Copy of Ppt Bhalla

8/8/2019 Copy of Ppt Bhalla

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FOUNDATION

Historically, humanity has always tried to organize itself. The

organizing of information can be seen since the time humans

began to write. Prior to that, history was passed down through

song and word. Be it with religion, books and spoken word,

science, through journals and studies, or in many other ways,

organizing not only is history, but also helps communicate history.

Writing ideas in a book, as opposed to verbally communicating

with someone, and more specifically cataloging ideas andthoughts, is also an attempt to organize information.


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INTRODUCTION

Organizing is very important managerial

function. If planning focuses on deciding what

to do, organizing focuses on how to do it .

Thus, after a manager has set goals and

worked out a plan to accomplish those goals,

the next managerial function is to organize

people and allocate resources to carry out theplan.


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DEFINITION

To organize a business is to provide it with everything

useful to its functioning raw material, tools, capital andpersonnel.

By Henri Fayol

Establishing the effective authority relationships among

selected works, persons and work-places in order for the

group to work together effectively.

By G. R. Terry


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Organization Structure

An organizational structure is a description of the types of coordination usedto organize the actions of individuals and departments that contribute to

achieving a common aim. Many organizations have hierarchical structures,but not all.

Organizations are a variant ofclustered entities. An organization can bestructured in many different ways, depending on their objectives. Thestructure of an organization will determine the modes in which it operatesand performs.

Organizational structure allows the expressed allocation of responsibilitiesfor different functions and processes to different entities such as the branch,department

, workgroup and individual. Individuals in an organizationalstructure are normally hired under time-limited work contracts or workorders

, or under permanent employment contracts or program orders.


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Organization structure is the formal pattern

of interactions and coordination designedby management to link the tasks of

individuals and groups of achieving

organizational goals.

By kathryn m. bartol & david c. martin


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Types of organizational structure

Line

Line vs. staffing

Functional

Product

Geographic

Market

Matrix

Network

Virtual


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Line Organizational Structure

Lines of authority and instructions are vertical, i.e. they flow from the top

to the bottom.

The unity of command is maintained in a straight and unbroken line. It

implies that each subordinate receives instructions from his immediate

superior alone and is responsible to him only.

All persons at the same level of organization are independent of each other.

This structure specifies responsibility and authority for all the positions

limiting the area of action by a particular position holder.


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Line & Staff Organizational Structure

Refers to a pattern in which staff specialists advise managers to perform

their duties.

Staff managers provide advice to the line manager who are generally

specialists in the field.

Staff positions are purely advisory in nature. They have a right to

recommend but have no authority to enforce their preference on otherdept.

The line executives are the DOERS or commanders, where as, the

specialists are the THINKERS or advisors.


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Functional Organizational Structure

Functional structure is created by grouping the activities on the basis offunctions required for the achievement of organizational objectives.

Functions are classified into

Basic (essential: e.g. production, marketing, in manufacturingorganization),

Secondary (sub parts :e.g. marketing is further divided into market research,advertising, salesetc) &

Supportive (e.g. finance, accounting, personnel, industrial relations)functions according to their nature and importance.

Authority relationships in functional structure may be in the form of line,staff & functional.


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Functional Organizational Chart for a

Manufacturing Company


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Product Structure

Divisions created according to the type of

product or service.

W a s h i n g M a c h in e

D i v i s i o n

L ig h ti n g

D iv is io n

T e le v is io n

D iv is io n

C o r p o r a te

M a n a g e rs

C E O

C o r p o r a tio n


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Geographic Structure

Divisions based on the

area of a country orworld .

Nort r

R ion

Weste rn

Reg ion

Sou t e rn

Reg ion

Easte rn

Reg ion

Cor ora teManage rs

CEO

Co r o ra tion


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Market/ Customer Organizational Structure

Divisions based on

the types ofcustomers .

La ge Bus ness

Cus ome s

Sma Bus ness

Cus ome s

Educa ona

Ins u ons

Ind v dua

Cus ome s

Co po a e

anage s

CE

Co po a on


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Matrix Organizational Structure

In a matrix organization a vertical as well as lateral communication and information flow isallowed.

The matrix organization integrates functional responsibility with product responsibility.

It is a combination of the functional and the product org. structure.

A product manager is responsible for the total performance of the product and

Will have the production manager, the marketing manager, the accounts manager as hiscounterparts in the manufacturing, marketing, and accounting functions respectively.

These functional managers report to the functional head vertically and product managerlaterally.

The structure enjoys the advantages of a functional as well as of a product organization.


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CONTD..

Mechanistic or classical organizational

structure Organic or behavioral organizational

structure


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Network Organizational Structure

Another modern structure is network. While business

giants risk becoming too clumsy to proact (such as), act

and react efficiently, the new network organizations

contract out any business function, that can be done

better or more cheaply. In essence, managers in

network structures spend most of their time

coordinating and controlling external relations, usuallyby electronic means.


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Virtual Organizational Structure

A special form of boundary less

organization is virtual. It works in anetwork of external alliances, using the

Internet.


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Delegation of Authority

Delegation is the process a manager

follows in dividing the work assigned tohim so that he performs that part whichonly he, because of his uniqueorganizational placement, can perform

effectively, and so that he can get others tohelp him with what remains.

By L.A. Allen


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Decentralization

Decentralization is the systematic effort to

delegate to the lowest levels all authority,except that which can be exercised at

central points.

By Louis allen


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Di ti i b tw Delegati andDecentrali ati n

Basis Delegati n Decentralizati n

Nature Delegation is a compulsory act

because no individual can

perform all tasks on his own.

Decentralization is an

optional policy decision. It is

done at the discretion of the

top management.

Freedom of

action

More control by superiors

hence less freedom to takeown decisions.

Less control over

executives hence greaterfreedom of action.

Status It is a process followed to share

tasks

It is the result of the policy

decision of the top

management

Scope It has narrow scope as it islimited to superior and his

immediate subordinate.

It has wide scope as itimplies extension of

delegation to the lowest

level of management

Purpose To lessen the burden of the

manager

To increase the role of the

subordinates in the


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Distinguish between entralizati nandDecentralizati n

Centralizati n Decentralizati n

It is a system in which top level

management retains the

important decision making

authority and routine authorityis

shared with otherleves.

In this lage scale sharing of

decision making authority

between the various levels of

management.

It requires the issue of

instructions and guidelines to the

subordinates.

It requiers the making of

decisions relating to matters that

affect any level in a business, by

that level itself.

It requires considerable

supervision on the subordinates.

It does not require supervision as

people work on their own.

It is more commonly found in

small scale organisations.

It is more commonly found in

large scale organisations.

Cenralization lowers employee

morale since employees are

treated as people without brains

Decentralization is supposed to

improve the employee morale

since taking decisions can make


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Span Of Control

Span of control means the number of

subordinates that can be managed efficiently

by a superior in an organization. It suggests

how the relations are designed between a

superior and a subordinate in an organization.


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Narrow Span Of Control:

Means a single manager or supervisor

oversees few subordinates. This gives rise

to a tall organizational structure.

Wide Span Of Control:

Means a single manager or supervisor

oversees a large number of subordinates.

This gives rise to a flat organizationalstructure.

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