Management oo7

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Every organization has its own

purposes and objectives.Organizing is the functionemployed to achieve the overallgoals of the organization.

Organization harmonies theindividual goals of the employeeswith overall objectives of thefirm.

[edit ] Composition of individuals and groups

Individuals form a group and thegroups form an organization.Thus, organization is the
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composition of individual and

groups. Individuals are groupedinto departments and their work iscoordinated and directed towardsorganizational goals.

[edit ] Differentiated functions

The organization divides theentire work and assigns the tasks

to individual in-order to achievethe organizational objectives eachone has to perform a differenttask and tasks of one individualsmust be coordinated with thetasks of others.


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[edit ] Continues process

An organization is a group of people with defined relationshipto each other that allows them towork together achieve the goalsof the organization. Thisrelationship do not come to endafter completing a task.

Organization is a never endingprocess.

[ edit ] Purpose of organization

[edit ] Helps to achieveorganizational goal
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Organization is employed to

achieve the overall objectives of business firms. Organizationfocuses attention of individualsobjectives towards overall

objectives.[edit ] Optimum use of resources

To make optimum use of

resources such as men, material,money, machine and method, it isnecessary to design anorganization properly. Work should be divided and rightpeople should be given right jobs


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to reduce the wastage of resources

in an organization.[edit ] To perform managerial

function

Planning, Organizing, Staffing,Directing and Controlling cannotbe implemented without proper organization.

[edit ] Facilitates growth anddiversification

A good organization structure is

essential for expanding businessactivity. Organization structuredetermines the input resources
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needed for expansion of a

business activity similarlyorganization is essential for product diversification such asestablishing a new product line.

[edit ] Human treatment of employees

Organization has to operate for

the betterment of employees anmust not encourage monotony of work due to higher degree of specialization. Now, organizationhas adapted the modern conceptof systems approach based on


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human relations and it discards

the traditional productivity andspecialization approach.

[ edit ] Applications

Organizing , in companies pointof view, is the managementfunction that usually follows after planning. And it involves the

assignment of tasks, the groupingof tasks into departments and theassignment of authority andallocation of resources across theorganization.
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[edit ] Structure

The framework in which theorganization defines how tasksare divided, resources aredeployed, and departments arecoordinated.

1. A set of formal tasksassigned to individuals and

departments.2. Formal reporting

relationships, including lines of authority, decisionresponsibility, number of


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hierarchical levels and span of

managers control.3. The design of systems toensure effective coordination of employees across departments.

[edit ] Work specialization

Work specialization (also calleddivision of labour ) is the degree

to which organizational tasks aresub-divided into individual jobs.With too much specialization,employees are isolated and doonly a single, tiny, boring job.Many organizations enlarge jobs
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or rotate assigned tasks to provide

greater challenges.[edit ] Chain of command

The chain of command is the

unbroken line of authority thatlinks all individuals in anorganization, and specifies whoreports to whom.

o Unity of Command - oneemployee is held

accountable to only onesupervisor


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o Scalar principle - clearly

defined line of authority inthe organization thatincludes all employees

[edit ] Authority, responsibility,and accountability

Authority is a manager'sformal and legitimate right to

make decisions, issue orders,and allocate resources toachieve organizationallydesired outcomes.


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Responsibility means an

employee's duty to performassigned task or activities. Accountability means that

those with authority and

responsibility must report and justify task outcomes to thoseabove them in the chain of command.

[edit ] Delegation

Delegation is the processmanagers use to transfer authorityand responsibility to positionsbelow them. Organizations today


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tend to encourage delegation from

highest to lowest possible levels.Delegation can improveflexibility to meet customersneeds and adaptation to

competitive environments.Managers often find delegationdifficult

[edit ] Types of authority (andresponsibility)

Line authority managers havethe formal power to direct andcontrol immediate subordinates.The superior issues orders and is


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responsible for the resultthe

subordinate obeys and isresponsible only for executing theorder according to instructions.

Functional authority is wheremanagers have formal power over a specific subset of activities. For instance, the Production Manager

may have the line authority todecide whether and when a newmachine is needed but theController demands that a Capital

Expenditure Proposal is submittedfirst, showing that the investmentwill have a yield of at least x%;


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or, a legal department may have

functional authority to interfere inany activity that could have legalconsequences. This authoritywould not be functional but it

would rather be staff authority if such interference is "advice"rather than "order".

Staff authority is granted to staff specialists in their areas of expertise. It is not a real authorityin the sense that a staff manager

does not order or instruct butsimply advises, recommends, andcounsels in the staff specialists'


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area of expertise and is

responsible only for the quality of the advice (to be in line with therespective professional standardsetc) It is a communication

relationship with management . Ithas an influence that derivesindirectly from line authority at ahigher level.

[edit ] Span of management

Factors influencing larger span of management.
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1. Work performed by

subordinates is stable androutine.2. Subordinates perform similar

work tasks.

3. Subordinates areconcentrated in a singlelocation.

4. Subordinates are highlytrained and need little directionin performing tasks.

5. Rules and proceduresdefining task activities areavailable.


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6. Support systems and

personnel are available for themanagers.7. Little time is required in

non-supervisory activities such

as coordination with other departments or planning.

8. Managers' personal preferences and styles favour alarge span.

[edit ] Tall versus flat structure Tall - A management structure

characterized by an overallnarrow span of management


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and a relatively large number

of hierarchical levels. Tightcontrol. Reducedcommunication overhead .

Flat - A management structure

characterized by a wide span of control and relatively fewhierarchical levels. Loosecontrol. Facilitates delegation.
http://en.wikipedia.org/wiki/Organizational_hierarchyhttp://en.wikipedia.org/wiki/Organizational_hierarchyhttp://en.wikipedia.org/wiki/Organizational_hierarchyhttp://en.wikipedia.org/wiki/Organizational_hierarchy


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[edit ] Centralization,

decentralization, andformalization Centralization - The location

of decision making authoritynear top organizational levels.

Decentralization - Thelocation of decision making

authority near lower organizational levels. Formalization - The written

documentation used to direct

and control employees.


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[edit ] Departmentalization

The basis on which individualsare grouped into departments anddepartments into totalorganizations.

Approach options include;

1. Functional - by common skillsand work tasks

2. Divisional - common product, program or geographicallocation

3. Matrix - combination of Functional and Divisional


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4. Team - to accomplish specific

tasks5. Network - departments are

independent providingfunctions for a central core

breaker [edit ] Importance of organizing

Organizations are often

troubled by how to organize, particularly when a newstrategy is developed

Changing market conditions or new technology requireschange


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Organizations seek efficiencies

through improvements inorganizing

Note that the word "hiring" issometimes used interchangeablywith "staffing", which does aninjustice to the broad scope of activities involved in staffing.

Hiring might be thought morespecifically as the selection phaseof the overall process of staffing.Also note that the word

"Recruitment " is sometimes usedinterchangeably with "staffing",although many see "recruiting" as
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referring more specifically to the

sourcing

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Management oo7