Unit 2: Models of PHA & Management {Organizing} Part 2 (306.2 - PHAM)

#CONCEPT OF ORGANIZING
#ORGANIZATIONAL THEORY
- Classical Theory
- Neoclassical Theory
- Modern Theory
#Organization Structure
-#ORGANOGRAM OF
MOH,PROVINCE,DOHS NEPAL
ORGANIZING

Organizing
 Breaking an activity and grouping similar types
of activities is known as organizing.
 Organizing involves analysis of activities to be
performed, grouping similar activities into various
department/division or section, delegation of work
and authority & responsibility so that the work is
carried out effectively.
 Organizing deals with various form and design of
organization structure, departmentation, power &
authority, authority relationship, conflict and
coordination and organizational change.PRATIK SHRESTHA - NAMS COLLEGE
2

 Organizing is the process of grouping the
necessary responsibilities and activities into
workable units, determining the lines of authority
and communication, and developing patterns of
coordination.
 It is the conscious development of the role
structures of superior and subordinate, line and staff.
PRATIK SHRESTHA - NAMS COLLEGE
3

 It is a fundamental part of administrative
work in which there is a systematic arrangement of
activities in a group of right person at right time
to analyze and set administrative work division.
 To perform this work we delegate the work
/authority / responsibility so that there is proper
coordination between the human resources in the
organization.
 Ultimately this increases the efficiency of the
organization /entity to achieve their goals.
4

 The organization stems from several underlying
premises(grounds)
 There is a common goal toward which work is directed
 The goal is articulated in detailed plans
 There is a need for clear authority-responsibility relationships
 Power and authority elements must be reconciled so that
individual interactions within the organization are productive
and goal – directed
 Conflict is inevitable but may be reduced through clarity of
organizational relationships.
 Individual needs must reconciled with and subordinated to the
organizational needs
 Unity of command must prevail
 Authority must be delegated.
5

Organization
 Classicists have used the term organization in
form of organizing which is a part of
management process.
 Presently, the term organization is used in the
following ways:
 As an entity,
 As a group of people,
 As a structure,
 As a process
6

Organization as an ENTITY
 Used most commonly and frequently,
 Referred to as enterprise as a whole like
company, corporation, partnership firm, etc.
 In this form, organization is defined as collectivity of
people for achieving common objectives.
 William Scott has defined organization as
"collectives of people that have been established for
the pursuit of relatively specific objectives on a more
or less on continuous basis."
7

Organization as a GROUP OF PEOPLE
 As a group of people, it may be defined either as an
entity or any part of it.
 For example, when we refer to informal
organization, we refer to various groups of
people in an organization who create these groups
on their own to satisfy their social needs.
 When organization is referred to as a group of
people, it is mostly referred to as different groups
created either formally or informally.
8

Organization as a STRUCTURE
 Also referred to in the context of structure which
prescribes the relationships among individuals
and positions that they hold.
 Structure tends to be somewhat permanent with
a provision of incorporating changes whenever
required.
 However, the use of the term structure to denote
organization is not used independently but is
combined with the term organization either in
the form of organization structure or structure of
organization.PRATIK SHRESTHA - NAMS COLLEGE
9

Organization as a PROCESS
 Classical theorists have used the term
organization in the form of process of organizing
through which organization structure is created.
 Because of the use of the term organization as a
process, more confusion has been created in
management literature.
 In the present context, the term organization
is mostly referred to as entity.
 Whenever, it is used as a process, it is termed
as organizing rather as organization.
10

Contd…
 Organizing, being a process consists of the
following elements.
 Departmentation
 Linking departments
 Defining authority and responsibility
 Prescribing authority relationships
11

Importance of Organization
1. Efficient administration
2. Optimum use of human resources
3. Growth and diversification
4. Optimum use of new technology
5. Coordination and Communications
6. Training and developments
7. Productivity and Job satisfaction
8. Departmental relationship
9. Decision making guidelines and authority
12

Organization Structure
 Structure is the pattern in which various parts or
components are interrelated or interconnected.
 Thus, organization structure is the pattern of
relationship among various components or parts of
the organization.
 It prescribes the relationship among various
activities and positions.
13

Features of good organization
structure
1. Clear line of authority
2. Adequate delegation of Authority
3. Less managerial levels
4. Proper span of control
5. Unity of command and direction
6. Proper line of communication
7. Simple and flexible
14

Organizational Theory
 Organization theory has been classified into three
groups:
1. Classical,
2. Neoclassical &
3. Modern.
 The classification is based on the nature of
organizations – Structure, Process &
Interdependence – as perceived by various
scholars engaged in the development of the field of
organization theory.PRATIK SHRESTHA - NAMS COLLEGE
15

Organization theory.
 Organization theory is the study of organizations for
the benefit of identifying common themes for the
purpose of solving problems , maximizing efficiency
and productivity, and meeting the needs of
stakeholders.
16

 “ Deals with the formal structure , internal working
and external environment of complex human
behavior within organizations. As a field spanning
several disciplines, it prescribes how work and
workers out to be organized and attempts to explain
the actual consequences of organizations behavior (
including individual behavior) on work done on the
organization itself.” – Gordon and Milkavoich
17

Classical Organizational Theory
 ‘Classical‘ means something traditionally accepted or
long established.
 The classical theory is the beginning of the
systematic study of organizations.
 Classical organization theory is based on the
contributions of scientific management by
Taylor and others, administrative management
by Fayol and others, and bureaucratic system by
Weber.
18

 Classical writers viewed organization as a
machine and human beings as components of
that machine.
 Efficiency of the organization can be increased by
making human beings efficient.
 Emphasis was given on efficiency at the top level
and few at the lower level.
 Henry Foyal studied for first time principles of
management
 Grouping or departmentation also considered
essential for making the functions effective.
19

Contd…
 Classical organization theory has been developed
around four major factors. (Division of labor,
scalar and functional process, structure, span of
control)
Division of labor:
 work must be divided to obtain specialization with a
view to improve performance of workers
 More a work particular job is broken into its simplest
parts, components, the more specialized a worker,
greater can s/he carry out his part of the job.
20

 Scalar and functional processes:
 Refers to the growth of chain of command, delegation of
authority, unity of command and obligation to report.
 Generates superior – subordinate relationship in the
organization.
 Functional process deals with the division of organization
into specialized parts or departments and regrouping of
the parts into compatible units
21

‘
22

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 .
 Structure:
 Framework of relationships among various tasks, activities
and people in the organization
 Each position is assigned a specific task and authority is
delegated for its accomplishment.
 Efficiency with which these tasks will be accomplished will
determine the effectiveness of the organization.
24

 Span of control:
 The number of subordinates a manager can control.
 Classical thinkers specified numbers at different levels which
can be effectively supervised by a supervisor.
 Manager cannot exercise proper no. of control if the number of
subordinates increases beyond a certain figure.
 On other hand if the number is less than his capacity and
knowledge cannot be fully unitized.
 These four factors are also known as Classical
Pillars
25

Appraisal of Classical theory
 Classical thinks concentrated only on line and staff
structures. They did not try to find out the reasons of a
particular structure is more effective than others.
 Theory did not lay emphasis on decision making process
 Human behavior was ignored in the theory. They did
not realize the complexity of human nature. They take
human beings as inert instrument of organization
performing the assigned ask.
 Organization in a closed system is unrealistic. Organization
is influenced by environment and vice versa. A
modern organization is an open system which has
interaction with the environment
26

A. Classical Theory:
 It includes:
a. Scientific management approach : Frederick Taylor approach
b. Bureaucratic approach : Weber’s bureaucratic approach
c. Administrative approach: Henry Fayol principle
1. Scientific management approach (Frederick Taylor -1947)
 Rely on four basic principles
1. Science, not a rule of thumb : Find the one "best way" to perform
each task,
2. Scientific selection of the worker : Carefully match each worker
to each task,
3. Management and labor cooperation rather than conflict :
Closely supervise workers, and use reward and punishment as
motivators, and
4. Scientific training of workers and its management: The task of
management is planning and control.
27

2. Bureaucratic approach -- Max
Weber – German Sociologist(1916)
Five basic principles (Key features)
1. Specialization (Clear division of labor): each task
performed by employees is formally created and recognized
as an official duty. Specialization.
2. Structure (Hierarchical arrangement of positions):
each lower position controlled and supervised by a higher
one. Each having a separate chain of command.
3. Predictability and stability (Formal rules and
regulations): uniformly guide employee behavior. Provide
continuity and stability to work environment. Reduce
uncertainty about task performance.
28

4. Rationality (Impersonal relationships): managers
don’t get involved in employees’ personalities and
personal preferences. No emotional attachments.
Provides for fairness.
5. Democracy (Employment based entirely on
technical competence): get job because you can do the
job, not because of who you know. Rigid selection
criteria. No arbitrary dismissal or promotion.
29

30

3. Administrative theory (H. Fayol’s
Fourteen Principles
 1. Division of Labor: Specialization increases
output by making employees more efficient
 2. Authority: Managers must be able to give
orders. Authority and responsibility go together
 3. Discipline: Employees must obey and respect
the rules of the organization.
 4. Unity of Command: every employee should
receive orders from only ONE superior.
 5. Unity of Direction: Each group of organizational
activities that has the same objective should be
directed by one manager using one plan.
31

6. Subordination of Individual Interests to the
General Interests: the greater good. The
organization’s interests come first.
7. Remuneration: workers must be paid a fair
wage for their services.
8. Centralization: degree to which subordinates
are involved in decision making. What works best for
the organization?
Centralized: management-driven. Decentralized:
subordinate-drive
32

Contd..
9. Scalar chain: line of authority from top management to the
lowest ranks. Communications should follow this chain whenever
possible.
10. Order: People and materials should be in the right place at
the right time.
11. Equity: Managers should be kind and fair to their
subordinates
12. Stability of Tenure of Personnel: High employee turnover is
inefficient.
13. Initiative: Employees who are allowed to originate and
carry out plans will apply high levels of effort.
14. Esprit de Corps: Promoting team spirit will build harmony
and unity within the organization.
33

Neoclassical Organizational Theory
 It had developed as a reaction to rationally and
efficiency obsession of the classical theory which
failed to recognize the significance of the
impact of human beings on organization
structure.
 Since the theory suggests only modifications
in the basic postulates of classical theory, it is
referred to as neoclassical theory.
34

Main proposition of neoclassical theory
 The organization is a social system. Composed of
numerous interacting parts
 The social environment of the job affects people
and is also affected by them and not by
management alone.
 Informal organization also exists within the
formal organization and it affects and is
affected by the formal organization.
 Human being is not totally rational and his
behavior can be predicted in terms of social
and psychological factors.
35

S
 Motivation is a complex process. many socio-
physical factors operate to motivate human
beings at work.
 A conflict between organizational and individual goal
often exists. There needs to be reconcile the goals of
the individual with those of the organization,
 Team work is essential for higher productivity
36

Contd..
 Communication is necessary as it carries information
necessary for organizational functioning and convey
the feelings and sentiments of people who work in
the organization.
 Team work is essential for cooperation among
people. This is not achieved automatically but has to
be achieved through behavioral approach.
 Neoclassical theory emphasizes on
 Flat structure
 Decentralization
 Informal organization
37

1. A flat organization: (also known as horizontal
organization) has an organizational
structure with few or no levels of middle
management between staff and executives
A flat structure elevates each employee's responsibility
inside the organization and eliminates excess
management layers to improve coordination and
communication.
Fewer levels between employees improve the decision-
making process among staff. The lack of need for
middle management boosts the organization's budget
38

 A flat organization structure means that there
are less layers of management between workers and
top management. ...
 With a flat structure, the organization can react
to changes rapidly and spend less time with
cumbersome and ineffective communications.
 Structure is advantageous in case of small
organizations with limited no. of employees.
39

Fig: Flat organization structure.
40

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https://slideplayer.com/slide/6889575/

Modern Organizational Theory
 A sophisticated and scientific way of explaining a
complex organization.
 This theory is comparatively systematic and highly
constructive.
 It is a composite representation of various
contributions from different disciplines for more than
two decades.
 Modern organization theory can be understood in two
approaches, though both of them are interrelated.
 System Approach and
 Contingency Approach
43

1. System Approach
 Approach starting late 1960s (before contingency approach,
it was treated as modern approach)
 proposed by Hungarian biologist Ludwig von Bertalanffy in
1928 but applied by Kast and Rosenzweig, 1972; Scott, 1981)
 An integrated approach of managing, considers
management in totality.
 Under this approach, management is regarded as a
system.
 Systems approach considers the organization as a system
composed of a set of inter-related - and thus mutually
dependent - sub-systems. Thus the organization
consists of components, linking processes and goals
44

Features of management as system
1. Management as a social system
2. Management as open system
3. Adaptive
4. Dynamic
5. Multilevel and multidimensional
6. Multivariable (
7. An integrated approach
45

Contd…
 Organization consists of the following three basic
elements (Bakke, 1959):
1. Components There are five basic, interdependent
parts of the organizing system, namely:
 the individual,
 the formal and informal organization,
 patterns of behavior emerging from role demands of
the organization,
 role comprehension of the individual, and
 the physical environment in which individuals work.
46

2. Linking processes:
The different components of an organization are
required to operate in an organized and correlated
manner. The interaction between them is depending
upon the linking processes, which consist of
communication, balance and decision making.
3. Goals of organization :
The goals of an organization may be growth, stability
and interaction. Interaction implies how best the
members of an organization can interact with one
another to their mutual advantage.
47

Merits of system approach
 focuses on the importance of boundary limits and
thus helps the processes of management.
 particularly useful to decision making.
 broad concept.
 concentrates on organization as an integrated system
in which all the parts are interrelated.
48

Demerits of system approach
 There is nothing new in this concept.
 It is only a case of putting old wine in new bottle.
 Parts interest may be different with organizational
interest.
49

2. Contingency Approach
 An important addition to the paradigm of modern
management theory and approach.
 This is an extension of system approach.
 The basic idea of this approach is that there cannot
be a particular management action which will
be suitable for all situations.
 Rather, an appropriate action is one which is
designed on the basis of external environment and
internal states and needs.
50

 Contingency approach deals what should be
done in response to an event in the
environment.
51

Contd…
 Contingency approach suggests an active
interrelationship between the variable in a situation
and the managerial actions devised.
 Contingency approach takes into account not only
given situations but also the influence of given
solutions on behavior patterns of an
organization.
 Despite these differences and emphasis on varying
factors, themes of both the approaches are common.
 In case, both terms are used interchangeably.
52

Organizational structure
 The structures of organization represent the frame
which holds its members together and help them to
work for a common purpose.
 An organization is the structural framework for
carrying out the function of planning, decision
making, control, communication and motivation.
54

Cont.. Organization structure..
 The organizational structures are usually described
in the form of organizational chart.
 This places individuals in boxes that denote their job
and their position in the hierarchy and traces the
direct lines of authority (command and control)
through the management hierarchies.
55

Cont..organizational strucuture
 The formal structure of an organization is two
dimensional vertical and horizontal.
 The horizontal dimension depicts differentiation of
the total organizational job into different
departments.
 Whereas the vertical dimension refers to the
hierarchy of authority relationship with a number
of levels from top to bottom and the authority flows
downward along these levels and higher the level,
greater the authority and vice versa.
56

Types of Organization:
 Line Organization Structure
 Line and Staff Organization Structure
 Functional Organizational Structure
 Divisional Organization Structure
 Decentralized organization Structure
 Matrix Organization Structure
 Flexible organization Structure
57

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Functional Organization Structure
59

Divisional Organization Structure
60

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Importance of Organizational structures
(Organogram)
 The structure is as important to the organization as
the bones to the body, the steel framework to the
multi storied building.
 It holds together to its different parts
 It provides a basis for activities to fulfill the purpose
of the organization
 It facilitates the allocation of tasks, granting of
authority and fixation of responsibility
64

Cont..importance of organization
 It also enables members to have an idea of their
duties , responsibilities and roles
 It determines the location of decision making
 It helps maintaining order and discipline
 Prevents overlapping and duplication of functions
 It facilitates communication
65

Organization structure of
Department of Health Services
(DHS)
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
THANK YOU !!
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Unit 2: Models of PHA & Management {Organizing} Part 2 (306.2 - PHAM)

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