1. Ankur Tripathi Saurav Singh
Prakhar Rastogi Dulguun Turbat
Anil Kumar Yadav

3. Organisation is the detailed arrangement of
work and working conditions in order to
perform the assigned activities in an effective
manner.

4. “An identified group of people contributing their efforts towards the
attainment of goals is called an organisation”
- Mc Farland
"Organisation is the process of identifying and grouping of the
works to be performed, defining and delegating responsibility and
authority and establishing relationships for the purpose of enabling
people to work most efficiently"
- Louis A. Allen

5. Organising helps Organisations to
reap the benefit of specialization.
Organising provides for Optimum
utilization of resources.
Organising helps in Effective
administration.
Organising channels for Expansion
and growth.
Organising achieves co-ordination
among different departments.
Organising creates scope for new
change.

6. • According to this principle, all the functions in a concern should be
Principle of Functional completely and clearly defined to the managers and subordinates.
This can be done by clearly defining the
Definition duties, responsibilities, authority and relationships of people towards
each other.
• According to the principle, the whole work of a concern should be
Principle of divided amongst the subordinates on the basis of qualifications,
Specialization abilities and skills. It is through division of work specialization can be
achieved which results in effective organization.
Principles of Span of • According to this principle, span of control is a span of supervision
which depicts the number of employees that can be handled and
Control/Supervision controlled effectively by a single manager
• Scalar chain is a chain of command or authority which flows from top
Principle of Scalar to bottom. With a chain of authority available, wastages of resources
Chain are minimized, communication is affected, overlapping of work is
avoided and easy organization takes place.
Principle of Unity of • It implies one subordinate-one superior relationship. Every
Command subordinate is answerable and accountable to one boss at one time.

7. Formal Organization
• Consciously created to achieve organizational objectives
• Official hierarchy of relations
• Formal relations are well planned and are created
deliberately
• Follows official chain of command
• Usually stable
• Formal authority is institutional
• Reflects technological aspect and not human sentiments
• Follows a rigid structure of relationships
• Prescribed pattern of behavior for its members

8. Informal Organization
• Has no predetermined objectives
• Structure is based on human emotions and sentiments
• Relations are unplanned
• Does not have a fixed chain of command
• Life of informal groups is short
• Informal authority is personal
• Leaders are not appointed
• Reflects human aspect
• Loosely structured and is highly flexible
• Develops social norms of behavior through mutual consent

9.  Identification of activities - All the activities which have to
be performed in a concern have to be identified first
 Departmentally organizing the activities - In this step, the
manager tries to combine and group similar and related
activities into units or departments
 Classifying the authority - Once the departments are
made, the manager likes to classify the powers and its extent to
the managers.
 Co-ordination between authority and responsibility -
Relationships are established among various groups to enable
smooth interaction toward the achievement of the organizational
goal.

10. Organisation structure is the pattern of
relationships among various components or
parts of the organisation which prescribes the
relations among various activities and
positions. An effective structure will result in
increased profitability of the enterprise.
whenever an enterprise grows in size or
complexity it needs an adequate organisation
structure.

11. Line Organisation Structure: Hierarchy derived from a scalar
process. Organisation is quite simple in understanding and
implementation. this does not offer scope for specialization.
Line and Staff Organisation Structure: Staff personnel
generally specialists in their fields advice line managers to perform
their duties. Staff personnel have right to recommend, but have no
authority.
Functional Organisation: Grouping of activities on the basis
of functions required for the achievement of ultimate objectives.
Divisional Organisation Structure: Several fairly self-
contained autonomous units were created. Each unit was headed
by a manager and is directly accountable to the organisation.

12. Line Organization
General Manager
Production Manager Finance Manager Marketing Manager
Superintendent Asstt. Asstt.
Finance Manager Marketing Manager
Foreman Accountants Sales Supervisors
Workers Clerks Salesmen
It consists of an uninterrupted series of authority steps and forms a
hierarchical arrangement. It not only becomes the avenue of
command to operating personnel but also provides the channel of
communication, coordination and accountability in enterprise.

13. Line and Staff Organization
Board of Directors
Executive ---- Managing Director----Controller of --------Asstt. To
Committee Finance Managing Director
Manager Division A Manager Division B Manager Division C
1. Right to decide and command
2. Contributes directly to the accomplishment of objectives
3. Flows downward from a superior to subordinate
4. Creates superior-subordinate relationship
5. Bears final responsibility for results
6. Provides channel of communication

14. Functional Organization
Managing Director
Production
Manager
Engineer Superintendent Chemist
of Production
Foreman Foreman Foreman Foreman
Workmen Workmen Workmen
This is based on the concept of functional foremanship. In this
Organization is divided into a number of functional areas. Each
function is managed by an expert in that area.

15. Project Organization
Managing Director
Manager Project Manager Project
Division I Division II
Engineer R&D A/c R&D A/c
Engineer
Manager officer Manager officer
1. Oriented towards the completion of a project
2. Molding the organization around a specific project
3. It is usually structured to facilitate planning and designing of the
product, completion of the task and phasing out of the project
4. Need for project organization is felt when an organization is to
execute a project which is subject to high standards of
performance
5. Assignment presents a unique or unfamiliar change

16. Matrix Organization
Division X
Production Engineering Finance Personnel
Proj. Mgr. I Prod Grp Engg Grp Fin Grp Pers. Grp
Proj Mgr II Prod Grp Engg Grp Fin Grp Pers. Grp
1. It is created by merging the two complementary organizations –
the project and the functional
2. projects cut across the functional line
3. project teams are composed of people from functional
departments who are assigned to the project for a specific
period or for the duration of the project
4. After the project is finished they return to the functional
departments

17. Division of work: The first process of Organising includes
identification and division of work which shall be done in accordance with
the plans that are determined previously.
Departmentation: once the work of identifying and dividing the work
has been done those are similar are to be grouped.
Linking departments: When the process of departmentation was
completed, linking of departments has to be done so that those
departments operate in a co-ordinated manner which gives a shape to
overall organisation structure.
Assigning Duties: On completion of departmentation process assigning
duties i.e. defining authority and responsibilty to the employees on the
basis of their skills and capabilities has to be done, which in
consequence magnifies efficiency with regard to their work.
Defining hierarchal structure: Each employee should also know
from whom he has to take orders and to whom he
is accountable/responsible.

18. Departmentation
Departmentation or departmentalization is the
process of grouping tasks into jobs, the
combining of jobs into effective work groups and
the combining of groups into identifiable
segments or departments.
A department is a division ,branch, regiment or
some other organizational unit over which a
manager has authority for performance of task.

19. Need and Importance of Departmentation
 Specialization
 Expansion
 Autonomy
 Fixation of responsibility
 Appraisal
 Administrative Control

20. Types of Departmentation
 Departmentation by Functions
 Departmentation by Products
 Departmentation by Territory
 Departmentation by Customer
 Departmentation by Process
 Departmentation by Time and Numbers
 Composite Departmentation

21. Functional Departmentation
Board of Directors
Managing Director
Marketing Production Finance
Quality Control Processing Material Repairs and Maintenance
1. Each major function is organized as a separate department
2. Basic or organic functions are the functions whose performance
is vital and essential to the survival of the organization.
3. A major function may be divided into minor or sub functions
4. Exists almost in every organization at some level

22. Authority and Responsibility
• Authority may be
defined as the power to
Authority make decisions which
guides the actions of
others
• Responsibility is the
duty to which a person
Responsibility is bound by reason of
his status or task.

23. Characteristics :
Authority and Responsibility
Responsibility

24. Delegation
The process a manager follows in dividing the work assigned to him so that
he performs that part which only he has been assigned to, because of his
unique organizational placement, can perform effectively and so that he
can get others to help with what remains.

25. The number of subordinates a manager can efficiently and effectively direct
Good
Better Develops
Increases Team spirit and communication Facilitates quick
supervision and discipline and
efficiency morale and co- action
control mutual trust
ordination
At the top level of management, the span of control should not be more than
1:6 while at the lower level of management, the span of control should not be
more than 1:20.

26. Centralization
Centralization is systematic and consistent reservation of authority at
central points within an organization.
Disadvantage

27. Decentralization
Decentralization refers to the systematic effort to delegate to the lowest
levels all authority except that which can only be exercised at central
authority. It is the distribution of authority throughout organization.
Disadvantage

28. Thank you