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PRINCIPLES OF MANAGEMENT
ORGANISING
What is ORGANISING?
“organising in a general sense
means systematic arrangment of
activities”
Organising follows “planning”
ORGANISING
Definition
 "The process of identifying and grouping
the work to be performed, defining and
delegating responsibility and authority and
establishing relationship for the purpose
of enabling people to work more
effectively together in accomplishing
objects". Louis A. Allen
Organising in management
refers to the relationship
between people,work and
resources used to achieve
the common objectives
ORGANISIG IN MANAGEMENT
A DESIGN OF ORGANIZATION
MOVEMENT OR BLUEPRINT,
ORGANIZATION
STRUCTURE
DEFINATION
ORGANIZATION STRUCTURE
EXPLAINS THE POSITION AND
OFFICIAL RELATIONSHIP
BETWEEN VARIOUS INDIVIDUALS
IN THE ORGANIZATION.
DIFFERENT LEVELS IN ORGANISATION
• Low-level managers
• Middle-level managers
• Top-level managers
 These managers are classified in a hierarchy of
authority, and perform different tasks. In many
organizations, the number of managers in every
level resembles a pyramid.
Hierarchical view of management
in organizations
Learning objectives
Identifying the task
Grouping the activities
Delegation of authority
Coordination
NATURE OF ORGANISING
Perform an analysis about the
work
Identify the work
Organisation structure
The grouping of activities
neccesary for attaining
objectives(division of labour)
Assignment of
work(communication)
Delegation of authority(authority
structure)
NATURE
Aids to management
It facilitates growth,creativity
It ensures optimum use
resources
Establishes relationship among
individual groups
Clusters job into units
Coordinates.
PURPOSE OF ORGANISING
FORMAL GROUP- A formal
group is a structured
group,which has a plan and
positions each job’s objective
and functions
FORMALAND INFORMAL GROUPS
Formal means something
systematic.
It is in an official structure
It provides official relationship
between individual.
It is objective oriented
It abides with rules and regulations
CHARACTERISTICS OF FORMAL GROUP
The line of communication is very
clear
It is accuracy of the information.
systematic
It is objective oriented.
It has a heirarchial pattern
ADVANTAGES:
ot be related
It is the outcome of personal ,social
and friendly relationship and it
develops spontaneously.
It arises naturally on the basis of
friendship or some common interest
which may or may n
with work
INFORMALGROUPS
•Informal group is created by the
member of the organisation for
their social andpsychological
satisfaction.
•Informal groups are unstable in
nature,it is not permanent.
•Informal groups are greater in
Numbers than the formal groups.
• Free interaction.
CHARATERISTICS OF INFORMAL GROUP
TYPES OF ORGANIZATION
STRUCTURE
LINE STRUCTURE
LINE AND STAFF STRUCTURE
FUNCTIONAL STRUCTURE
COMMITTEE STRUCTURE
PROJECT STRUCTURE
MATRIX STRUCTURE
It flows from top to lower level .
It is the simplest and oldest
method followed in many
Organization.
LINE STRUCTURE
Simple and easy to establish.
Authority and responsibility is clearly
defined
Ensures Better discipline.
It provides better scope for
supervision.
MERITS OF LINE STRUCTURE
Overburden with lots of administrative
work
It may result in autocratic control
Manager enjoys monopoly in the matter
of decision making ( he himself take
Decision)
DEMERITS OF LINE STRUCTURE
The staff is attached to line
The staff are experts
specialized in specific areas
They give ideas to personnel
LINE AND STAFF ORGANIZATION
MERITS OF LINE AND STAFF
Relief to top executives.
Quality decisions.
Flexible.
Specialization is not violated.
Unity of command is not violated.
Often arises conflicts between line
and staff.
Leads to confusion since
responsibility is not well defined.
DEMERITS OF LINE AND STAFF
There will be a separate
department for different actions
or activities.
FUNCTIONAL ORGANIZATION
•Better control over
subordinates.
Scope for expansion Higher
efficiency.
•Interdepartmental conflicts.
•Delay in decision making.
MERITS AND DEMERITS OF FUNCTIONAL
ORGANIZATION
committee.
A group of people entrusted ina
task
Types:
Permanent committee.
Temporary or ad hoc
Executive committee.
Advisory committee.
COMMITTEE
ORGANIZATION
•Scopeof group judgment.
•Proper coordination and control
among individuals and
departments.
•Various interest groups.
MERITS
Expensive affair to constitute a
committee
Time consuming or
slow decision
DEMERITS
•It varies from one organization to
organization.
•Any organization execute a large
project for a long period of time
adopt this project organization.
PROJECT ORGANIZATION
Maximum use of specialized knowledge
and skills.
Flexibility of operation.
Focuses attention on the specific
projects.
Provides better coordination.
MERITS
Pressure and uncertainty due to
some several specialist.
Difficulty in coordination.
Evaluation of performance of
various specialist is difficult.
DEMERITS
It is suitable where there is large
number of small projects.
It is also called as multiple
command system.
It is also called as linking pins.
MATRIX ORGANIZATION
STRUCTURE
BEST UTILISATION OF
ORGANIZATIONAL RESOURCES.
BENEFIT TO BOTH FUNCTIONAL
AND TECHNICAL SPECIALIST.
PERMITS HIGHER DEGREE OF
FLEXIBLITY AND ADAPTABILITY.
MERITS
DEMERITS
 Its againstprinciple ofunityof command.
 Quick decisionmaynotbepossible.
 It gives scope for conflicts.
SPAN OF MANAGEMENT
It is also called as
span of control or
span of supervision.
It refers to the
number of
subordinates that
report directly to a
single manager or
supervisor.
TWO TYPES OF SPAN
NARROW SPAN OF MANAGEMENT
Tall organization.
Manager oversees “few” subordinates.
better communication.
example : handicraft , ivory work , etc.
WIDE SPAN OF MANAGEMENT
Flat organization .
Manager oversees “large” number of
subordinates.
Less overhead cost.
example: large firms .
narrow span
of control
Wide span
ofcontrol
FACTORS DETERMING SPAN
OF MANAGEMENT
Nature of work
Ability of the manager
Capacity of subordinates
Degree of decentralization
Quality of planning
Staff assistant
Communication techniques
Time available for supervision
DEPARTMENTATION
It is a process of grouping
individual jobs into
departmentation.
TYPES:
Departmentation by function.
Departmentation by
products.
Departmentation by territory.
Departmentation by
customers.
Departmentation by process.
Departmentation by time and
Departmentation by FUNCTIONS
Deparmentation done by the functions.
MERITS &DEMERITS
Provides scope of specialization.
Eliminates cost of duplication of
work.
Effective control over performance.
Facilitates delegation of authority.
Interdepartmental conflicts.
Difficulty in coordination of activities.
Increases responsibility of departmental
heads.
DEPARTMENTATION BY
PRODUCTS
It is suitable for different lines of products.
MERITS &DEMERITS
Reduces problem of coordination.
It leads to specialization.
Performance evaluation can be done
easily.
It is flexible and adaptable to change .
Chance of duplication is more.
There may be underutilization of plant
capacity when the demand of product is
not adequate.
Territorial or Geographical Departmentation:
 When several activities of an enterprise are
geographically dispersed in different locations,
territorial or geographical departmentation may
be adopted. All activities relating to a particular
area or zone may be grouped together under one
zonal manager or head.
MERITS
• Ithelpsinachievingbenefitsof localoperation.
•Better coordination of activities.
Provides effective span ofcontrol.
•Facilitatesexpansionof businesstovarious regions.
DEMERITS
•Due togeographicaldistance problem of
communication.
•Coordinationandcontrolbecomes less effective.
Departmentation By Customers
Each department will serve the particular
type or class of customers.
MERITS & DEMERITS
Offer scope of specialization.
Enterprise gain ultimate
knowledge about needs of various
categories of customers.
Leadto duplication of
activities.
PROCESS OR
EQUIPMENT
The activities are grouped according to
process or equipment.
It is generally used in manufacturing
industries.
Proper utilization of manpower and
machine engaged in proper way.
TIME AND NUMBER
DEPARTMENTATION
TIME:
The activities or group on basis
of time
EXAMPLE: Call centers or
any factory.
NUMBER:
The activities or group on
basis of performance by certain
number of persons.
CENTRALIZATIONANDDECENRALIZATION
 Fayolhasintroduced the 14th principlesof
managementwhichareverydynamic innature.
 Amongthosethe 8th principle isCENTRALIZATIONAND
DECENRALIZATION.
Centralization
 “Centralization”isthe systematicandconsistent
reservationof authority at central points in the
organization.
Theimplication of centralization canbe:
 Reservationof decisionmakingpowerat toplevel.
 Reservationof operating authority withthe middle
levelmanagers.
 Reservationof operationat lowerlevelat the
directionsofthe top level.
WHATARETHEFACTORSINFLUENCING
CENTRALIZATION
 Sizeanddispersalof operation
 Levelof diversityofproduct-lines
 Natureofgrowth
 Natureof Business
 Qualityof Executives
 ManagementbyException
 EffectiveControlSystem
AdvantageofCentralized Organizational
Structure
 Reducedcost
 Uniformity inaction
 Personalleadership
 Flexibility
 Improvedqualityofwork
 Betterco-ordination
DisAdvantageofCentralized OrganizationalStructure
 Delayin work
 Remotecontrol
 No loyalty
 No Secrecy
 No specialattention
DECENTRALIZATION
 “Decentralization”isasystematic delegationof authority at
all levelsof managementandin all of theorganization.
DECENTRALIZATION
Advantageof DeCentralized OrganizationalStructure
 Distribution of burdenof topexecutive
 Increasedmotivation andmorale
 Greaterefficiencyandoutput
 Diversificationof Activities
 BetterCo-ordination
 Maintenanceof Secrecy
 Facilitateeffectivecontrol andquickdecision
DisAdvantageof DeCentralized
OrganizationalStructure
 Highcost
 Nospecialization
 Need specialists
 Nouniformaction
 Noequitabledistribution ofwork
 ControlSystems
 Typesof Business
 Branchesof organization
 Typeof organization
WHATARETHEFACTORSAFFECTING
DECENTRALIZATION?
 Sizeof the organization–largeorsmall
 CostandImportanceof decisions
 Uniformity
 Historyof organization
 ManagementPhilosophy
 Availabilityof efficientmanagers
 Typeof business
 Branchesof organization
THANK YOUWITH WARM REGARDS
Prof Sagar Srinivas
Team members of Organising
 Pradyumna
 Sudarshan Acharya
 Loy Ajith
 Suhani S
 Subha Shree
 Davan S
 Vijetha R
 Vidya Shree
 Vikesh Bangera

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Principles Of Management-Organising

  • 2. What is ORGANISING? “organising in a general sense means systematic arrangment of activities” Organising follows “planning” ORGANISING
  • 3. Definition  "The process of identifying and grouping the work to be performed, defining and delegating responsibility and authority and establishing relationship for the purpose of enabling people to work more effectively together in accomplishing objects". Louis A. Allen
  • 4. Organising in management refers to the relationship between people,work and resources used to achieve the common objectives ORGANISIG IN MANAGEMENT
  • 5. A DESIGN OF ORGANIZATION MOVEMENT OR BLUEPRINT, ORGANIZATION STRUCTURE
  • 6. DEFINATION ORGANIZATION STRUCTURE EXPLAINS THE POSITION AND OFFICIAL RELATIONSHIP BETWEEN VARIOUS INDIVIDUALS IN THE ORGANIZATION.
  • 7. DIFFERENT LEVELS IN ORGANISATION • Low-level managers • Middle-level managers • Top-level managers  These managers are classified in a hierarchy of authority, and perform different tasks. In many organizations, the number of managers in every level resembles a pyramid.
  • 8. Hierarchical view of management in organizations
  • 9. Learning objectives Identifying the task Grouping the activities Delegation of authority Coordination NATURE OF ORGANISING
  • 10. Perform an analysis about the work Identify the work Organisation structure The grouping of activities neccesary for attaining objectives(division of labour) Assignment of work(communication) Delegation of authority(authority structure) NATURE
  • 11. Aids to management It facilitates growth,creativity It ensures optimum use resources Establishes relationship among individual groups Clusters job into units Coordinates. PURPOSE OF ORGANISING
  • 12. FORMAL GROUP- A formal group is a structured group,which has a plan and positions each job’s objective and functions FORMALAND INFORMAL GROUPS
  • 13. Formal means something systematic. It is in an official structure It provides official relationship between individual. It is objective oriented It abides with rules and regulations CHARACTERISTICS OF FORMAL GROUP
  • 14. The line of communication is very clear It is accuracy of the information. systematic It is objective oriented. It has a heirarchial pattern ADVANTAGES:
  • 15. ot be related It is the outcome of personal ,social and friendly relationship and it develops spontaneously. It arises naturally on the basis of friendship or some common interest which may or may n with work INFORMALGROUPS
  • 16. •Informal group is created by the member of the organisation for their social andpsychological satisfaction. •Informal groups are unstable in nature,it is not permanent. •Informal groups are greater in Numbers than the formal groups. • Free interaction. CHARATERISTICS OF INFORMAL GROUP
  • 17. TYPES OF ORGANIZATION STRUCTURE LINE STRUCTURE LINE AND STAFF STRUCTURE FUNCTIONAL STRUCTURE COMMITTEE STRUCTURE PROJECT STRUCTURE MATRIX STRUCTURE
  • 18. It flows from top to lower level . It is the simplest and oldest method followed in many Organization. LINE STRUCTURE
  • 19. Simple and easy to establish. Authority and responsibility is clearly defined Ensures Better discipline. It provides better scope for supervision. MERITS OF LINE STRUCTURE
  • 20. Overburden with lots of administrative work It may result in autocratic control Manager enjoys monopoly in the matter of decision making ( he himself take Decision) DEMERITS OF LINE STRUCTURE
  • 21. The staff is attached to line The staff are experts specialized in specific areas They give ideas to personnel LINE AND STAFF ORGANIZATION
  • 22. MERITS OF LINE AND STAFF Relief to top executives. Quality decisions. Flexible. Specialization is not violated. Unity of command is not violated.
  • 23. Often arises conflicts between line and staff. Leads to confusion since responsibility is not well defined. DEMERITS OF LINE AND STAFF
  • 24. There will be a separate department for different actions or activities. FUNCTIONAL ORGANIZATION
  • 25. •Better control over subordinates. Scope for expansion Higher efficiency. •Interdepartmental conflicts. •Delay in decision making. MERITS AND DEMERITS OF FUNCTIONAL ORGANIZATION
  • 26. committee. A group of people entrusted ina task Types: Permanent committee. Temporary or ad hoc Executive committee. Advisory committee. COMMITTEE ORGANIZATION
  • 27. •Scopeof group judgment. •Proper coordination and control among individuals and departments. •Various interest groups. MERITS
  • 28. Expensive affair to constitute a committee Time consuming or slow decision DEMERITS
  • 29. •It varies from one organization to organization. •Any organization execute a large project for a long period of time adopt this project organization. PROJECT ORGANIZATION
  • 30. Maximum use of specialized knowledge and skills. Flexibility of operation. Focuses attention on the specific projects. Provides better coordination. MERITS
  • 31. Pressure and uncertainty due to some several specialist. Difficulty in coordination. Evaluation of performance of various specialist is difficult. DEMERITS
  • 32. It is suitable where there is large number of small projects. It is also called as multiple command system. It is also called as linking pins. MATRIX ORGANIZATION STRUCTURE
  • 33. BEST UTILISATION OF ORGANIZATIONAL RESOURCES. BENEFIT TO BOTH FUNCTIONAL AND TECHNICAL SPECIALIST. PERMITS HIGHER DEGREE OF FLEXIBLITY AND ADAPTABILITY. MERITS
  • 34. DEMERITS  Its againstprinciple ofunityof command.  Quick decisionmaynotbepossible.  It gives scope for conflicts.
  • 35. SPAN OF MANAGEMENT It is also called as span of control or span of supervision. It refers to the number of subordinates that report directly to a single manager or supervisor.
  • 36. TWO TYPES OF SPAN NARROW SPAN OF MANAGEMENT Tall organization. Manager oversees “few” subordinates. better communication. example : handicraft , ivory work , etc.
  • 37. WIDE SPAN OF MANAGEMENT Flat organization . Manager oversees “large” number of subordinates. Less overhead cost. example: large firms .
  • 38. narrow span of control Wide span ofcontrol
  • 39. FACTORS DETERMING SPAN OF MANAGEMENT Nature of work Ability of the manager Capacity of subordinates Degree of decentralization Quality of planning Staff assistant Communication techniques Time available for supervision
  • 40. DEPARTMENTATION It is a process of grouping individual jobs into departmentation. TYPES: Departmentation by function. Departmentation by products. Departmentation by territory. Departmentation by customers. Departmentation by process. Departmentation by time and
  • 42. MERITS &DEMERITS Provides scope of specialization. Eliminates cost of duplication of work. Effective control over performance. Facilitates delegation of authority. Interdepartmental conflicts. Difficulty in coordination of activities. Increases responsibility of departmental heads.
  • 43. DEPARTMENTATION BY PRODUCTS It is suitable for different lines of products.
  • 44. MERITS &DEMERITS Reduces problem of coordination. It leads to specialization. Performance evaluation can be done easily. It is flexible and adaptable to change . Chance of duplication is more. There may be underutilization of plant capacity when the demand of product is not adequate.
  • 45. Territorial or Geographical Departmentation:  When several activities of an enterprise are geographically dispersed in different locations, territorial or geographical departmentation may be adopted. All activities relating to a particular area or zone may be grouped together under one zonal manager or head.
  • 46. MERITS • Ithelpsinachievingbenefitsof localoperation. •Better coordination of activities. Provides effective span ofcontrol. •Facilitatesexpansionof businesstovarious regions. DEMERITS •Due togeographicaldistance problem of communication. •Coordinationandcontrolbecomes less effective.
  • 47. Departmentation By Customers Each department will serve the particular type or class of customers.
  • 48. MERITS & DEMERITS Offer scope of specialization. Enterprise gain ultimate knowledge about needs of various categories of customers. Leadto duplication of activities.
  • 49. PROCESS OR EQUIPMENT The activities are grouped according to process or equipment. It is generally used in manufacturing industries. Proper utilization of manpower and machine engaged in proper way.
  • 50. TIME AND NUMBER DEPARTMENTATION TIME: The activities or group on basis of time EXAMPLE: Call centers or any factory. NUMBER: The activities or group on basis of performance by certain number of persons.
  • 51. CENTRALIZATIONANDDECENRALIZATION  Fayolhasintroduced the 14th principlesof managementwhichareverydynamic innature.  Amongthosethe 8th principle isCENTRALIZATIONAND DECENRALIZATION.
  • 53. Theimplication of centralization canbe:  Reservationof decisionmakingpowerat toplevel.  Reservationof operating authority withthe middle levelmanagers.  Reservationof operationat lowerlevelat the directionsofthe top level.
  • 54. WHATARETHEFACTORSINFLUENCING CENTRALIZATION  Sizeanddispersalof operation  Levelof diversityofproduct-lines  Natureofgrowth  Natureof Business  Qualityof Executives  ManagementbyException  EffectiveControlSystem
  • 55. AdvantageofCentralized Organizational Structure  Reducedcost  Uniformity inaction  Personalleadership  Flexibility  Improvedqualityofwork  Betterco-ordination
  • 56. DisAdvantageofCentralized OrganizationalStructure  Delayin work  Remotecontrol  No loyalty  No Secrecy  No specialattention
  • 57. DECENTRALIZATION  “Decentralization”isasystematic delegationof authority at all levelsof managementandin all of theorganization.
  • 59. Advantageof DeCentralized OrganizationalStructure  Distribution of burdenof topexecutive  Increasedmotivation andmorale  Greaterefficiencyandoutput  Diversificationof Activities  BetterCo-ordination  Maintenanceof Secrecy  Facilitateeffectivecontrol andquickdecision
  • 60. DisAdvantageof DeCentralized OrganizationalStructure  Highcost  Nospecialization  Need specialists  Nouniformaction  Noequitabledistribution ofwork  ControlSystems  Typesof Business  Branchesof organization  Typeof organization
  • 61. WHATARETHEFACTORSAFFECTING DECENTRALIZATION?  Sizeof the organization–largeorsmall  CostandImportanceof decisions  Uniformity  Historyof organization  ManagementPhilosophy  Availabilityof efficientmanagers  Typeof business  Branchesof organization
  • 62. THANK YOUWITH WARM REGARDS Prof Sagar Srinivas Team members of Organising  Pradyumna  Sudarshan Acharya  Loy Ajith  Suhani S  Subha Shree  Davan S  Vijetha R  Vidya Shree  Vikesh Bangera