CHAPTER 5CHAPTER 5ORGANISINGORGANISINGCHAPTER 5CHAPTER 5

ORGANISINGORGANISING

Meaning and steps• Meaning: It is a process of

grouping activities and establishing authority relationships among them.

• Steps:– identification and division of work– Departmentalization– Assignment of duties– Establishing reporting relationships

Importance of organising

• Division of work• Clarity in reporting

relationships• Optimum utilization of

resources• Growth• Better administration• Greater creativity

Organisation structure

• It is a framework within which managerial and operating tasks are performed. It can be of two types –functional and divisional.

• Span of management: It is a number of subordinates under a superior. It can be wide span and narrow span.

Functional structure

Managing director

Human resources Marketing

Purchasing

Divisional structure

Managing director

Cosmetics Garments Footware

Marketing Human resources Purchasing

Formal organisation• It is the structure

which is designed by the management to accomplish a particular task.

Informal organisation• It is a network of

social relations among employees in a organisation.

• Ex:friendship in the organisation.

• It has got no written rules

Characters tics

• Based on formal organisation• It has no written rules and

procedures.• Independent channels of

communication• Not deliberately created• It lacks stability

Advantages• Effective communication• Fulfills social needs• Fulfills organizational objectives• LIMITATIONS• it creates rum ours• It resists changes• Pressure of group norms

DELEGATION

Meaning• It is assigning the work to others

and giving them authority to do it.• It is the process of entrusting

responsibility and authority and creating accountability of the person to whom work or responsibility has been handed over.

Process of delegation• 1.Assigning responsibility Divides the while work Routine jobs are delegated

and crucial jobs are done by the managers

• 2.Granting of authority: Responsibility without authority is

meaningless. Parity of authority and responsibility is required.Thus

all needed authority should be delegated for the fulfillment of a

responsibility

• 3.Fixing responsibility: this means to hold subordinates responsible for their work performance.Every subordinate is just accountable to that officer who delegates authority for the fulfillment of jobs.

Importance of delegation

• Effective management• Employees development• Motivation of employees• Facilitation of growth• Basis of management hierarchy• Better co-ordination