The document discusses various concepts related to organizing, including: 1. Definitions of organization, organizing process, and its key steps like determining objectives, enumerating activities, classifying activities, assigning duties, and delegating authority. 2. Principles of organization like division of work, attention to objectives, span of management, and flexibility. It also discusses departmentation, authority, responsibility, accountability, and span of control. 3. Bureaucratic management and adhocracy forms of organization structures.

1. ORGANIZING
Unit -3

2. DEFINITION
 According to Koontz and O'Donnell, "Organization
involves the grouping of activities necessary to
accomplish goals and plans, the assignment of these
activities to appropriate departments and the provision
of authority, delegation and co-ordination."

3. ORGANIZING PROCESS
 Organization is the process of establishing relationship
among the members of the enterprise. The relationships
are created in terms of authority and responsibility. To
organize is to harmonize, coordinate or arrange in a
logical and orderly manner.

4. ORGANIZING PROCESS

5. a) Determination of Objectives:
It is the first step in building up an organization.
Organization is always related to certain objectives.
Therefore, it is essential for the management to identify
the objectives before starting any activity. Organization
structure is built on the basis of the objectives of the
enterprise. Determination of objectives will consist in
deciding as to why the proposed organization is to be set
up and, therefore, what will be the nature of the work to
be accomplished through the organization.

6. b) Enumeration of Objectives:
If the members of the group are to pool their efforts
effectively, there must be proper division of the major
activities. The second step in organizing group effort is the
division of the total job into essential activities. Each job
should be properly classified and grouped. This will enable
the people to know what is expected of them as members
of the group and will help in avoiding duplication of efforts.

7. c) Classification of Activities:
The next step will be to classify activities according to
similarities and common purposes and functions and taking
the human and material resources into account. Then,
closely related and similar activities are grouped into
divisions and departments and the departmental activities
are further divided into sections.

8. d) Assignment of Duties:
Here, specific job assignments are made to different
subordinates for ensuring a certainty of work performance.
Each individual should be given a specific job to do
according to his ability and made responsible for that. He
should also be given the adequate authority to do the job
assigned to him.

9. e) Delegation of Authority:
Since so many individuals work in the same organization, it
is the responsibility of management to lay down structure
of relationship in the organization. Authority without
responsibility is a dangerous thing and similarly
responsibility without authority is an empty vessel.
Everybody should clearly know to whom he is accountable;
corresponding to the responsibility authority is delegated
to the subordinates for enabling them to show work
performance. This will help in the smooth working of the
enterprise by facilitating delegation of responsibility and
authority.

10. PRINCIPLES OF ORGANISATION
Effective and efficient working of any organization depends
on how the managerial function of organization is being
performed. The function of organization can be carried
effectively with the help of under mentioned principles:
(i) Division of work :
While structuring organization, division of work, at the
very outset, should be considered as the basis of efficiency.
It is an established fact that group of individuals can secure
better results by having division of work. Therefore, while
designing the organization we should aim at making
suitable grouping of activities. This is also called the
principle of specialization

11. PRINCIPLES OF
ORGANISATION
ii) Attention to objectives :
An organization is a mechanism to accomplish certain goals
or objectives. The objectives of an organization play an
important role in determining the type of structure which
should be developed. Clearly defined objectives facilitate
grouping of activities, delegation of authority and
consequently effective coordination

12. PRINCIPLES OF
ORGANISATION
(iii) Span of management :
Span of management also refers to span of control
signifying the number of subordinates reporting directly to
any executive. It is an established fact that larger the
number of subordinates reporting directly to the executive,
the more difficult it tends to be for him to supervise and
coordinate them effectively. This important principle of
management should also be kept in mind.
(iv) Unity of command : Organization structure should also
be designed in such a way that there exists unity of
command in the sense that a single leader is the ultimate
source of authority. This facilitates consistency in directing,
coordinating and controlling to achieve the end objectives.

13. PRINCIPLES OF
ORGANISATION
(v) Flexibility : While designing the organization it should
be kept in mind that organizational structure should not be
regarded as static. Every organization is a living entity in a
living environment which is fast changing . As such there
must be sufficient room for changing and modifying the
structure in the light of environmental changes so that the
ultimate objective of the organization is achieved.
(vi) Proper balance : It is important to keep various
segment or departments of an organization in balance. The
problem of balance basically arises when an activity or a
department is further divided and subdivided into smaller
segments. The problems of balancing also crops up with the
growing of any organization in its size and functioning.

14. PRINCIPLES OF
ORGANISATION
(vii) Management by exception : It is a fundamental
principle that makes any organization effective in its true
sense. This principle signifies that problems of unusual
nature only should be referred upward and decided by
higher level executives in the managerial hierarchy,
whereas the routine problems should be passed on to lower
levels and resolved there. Application of this principle as
such, certainly requires adhering to the principle of
delegation of authority. The principle of exception is thus
of significant practical utility and applies to all levels in the
organization structure.

15. PRINCIPLES OF
ORGANISATION
(viii) Decentralization : This principles is of great significance to big
organizations. Decentralization implies selective dispersal of authority
to help departments and units to run effectively and efficiently without
frequent interruptions from the top of the enterprise. It requires very
careful selection of what decisions to push down into the organization,
of what to hold at or near the top specific policy making to guide the
decision-making, selection and training of people and adequate
control.
(ix) Departmentation : Departmentation is the process of grouping
activities into units for purposes of administration. In other words, it
denotes grouping of related jobs and activities without violating the
principle of homogeneity over which an executive has authority to
exercise and assert. The main advantages of departmentation are that
it enables individual executive to mange his subordinates effectively
since a manageable number of persons are brought under the direct
supervision of individual executive.

16. PRINCIPLES OF
ORGANISATION
(x) Efficiency : The organization should be able to attain
the predetermined objectives at the minimum cost. It is
done so, it will satisfy the test of efficiency. From the point
of view of an individual, a good organization should provide
the maximum work satisfaction. Similarly, from the social
point of view, an organization will be efficient when it
contributes the maximum towards the welfare of the
society.
(xi) Scalar principle : Scalar chain refers to the vertical
placement of superiors starting from the chief executive at
the top through the middle level to the supervisory level at
the bottom. Proper scalar chain or line of command is
prerequisite for effective organization

17. PRINCIPLES OF
ORGANISATION
(xii) Unity of direction : This means that each group of activities
having the same objectives should have one plan and one head. There
should be one plan or programme for each segment of work which is to
be carried under the control and supervision of one head or superior. If
different plans or policies are followed in one department by the
subordinates, confusion is bound to occur.
xiii) Continuity : The form of organization structure should be such
which is able to serve the enterprise to attain its objectives for a long
period of time.
(xiv) Coordination : The principal of coordination underlines that there
should be proper liaison and cooperation between different
departments and units of work. Unity of efforts for the accomplishment
of desired objectives is the main aim of organization. This can be
achieved through the principle of coordination.

18. PRINCIPLES OF
ORGANISATION
(xv) Authority and responsibility :
Authority should commensurate with responsibility. While
assigning the responsibility, authority should also be
assigned. If authority is not granted, the subordinates
cannot discharge their responsibility properly

19. Departmentation
 The process of making departments in the organization
is known as departmentation. It is the process of
grouping related activities into different units.
Departmentation further is the process of arranging,
dividing and analyzing the activities in such a way so
that they will be managed properly. It is the way of
dividing long and complex organization into smaller
administrative units.
 Departmentation may be done on the basis of product,
function, territory, consumer, etc. Departmentation is
the logical process of grouping similar nature activities
into manageable units. It is the process of combining
jobs into groups.

20. TYPES / METHODS OF
DEPARTMENTATION
 Departmentation by function: It is the common and
popular method of departmentation. Under this
method, total organizational work can be divided into
different functions such as production department,
finance department, marketing department, human
resource, etc. Such departmentation is essential for the
survival and maintenance of the organization. The
departmental managers are responsible for controlling
the activity of their department and all these
departmental heads are expert and specialize in their
own area of work.

22.  Departmentation by product or service: It is another
suitable method of departmentation for an organization
producing a variety of product. Under this method, the
product or product line form the basis of
departmentation. All the major functions such as
production, marketing, finance, etc. are brought under
a particular product for the proper management.

24.  4. Geographic departmentalization

In geographic departmentalization, separate
departments are made based on the company's (i.e.
institution's) operations to be carried out either over a
vast area or within some restricted area through
branches or offices established at different zones or
places in that area.
 First, an entire area of operation (e.g. world, country,
state, city, etc.) is decided followed by division of that
area into different zones. Secondly, a branch or an
office is established in each geographical zone to
manage local affairs of the company in that zone.

26.  5. Customer departmentalization

In customer departmentalization, departments are
separated from each other based on the types or groups
of customers to be handled or dealt with.
 For example, customers can be classified under types
such as, international or foreign customers, inland or
domestic customers, bulk purchasing or wholesale
customers, retail customers, etc.
 Each group of customers needs different tactics and
strategies to handle them better. Hence, an appropriate
customer departmentalization serves this purpose.

28.  6. Combined departmentalization or matrix

In combined departmentalization, a company or an
organization uses a mixture or combination or union of
two or more different bases of departmentalization.
 For example, in practice, owing to rising market
competition and emerging complexity of tasks most
organizations often uses a combination of above-
discussed (see point no. 1 to 5) types (i.e. methods or
bases) of departmentalization.

30. Departmentation by time:
 In this method of departmentation, activities are
grouped on the basis of the timing of their
performance. This is the oldest form of
departmentation generally used at lower levels of the
organization. If it is the case of production department
of any manufacturing department, the production
function can be divided into different shifts like
morning shift, day shift, and night shift. Even an
educational institution may have a separate department
for the day, evening and correspondence courses to
import education to full-time students, locally
employed students, and outstation students
respectively.

32. Authority
Henry Fayol – "Authority is the right to give orders
and the power to exact obedience."
 It is a formal right of the superior to command and compel his
subordinates to perform the works assigned to them. Authority
is a kind of right and power – though the authority is different
from power – to guide and direct the actions of others so that
the organizational goals could be achieved. Authority is vested
in a particular position not to the person, because, authority is
given by an institution and is, therefore, legitimate or legal.
 Thus, authority denotes those legal, conventional and
systematized rights and power through which any person,
authorized or empowered, can perform his duty and
responsibility, can compel other to perform the duty, order or
direct the subordinates, motivate the people belonging to the
organization and makes the organization legally responsible
towards the third party for his action. Thus, we can understand
the term ‘authority’ as the power to direct, issue orders,
compel obedience, guide and utilize the organizational
resources.

33. Responsibility
Theo Heimann- "Responsibility is the obligation of a
subordinate to perform the duty or required by his superior."
 The responsibility is an obligation to perform the certain
function assigned to achieve certain results in the
organization.
 Responsibility has two dimensions. One may be expressed
as, ‘Responsibility for’ and another as ‘Responsibility to’.
‘Responsibility for’ relates to an obligation to perform
certain duties written or given in his job description.
Particularly, in an organization, two types of
responsibilities are found, they are: operating
responsibility and ultimate responsibility. The subordinates
assigned to them, where the superior retains ultimate
responsibility for getting the job done. If the subordinates
fail to perform the job (operating responsibility), the
superior is held responsible for the failure

34. Accountability
Stephen P.Robbins- "Accountability is the obligation
to one's superior to carry out the assignment in a
satisfactory manner."
 Accountability is related with both authority and
responsibility. It is neither authority nor responsibility.
The obligation of an individual or organization to
account for its activities, accept responsibility for them,
and to disclose the results in a transparent manner.
Accountability is something more than responsibility. It
refers that a subordinate is answerable under his
obligation.
 Every employee/manager is accountable for the job
assigned to him. He is supposed to complete the job as
per the expectations and inform his superior
accordingly. Accountability is the liability created for
the use of authority. It is the answerability for
performance of the assigned duties.

35. SPAN OF CONTROL
 Span of Control means the number of subordinates that
can be managed efficiently and effectively by a superior
in an organization. It suggests how the relations are
designed between a superior and a subordinate in an
organization.
 Span of control is of two types:
 1. Narrow span of control: Narrow Span of control
means a single manager or supervisor oversees few
subordinates. This gives rise to a tall organizational
structure.

36. Narrow span of control

37. 2. Wide span of control:
 Wide span of control means a single manager or
supervisor oversees a large number of subordinates.
This gives rise to a flat organizational structure.

38. Bureaucracy
 Bureaucratic management is a theory set forth by Max
Weber, a German sociologist and political economist
whose theory contained two essential elements,
including structuring an organization into a hierarchy
and having clearly defined rules to help govern an
organization and its members. Bureaucratic
management can be thought of as a formal system
within an organization that is distinctly based on
precisely defined hierarchical roles and levels to help
maintain efficiency and effectiveness.

39. ADHOCRACY
 The adhocracy is task or project-based and has to
respond quickly and flexibly to changing demands.
These demands may be driven by rapidly changing
markets or by innovation. There is little formality, so
direct supervision and defined processes are less
important than in other organisation structures.
Research and development can be a primary driver of
adhocracies, as typified by new technology industries.


40.  Adhocracy arises out of the need of formal organizations
to be able to recognize, understand, and solve problems
in highly complex and turbulent environments. The
concept is of recent origin. The American futurist Alvin
Toffler coined the term in 1970 to define an emerging
system of organization appropriate to a world of swiftly
advancing technologyand of societal impatience with
the multi layered authority structure of the typical
hierarchy. The Canadian author Henry Mintzberg more
fully elaborated adhocracy as a type in 1979, arguing
for its status as an important addition to the well-known
forms, such as the simple structure, the
professional bureaucracy, and the divisionalized form of
organization.