1. Organize

2. What is Organizing?
Identification &
classification
Grouping of activities to
attain objectives
Assignment of each group
to a manager
Coordination –
horizontally & Vertically

3. Formal Organization Informal Organization

4. Example of formal & informal
President
Vice-
president
Division
manager
Dpt.
manager
Dpt.
manager
Division
manager
Vice-
President
Division
manager
Division
manager
Vice-
President
Division
manager
Division
manager
Play cricket every weekend
Play chess every Sunday
Informal
organization

5. Organization with narrow span
Advantages:
1. Close supervision
2. Close control
3. Fast communication
Disadvantages:
1.Superiors interfere in subordinates work
2. High costs
3. Distance between lowest and highest
level

6. Organization with wide span
Advantage:
1. Superiors are forced to delegate
2. Clear policies should be made
3. Subordinates must be carefully
selected
Disadvantage:
1. Requires good quality managers
2. Superior’s loss of control
3. Superiors make decisions
excessively

7. Structure & Process of Organizing
1
• Formulating objectives, policies & plans
2
• Identifying & classifying
3
• Grouping
4
• Delegating authority
5
• Coordinating authority

8. VIRTUAL ORGANISATION
Customer
Supplier
Competitor
•Flexible
•Reduce risks
•Respond
rapidly to
market needs

9. Organizational Division: Department
Distinct area
DivisionBranch
Manager has
authority

10. Departmentation by Territory or
Geography:
Grouping activities according to the areas
President
Marketing Personnel Finance FinancePurchasing
Western
region
Central
region
Eastern
region
South-
east
South-
west
engineering production accounting Sales

11. Departmentation by Enterprise function:
Grouping activities according to the functions
President
Assistant
Marketing
Market
Research
Advertising &
Promotion
Engineering
Electrical
Mechanical
Finance
Planning
Budget
Personnel

12. Departmentation by Product:
Grouping activities according to the product or
product lines.

13. Matrix organization

14. AUTHORITY
• Right in a
position to
exercise
discretion
POWER
• Ability to
induce the
beliefs
EMPOWERMENT
• Giving Powers to
take actions
• Without asking
superiors for
permission

15. • Affects business
directly
• Eg: Operations,
Marketing
LINE
• Affects business
Indirectly, Advisory
functions
• Eg: HR, Finance
STAFF

16. Example of Line Management

17. Disperse decision making authority
Selection of which decisions to push down
Affects all areas of management
DECENTRALIZATION

18. CENTRALIZATION
Restricted Delegation
Concentration of activities in one department
Decision Making lies in the hands of Top Management

19. ART OF DELEGATION
Receptiveness
Willingness
to Let Go
Willingness
to Allow
Mistakes
Trust
Subordinates
Establish &
Use Broad
Controls

20. Complete
Centralization
Complete
Decentralization
Authority Not Delegated
Authority Delegated
TENDENCIES

21. PLANNING
OVERCOME
INFLEXIBILITY
MAKE LINE LISTEN
TO STAFF
AVOID CONFLICTS
PROMOTING
ORGANIZATION
CULTURE

22. Zenia Choksey 405
Rashi Agarwal 401