Jaydeep SirL

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ANJUMAN-I-ISLAMS

ALLANA INSTITUTE OFMANAGEMENT STUDIES

SUBJECT: PERSPECTIVE MANAGMENT

TOPIC: ORGANIZING MANAGMENT

SUBMITTED TO: Mr.JAYADEEP MANJESHWAR

SUBMITED BY: NILESH PATANKAR (41)

KHAWAJA URESHI (!")

NAVED ANSARI (!)

ABDULLAH MIRZA (!!)

IR#AN MOHAMMED (!4)

MOHD AZHAR PATTALBAB (!$)


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2

ACADEMIC YEAR: %&1$'%&1"


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ACKNOWLEDGMENT

We would like to opportunity to acknowledge the support and guidance of our guide,

Mr.Jayadeep Manjeshwar towards the success of report. Without his knowledge and acumen the

efficiency of the report would have been very low. urthermore this report is made from the

utmost sincerity and dedication of this group and any problem as such from it would be handled

by the same.

We are grateful to !r."ukman #atel $!irector of the %&%&M'( for his guidance and providing

necessary facilities. We would like to e)press our deep gratitude towards our teaching and non

teaching staff for giving their valuable suggestion and co operation for doing our report and

presentation.

inally we are very much indebted to our parents for their moral support. We would like to

thank all our friends for their help and constructive criticism during our project.


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ABSTRACT

&n our work we will try to show, according to recent and by scientific publicity accepted

attitudes, organi*ing management re+uired in corporate sector with their description, principle,

characteristics, advantages as well as to try to identify the cases in which some of them could beapplied. &n this sense we will analy*e the functional organi*ational type, where the project is a

part of organi*ation management in company.

%ccording to the fact that each one of the models mentioned in a report has its own advantages,

importance its own principle, in this work we will try to present the procedure for choosing

which model will be the most appropriate for implementation in various departments in

organi*ation.


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TABLE OF CONTENTS

Conte Page No.

Acknowledgment 2

Abstract 3

Chapter 1 !ntrod"ct#on

Organ#$#ng

%

Chapter 2 L#terat"re reew 'Chapter 3 !nd"str( o&erew 12

Case st"d( 1)

*e+erences 1'

,


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-

C*+,r 1

Or-/0/- ))-,,+

I+r235+/2

Or-/0/- is the function of management which follows planning. &t is a function in which

the synchroni*ation and combination of human, physical and financial resources takes place. %ll

the three resources are important to get results. herefore, organi*ational function helps in

achievement of results which in fact is important for the functioning of a concern. %ccording

to Chester Barnard, /0rgani*ing is a function by which the concern is able to define the role

positions, the jobs related and the coordination between authority and responsibility. ence, a

manager always has to organi*e in order to get results.

I*2r+5, 26 2r-/0/- -,,+

1. S*,5/7/0+/2 ' 0rgani*ational structure is a network of relationships in which the work

is divided into units and departments. his division of work is helping in bringing

speciali*ation in various activities of concern.

2. W,77 3,6/,3 829 ' 0rgani*ational structure helps in putting right men on right job

which can be done by selecting people for various departments according to their

+ualifications, skill and e)perience. his is helping in defining the jobs properly which

clarifies the role of every person.

3. C7r/6/, +2r/+; ' 0rgani*ational structure helps in clarifying the role positions to

every manager $status +uo(. his can be done by clarifying the powers to every manager

and the way he has to e)ercise those powers should be clarified so that misuse of powers

does not take place. Well defined jobs and responsibilities attached helps in bringing

efficiency into managers working. his helps in increasing productivity.

4. C2'2r3/+/2 ' 0rgani*ation is a means of creating coordination among different

departments of the enterprise. &t creates clear cut relationships among positions and

ensure mutual cooperation among individuals. armony of work is brought by higher

level managers e)ercising their authority over interconnected activities of lower level

manager.

%uthority responsibility relationships can be fruitful only when there is a formalrelationship between the two. or smooth running of an organi*ation, the coordination

between authority responsibilities is very important. here should be coordination

between different relationships. 5larity should be made for having an ultimate

responsibility attached to every authority. here is a saying, /%uthority without

responsibility leads to ineffective behavior.


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-. Gr2


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have to report. % clear organi*ational structure is drawn and all the employees are made

aware of it.

Pr/5/*7, 26 2r-/0/- -,,+

he organi*ing process can be done efficiently if the managers have certain guidelines so thatthey can take decisions and can act. o organi*e in an effective manner, the following principles

of organi*ation can be used by a manager.

1. Pr/5/*7, 26 S*,5/7/0+/2

%ccording to the principle, the whole work of a concern should be divided amongst the

subordinates on the basis of +ualifications, abilities and skills. &t is through division of

work speciali*ation can be achieved which results in effective organi*ation.

%. Pr/5/*7, 26 #5+/27 D,6//+/2

%ccording to this principle, all the functions in a concern should be completely and

clearly defined to the managers and subordinates. his can be done by clearly defining

the duties, responsibilities, authority and relationships of people towards each other.

5larifications in authorityresponsibility relationships help in achieving coordination and

thereby organi*ation can take place effectively. or e)ample, the primary functions of

production, marketing and finance and the authority responsibility relationships in these

departments should be clearly defined to every person attached to that department.

5larification in the authorityresponsibility relationship helps in efficient organi*ation.

!. Pr/5/*7, 26 S* 26 C2+r27>S*,r=//2

%ccording to this principle, span of control is a span of supervision which depicts the

number of employees that can be handled and controlled effectively by a single manager.

%ccording to this principle, a manager should be able to handle what number of

employees under him should be decided. his decision can be taken by choosing either

from wide or narrow span. here are two types of span of control:

a. W/3, * 26 52+r27' &t is one in which a manager can supervise and controleffectively a large group of persons at one time. he features of this span are:

i. "ess overhead cost of supervision

ii. #rompt response from the employees

iii. =etter communication

iv. =etter supervision

v. =etter coordination.


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b. Nrr2< * 26 52+r27' %ccording to this span, the work and authority is

divided amongst many subordinates and a manager doesn>t supervises and control

a very big group of people under him. he manager according to a narrow span

supervises a selected number of employees at one time. he features are:

i. Work which re+uires tight control and supervision, for e)ample,

handicrafts, ivory work, etc. which re+uires craftsmanship, there narrow

span is more helpful.

ii. 5oordination is difficult to be achieved.

iii. 5ommunication gaps can come.

iv. Messages can be distorted.

v. 'peciali*ation work can be achieved.

#5+2r /67,5/- S* 26 C2+r27

3. M-,r/7 9/7/+/,' &n the concerns where managers are capable, +ualified ande)perienced, wide span of control is always helpful.

4. C2*,+,5, 26 92r3/+,' Where the subordinates are capable and

competent and their understanding levels are proper, the subordinates tend to very

fre+uently visit the superiors for solving their problems. &n such cases, the

manager can handle large number of employees. ence wide span is suitable.

-. N+r, 26


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#2r7 Or-/0+/2:

When the managers are carrying on organi*ing process then as a result of organi*ing process an

organi*ational structure is created to achieve systematic working and efficient utili*ation of

resources. his type of structure is known as formal organi*ational structure. ormal

organi*ational structure clearly spells out the job to be performed by each individual, the

authority, responsibility assigned to every individual, the superior subordinate relationship and

the designation of every individual in the organi*ation. his structure is created intentionally by

the managers for achievement of organi*ational goal.

#,+r, 26 #2r7 Or-/0+/2:

$1( he formal organi*ational structure is created intentionally by the process of organi*ing.

$2( he purpose of formal organi*ation structure is achievement of organi*ational goal.

$3( &n formal organi*ational structure each individual is assigned a specific job.

$4( &n formal organi*ation every individual is assigned a fi)ed authority or decisionmaking

power.

$-( ormal organi*ational structure results in creation of superiorsubordinate relations.

$8( ormal organi*ational structure creates a scalar chain of communication in the organi*ation.

A3=+-, 26 #2r7 Or-/0+/2:

1. S;+,+/5 W2r?/-:

ormal organi*ation structure results in systematic and smooth functioning of an organi*ation.

%. A5/,=,,+ 26 Or-/0+/27 O98,5+/=,:

ormal organi*ational structure is established to achieve organi*ational objectives.

!. N2 O=,r7**/- 26 W2r?:

&n formal organi*ation structure work is systematically divided among various departments and

employees. 'o there is no chance of duplication or overlapping of work.

4. C2'2r3/+/2: ormal organi*ational structure results in coordinating the activities of

various departments.


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D/3=+-, 26 #2r7 Or-/0+/2:

1. D,7; / A5+/2:

While following scalar chain and chain of command actions get delayed in formal structure.

%. I-2r, S25/7 N,,3 26 E*72;,,:

ormal organi*ational structure does not give importance to psychological and social need of

employees which may lead to demoni*ation of employees.

!. E*/ 2 W2r? O7;:

ormal organi*ational structure gives importance to work only? it ignores human relations,

creativity, talents, etc.

I62r7 Or-/0+/2:

&n the formal organi*ational structure individuals are assigned various job positions. While

working at those job positions, the individuals interact with each other and develop some social

and friendly groups in the organi*ation. his network of social and friendly groups forms another

structure in the organi*ation which is called informal organi*ational structure. he informal

organi*ational structure gets created automatically and the main purpose of such structure is

getting psychological satisfaction. he e)istence of informal structure depends upon the formal

structure because people working at different job positions interact with each other to form

informal structure and the job positions are created in formal structure. 'o, if there is no formal

structure, there will be no job position, there will be no people working at job positions and there

will be no informal structure.

#,+r, 26 I62r7 Or-/0+/2:

$1( &nformal organi*ational structure gets created automatically without any intended efforts of

managers.

$2( &nformal organi*ational structure is formed by the employees to get psychological

satisfaction.

$3( &nformal organi*ational structure does not follow any fi)ed path of flow of authority or

communication.


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A3=+-, 26 I62r7 Or-/0+/2:

1. #+ C2/5+/2:

&nformal structure does not follow scalar chain so there can be faster spread of communication.

%. #76/77 S25/7 N,,3:

&nformal communication gives due importance to psychological and social need of employees

which motivate the employees.

!. C2rr,5+ #,,395?:

hrough informal structure the top level managers can know the real feedback of employees on

various policies and plans.

'trategic @se of &nformal 0rgani*ation. &nformal organi*ation can be used to get benefits in the

formal organi*ation in the following way:

1. he knowledge of informal group can be used to gather support of employees and improve

their performance.

2. hrough grapevine important information can be transmitted +uickly.

3. =y cooperating with the informal groups the managers can skillfully take the advantage of

both formal and informal organi*ations.


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C*+,r %

L/+,r+r, r,=/,s "aw or the BCs interruption? and $4( avoid being a slave to the telephone. =y

managing time well, managers are better able to solve problems +uickly, make decisions, avoid

frustration, keep from getting bogged down in daytoday tasks, handle crises, work on their

goals and priorities, and manage stress.

S+r5+r,: C,+r7/0,3 =,r D,5,+r7/0,3 L/, =,r S+66

Working productively and developing feelings of cooperation and effectiveness are related to

having the right people doing the right jobs. 'tructure, then, can be defined as a system of

interrelated jobs, groups of jobs, and authority. here is no standard organi*ational structure, but

most organi*ations and agencies follow the E5hristmas reeE system with the star $e.g.,

president, minister( at the top, smaller branches at management levels, and bigger branches at the

production levels. 'ome would claim that the lower branches support the upper branches, but as

in the tree, the branches are supported by a single trunk, which can be thought of as the

organi*ational mission and objectives. 7ach part of the tree has its specific function. When allparts work together, the system survives, functions productively, has balance, and is a pleasure to

seeF here are four primary elements in designing an organi*ational structure:

1. Job specifications what each division


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2. !epartmentali*ation the grouping of jobs and responsibilities in common sectors with the

objective of achieving coordination

3. 'pan of control a definition of how many job roles should be in each unit and which roles

re+uire coordination by a unit manager

4. !elegation of authority assigning the right to make decisions without having to obtain

approval from a supervisor

he resulting organi*ational structure will vary according to these four elements. %n

organi*ation with decentrali*ed authority and very heterogeneous departments will appear very

different from one with centrali*ed authority and a very homogeneous product.

C/ 26 C23

0nce an organi*ation starts delegating authority, then there is automatically a chain of command,Ethe formal channel which specifies the authority, responsibility and communication

relationships from top to bottom in an organi*ationE $&vancevich, !onnelly, Dibson, 1ABC(.

hus authority flows from presidents to vicepresidents to divisional managers, from ministers to

deputies to directors, from principals to viceprincipals to deans, etc. &n comple) organi*ations,

there may be bridges from one level to another and there will be comple) procedures for

maintaining the chain of command. %dult and e)tension educators, if working for an

organi*ation or agency, will be part of a structure and part of the chain of command. 0ne cannot

often make major changes in these two elements? it is wise, however, to be very aware of the

organi*ational structure and chain of command if you wish to accomplish things efficiently.

5entrali*ed organi*ations are those in which the key authority and decisionmaking role is

focused on one or a very few individuals. Where authority is distributed among many managers,

then one can see a decentrali*ed structure. %s the organi*ation>s various roles become more

diverse in terms of programmed, product, or geographical location, one can see a more

decentrali*ed organi*ational structure with authority being delegated to those who are closest to

the action. 5entrali*ation refers to authority, whereas centrality refers to the pro)imity to the

organi*ation>s stated mandate and objectives. 0ne could have a very decentrali*ed organi*ation

with each unit being responsible for programmers, staffing, and budget, and yet be very close to

the main mission and objectives of the organi*ation.

%nother important point in terms of structure is the concept of line and staff functions. "ine

functions are those involved in creating, developing, and delivering a programme.


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C*+,r !

I3+r; 2=,r=/,s franchisees to give the bestproduct i.e. steel pipes for power project to their customers by coping up with e)ternal

challenges and representing a collaborative responsible culture. &n order to ensure consistent

+uality of the manufacturing product, the standards are uniform for all plants in &ndia.

hus a centrali*ed structure prevails in terms of training programs, supplies and operations. he

formal structure at #arveen industries pvt. "td. divides the organi*ation in the various

departments i.e. design, production, purchase, +uality, stores department and every individual


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knows his tasks well at which he needs to be speciali*ed. owever, these standard procedures do

not give rise to bureaucratic rigidity in the organi*ation? each employee is committed to achieve

their goals.

Or-/0+/2 ,3 / Pr=,, /3+r/, *=+.7+3.

1. #2r7 Or-/0+/2 ' his is one which refers to a structure of well defined jobs each

bearing a measure of authority and responsibility. &t is a conscious determination by

which people accomplish goals by adhering to the norms laid down by the structure. his

kind of organi*ation is an arbitrary set up in which each person is responsible for his

performance. ormal organi*ation has a formal set up to achieve pre determined goals.

L/, 2r-/0+/2 is the oldest and simplest method of administrative organi*ation.

%ccording to this type of organi*ation, the authority flows from top to bottom in a concern. he


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line of command is carried out from top to bottom. his is the reason for calling this organi*ation

as scalar organi*ation which means scalar chain of command is a part and parcel of this type of

administrative organi*ation. &n this type of organi*ation, the line of command flows on an even

basis without any gaps in communication and coordination taking place.

#,+r, 26 L/, Or-/0+/2

1. &t is the simplest form of organi*ation.

2. "ine of authority flows from top to bottom.

3. 'peciali*ed and supportive services do not take place in this organi*ation.

4. @nified control by the line officers can be maintained since they can independently take

decisions in their areas and spheres.

-. his kind of organi*ation always helps in bringing efficiency in communication and

bringing stability to a concern.

L/, 3 S+66 Or-/0+/2

"ine and staff organi*ation is a modification of line organi*ation and it is more comple) than line

organi*ation. %ccording to this administrative organi*ation, speciali*ed and supportive activities

are attached to the line of command by appointing staff supervisors and staff specialists who are

attached to the line authority. he power of command always remains with the line e)ecutives

and staff supervisors guide, advice and council the line e)ecutives. #ersonal 'ecretary to the

Managing !irector is a staff official.

#,+r, 26 L/, 3 S+66 Or-/0+/2

1. here are two types of staff :

a. 'taff %ssistants #.%. to Managing !irector, 'ecretary to Marketing Manager.

b. 'taff 'upervisor 0peration 5ontrol Manager, uality 5ontroller, #;0

2. "ine and 'taff 0rgani*ation is a compromise of line organi*ation. &t is more comple)

than line concern.

3. !ivision of work and speciali*ation takes place in line and staff organi*ation.

4. he whole organi*ation is divided into different functional areas.-. 7fficiency can be achieved through the features of speciali*ation.

8. here are two lines of authority which flow at one time in a concern :

a. "ine %uthority

b. 'taff %uthority

9. #ower of command remains with the line e)ecutive and staff serves only as counselors.


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#5+/27 2r-/0+/2 has been divided to put the specialists in the top position throughout

the enterprise. his is an organi*ation in which we can define as a system in which functional

department are created to deal with the problems of business at various levels. unctional

authority remains confined to functional guidance to different departments. his helps in

maintaining +uality and uniformity of performance of different functions throughout the

enterprise.

he concept of unctional organi*ation was suggested by .W. aylor who recommended the

appointment of specialists at important positions. or e)ample, the functional head and

Marketing !irector directs the subordinates throughout the organi*ation in his particular area.

his means that subordinates receives orders from several specialists, managers working above

them.

D,7,-+/2 26 A+2r/+; ' M,/- I*2r+5, 3 /+ Pr/5/*7,

E7,,+ 26 D,7,-+/2

1. A+2r/+; in conte)t of a business organi*ation, authority can be defined as the power

and right of a person to use and allocate the resources efficiently, to take decisions and to

give orders so as to achieve the organi*ational objectives. %uthority must be well

defined. %ll people who have the authority should know what is the scope of their

authority is and they shouldn6t misutili*e it. %uthority is the right to give commands,

orders and get the things done. he top level management has greatest authority.

%uthority always flows from top to bottom. &t e)plains how a superior gets work done

from his subordinate by clearly e)plaining what is e)pected of him and how he should goabout it. %uthority should be accompanied with an e+ual amount of responsibility.

!elegating the authority to someone else doesn6t imply escaping from accountability.

%ccountability still rest with the person having the utmost authority.

2. R,*2/9/7/+; is the duty of the person to complete the task assigned to him. % person

who is given the responsibility should ensure that he accomplishes the tasks assigned to

him. &f the tasks for which he was held responsible are not completed, then he should not

give e)planations or e)cuses. ;esponsibility without ade+uate authority leads to

discontent and dissatisfaction among the person. ;esponsibility flows from bottom to top.

he middle level and lower level management holds more responsibility. he person heldresponsible for a job is answerable for it. &f he performs the tasks assigned as e)pected,

he is bound for praises. While if he doesn6t accomplish tasks assigned as e)pected, then

also he is answerable for that.

3. A552+9/7/+; means giving e)planations for any variance in the actual performance

from the e)pectations set. %ccountability can not be delegated. or e)ample, if 6%6 is

given a task with sufficient authority, and 6%6 delegates this task to = and asks him to


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ensure that task is done well, responsibility rest with 6=6, but accountability still rest with

6%6. he top level management is most accountable. =eing accountable means being

innovative as the person will think beyond his scope of job. %ccountability, in short,

means being answerable for the end result. %ccountability can6t be escaped. &t arises from

responsibility.

#2r 5/,=/- 3,7,-+/2 -,r +2


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C,+r7/0+/2 3 D,5,+r7/0+/2

C,+r7/0+/2 is said to be a process where the concentration of decision making is in a few

hands. %ll the important decision and actions at the lower level, all subjects and actions at the

lower level are subject to the approval of top management. %ccording to %llen, /5entrali*ationH

is the systematic and consistent reservation of authority at central points in the organi*ation. heimplication of centrali*ation can be :

1. ;eservation of decision making power at top level.

2. ;eservation of operating authority with the middle level managers.

3. ;eservation of operation at lower level at the directions of the top level.

@nder centrali*ation, the important and key decisions are taken by the top management and the

other levels are into implementations as per the directions of top level. or e)ample, in a

business concern, the father son being the owners decide about the important matters and all

the rest of functions like product, finance, marketing, personnel, are carried out by thedepartment heads and they have to act as per instruction and orders of the two people. herefore

in this case, decision making power remain in the hands of father son.

0n the other hand, D,5,+r7/0+/2 is a systematic delegation of authority at all lev e ls of

man a g e mentand in all of the organi*ation. &n a decentrali*ation concern, authority in retained by

the top management for taking major decisions and framing policies concerning the whole

concern. ;est of the authority may be delegated to the middle level and lower level of

management.

he degree of 5,+r7/0+/2 3 3,5,+r7/0+/2 will depend upon the amount of authoritydelegated to the lowest level. %ccording to %llen, /!ecentrali*ation refers to the systematic

effort to delegate to the lowest level of authority e)cept that which can be controlled and

e)ercised at central points.

!ecentrali*ation is not the same as delegation. &n fact, decentrali*ation is all e)tension of

delegation. !ecentrali*ation pattern is wider is scope and the authorities are diffused to the

lowest most level of management. !elegation of authority is a complete process and takes place

from one person to another. While decentrali*ation is complete only when fullest possible

delegation has taken place. or e)ample, the general manager of a company is responsible for

receiving the leave application for the whole of the concern. he general manager delegates this

work to the personnel manager who is now responsible for receiving the leave applicants.
http://www.managementstudyguide.com/management_levels.htmhttp://www.managementstudyguide.com/management_levels.htmhttp://www.managementstudyguide.com/management_levels.htmhttp://www.managementstudyguide.com/management_levels.htmhttp://www.managementstudyguide.com/management_levels.htm


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C*+,r 4

C, S+3;: Pr25+,r G)97,

I+r235+/2

#rocter Damble $#D( is %merica6s leading manufacturer of household products $!egen,

2C12(. &t was instituted by William #rocter, an &rish candle manufacturer, who launched #rocter

Damble6s operations in 1B39 in 5incinnati, 0hio. he general emphasis of the firm is

innovation in product development. &t is the first manufacture to conduct direct sales in 1A1A and

is currently the largest product advertisers. &t has over 2-C brands of products in the world

market. he firm6s core values include leadership, people, ownership, integrity, trust, and

passion for winning. #rocter Damble has 24 products with more than K 1 billion dollars in net

sales. he purpose of this paper is to define and describe managerial functions and provides a

brief summary of the activities in reference to the four managerial functions at #rocter Damble.

Or-/0/- #5+/2

0rgani*ing is the process of establishing what tasks need to be done, persons responsible for

each task and the process of management and coordination of the tasks $"ewis, Doodman, anot

Mitchlitsch, 2CC9(. 0rgani*ing links organi*ational mission and goals and objectives through

the development of the foundation $tasks and work relationships( and organi*ational design

$focus of decision making, organi*ation of members and integration system(. he work

relationships that e)ist between the various components of organi*ational function determined

how activities are coordinated and accomplished. he relationships are defined by the chain of

command, span of control, line and employee roles, and delegation.

0rgani*ational design is an important aspect of the organi*ing function. 0rgani*ational design is

a plan for the arrangement and coordination of activities for the purpose of reali*ing its mission

through achievement of goals and objectives. Deneral design of an organi*ation is determined by

three dimensions: organi*ational structure, integrating mechanism and locus of decision making.

unctional structure, divisional structure, matri) structure and network structure are the four

forms of structure.

PG Or-/0+/27 S+r5+r,#rocter Damble is international company with presence in several countries the overall

management is led by the 5hief 7)ecutive 0fficer with regional president representing each

region. he chart given below refers to the organi*ational structure of the @' unit of #rocter

Damble which is a matri) type of organi*ational structure $Mnt*berg, 2CC9(.


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R,6,r,5,:

L1 ;. =atra and 0. . %htola, management e)t 5ases, Nol. 2, pp. 1-A19C,1AAC.

L2%llen, "ouis, %., Management and 0rgani*ation, McDrawill, Gew Oork, 1ABC

L3#rasad, ".M. #rinciples and #ractice of management, 'ultan chand 'ons, Gew !elhi,1AAC

L4Ioont*, arold, and 5yril 0>!onnell. #rinciples of Management. McDrawill, 1AA-.

W,9/+, www .par v e e n .inP

h tt p: <

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