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PART :03 ESSENTIAL OF MANAGEMENT 2019
Nature of ORGANISING
Entreprenuring & Reengineering
CHAPTER :07

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Chapter7
Meaning of organizing & organization and purpose of
organization structure
Distinguishing between formal & informal organization
Organization structure & the limitation of span of management
Demonstrate the structure & process of organizing &. its
relationship to other managerial function
Analyses the managerial function of effective organizing
PART :03
ORGANISING- LEARNING OBJECTIVES

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Organization
TOP Management
Decision !
Purchasing
Supervisor
Executive /Subordinate
Finance Sale & Mktg
Supervisor
AFTER SELECTING THE GOALS &
OBJECTIVE THE NEXT STEP IS TO
ORGANISE
ORGANISATION : A FORMALISE
INTENTIONAL STRUCTURE OF ROLES
OR POSITIONS
Authority
Responsibility
ORGANISATION
A social unit of people that is structured and managed to meet a need or to pursue collective goals. All
organisations have a management structure that determines relationships between the different activities
and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different
tasks. Organisations are open systems--they affect and are affected by their environment.
3
B r i n g t o g e t h e r P h y s i c a l ,
Fi n a n c i a l , h u m a n O t h e r r e s o u r c e t o g e t h e r !
WHY DO YOU NEED A ORGANISATION ?

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Formal Organization
It is created by the top
management
It is created to get the
jobs of an organization
performed in a planned
& systematic manner.
it is managed by
officially appointed
managers
Manager of formal
organization have
formal authority
Formal organization is
permanent
Informal
Organization
Not created by Management – It
arises out of natural desire of the
people to associate
It is formed to satisfy those needs
of members which can not be
satisfied through formal
organization
Select Leader in a informal way –
to take care of the group member
Informal organization is of
temporary nature .It changes its
size & membership from time to
time
FORMALVSINFORMALORG

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FORMAL VS INFORMAL ORG.
An organisation is said to be formal organisation when the two
or more than two persons come together to accomplish a
common objective, and they follow a formal relationship,
rules, and policies are established for compliance, and there
exists a system of authority.
informal organisation which is formed under the formal
organisation as a system of social relationship, which comes
into existence when people in an organisation, meet, interact
and associate with each other.
Defining Defining

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Factors Narrow Wide
Nature of Work Complex Not Complex
Training to subordinate No Yes ( Through Training)
Clarity of organisational objective Not clear Clear
Degree of task certainty Fuzzy Definite rule
Degree of risk in the work for the organisation High Low
Degree of public scrutiny High Low
Supervisor’s qualification & experience Weak Strong
Degree of coordination Required High Low
Availability of Assistance Non Abudant
Qualification & experience of subordinate Week Strong
Organization structures can be described as
wide (with larger span of control) or narrow (with
smaller span of control.) Height: As there are levels
of management, or hierarchy, an organization may
be tall (with many levels) or flat (with fewer levels.)
Defining
PRINCIPAL OF SPAN OF MANAGEMENT

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FUNCTIONAL STRUCTURE IS ONE IN WHICH
THE REPORTING RELATIONSHIPS OF THE
ORGANIZATION ARE BIFURCATED ACCORDING
TO THEIR FUNCTIONAL AREA.
AN ORGANIZATIONALSTRUCTURE WHEREIN
THE ORGANISATIONAL FUNCTIONS ARE
CLASSIFIED INTO DIVISIONS AS PER PRODUCT
OR SERVICE LINES , MARKET, IS
CALLED DIVISIONAL STRUCTURE.

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BASIS ENTREPRENEUR INTRAPRENEUR
Status Owner Of Business Employee
Capital Raise the requested capital himself Does not raise any money
Freedom Works independently Semi Independent
Risk - taking He nears full risk Does not near any risks
Gurantee Gurantee payment to suppliers No such guarantees
Norms & Rules Frames Norms & rules of his business
He is bound by organisation norms &
Rules
ENTREPRENURING & INTRAPRENEURING
Defining
A French word meaning someone who undertakes something,
used to mean someone who owns or runs a business. 2.
Someone who risks their own capital in a business enterprise.

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Entrepreneurial Environment # Entrepreneurial Environment is a
combination of factors that play a role in the development
of entrepreneurship. # First, it refers to the overall economic, socio-
cultural, and political factors that influence people's willingness and ability to
undertake entrepreneurial activities.
1. Self-Motivation
2. Understand What You Offer
3.Take Risks
4. Know How to Network
5.Money Management Skills and Knowledge
6. Flexibility
7. Passion
ENTREPRENEURSHIP ?
Defining

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1. OYO Rooms
Global headcount: 4,700
Headquarters: Gurugram
Topping this year’s list is hospitality
start-up OYO Rooms. In five short years,
it has become India’s largest hotel
network boasting 100,000 rooms in 230
cities. Over the last nine months, the
budget hotel has also expanded
internationally, launching
in Malaysia, China and the U.K.
To be considered for this year’s list,
companies needed to be privately held,
be seven years old or younger, and have
50 or more employees. LinkedIn then
looked at the activity of its own users -
which exceed more than 500 million - in
order to factor in employee growth, job
seeker interest and engagement with
the company on the platform. It also
assessed how well the upstarts were
able to attract talent away from the
established players on LinkedIn’s Top
Companies list.
2. Cure.Fit
Global headcount: 120
Headquarters: Bengaluru
Wellness start-up Cure.Fit has four
offerings: no-equipment gyms, health
food, primary care, plus yoga and
meditation centers.The company
raised $120 million from existing
investors and acquired premium gym
chain Fitness First in a deal worth $30
million to $35 million.
3. Dunzo
Global headcount: 160
Headquarters: Bengaluru
Google’s first start-up investment
in India, Dunzo, is a services app
which allows users to hire staff to
complete tasks for them.The firm
has quickly become a verb in the
country, with customers
“dunzoing” everything from
grocery shopping to laundry.
4. Rivigo
Global headcount: 3,700
Headquarters: Gurugram
Logistics business Rivigo uses a
driver relay model to speed up
delivery services for clients
including Marks &
Spencer, ITC and Maruti Suzuki.
The four-year-old start-up plans
to hire 5,000 people over the
next year and scale up its fleet,
warehouses and technology.
5. Digit Insurance
Global headcount: 630
Headquarters: Bengaluru
Online insurer Digit
Insurance aims to simplify
policy processes and claims
to approve 87 percent of
claims within 24 hours. It
also provides customers
with mobile notifications
when they are entitled to a
claim, for instance if their
flight is delayed by more
than 75 minutes.
6. LBB - Little Black Book
Global headcount: 80
Headquarters: Delhi
Little Black Book started as a
Tumblr blog, but has since
morphed into a digital platform
for cultural news and events. Its
coverage ranges from food and
fashion to theater and
shopping across eight major
Indian cities.The business has
offices across Delhi, Bangalore
and Mumbai.
7. Republic World
Global headcount: 400
Headquarters: Mumbai
Republic TV, part of the Republic
World group, is an English-language
news television channel set up by
Indian journalist and anchor Arnab
Goswami and politician Rajeev
Chandrasekhar in 2016.The channel is
often accused of having a pro-
establishment stance. It plans to set
up a Hindi news channel ahead of
India’s 2019 general elections.

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1. Establish a sense
of urgency
2. Form a powerful coalition
3. Create a Vision
4. Communicating the Vision
5. Empowering others to act on the vision
6. Planning for and creating short-term win
7. Consolidating improvements and
producing still more change
8. Institutionalising new
approaches
Defining
JOHN KOTLER 8 STEP PROCESS
Leading Change : Transformed countless organisations

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REENGINEERING THE ORGANISATION

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REENGINEERING THE ORGANIZATION
Business process reengineering is the act of recreating a core business process with the goal
of improving product output, quality, or reducing costs. Typically, it involves the analysis of
company workflows, finding processes that are sub-par or inefficient, and figuring out ways to
get rid of them or change them.
Defining

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LEAN PRODUCTION- STARBUCKS

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1. Enterprise Objectives
2. Supporting Objectives /Policies
& Plans
3.Identfication & classification of Required
activity.
4.Grouping of activities in light of resources
& situation
5. Delegation of Authorities
6.Horizontal & vertical coordination of
authority & information relationships
7.Staffing
8. Leading
9.Controlling
Part :2
Planning
Part :3
Organising
Part :7/8/9
Defining
THE ORGANISATION PROCESS

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For your attention
THANK YOU