Organizing is the process of dividing work into tasks and assigning them to individuals. Key principles of organizing include unity of command, span of control, and departmentalization. Organizational structures determine how work is divided and how communication flows. Common structures include hierarchical, functional, divisional, matrix, and team-based. Centralized structures concentrate decision-making at the top, while decentralized structures distribute it throughout levels. Span of control refers to the number of direct reports, with wider spans having advantages like lower costs but risks of losing control.

1. PRINCIPLE OF MANAGEMENT

2. 1.Organizing-Introduction
1.What is Organizing?
2.Characteristics of Organizing
3.Process of Organizing
4.Importance of Organizing
5.Principles of Organizing
2.Organization
1.What is Organization
2.Organizational Structure
3.Elements of Organizational Structure
4.Centralized vs. Decentralized Organizational Structures
5.Differences between Span of Control and Chain of Command
6.Types of Organizational Structure
Outlines: Unit 03
Management-Organizational Structure

3. 1.What is Organizing?
Organizing is the process of assembling the people, organizing resources, and
distributing the planned work necessary to carry out the managers plan.
According to Chester Barnard, “Organizing is a function by which the concern is
able to define the role positions, the jobs related and the co-ordination between
authority and responsibility.

4. 2.Characteristics of Organizing
Organizing has the following characteristics:

5. Division of Labour:
Work is assigned to the employee who is specialised in that work.
Coordination:
Different members of the organization are given different tasks to perform when
all the tasks are put together logically and sequentially, it results in the objectives,
so coordination is required.
Objectives:
Objectives need to be specifically defined.
Authority-Responsibility Structure:
For an effective authority responsibility structure, the position of each manager
and executive is specified, as per the degree of the authority and responsibility
assigned to them, while performing the duties.
Communication:
The techniques, flow and importance of communication must be known to all
the members.

6. 3.Process of Organizing

7. Identification and division of work:
Organizing process begins with identifying the work and dividing them as per
the plans.
Departmentalization:
After classifying the work into different activities, the activities having a similar
nature are grouped together. This process is called as departmentalization which
facilitates specialization and forms the basis for creating departments.
Assignment of the task:
After the formation of departments, employees are placed in different
departments under a manager, called as a departmental manager. Thereafter,
employees are assigned the jobs as per their skills, qualifications and
competencies.
The right person has to be placed at the right job.
Establishment of organizational hierarchy:
Deployment of work is not all, the employees must be aware of whom they have
to report and who can give them orders.

8. Provision of resources to the members:
Arrangement and deployment of resources such as money, materials, supplies,
and machine, etc. which are important to carry out day to day operations of the
organization.
Coordination of efforts and scheduling of activities:
The final step to this process is the coordination of efforts and scheduling the
activities in a logical and systematic manner so that the common objectives can
be achieved effectively.

9. 4.Importance of Organizing
Organizing is integral to management as it facilitates the smooth functioning of
the enterprise or Organization.
The importance of organizing is as under:

10. Advantage of Specialization:
Organizing helps in the classification of jobs systematically amongst the
workforce, which helps in the reduction of workload, as well as improved
productivity. This is because the organization will get the benefit of
specialization wherein workers will perform specific work on a regular basis,
according to their competency.
Describes work relationships:
The definition of work relationships describes the flow of communication and
determine the superior-subordinate relationship. This removes confusion and
chaos, in getting orders and instructions.
Effective utilization of resources:
Organizing function ensures the best possible utilization of resources whether
it is human, material, financial or technical. This is because jobs are assigned
to the employees which avoid overlapping and duplication of work.

11. Adaptation to change:
Organizing process helps the organization to survive and adapt the changes, by
making substantial changes in the strategies, hierarchy, relationships, etc.
Development of personnel:
Organising encourages creativity in executives. Delegation of authority reduce
their workload and they get time to identify new methods to perform the work.
It also enables them to explore new areas for their growth and development.

12. 5.Principles of Organizing

13. Unity of Objective/ Principle of Objective:
This principle is related to understanding the objectives of the enterprise or
Organization. Objectives are determined by top management. So it is necessary
to take review objectives and policies.
By knowing the exact objectives, it is possible to establish the exact structure of
the organization. The objectives are to be explained to the people involved in
the organization.
According to this principle, the organization and every part of it should be
directed toward the achievement of predetermined objectives.
Division of Labour:
According to this principle the total work in the organization should be divided
into small tasks and jobs and each job should be assigned to an individual so
that over a period of time he will specialize in that job.

14. Span of Management/ Span of Control
A manager can supervise a limited number of persons effectively, and because
of this span the organizational levels are created such as top managing director
will manage general managers, then general managers will manage some deputy
managers and so on the chain goes on from top to bottom level of employees.
As the number of organizational levels increases vertically, it will lead to cost
rising and communication barriers, as a result of which planning and control
become more complicated.

15. Coordination
Coordination is nothing but creating harmony amongst the group of personnel
working in an organization. It is necessary for an organization’s growth that the
employees working in various departments should maintain synchronization as
without proper coordination one cannot expect a smooth functioning in any
organization as all departments are somehow inter-related with each other.
Unity of Command
Unity of command talks about the commanding power or responsibilities, i.e., it
talks about that there should be only one person while taking control. Under
this, we need to understand that the sub-ordinates should receive the orders
from only one boss or there should be only one reporting person for particular
sub-ordinate. Otherwise, it may result in non-completion of work as the sub-
ordinate will get confused about whose order he has to follow.

16. 1.What is Organization
Association of people who interact with each other and use resources of various
kinds in order to achieve certain objectives or goals.
A group of people who work together in an organized way for a shared purpose.
A business or administrative concern united and constructed for a particular
end.

17. 2.Organizational Structure
What Is Organizational Structure?
An organizational structure is a system that outlines how certain activities are
directed in order to achieve the goals of an organization. These activities can
include rules, roles, and responsibilities.
The organizational structure also determines how information flows between
levels within the company.
For example:
In a centralized structure, decisions flow from the top down, while in a
decentralized structure, decision-making power is distributed among various
levels of the organization.
A clear structure allows every team member to be involved. When employees
know what they’re responsible for and who they report to-which isn’t the case in
many fast-growing companies-they’re more likely to take ownership of their
work.

18. 3.Elements of Organizational Structure
Basic Elements of Organizational Structure Design
An organizational structure is based on a range of elements, including:
•Work specialization
•Departmentation
•Chain of command
•Span of control
•Centralization/Decentralization
•Formalization
Work specialization
Work specializations define how responsibilities are split between employees
based on the job description.
Departmentation
Departmentation is the process of grouping teams or activities into departments or
functions with specific objectives, goals, and outcomes to be achieved.

19. Chain of command
Chain of command represents a system for passing instructions and reporting
within an organization. It distributes the power, supports knowledge sharing, and
encourages employee accountability.

20. Span of control
Span of control regulates the number of direct reporters managed by a single
supervisor. It heavily depends on the three aforementioned elements of
organizational structure. Furthermore, to identify the right span of control, you
need to evaluate your leaders’ capacity, workplace size, and experience level of
employees.
Centralization and decentralization
Centralization and decentralization are the concepts defining how managers, as
well as employees, give input on company goals and strategy. While
centralization gives leaders the ultimate control over decision-making processes,
decentralization allows employees to impact business decisions.
Formalization
Formalization determines to which extent business processes, policies, and job
descriptions are standardized. It may regulate communication between
employees and managers, workplace culture, operational procedures, etc.

21. 4.Centralized vs. Decentralized Organizational Structures
Centralized organizational structure
Centralization is said to be a process where the concentration of decision making
is in a few hands. All the important decision and actions at the lower level, all
subjects and actions at the lower level are subject to the approval of top
management.

22. The biggest drawback of a centralized organizational structure is the amount of
time the decision-making process takes in large companies.
Imagine a customer support manager being asked to implement an exclusive
package for a high-ticket customer. To get permission, they’d need to run the
request up the chain of command and wait for it to be processed by top
management. When the request is approved, a high-ticket customer might no
longer be there.

23. Decentralized organizational structure
Decentralization is a systematic delegation of authority at all levels of management
and in all of the organization. In a decentralization concern, authority in retained
by the top management for taking major decisions and framing policies
concerning the whole concern. Rest of the authority may be delegated to the
middle level and lower level of management.

24. 5.Differences between Span of Control and Chain of Command
Chain of Command
A command chain refers to an organizational structure that indicates how each
company employee reports to one another.
A chain of command structure typically consists of three distinct levels: top-level
management (CEO, COO), middle-level management (director-level positions)
and front-line staff (those who interact with customers and carry out day-to-day
operations).

25. Span of Control
The span of control defines how many employees each supervisor or manager is
responsible for in an organization.
The span of control is classified into two types: Wide span of control and Narrow
span of control.
Wide-span of control
Wide-span of control means a single manager or supervisor oversees a large
number of subordinates. A manager with a wide span of control may successfully
monitor and control a big number of people at the same time. (Short chain of
command)

26. Features
•Low supervision overhead costs
•Prompt response from employees
•improved supervision
•improved coordination
•Suitable for repeated tasks.
Advantages
•More Delegation of Authority
•Better Manager Development
•Clear Policies
•Subordinates are more autonomous when there is a wide span of control
•There are fewer levels in the managerial structure
•Best when work is repetitious in nature.
•There is less direct communication between bosses and subordinates
•It is cost-effective
•Appropriate for larger firms
•Reduced planning time
•Subordinates are well trained

27. Disadvantages
•Supervisors are overburdened
•Risk of superiors losing control
•Requirement for highly qualified managing employees
•Decision-making hindered
•Inefficient management
•Managers workload has been increased
•Team members duties are not clearly defined
•Less communication between bosses and subordinates lowers the managers
control
•Subordinates are perplexed
•Management will be difficult if the number is quite huge
•A certified superior is required
•At lower levels, the delegation of authority may be problematic

28. Narrow Span of Control
A narrow span of control is seen when one boss controls a few subordinates.
It is also known as the Executive span since it applies at the top or middle
management levels. When the nature of the activity is complicated and requires
more support from the superior, organizations choose a narrow span.
A narrow span has fewer subordinates. As a result of the increased number of
management levels, an organizations structure becomes taller.

29. Features
•Manager experience: Narrow spans of control may help new managers by
allowing them to gather supervisory experience with a smaller number of direct
reports.
•New operations: Implementing narrow spans of control can assist teams to
adjust to new duties if the company or job demand is new to managers or
workers.
•Training: Management in charge of employee training can benefit from
narrower spans of control since it enables more time to focus on individual
employee training and development.
•Interaction level: Some occupations need more regular interaction between
managers and their staff than others. High phone numbers, meetings, and
interactive job activities might take more time and require managers to exercise a
tighter range of control.

30. Advantages
•Smaller teams can communicate more quickly.
•Small groups are easier to govern and manage.
•Has a high level of specialization and labor division.
•Increased and improved prospects for staff advancement.
•The manager has direct supervision over each of his subordinates.
•Typically, the nature of labor is complex.
•Communication between subordinates and their management is effective.
•More tiers in the management structure.
•Management easiness
•Management control has been improved.
•Effective supervision
Disadvantages
• Decision-making takes a long time when the hierarchy of control is extended.
• As more managers are recruited, the expense rises.
• Increased organizational management layers
• Delay in transmitting information from top to bottom
• Delay in decision making

32. 6.Types of Organizational Structure
1.Hierarchical Organizational Structure
2.Functional Organizational Structure
3.Horizontal or Flat Organizational Structure
4.Divisional Organizational Structure(market-based, product-based, geographic)
5.Matrix Organizational Structure
6.Team-based Organizational Structure
7.Network Organizational Structure

33. 1.Hierarchical Organizational Structure
The pyramid-shaped organizational chart we referred to earlier is known as a
hierarchical organizational chart. It’s the most common type of organizational
structure-the chain of command goes from the top (e.g., the CEO or manager)
down (e.g., entry-level and low-level employees), and each employee has a
supervisor.

34. 2.Functional Organizational Structure
Similar to a hierarchical organizational structure, a functional organizational
structure starts with positions with the highest levels of responsibility at the top and
goes down from there. Primarily, though, employees are organized according to
their specific skills and their corresponding function in the company. Each
separate department is managed independently.

35. 3.Horizontal or Flat Organizational Structure
A horizontal or flat organizational structure fits companies with few levels between
upper management and staff-level employees.
Many start-up businesses use a horizontal org structure before they grow large
enough to build out different departments, but some organizations maintain this
structure since it encourages less supervision and more involvement from all
employees.

36. 4.Divisional Organizational Structure
In divisional organizational structures, a company’s divisions have control over
their own resources, essentially operating like their own company within the larger
organization. Each division can have its own marketing team, sales team, IT team,
etc. This structure works well for large companies as it empowers the various
divisions to make decisions without everyone having to report to just a few
executives.

37. 4.1 Market-based divisional organizational structure
Divisions are separated by market, industry, or customer type. A large consumer
goods company, like Target or Walmart, might separate its durable goods
(clothing, electronics, furniture, etc.) from its food or logistics divisions.

38. 4.2 Product-based divisional organizational structure
Divisions are separated by product line. For example, a tech company might have a
division dedicated to its cloud offerings, while the rest of the divisions focus on the
different software offerings-e.g., Adobe and its creative suite of Illustrator,
Photoshop, InDesign, etc.

39. 4.3 Geographic divisional organizational structure
Divisions are separated by region, territories, or districts, offering more effective
localization and logistics.

40. 5.Matrix Organizational Structure
A matrix organizational chart looks like a grid, and it shows cross-functional teams
that form for special projects. For example, an engineer may regularly belong to the
engineering department (led by an engineering director) but work on a temporary
project (led by a project manager). The matrix org chart accounts for both of these
roles and reporting relationships.

41. 6. Team-based Organizational Structure
A team-based organizational structure creates small teams that focus on delivering
one product or service. These teams are capable of solving problems and making
decisions without bringing in third parties.
Team members are responsible for managing their workload and have full control
over the project. Team-based organizations are distinguished by little formalization
and high flexibility. This structure works well for global organizations and
manufacturers.

42. 7. Network Organizational Structure
A network structure goes far beyond your internal company structure. It’s an act of
joining the efforts of two or more organizations with the goal of delivering one
product or service. Typically, a network organization outsources independent
contractors or vendors to complete the work.
Unit 04