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By- Shubhi AgarwalAssistant professorGLA University, MathuraOrganizingORGANISING ORGANISING involves identification and grouping the activities to be performed and dividing them among the individuals and creating authority and responsibility relationships among them for the accomplishment of organizational objectives

Significance of organising It reduces the workload of superiors permitting them to concentrate on key areas.

It provides an opportunity to subordinate to grow and develop.

It results in prompt decision-making.

An effective organization integrats and co-ordinates the efforts of individuals and departments.

Increasing the efficiency by making the best possible use of resources.

Elements of organizingDepartmentation

Linking Departments

Defining Authority & responsibility

Prescribing Authority Relationships

DepartmentationThe process of grouping the activities known as departmentationDepartmentation means the process by which similar activities of the business are grouped into units for the purpose of facilitating smooth administration at all levelsAccording koontz & O,Donnell a departmentation is process of dividing the large functional organization into small & flexible & administrative unit.

Choosing basis for departmentation

SpecializationCoordinationControlEconomyRecognition of local conditionAdequate attentionHuman consideration

Types of departmentation/ways to structure the businessDepartmentation by product

Departmentation by function

Departmentation by region or territory

Departmentation by customer

Departmentation by process

1. Departmentation by ProductProduct structure based on organizing employees and work on the basis of the different types of products.

if a company produce three different types of products, they will have three different division for these products.

Each division has its own internal departments & operates like a mini business

Each product line has its own functional orgenisation with production ,sales ,R& D & accounting

Product departmentationCar Division Truck Division Bus divisionLong vehicleChief ExecutiveproductionMarketingfinanceHRAdvantagesClear focus on market segment helps meet customers needsPositive competition between divisionsBetter control as each division can act as separate profit centreImprove coordination of functional activities.Places responsibility for profit at division level.Places attention & effort on product line.

Disadvantages

Duplication of functions (e.g. different sales force for each division)Negative effects of competitionLack of central control over each separate division.Require more personal with general manager abilities .Trend to make maintained of economical central services difficult

2.Functional departmentation The grouping of common & homogeneous activities to form an organizational unit is known as functional orgenisationFunction are two types basic function & secondary function basic function can be divided into sub-function Each department have a head with the title departmental managerThe functional departmentation will include both line function as well as staff function ProductionMarketingAccountsPersonnelITManaging DirectorBoard of Director11AdvantagesSpecialisation each department focuses on its own workAccountability someone is responsible for the sectionClarity know your and others rolesSimplifies training

Disadvantages

Closed communication could lead to lack of focusDepartments can become resistant to changeReduce Coordination between function Gap between top and bottom

123.Territorial /geographical departmentationTerritorial Orgenisation is especially attractive to large scale firms or rather enterprises whose activities are physically or geographically dispersed.

All the activities of given area of operation are grouped into zone ,division ,branches

This structure is suitable for large scale orgenisation or whose activities are physically or geographically spread.

This structure is most often used in sales & in production Territorial /geographical departmentationEastern ZoneKolkataCentral ZoneKolhapurNorthern zoneDelhiSouthern zone ChennaiWestern zoneMumbaiHead OfficeMumbaijalandharchandigarhNew delhiajmerbranchbranchbranchbranchAdvantagePlace responsibility at lower levelPlace emphasis on local market & problemTake advantage of economic of local operationsBetter face to face communication with local interestImprove coordination in a regionServe local needs better DisadvantageRequire more person wit general manager abilities . increases problem of top management controlRequire good caliber managersIncrease problems of control

4. Departmentation by customerCustomer based departmentation is basically market oriented in which department are created around the market served or around marketing channel CUSTOMERS ARE THE KEY TO THE WAY ACTIVITIES ARE GROUPED

wholesaleRetailHire purchaseexport

Marketing Manager16Advantage It fulfills the expectation & needs of customerBetter service to customer Fully focus on customer DisadvantageTheir may be duplication of activitiesCo-ordination is difficultConflict

5. Departmentation by processWhen production activities involve the use of several distinctive process ,these can be used as the base for grouping of activitiesspinningdyeingWeaving Packaging Production ManagerAdvantageMachine can be used effectivelyEconomy in operation No duplication of activitiesPrinciple of specialization & division of labor is followed DisadvantagesHeavy cost of operation More specialist are essential

ORGANISATION structureOrganization structure determines how the roles, power and responsibilities are assigned , controlled, and coordinated, and howinformation flowsbetween the differentlevels of management.

Typicallyhierarchicalarrangementoflinesof authority,communications,rightsanddutiesof an organization.

Organizational structure is the pattern of relationship among various components or parts of the organization. Organization structure refers to the differentiation & integration of activities & authorities ,role & relationship in the organization

Factors affecting organization structureSize

Life cycle

Business strategy

Environment

Clear line of authority.Adequate delegation of authority.Application of ultimate responsibility.Minimum managerial levels.Unity of direction.Proper emphasis on staff activities.Simplicity.Flexibility.Features of good organization structureLine organization structurePure line organization structureDepartmental line organization structureLine & staff organization structureFunctional organization structureDivisional organization structureProject organization structureMatrix organization structure

Forms of organization structure

1.Line organization structure

Pure line organization structureSimilar activities are performed at a particular level Each group activities is self contained unit & able to perform the assigned activities without assistance of others Lines of authority & instruction are verticalThe unity of command is maintained in straight & unbroken lineAll person at the same level of organization are independent of each other

Foramen BForamen CProduction ManagerworkersworkersworkersworkersForamen AForamen DB. Departmental line organization structureEntire activities are divided into different department on the basis of similarity of activitiesAll department are controlled by departmental head Foramen ASpinningForamen BweavingForamen DfinishingProduction ManagerworkersworkersworkersworkersForamen CDyeingCharacteristics of line organization structure AdvantageSimplicityDisciplinePrompt decisionOrderly communicationEasy supervision & controlEconomicalDisadvantageLack of specialization Autocratic approachProblems of co-ordinationNot suitable for large scale organization

2.Line & staff organization structure

t structures refers to a pattern in which staff specialist advice managers to perform their dutiesGeneral ManagerSecretaryPublic relation Manager financeManager HRManager ProductionManager MarketingProduction engSales officerforemanSales supervisorworkersalesman

Advantage Planned specializationQuality decisionProspect for personnel growth Disadvantage lack of well defined authority Line & staff conflict

3.Functional organization structureFunction organization is created by grouping the activities on the basis of function required to achievement of organizational objectiveProductionMarketingAccountsPersonnelITManaging DirectorBoard of DirectorAdvantagesSpecialisation each department focuses on its own workAccountability someone is responsible for the sectionClarity know your and others rolesSimplifies training

Disadvantages

Closed communication could lead to lack of focusDepartments can become resistant to changeReduce Coordination between function Gap between top and bottom

4.Divisional organization structureOrganization is divided into several fairly autonomous unitsEach unit is relatively self contained in that it has the resource to operate independently It is dividing an organization in to smaller organization is not completely independentProduct divisionalisationTerritorial divisionalisation Advantages Division focuses its attention on a particular product or serviceHigher level of managerial motivation Each product or customer is able to get specialized service DisadvantagesExpensiveControl problemCo-ordination problem Managing DirectorCorporate planningLegal serviceR & D Finance Consumer product designChemicals divisionElectronics divisionMfgMktgPersonnel purchaseAccountingMfgMktgPersonnel purchaseAccountingMfgMktgPersonnel purchaseAccounting5.Project organisation structure General manager Project AQuality controlR& DadminschedulingProject BQuality controlR& Dadminscheduling6.MATRIX ORGANISATIONCOMMONLY CALLED THE GRID ORG.

Matrix orgenisation structure is the realization of two dimensional structure

Matrix structure applied when the orgenisation has large number of smaller projects so that when one project is completed it resources are directed to other project

Project manager is appointed to coordinate the activities of the

Personal are drawn from their respective functional departments

Employee should receive instruction from two boss

Application:-insurance & retailing , manufacturing electronics equipment ,industrial product

MANAGER Production MarketingFinance personnelPROJECT AprodMktg FinancepersPROJECT BprodMktg Finance

pers

PROJECT CprodMktg Finance

pers

PROJECT DprodMktg Finance

persDIRECTOR-ENGG. **Project authorityLine authorityAdvantageMatrix structure focuses resources on single project , permitting better planning & controlFlexible structure compared to traditional hierarchical structureIt improves motivation because people can focus more on completion of one project than they can in the traditional functional structureDisadvantagePeople have to work under multiple command Delay in decision making process

Centralization & decentralizationCentralization means concentration of authority decentralization means dispersion of authorityCentralization is the systematic & consistence reservation of authority at central point within an orgenisationPhysical or geographical decentralization refers dispersion of an orgenisation operations throughout the country.Factors deterring degree of decentralization Size of the organization Availability of managerControl techniqueRate of change in organizationEnvironmental influenceFacilitating personal leadershipProviding integrationUniformity of actionHandling emergenciesEffective control Benefits of decentralizationReducing burden of top executivesFacilitating diversificationMotivation to managersBetter coordination activity Benefits of centralization