2. What is organizing
Organizing is the function of
management which follows planning.
It is a function in which the
synchronization and combination of
human, physical and financial
resources takes place.
All the three resources are important
to get results.
3. What is organizing
According to Chester Barnard,
“Organizing is a function by which
the organization is able to define the
role positions, the jobs related and the
co- ordination between authority and
responsibility”.
Hence, a manager always has to
organize in order to get results.
4. What is organizing
The process of organising consists of
assigning to the relevant departments
and jobs the work necessary to
achieve the objectives, and then
providing the necessary coordination
to ensure that these departments and
jobs fit together.
5. Size of the organization
In a small enterprise or a small
department this task is not very
difficult-it is usually a matter of
deciding what tasks need to be done,
and allocating them to various
subordinates. In large enterprises,
however, the process of organising
may become quite complex.
6. Steps of the organising process
Identification of activities
Departmentalisation
Classification of authority
Co-ordination of authority and
responsibility
8. Reasons for the organizing
process
Specialisation
Well defined jobs
Clarifies authority
Co-ordination
Effective administration
Growth and diversification
Sense of security
9. ORGANIZATIONAL DESIGN
Two important factors in
organizational development are
organizational structure and
design.
These two components help define
the corporate culture, expectations
and management style.
10. ORGANIZATIONAL DESIGN
Organisational design is the process by
which managers select and manage various
dimensions and components of
organizational structure and culture so that
an organization can achieve its goals.”
11. Organizational design
It is the decision-making process in
which managers construct an
organisation structure appropriate to
the strategies and plans of the
organisation as well as the
environment in which the strategies
and plans must be carried out.
13. The Division of Work
The basic principle underlying
organising is that of specialisation; a
task is broken up into smaller units in
order to take advantage of specialised
knowledge or skills to improve
productivity.
14. Phase 1: single entrepreneur
Building,
negotiation, book
keeping, design.
(owner manager)
15. Phase 2:the small business
Building,
negotiation,
design
(Owner-manager)
Bookkeeper
(Part-time)
16. Phase 3: the growing business
Owner
manager
Negotiation
and contract
construction
Book keeping
(full time)
17. Phase 4: the large organization
Managing
director
Manager
contracts
negotiation
legal
Manager
equipments
materials
Construction
site a,b,c
Manager
construction
supply
maintenance
Manager
property
development
design
development
18. Division of work
The growth of the business, as
depicted in the figure above is
characterised by two developments in
particular:
The total task load of the
organisation increases
There is constant pressure to split
up the total task into smaller units
19. Division of work
Besides this evolutionary pressure
towards division of work, there are
other reasons that justify
specialisation. They are:
Individual ability
Reduced transfer time
Specialised equipment
Reduced training cost
20. Division of work
Increased productivity is the main purpose of
specialisation. However, excessive
specialisation may have a negative effect on
productivity when it starts focusing on
efficiency and economic benefit to the
detriment of the human variable.
Work that is extremely specialized tends to be
boring and production rates may therefore go
down. Clearly, it is necessary to strike a balance
between specialisation and motivation.
21. The Organisation Structure
Structure refers to designated relationships
between resources of the management system.
Its purpose is to facilitate the use of each
resource, individually and collectively, as the
management system attempts to attain its
objectives.
Organisational structure is represented
primarily by means of a graphic illustration
called an organisation chart.
22. The Organisation Structure
An organizational structure is a description
of the types of coordination used to organize
the actions of individuals and departments that
contribute to achieving a common aim.
It is the formal pattern of interactions and co-
ordination designed by management to link the
tasks of individuals and groups in achieving
organizational goals
23. The Organisation Structure
An organization can be structured in many
different ways, depending on their objectives.
The structure of an organization will determine
the modes in which it operates and performs.
Organizational structure allows the expressed
allocation of responsibilities for different
functions and processes to different entities
such as the branch, department, workgroup and
individual.
24. The Organisation Structure
Organization structure consists of four elements:
The assignment of task and responsibilities that define
the jobs of individuals and units.
The clustering of individual positions into units and of
units into departments and larger units to form an
organizations hierarchy.
The various mechanisms required to facilitate vertical
(top-to-bottom) co-ordination, such as the number of
individuals reporting to any given managerial position
and degree of delegation of authority.
The various mechanisms needed to foster horizontal
(across departments) co-ordination such as task forces
and interdepartmental teams.
25. The Organisation Structure
The design of an organisation is also
influenced by underlying forces. This is the
reason for the continuing change and evolution
of an organisation’s structure. These forces
refer to the following:
Managers’ perception of the organisation and
the organisational problems:
The task itself
Environmental forces
Subordinates needs and skills
29. Forms of organisational structure
Strengths of divisional structure
1. Clear Accountability
2. Departmental Coordination
3. Broader skills development
4. Unstable Environment
Weaknesses of divisional structure
1. Resource Duplication
2. Inhibits career growth of Specialists
3. Divisional Affiliations
4. Difficult Product Integration
30. Forms of organisational structure
Most Effective Conditions
1. Very Large Corporations: The divisional
structure is most effective for large
corporations that have indeed multiple
products that are poorly interrelated.
2. Competitive Environment: The ability to
respond rapidly to the external changes makes
divisional structure best suited for highly
competitive external environment
32. Forms of organisational structure
Strengths of Matrix structure
1. Accessibility of Specialists
2. Flexible team resources
3. Better intra-team communication
Weaknesses of Matrix Structure
1. Role & Authority Ambiguity
2. Hard to Manage
Essential components for successful matrix
1. Performance management
2. Conflict management
33. Forms of organisational structure
Conditions for Matrix
1. Dual Focus
2. Shared Resources
3. Uncertain environment
Starbucks is one of the numerous large
organizations that successfully developed the
matrix structure supporting their focused
strategy. Its design combines functional and
product based divisions, with employees
reporting to two heads.
35. Forms of organisational structure
Strengths of process structure
1. Strong Customer Orientation
2. Rapid Response
3. Encourages Teamwork
Weaknesses of process structure
1. Identification of core processes
2. Threatens middle management
3. Limited career growth
Most Effective
1. High Customer Orientation
2. Non-Routine Tasks
37. Forms of organisational structure
Some of the key characteristics of network organizations
are
1. Autonomous Units: The organization has units that are
autonomous in how they develop and deliver their
products or services. Each unit behaves as external
contractors that are bound only by their agreed
contracts.
2. Highly Specialized Units: The independent units are
complete in themselves; they have high skills and
specialize in their own domains.
3. Central Hub: The central hub maintains control over
processes that are distributed to various units.
38. Forms of organisational structure
Strengths of Network Structure
1. Cost effective
2. Access to functional specialization
3. Geographically diverse
Weaknesses of Network Structure
1. Lack of control
2. Tough Coordination
3. Threat to intellectual property
4. De-motivational
5. High Risk
39. COORDINATION
Divided tasks and the objectives of the various
departments must be coordinated or integrated to
achieve the primary objective of the organisation.
Without coordination, individuals and departments
lose sight of the organisation’s primary objective
and of their own particular part in that effort
40. COORDINATION
Coordination is the synthesis of the separate
parts to form a unity, and is the binding factor
in the managerial process. It means the
integration of objections and tasks at all levels
and of all departments and functions to enable
the organisation to work as a whole.
Lack of coordination often leads to frustration
and waste (especially of time).
41. COORDINATION
Interdependence: The degree of coordination
between tasks depends on their interdependence.
Departments depend on each other for information
and resources, for example, sales and production
are interdependent because sales provide
production with information about how much to
produce to satisfy customer needs.
The greater the interdependence between
departments, the greater the coordination required.
42. COORDINATION
3 major forms of interdependence has been identified
Pooled interdependence: here, the units operate with
little interaction; the outputs of the units are pooled at
organisational level.
Sequential interdependence: the output of one unit
becomes the input of the next unit. The second unit is
directly dependent upon the first unit to finish its work
before it can begin its assigned task
Reciprocal interdependence: this refers to a situation in
which outputs of one work unit become the inputs for the
second work unit, and vice versa.
43. Types of coordination
There are four basic types of coordination
Informal coordination: includes spontaneous
gestures that keep an organisation’s social
processes going, but are not directly part of task
performance. This is helpful in all instances of
interdependence.
Programmed coordination: as organisations grow
larger, they become more programmed. It involves
establishing routines. Programmed coordination is
particularly useful in cases of pooled or sequential
interdependence.
44. Types of coordination
Liaison coordination: found in large organisation
where coordination problems between units are
common. Separate liaison positions are established
for resolving disputes. The individual in a liaison
position coordinates two or more interdependent
units by acting as a common point of contact.
Group coordination: this occurs when work group
representatives meet formally. Committees are the
best known means for this purpose. This is especially
useful in situations of sequential and reciprocal
interdependence.
45. AUTHORITY
Authority is the right to command or to give
orders.
It includes the right to take action to compel
the performance of duties and to punish default
or negligence.
Authority resides in positions, rather than in
people-managers acquire authority by means of
their hierarchical positions in the organisation,
rather than their personal characteristics.
When a manager steps down from his or her
positions, that authority is relinquished.
46. AUTHORITY
Responsibility is a particular obligation or
commitment on the part of a manager to achieve
organisational objectives. When strategic, tactical and
operational objectives are set, the managers
responsible for achieving them should be clearly
identified.
Accountability is the evaluation of how well
individuals meet their responsibility. Managers are
responsible for goal attainment in their departments.
They should delegate responsibility and authority to
perform tasks. But the manager will be accountable
for everything that happens in that department.
47. Types of authority
Line authority: line authority is the responsibility
to make decisions and issue orders down the chain
of command.
Staff authority: this is the responsibility to advise
and assist other personnel.
Concurring authority: another kind of staff
authority linked to a staff position. Here a line and
staff manager must agree on a certain plan of
action.
48. POWER
Power is the ability to influence the behaviour of
others within an organisation.
Both managers and leaders possess power as a
result of being in a position of authority over
others.
However, some people also possess a personal
charisma which gives them power over others.
A person with both positional authority and
personal power is more likely to accomplish
organisational objectives successfully than an
individual with less personal power.
49. Various sources of power
Legitimate power: this refers to the authority that
the organisation grants to a particular position. For
example, a manager has the right to compel
subordinates to perform their duties and to dismiss
them if they do not.
Power of reward: this is the power to give or
withhold rewards e.g. raises in salary, bonuses,
recognition or interesting assignments. The
greater the number of rewards conferred by a
manager and the more important these rewards are
to his or her subordinates, the greater the reward
power will be.
50. Various sources of power
Coercive power: the power to enforce compliance
through fear, either psychological or physical.
Physical violence is not accepted in contemporary
organisations, but psychological or emotional fear
of dismissal, or social exclusion from a group,
This is a kind of power that managers can use to
bring pressure to bear on subordinates.
51. Various sources of power
Referent power: this refers to personal power
and is a somewhat abstract concept. In this
situation, subordinates follow their leader
simply because they like him, respect him or
identify with him.
In other words, the leaders’ personal
characteristics make him important.
52. Various sources of power
Expert power: this is power based on knowledge
and expertise and a leader who possesses it has
special power over those who need this
knowledge or information.
The more important the information and the fewer
the people who possesses it, the greater the power
of the person who commands it.
53. Power
Managers and subordinates can possess and use
power. Both should use their own power
judiciously and only to the extent necessary to
realise their objectives. An effective manager uses
power in a way that maintains a healthy balance
between his or her own power and that of
subordinates.
54. DELEGATION
Delegation is the process through which a manager
assigns a portion of his or her total workload to
others.
It is the act of assigning formal authority and
responsibility for completion of specific activities
to a subordinate.
In this process, authority is also passed on to an
employee, who in fact then has authority to deploy
the necessary resources in order to complete the
task.
55. DELEGATION
The main reason why managers delegate is to get
more work done.
Another important reason is that a subordinate and
not the manager, often has the specialised
knowledge required for a particular job.
Thirdly, delegation is useful in training personnel;
by participating in decision making and problem
solving, employees also improve their managerial
skills.
56. DELEGATION
The extent to which managers delegate authority and
accountability is influenced by such factors as the
culture of the organisation, the specific situation
involved, and the relationships, personalities, and
capabilities of the people in that situation.
Delegation of responsibility does not mean
abdication of responsibility by the delegating
manager. Responsibility is not like an object that can
be passed from individual to individual.
Responsibility always remains with the delegating
manager.
57. Principles to improve delegation
Some of the principles which can be used as
guidelines to help one be more effective at
delegation are listed below:
Set standards and objectives
Ensure clarity of authority and responsibility
Involve subordinates
Provide performance training
Apply adequate control measures
58. Advantages of delegation
Managers who train their staff to accept more
responsibility are in a good position to accept more
authority and responsibility from higher levels of
management.
Delegation encourages employees to exercise
judgement and accept accountability. This improves
self-confidence and willingness to take initiative and
is a great training method.
Delegation leads to quicker decision making. If
subordinates have the necessary authority, they do not
have to refer to top management before taking certain
decisions.
59. The delegation process
Decide on the tasks to be delegated
Decide who should perform the tasks
Provide sufficient resources for carrying out the
delegated task
Delegate the assignment
Be prepared to step in, if necessary
Establish a feedback system
60. DECENTRALISATION
Decentralisation is the delegation of power and
authority from higher to lower levels of the
organisation, often accomplished by the creation
of small, self-contained organisational units.
Centralisation is the extent to which authority is
concentrated at the top of the organisation.
The major difference between centralised and
decentralised authority is who makes the
important decisions in an organisation..
61. DECENTRALISATION
Decentralisation has become very popular as a
method of empowering employees. By
decentralising power and authority, a more
democratic organisation is created where
managers at the lower levels can decide on issues
such as allocation of resources in their
departments, differentiated salaries for
employees, and so on.
62. DECENTRALISATION
In deciding whether to centralise or
decentralise authority, the following should be
considered:
The external environment
The history of the organisation
The nature of the decision
The strategy of the organisation
Skills of lower level managers
The size and growth rate of the organisation
63. Advantages of decentralisation
Reduced workload for top management
Improved decision making
Improved training, morale and initiative at the
lower level of management
Decentralisation of decision making is more
flexible and faster.
Fosters a competitive climate
64. Disadvantages of decentralisation
Defeats integration
Potential loss of control
Danger of duplication
More expensive and intensive training required
Demands sophisticated planning and reporting
methods.
65. MANAGING ORGANISATIONAL CHANGE
The business environments are continually
exposed to change. Technological, economic,
political and other changes have an influence on
organisations worldwide.
Organisational change can be defined as a
process in which an organisation takes on new
ideas to become different. The necessity for
changes may be brought about by factors in the
external environment of the business or within
the business itself.
66. MANAGING ORGANISATIONAL CHANGE
Routine changes are minor changes and do not
affect the organisation as a whole. For example,
the HR department may initiate certain training
programmes.
These changes are also called reactive changes
because they are a response to problems as they
develop.
67. MANAGING ORGANISATIONAL CHANGE
Planned change involves the entire organisation
or a major part of it, to adapt to significant
changes in the organisation’s goals or direction, in
reaction to expected change in the external
environment, and so on.
Planned change is designed and implemented in
an orderly and timely fashion in anticipation of
future events unlike reactive changes that are
mostly done in haste and are poorly planned and
executed.
68. Forces of Change
Forces of change exist both within the
organisation and in its external environment
Internal forces : organisation structure ,
organisational goals. Change in the organisation’s
goals or objectives are likely to result in
organisational change.
External forces: International element, political
element, technology and others affect the
organisations either positively or negatively.
Competitors, suppliers, customers and pressure
groups may force the organisation to change.
69. Types of Change
It should be noted that when a change is made in
one area, that change will generally also bring
about change in another area. For example, a
change in technology may require hiring new
people who understand the new technology and
/or training existing personnel. The four main
types of change are discussed below:
Change in strategy
Change in structure
Change in technology
Change in people
70. Change as a process:
Change is a process which has four distinct steps.
The steps are as follows:
Denial: employees often ignore the facts or
pretend that the change will not affect them
personally during periods of change.
Resistance: employees often resist change once
they realise that changes are taking place and
they have digested the facts. This is quite natural
for human beings and this often influences the
effectiveness of change in organisations.
71. Change as a process
Exploration: employees are exposed to new
information and training once change has been
implemented.
Commitment: exploration leads to some level
of commitment from employees. It may be low
at first and increase as the process continues, or
it may start off and continue to be low or high. It
may also start high and decrease during the
process.
72. Resistance to Change:
In planning for change, management should
always take resistance to change into account.
This can be done by understanding the reasons
why people resist change. The reasons are
depicted below:
Threatened self interest
Lack of trust and misunderstanding
Different assessment and perceptions
Low tolerance for change
73. Resistance to Change
General reasons: there are also general reasons
why people resist change:
Inertia: people do not want to change the
status quo-the old way of doing things.
Timing: change might be resisted because of
poor timing.
Surprise: people do not react favourably to
surprises. If the change is unexpected or
sudden, resistance may almost be a reflex
action.
Peer pressure: work groups sometimes resist
change because of anti-management attitudes.
74. Overcoming Change Resistance
The methods useful in decreasing resistance to
change are:
Education and communication - employees
should be educated about the change before
they occur.
Participation and involvement - gives
employees a chance to express their fears about
proposed changes
Facilitation and support - providing the
necessary resources employees need to carry
out the change and properly perform their jobs.
75. Overcoming Change Resistance
Negotiation and rewards - usually involves
giving something to the other party to reduce
resistance.
Coercion and manipulation - in using
coercion, the manager engages in threatening
behaviour.
76. MANAGING ORGANISATIONAL CONFLICT
Conflict refers to perceived incompatibilities
resulting typically from some form of interference
or opposition.
Conflict management is the employment of
strategies to correct these perceived differences in
a positive manner.
conflict may actually be either functional
(encourage greater work effort and help task
performance) or dysfunctional (destructive and
leads to decreased productivity).
77. Organizational conflict
Organizational conflict is a state of discord
caused by the actual or perceived opposition of
needs, values and interests between people
working together. Conflict takes many forms in
organizations.
There is the inevitable clash between formal
authority and power and those individuals and
groups affected.
78. Organizational conflict
Conflict should be distinguished from disputes.
Disputes are merely a by-product of conflict.
They are the outward articulation of conflict.
Typical disputes come in the form of formal court
cases, grievances, arguments, threats and counter
threats etc.
Conflict can exist without disputes, but disputes
do not exist without conflict. Much conflict exists
in every workplace without turning into disputes.
79. Sources of Conflict
The first step in uncovering workplace conflict is
to consider the typical sources of conflict.
There are a variety of sources of workplace
conflict including interpersonal, organizational,
change related, and external factors.
Scarce Resources
Jurisdictional Ambiguities
Personality Clashes
Power and Status Differences
Goal Differences
80. Sources of Conflict
Communication Breakdown
Task Interdependencies
Differences in Background/Gender
Differences in Style
Differences in Leadership
Status inconsistencies:
Trends/Change
External Factors
81. Types of Conflict
Interpersonal conflict: Interpersonal conflict
occurs when two people have incompatible
needs, goals, or approaches in their relationship.
Role conflict: this involves very real differences
in role definitions, expectations or
responsibilities between individuals who are
interdependent in a social system.
Intergroup conflict: this occurs between
collections of people such as ethnic or racial
groups, departments or levels of decision making
in the same organization, and union and
82. Types of Conflict
Intra group conflicts: Conflicts between people
in work groups, committees, task forces, and
other organizational forms of face-to-face groups
are inevitable.
Inter organisation Conflict occurs in societies
when different interest groups and organizations
have varying priorities over resource management
and policy development.
International conflict occurs between states at
the global level.
83. Pondy’s model of organisational conflict
Pondy’s model shows conflict as a process of five
sequential stages. i.e.
latent conflict,
perceived conflict,
felt conflict,
manifest conflict, and
conflict aftermath.
According to Pondy, all conflict arises because
differentiation leads to the establishment of
subunits that have different goals and perceptions
84. Pondy’s model of organisational conflict
Stage 1: Latent conflict –no outright conflict
exists, but there is a potential for conflict because
of several factors.–
Sources of Latent conflict:
Interdependence
Differences in goals and priorities
Bureaucratic factors
Incompatible performance criteria
Competition for resources
85. Pondy’s model of organisational conflict
Stage 2: Perceived conflict — subunits become
aware of conflict and begin to analyze it. When a
subunit perceives its goals to be obstructed,
conflict enters the second stage.
Each group seeks the source of the conflict and
finds reasons for problems. Marketing blames
poor sales on poor manufacturing quality.
Manufacturing says that marketing is not
advertising effectively. Conflict escalates as
subunits fight over the origin of the problem
86. Pondy’s model of organisational conflict
Stage 3: Felt conflict— subunits respond
emotionally to each other, and attitudes polarize.
Subunits develop polarized attitudes of us-versus-
them.
Cooperation between subunits declines as well as
organizational effectiveness. Conflict escalates as
subunits argue, and small problems escalate to
huge, difficult-to-manage conflicts.
87. Pondy’s model of organisational conflict
Manifest Conflict—subunits try to get back at each
other. Subunits deliberately impede other subunits.
People aggressively promote their own interests at
the expense of others. Fighting and open
aggression are common, and organizational
effectiveness suffers.
Once conflict is manifest, coordination
between managers and subunits deteriorates,
resulting in a decline in effectiveness. Managers
should prevent conflict from reaching the
manifest stage to avoid a communication
breakdown and a poor conflict aftermath.
88. Pondy’s model of organisational conflict
Conflict aftermath—conflict is resolved in a way
that leaves subunits feeling combative or
cooperative. Every conflict has a conflict
aftermath that influences conflict resolution in the
future. If resolved before the manifest stage,
conflict will result in a positive aftermath. If
conflict resolution takes a long time or doesn’t
occur, future relationships and the culture will be
damaged.
90. Conflict Reducing Methods
Counselling: When it seems that personal
conflicts may lead to frustration and loss of
efficiency, counselling may prove to be a helpful
antidote.
Mediation: The mediator plays an active part in
the process, advises both or all groups, acts as
intermediary and suggests possible solutions.
Collective bargaining: Especially in workplace
situations, it is necessary to have agreed
mechanisms in place for groups of people who
may be antagonistic (e.g. management and
workers) to collectively discuss and resolve issues.
91. Conflict Reducing Methods
Negotiation: this is the process where mandated
representatives of groups in a conflict situation
meet together in order to resolve their differences
and to reach agreement.
Arbitration: means the appointment of an
independent person to act as an adjudicator (or
judge) in a dispute, to decide on the terms of a
settlement.
92. Conflict Stimulation
Conflict stimulation is the practice of
encouraging conflict to motivate employees to
change when necessary.
Conflict stimulation helps to keep a company or
team from stagnating.
Conflict improves group and organizational
effectiveness.
The stimulation of conflict initiates the search for
new means and goals and provides the stimulus
for innovation.
93. Conflict Stimulation
Functional conflict is a means by which to
bring about radical change.
It's an effective device by which management
can drastically change the existing power
structure, current interaction patterns, and
entrenched attitudes.
Functional conflicts facilitate group
cohesiveness. For example, a functional Inter
group conflicts raise the extent to which
members identify with their own group and
increase feelings of solidarity.
94. Conflict Stimulation
However, just because conflicts exist there is no
reason to deify them.
All conflicts in the long run are dysfunctional,
and it is one of management's major
responsibilities to keep conflict intensity as low
as humanly possible.
The negatives consequences from conflict can be
devastating.
95. Conclusion:
Conflict is an inevitable fact of human existence.
If we work to understand and manage it
effectively, we can improve both the satisfaction
and productivity of our social relationship
