The document discusses various topics related to organizing as a management function: 1. It defines organizing as getting resources arranged in an orderly way to accomplish goals. Various organizational structures are discussed like functional, divisional, line and staff structures. 2. Span of control, delegation, and centralization vs decentralization are explained. Span of control refers to the number of direct reports, delegation assigns authority to subordinates, and centralization reserves authority at the top vs decentralization which distributes it throughout levels. 3. Guidelines for effective delegation include clear assignments, objectives, authority, support and feedback. Factors like trust and competence determine centralization or decentralization.

1. ORGANIZINGORGANIZING
Prof. Preeti BhaskarProf. Preeti Bhaskar
Symbiosis Centre for Management Studies, NoidaSymbiosis Centre for Management Studies, Noida

2. Course outline
• Meaning and importance
• Structure of organization- Functional, divisional
and administrative
• Formal and informal organization, Matrix
Organization
• Delegation: Meaning and Importance
• Elements of Delegation
• Concept-centralization and de-centralization

3. CLASSIFICATION OF
MANAGEMENT FUNCTIONS
MANAGEMENT
FUNCTIONS
Managerial
functions
Operative
functions

4. Organizing
A manager is
responsible for
organizing people,
work processes, and
equipment.
organizing
getting the resources
arranged in an orderly
and functional way to
accomplish goals and
objectives

5. According to Theo Haimman

6. Steps in organizing

7. Importance of organizing
• Specialization
• Well defined jobs
• Clarifies authority
• Co-ordination
• Effective
administration
• Growth and
diversification
• Sense of security
• Scope for new changes

8. Organizational Structure
A formal system of task
and reporting relationships
that coordinates and
motivates members so that
they work together to
achieve organizational
goals
organizational chart
a chart that shows
how the firm is
structured and who is
in charge of whom

9. Managing director
Finance
Manager
Marketing
Manager
Production
Manager
Accounts
officer
Sales
Manager
Factory
Manager
Internal
auditor
Advertising
Manager
Store
Manager
AccountantSales
Supervisor
foreman
Accountant
Clerks
Salesman
Store
Keeper
foreman
Worker Worker
Sales
Supervisor
Salesman Accountant
Clerks
ORGANIZATION STRUCTURE

10. • Formal
structure
• Informal
structure
• Functional
organization
• Committee
• organization
• Matrix
• Line organization
a) Pure line
organization
b) Departmental
organization
• Line and staff
organization
• Divisional

11. Line organization
• Complaint
• Suggestion
• Order
• Authority

12. Pure Line organization
Production
Manager
Foreman - A Foreman- B
Worker Worker
General
Manager
Worker Worker Worker Worker
Activities of all employees working in the same level happen to be similar

13. DEPARTMENTAL ORGANIZATION
Production
Dept.
Foreman - A
Superintendent
Worker Worker
General
Manager
Worker Worker Worker Worker
Finance
Dept.
Marketing
Dept.
HR
Dept.
SuperintendentSuperintendentSuperintendent
Employee Employee Employee

14. Line and staff organization
Foreman - A
Superintendent
Worker Worker
Foreman - A
Production
Manager
Shareholder
BOD
General Manager
Research
officer
Public
Relation
Officer
Marketing
Manager
Foreman - A
Superintendent
Salesman Salesman
Foreman - A
Advertising
officer
Production
Officer
Quality
control
Officer
Sales
officer

15. Divisional structures
(based on product, geography, customer, and
process.)

16.  advantages of
divisional structures:
– More flexibility in
responding to
environmental changes
– Clear points of
responsibility.
– Expertise focused on
specific customers,
products, and regions.
– Greater ease in
restructuring.
 disadvantages of
divisional structures:
– Duplication of resources
and efforts across
divisions.
– Competition and poor
coordination across
divisions.
– Emphasis on divisional
goals at expense of
organizational goals.

17. Functional structures
– People with similar skills and performing
similar tasks are grouped together into
formal work units.
– Members work in their functional areas of
expertise.
– Work well for small organizations producing
few products or services.

18. Managing Director
Functional structures

19. advantages of
functional
structures:
– Economies of scale.
– Task assignments consistent
with expertise and training.
– High-quality technical
problem solving,
– In-depth training and skill
development.
– Clear career paths within
 disadvantages of
functional
structures:
• Difficulties in pinpointing
responsibilities.
• Functional problem.
• Sense of cooperation and
common purpose break down.
• Narrow view of performance
objectives.
• Excessive upward referral of
decisions.

20. Committee organization

21. Matrix structure
– Combines functional and divisional structures to
gain advantages and minimize disadvantages of each.
– Used in:
• Manufacturing
• Service industries
• Professional fields
• Non-profit sector
• Multi-national corporations

22. Matrix structure in a small multi-project
business firm.

23.  advantages of matrix
structures:
– Better cooperation across
functions.
– Improved decision making.
– Increased flexibility in
restructuring.
– Better customer service.
– Better performance
accountability.
– Improved strategic
management.
 disadvantages of
matrix structures
– Two-boss system is
susceptible to power
struggles.
– Two-boss system can
create task confusion and
conflict in work priorities.
– Team meetings are time
consuming.
– Team may develop “groups”
– Increased costs due to
adding team to structure.

25. Informal structures …
– A “shadow” organization made up of the
unofficial, but often critical, working
relationships between organization members.
– Potential advantages of informal structures:
• Helping people accomplish their work.
• Overcoming limits of formal structure.
• Gaining access to interpersonal networks.
• Informal learning.

26. Span of controlSpan of control

27.  Span of control
– The number of persons directly reporting
to a manager.
– Organizing trend:
• Many organizations are shifting to wider
spans of control as levels of management are
eliminated.
• Managers have responsibility for a larger
number of subordinates who operate with
less direct supervision.

28. Spans of control

29. FACTORS GOVERNING
SPAN OF CONTROL
• Ability of the Manager
• Ability of a employees
• Type of work
• Well defined authority and
responsibility
• Geographic location
• Levels of Management

30. DelegationDelegation

31. Delegation

32. right of an individual to command his
subordinates and right to take decision
within the limits of his position”
The obligation of
subordinate to perform
the assigned job
properly
Obligation to carry out
responsibility and give
reports about
performance to the
superior

33. Importance of
Delegation
• Reduction of executives work load
• Quick and better decision
• Development of the skills of the subordinated
• High morale of subordinate
• Effective Management
• Employee Development
• Motivation of Employees
• Facilitation of growth
• Basis of managerial hierarchy
• Better coordination

34. Process of Delegation

35. Obstacles in Delegation
• Factors of Superior (Delegators)
• Factors of Subordinates(Delegate)
• Organizational factor

36. Obstacles in Delegation
Boss is reluctant to
delegation because
he/she:
• Feels he can do
better himself
• Dislikes gives other
chance
• Lacks confidence in
subordinates
• Does not have
adequate control
• Unable to instruct
• Likes to depend on
the boss
• Dislikes criticism
• Lacks self
confidence
• Does not have
adequate resources
• Has little positive
incentives
Subordinated is
reluctant to delegation
because he/she:
Organizational
factor :
• Inadequate
planning
• Unclear authority
relationship
• Splintered
authority
• Non availability of
competent
managers

37. Guidelines for effective
delegation:
– Carefully choose the person to whom you delegate.
– Define the responsibility; make the assignment clear.
– Agree on performance objectives and standards.
– Agree on a performance timetable.
– Give authority; allow the other person to act
independently.
– Show trust in the other person.
– Provide performance support.
– Give performance feedback
– Recognize and reinforce progress.
– Help when things go wrong.
– Don’t forget your accountability for performance
results.

38. Centralization andCentralization and
DecentralizationDecentralization

39. CEO
Dept.
Dept.
Dept.
Dept.
Dept.
Dept.
Dept.
Dept.
CEO
Dept.
Dept.
Dept.
Dept.
Dept.
Dept.
Dept.
Dept.
?
Centralization
De- Centralization
FIG-1
FIG-2

40. Centralization means complete
authority of decision making
being at the top level.
Centralization

41. According to Allen,
“Centralization” is the systematic and consistent
reservation of authority at central points in the
organization.

42. Advantages of
Centralization
• Effective utilization of talents
of the top management.
• It allows the development of a
strong co-ordinates top
management team.
• Uniformity of policies and
plans across the organization.
• Duplication of functions and
facilities is minimized which in
turn reduces costs.
• Quick decision-making and
communication.
• Doesn’t give an opportunity to
lower level managers/supervisors
to develop their managerial skills.
• Centralized organization faces
the problem of lower motivation
levels among workforce.
• The success of organization
depends on the competence of
top executives which might be
quite risky.
Disadvantages of
Centralization

43. Decentralization is a systematic
delegation of authority at all
levels of management and in all of
the organization.

44. • According to Kreitner,
“Decentralization is granting of
decision making authority by top
management to the lower level
employees”

45. Advantages
• Decentralization reduces the
workload of top executives.
• It improves job satisfaction and
morale of lower level managers by
satisfying their needs for
independence, participation and
status.
• Decision making is quicker.
• It facilitates growth and
diversification. As each product
division is given sufficient autonomy
for innovation and creativity.
• It gives opportunity to subordinates
to exercise their own judgment. They
develop managerial skills which will be
useful to the organization in the
longer run.
Disadvantages
• Decentralization increases the
administrative expenses and each
division or department has to be
sufficient in terms of physical
facilities and trained personnel.
• As each department or division
enjoys substantial autonomy it
might lead to co-ordination
problems.
• There might be lack of uniformity
and inconsistent procedures as each
department might have the
authority to formulate its own
policies and procedures.

46. • Is suitable
for small
business
Centralization
• Is suitable
for large
business
Decentralization

47. Difference between :Difference between :
Delegation and DecentralizationDelegation and Decentralization

48. Delegation
A
Decentralization
A
D
CB

49. Basis Delegation Decentralization
Meaning
Managers delegate some of their
function and authority to their
subordinates.
Right to take decisions is shared by top
management and other level of
management.
Scope
Scope of delegation is limited as
superior delegates the powers to the
subordinates on individual bases.
Scope is wide as the decision making is
shared by the subordinates also.
Responsibility
Responsibility remains of the
managers and cannot be delegated
Responsibility is also delegated to
subordinates.
Freedom of Work
Freedom is not given to the
subordinates as they have to work as
per the instructions of their
superiors.
Freedom to work can be maintained by
subordinates as they are free to take
decision and to implement it.
Nature It is a routine function
It is an important decision of an
enterprise.
Need on purpose
Delegation is important in all concerns
whether big or small. No enterprises
can work without delegation.
Decentralization becomes more important
in large concerns and it depends upon the
decision made by the enterprise, it is not
compulsory.
Grant of
Authority
The authority is granted by one
individual to another.
It is a systematic act which takes place at
all levels and at all functions in a concern.

50. Grant of
Responsibility
Responsibility cannot be delegated
Authority with responsibility is
delegated to subordinates.
Degree
Degree of delegation varies from
concern to concern and department
to department.
Decentralization is total by
nature. It spreads throughout the
organization i.e. at all levels and all
functions
Process
Delegation is a process which
explains superior subordinates
relationship
It is an outcome which explains
relationship between top
management and all other
departments.
Essentiality
Delegation is essential of all kinds of
concerns
Decentralization is a decisions
function by nature.
Significance
Delegation is essential for creating
the organization
Decentralization is an optional
policy at the discretion of top
management.
Withdrawal
Delegated authority can be taken
back.
It is considered as a general policy
of top management and is
applicable to all departments.
Freedom of
Action
Very little freedom to the
subordinates
Considerable freedom