Copy of Organizing

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ORGANIZATION


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In order to attain specific goals organization

structure is deliberately created which convertsresources into a productive enterprise.

Organizational structure usually takes the shapeof a pyramid, and once established it acts as a

framework that can either constrain or facilitatemanagerial actions.

In an organization, the structural relationshipsare shown through a chart.

Organizational structure may be horizontal orvertical. The horizontal aspect showsdepartmentalization, and vertical aspect showsheirarchy of superiors and subordinates.


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DEFINITION

Amitai Etizoni:

An organization is a social unit or human grouping

deliberately structured for the purpose ofattaining specific goals.

Organization is used both as a :

process

structure


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CHARACTERISTICS:

Mutually agreed goal/goals.

A clear concept of duties or activities required to

achieve the purpose.

Classification of activities into jobs.

Establishment of relationships between these

jobs.


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Organization As A Structure - Implies 4 Elements:

Intentionally created

Provides FrameworkUse of Chart

Provides Formal Picture


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Span of Control

Span of control is the term for the number of subordinateemployees directly accountable to a manager. The larger thenumber of employees a manager controls the wider is his spanof control.

Narrow spanThe manager controls six or fewer employees. There is close

supervision of the employees, tight control and fastcommunication. However, the supervision can be too close, thenarrow span means that there are many levels of management,resulting in a possibly excessive distance between the top andthe bottom of an organization..


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Wide span

The manager controls more than six employees.

Managers are forced to delegate work, and tasks

may be less closely supervised. There arepossible problems with the overloading of work

and with loss of control. However, there are

fewer levels of management.


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TYPES

OF

ORGANIZATION


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1. Line Organisation. This is the oldestas well as the most common type of organization. It

is still used by many concerns especially the small

ones. It is also known as the MilitarySystem asthis type of organization is usually found in the

army. The characteristic feature of this type is that

line of authority flows vertically from the top most

executive to the lowest subordinate throughout the

entire organizational structure. The authority isgreatest at the top and reduces through each

successive level down the organizational scale.


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2. Functional Organisation. In this type oforganization, all works of the same type are grouped

together and brought under one department managed by

an executive who is an expert. Thus there are separate

functional departments, for the major functions of the

business viz., engineering or production, purchase, sales,

finance personnel etc. Each department performs itsspecialized function for the entire organization. For

example, the purchase department deals with purchases

on behalf of the entire organization, and so on. Now-a-

days almost all business concerns usually follow somesort of functional plan to carry out the primary functions

of business. However, it is the rare to find a pure

functional organization.


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FUNCTIONAL CHART


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3. Line and Staff Organization. In order to avoid the defectsof the line and functional types of organization, too muchconcentration of control in the former and too much division of the

same in the latter, the line and staff organization was evolved. Itseeks to strike a balance between the first two types. Under this type,the organizational structure is basically that of the line organization,

but Staff, officers or functional experts are engaged to advise theline officers in the performance of their duties. 'Staff' meanssomething to lean on, and this is precisely the function of the staffofficers. Line officers are the executives, and the staff officers are

their advisers. Being a mixture of the Line and Functionalorganizations, it has the advantages of both and is admirably suitedfor large concerns. A large-size business concern, with itsmultifarious functions of complicated nature needs an organizationwhere there will be an unbroken line of authority and responsibilityso that responsibility can be fixed, discipline can be maintained anddecision-making and execution can be prompt. At the same time, itrequires that a high degree of specialization and co-ordination offunctions are achieved without which efficiency is bound to suffer.The Line and Staff organization caters to both these needs. The Lineofficers make the decisions and issue instructions to subordinates,the staff officers have no authority to issue instructions. But in theirdecision-making function, the Line officers receive advise and

guidance form the Staff Officers.


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LINEAND STAFF CHART

MANAGING DIRECTOR

Production Manager Marketing Manager Finance Manager

Plant Supervisor Market Supervisor Chief Assisstant

Foreman Salesman Accountant


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4. Committee Organization. A committee means abody of persons entrusted with discharging some

assigned functions collectively as a group. Committeesmay be permanent (standing) or termporary (adhoc)bodies. Committee are found to exist in different areasand levels of an organizational structure, in both businessand non-business institutions. Because of its advantages,

the committees form of organization is very oftenpreferred by different concerns. However, a committeeorganization is rarely found in its pure form, and it isusually found in addition to a line and staff organization.The example of a group executive is the board of a

business company where the various committees ofdirectors (both standing and adhoc) as well as othercommittees at lower levels of organization are staff oradvisory committees.


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Divisional Structure:

These types of organizations divide the functionalareas of the organization to divisions. Each divisionis equipped with its own resources in order tofunction independently. There can be many bases todefine divisions.

Divisions can be defined based on the geographicalbasis, products / services basis, or any othermeasurement.

As an example, take a company such as General

Electrics. It can have microwave division, turbinedivision, etc., and these divisions have their ownmarketing teams, finance teams etc. In that sense,each division can be considered as a micro-companywith the main organization.


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DIVISIONAL CHART


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Matrix Structure:

When it comes to matrix structure, the organization placesthe employees based on the function and the product.

The matrix structure gives the best of the both worlds of

functional and divisional structures.

In this type of an organization, the company uses teams tocomplete tasks. The teams are formed based on the

functions they belong to (ex: software engineers) and

product they involved in (ex: Project A).

This way, there are many teams in this organization suchas software engineers of project A, software engineers of

project B, QA engineers of project A, etc.


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MATRIX CHART


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DELEGATIONOF AUTHORITY


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DELEGATIONOF AUTHORITY

Authority is essential to be able to discharge

various managerial functions. It is the formal

right of the superior to command and compel his

subordinates to perform a certain act.The management must know as to what

responsibility it has to share and what authority

it can exercise.

Delegation refers to the assignment of work to

others and confer them the requisite authority to

accomplish the job assigned.


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DEFINITION:

F.G.Moore:

Delegation refers to the assignment of work toothers and confer them the requisite authority toaccomplish the job assigned.

Louis A. Allen:

If the manager requires his subordinate to

perform the work, he must entrust him with partof the rights and powers which he otherwisewould have to exercise himself to get that workdone.


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TYPESOF DELEGATION

General and Specific Delegation:

In general, the authority is given to perform the

general managerial functions like- planning,

organizing, directing, etc. to the subordinatemanagers.

Specific delegation refers to a particular

function or an assigned task. Various

departmental managers get specific authority

to undertake their departmental duties.


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Formal or Informal Delegation:

Formal delegation has been considered as a part of

organizational structure. Eg- when production

manager gets power to increase production then it

is formal delegation of authority.

Informal delegation arises only according to

circumstances.


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Written or Unwritten Delegation:

Written delegation are normally given through letters,

instructions, circulars, etc.

Unwritten delegation is given to the personconcerned not in any particular way but through

conventions, customs and usages.


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Downward or Upward Delegation:

Downward Delegation is a common type of

delegation and has been considered as thesuperiors delegation of authority to his

subordinates.

Upward Delegation is very rare, where the

subordinate assigns a task to his superior.


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ADVANTAGESOF DELEGATION

1. It relieves the manager of heavy workload: andenables the manager to concentrate on higherfunctions of management. Eg. It would be a wasteof time if the companys president look into the

time-cards of lower-level employees instead of thegroup goals. This could be delegated to a lowerlevel supervisors in the organization.

2. It Leads to Better Decision: since subordinates

closest to the scenes of action usually have thebest views of the facts. Eg.- the national salesmanager based in Delhi, the south zone salesmanager will be in the best position to allocate thesales territories among the salesmen in that zone.


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3. It Speeds up Decision Making : Effective delegationspeeds up decision-making. This delay in decision-

making is eliminated when subordinates are

authorized to make the necessary decision on the

spot.

4. It helps Train Subordinates.: Effective delegation

causes subordinates to accept responsibility and

exercise judgement. This not only helps trainsubordinates but also improves their confidence.


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BARRIERSTO EFFECTIVE DELEGATION

On the managers side, the reluctance to delegate

may be:

1. Fear of Loss of Power: Some managers feel

uncomfortable when they see theirsubordinates making decisions which they

themselves once made.

2. The I can do it bettermyself Fallacy: Some

managers have an inflated sense of their own

worth and so want to perform all jobs by

themselves which comes their way.


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3. Lack of confidence on subordinates: Some managershesitate to delegate authority to their subordinates

because they doubt their ability. As a result they are

always involved in the jobs which they have delegated

to their subordinates.

4. Fear of Being Exposed: Some inefficient managers

are always afraid of their subordinates outshining

them and proving more efficient. They are cautious ofdelegating as their inefficiency might get exposed.


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5. Inability to Establish and Exercise Proper Controls:

Since the authority is delegated and not theresponsibility, all managers want to assure themselves

about the proper use of delegated authority by their

subordinates. They are reluctant to delegate authority

if they are unable to keep a tab on whatever theirsubordinates do.


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On the subordinates side, the reluctance to accept

delegation may be because of:

They fear of criticism by their superior in case the

mistakes in decision-making.

They feel they lack adequate information and

resources to help them discharge their duties

properly.

They may lack self-confidence and initiative.


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