increase. The faster the rate of
organization growth, the greater the need for
decentralization or devolution. The top level
management cannot undertake all the increased
workload. Hence, it has to be shared among the lower
level managers. When the managers and supervisors at
the middle and lower levels are given considerable
autonomy in decision making , the organization is
considered as decentralized.

58. ADVANTAGES
Decentralization and Devolution have many advantages.
Some are as follows:
 A decentralized or devolved organization structure stresses
delegation of decision making and lightens the load of top
management.
 The development of generalists rather than specialists is
encouraged.
 Familiarity with important aspects of special work is readily
acquired.
 Risks involving possible losses of personnel, facilities,
equipment etc are spread out.
 For organizations having wide spread units, managers can be
obtain full advantage of local conditions.

59. DISADVANTAGES
Decentralization or devolution is not always smooth sailing.
There are some disadvantages and they are:
 To be effective, the employees must be better trained
and educated.
 Their decision making abilities have to be enhanced.
 It require increased overhead and staff.
 New system has to be developed. As the decision
making is dispersed. New information processing system
with larger networking has to be installed.
 As the decision making is dispersed, the cost and risk
associated with such decision increases.

61. Emerging issues in organization design
• Re-engineering process: re-engineering is a radical
design of all aspects of an organization to achieve major
benefits in costs, service, time.re-engineering of an
existing organization design, process or structure is
essential when it fails to work in competitive
environment. It is designed to bring organizational
effectiveness and to gain costs. However, to make re-
engineering successful, it requires a systematic and
comprehension assessment of the entire organization.
For this, the top level management needs to clear the
reasons and goals of re- engineering and it is necessary
to take support from subordinates.

62. • Teamwork: at, present team work is considered as an
important elements of organization effectiveness. teams
are formed to do variety of jobs on the basis of
requirement. they have authority to plan, allocate
resources, coordinate and control activities.
• Network organization structure: a network organization
structure is an art alliance of several organizations for
the purpose of producing a product or providing services
to the customers. Its main objective is to eliminate
unnecessary departments and to perform specialized
work throughout source experts.

63. • Downsizing organization: it is the process of
restructuring the organizational design by removing
unnecessary levels, jobs, units, employees etc.
downsizing concentrates on minimizing the vertical size
and maximizing the horizontal size of the organization on
the basis of requirements. Development of automation,
computerization, and other technological development
forces the management to introduce the downsizing in
organization structure.

64. • Boundary-less organization: it is an organization
structure in which the chain of command is eliminated,
span of control is unlimited and rigid departments give
way to empowered teams. It is also known as barrior
free organization. For boundary less organization to
function effectively, everyone involved must have high
level of skill so that they can operate without much
managerial guidance.

65. Meaning of staffing
the term staffing stands for manning various positions in
the organizations. It is defined as the process involved in
identifiying,placing, evaluation and developing individuals
at work. the task of supplying human resources to
different posts according to quality and experience as
needed by the structure of the organization called
staffing.Saffing is, thus, a process through which
component employees are properly trained, effectively
developed. suitably rewarded and their combined efforts
are harmoniously integrated and directed towards
achieving the . Desired result of the business enterprise.

66. • Staffing function is one of the basic functions of
management. It is very important function of
management. Without effective staffing functional firm
cannot achieve its goals it has set. Stated precisely,
staffing function is to ensure the right number and right
type of people to work on the right jobs at right time and
place.

67. Importance of staffing
• Staffing is an important managerial function. The fate of
organization depends on it. It mobilizes all the means
and resources of organizational goal. so,it is supposed
as the brain of the whole organization. Without staffing
the organization cannot run on. Its importance can be
maintained in the following ways:-

68. • Staffing provides planning for the effective utilization:- of
efforts and potentialities of individuals and groups.
• Staffing organizes a proper division of tasks:-
of an organization in accordance with a sound plan into
functions and positions, each indicating a clear-cut
authority, responsibility, duties and reporting
relationships. In the absence of such a division,
confusion will prevail and no work will be done properly.

69. • Provides service to the entire organization: the expertise
available with the staffing specialists helps the total
organization in the proper management of human
resources.
• Staffing provides cordial and amicable job relationships:
by providing opportunities for self-development through
training and promotion programmes.

70. • Staffing ensures social justice: by uniform application of
rules and the regulations with special consideration for
unique individual differences of employees.
• Ensures fair terms of work and congenial work
environment.

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