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ORGANIZING
According to Koontz and O'Donnell, "Organization involves the
grouping of
activities necessary to accomplish goals and plans, the
assignment of
these activities to appropriate departments and the provision of
authority,delegation and co-ordination.
Organization involves division of or! among people hose efforts
must
e co-ordinated to achieve specific o#ectives and to implement
pre-
determined strategies.
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$A%&( O )*AA)%(+%+) O OA$+/+$
012 Division of 3or!4 Division of or! is the asis of an
organization. +n other ords,
there can e no organization ithout division of or!.
052 )oordination4 &nder organizing different persons are
assigned different or!s ut
the aim of all these persons happens to e the some - the
attainment of the o#ectives
of the enterprise.
062 7lurality of 7ersons4 Organization is a group of many
persons ho assemle to
fulfill a common purpose
082 )ommon O#ectives4 %here are various parts of an organization
ith different
functions to perform ut all move in the direction of achieving a
general o#ective.
92 3ell-defined Authority and esponsiility4 &nder
organization a chain is estalished
eteen different posts right from the top to the ottom.
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0:2 Organization is a tructure of elationship4 elationship eteen
persons
or!ing on different posts in the organization is decided.
0;2 Organization is a
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+
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ORGANIZING PROCESS
Organization is the process of estalishing relationship among
the memers of the
enterprise. %he relationships are created in terms of authority
and responsiility
a) Determination of Objectives4
+t is the first step in uilding up an organization. Organization
is alays related tocertain o#ectives.
b) Enumeration of Objectives:
+f the memers of the group are to pool their efforts
effectively, there must e proper
division of the ma#or activities
c) Classification of Activities:
%he ne?t step ill e to classify activities according to
similarities and common
purposes and functions and ta!ing the human and material
resources into account.
) Assi!nment of Duties:
*ere, specific #o assignments are made to different suordinates
for ensuring acertainty of or! performance
e) Dele!ation of Aut"orit#:
ince so many individuals or! in the same organization, it is the
responsiility of
management to lay don structure of relationship in the
organization
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ORGANIZA$ION S$R%C$%RE
An organization structure is a frameor! that allots a particular
space for a particular
department or an individual and shos its relationship to the
other.
An organization structure shos the authority and responsiility
relationships eteen
the various positions in the organization y shoing ho reports to
hom.
Si!nificance of Or!ani&ation Structure 7roperly designed
organization can help improve teamor! and productivity
Organization structure determines the location of
decision-ma!ing in the organization
ound organization structure
Organization structure provides the pattern of communication and
coordination
%he organization structure helps a memer to !no hat his role is
and ho it relates
to other roles.
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7+$)+7B( O OA$+/A%+O$ %&)%&(
a2 Bine and taff elationships4
Bine authority refers to the scalar chain, or to the
superior-suordinate lin!ages,
that e?tend throughout the hierarchy 0Koontz, O'Donnell and
3eihrich2.
Bine employees are responsile for achieving the asic or
strategic o#ectives ofthe organization, hile staff plays a
supporting role to line employees and provides
services.
b) Departmentalization:Departmentalization is a process of
horizontal clustering of dierent
types of functions and activities on any one level of the
hierarchy.
Departmentalization is conventionally based on purpose,
product,process, function, personal things and place.
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c2 pan of )ontrol4
%his refers to the numer of specialized activities or
individuals supervised y one
person.
Deciding the span of control is important for coordinating
different types of activitieseffectively.
d2 De-centralization and )entralization4
De-centralization refers to decision ma!ing at loer levels in
the hierarchy of authority.
+n contrast, decision ma!ing in a centralized type of
organizational structure is at
higher levels.
%he degree of centralization and de-centralization depends on
the numer of levels of
hierarchy, degree of coordination, specialization and span of
control.
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'OR(A AND IN'OR(A ORGANIZA$ION
'OR(A ORGANIZA$ION
%he formal organization refers to the structure of #os and
positions ith clearly defined
functions and relationships as prescried y the top
management.
%his type of organization is uilt y the management to realize
o#ectives of an
enterprise and is ound y rules, systems and procedures.
(veryody is assigned a certain responsiility for the performance
of the given tas! and
given the reCuired amount of authority for carrying it out.
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O
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%he formal organization is uilt around four !ey pillars. %hey
are4
Division of laor
calar and functional processes
tructure and
pan of control
%hus, a formal organization is one resulting from planning here
the pattern of
structure has already een determined y the top management.
)haracteristic eatures of formal organization
ormal organization structure is laid don y the top management to
achieve
organizational goals.
ormal organization prescries the relationships amongst the
people or!ing in
the organization.
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Avanta!es of formal or!ani&ation
%he formal organization structure concentrates on the #os to e
performed. +t,
therefore, ma!es everyody responsile for a given tas!.
A formal organization is ound y rules, regulations and
procedures. +t thus ensuresla and order in the organization.
%he organization structure enales the people of the organization
to or! together
for accomplishing the common o#ectives of the enterprise
Disavanta!es or criticisms of formal or!ani&ation
%he formal organization does not ta!e into consideration the
sentiments of
organizational memers.
%he formal organization does not consider the goals of the
individuals. +t is designed
to achieve the goals of the organization only.
%he formal organization is ound y rigid rules, regulations and
procedures. %his
ma!es the achievement of goals difficult.
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'OR(A AND IN'OR(A ORGANIZA$ION
IN'OR(A ORGANIZA$ION
+nformal organization, hich does not appear on the organization
chart, supplements the
formal organization in achieving organizational goals
effectively and efficiently.
%he or!ing of informal groups and leaders is not as simple as it
may appear to e.
%herefore, it is oligatory for every manager to study thoroughly
the or!ing pattern of
informal relationships in the organization and to use them for
achieving organizational
o#ectives.
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+$O
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)haracteristics features of informal organization
+nformal organization is not estalished y any formal authority.
+t is unplanned and
arises spontaneously.
+nformal organizations reflect human relationships. +t arises
from the personal and
social relations amongst the people or!ing in the
organization.
ormation of informal organizations is a natural process. +t is
not ased on rules,
regulations and procedures.
%he inter-relations amongst the people in an informal
organization cannot e shon in
an organization chart.
+n the case of informal organization, the people cut across
formal channels of
communications and communicate amongst themselves.
%he memership of informal organizations is voluntary. +t arises
spontaneously and noty delierate or conscious efforts.
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INE AND S$A'' A%$+ORI$,
INE A%$+ORI$,
+n an organization, the line authority flos from top to ottom
.
%he 'line' maintains discipline and stailityF the 'staff'
provides e?pert information.
%he line gets out the production, the staffs carries on the
research, planning,
scheduling, estalishing of standards and recording of
performance.
%he authority y hich the staff performs these functions is
delegated y the line
and the performance must e acceptale to the line efore action is
ta!en
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S$A'' A%$+ORI$,
%he staff authority is e?ercised y the specialists over the line
managers ho advise
them on important matters.
%hese specialists stand ready ith their specialty to serve line
mangers as and hen
their services are called for, to collect information and to
give help hich ill enale
the line officials to carry out their activities etter.
%he staff officers do not have any poer of command in the
organization as they are
employed to provide e?pert advice to the line officers..
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$#-es of Staff
%he staff position estalished as a measure of support for the
line managers may
ta!e the folloing forms4
./ Personal Staff: *ere the staff official is attached as a
personal assistant or
adviser to the line manager. or e?ample, Assistant to managing
director.
5. S-eciali&e Staff: uch staff acts as the fountainhead of
e?pertise in specialized
areas li!e G D, personnel, accounting etc.
6. General Staff: %his category of staff consists of a set of
e?perts in different areas
ho are meant to advise and assist the top management on matters
called for
e?pertise. or e?ample, inancial advisor, technical advisor
etc.
' t f li t ff i ti
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'eatures of line an staff or!ani&ation
&nder this system, there are line officers ho have authority
and command over
the suordinates and are accountale for the tas!s entrusted to
them.
%he staff officers are
specialists ho offer e?pert advice to the line officers to
perform their tas!s
efficiently.
&nder this system, the staff officers prepare the plans and
give advice to the line
officers and the line officers e?ecute the plan ith the help of
or!ers.
%he line and staff organization is ased on the principle of
specialization.
Avanta!es
+t rings e?pert !noledge to ear upon management and operating
prolems.
%hus, the line managers get the enefit of specialized !noledge
of staff specialistsat various levels.
%he e?pert advice and guidance given y the staff officers to the
line officers
enefit the entire organization.
As the staff officers loo! after the detailed analysis of each
important managerial
'%NC$IONA DEPAR$(EN$A$ION
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'%NC$IONA DEPAR$(EN$A$ION
PROD%C$ DEPAR$(EN$A$ION
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C%S$O(ER DEPAR$(EN$A$ION
GEOGRAP+IC DEPAR$(EN$A$ION
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PROCESS DEPAR$(EN$A$ION
(AR$I0 DEPAR$(EN$A$ION
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SPAN O' CON$RO
pan of )ontrol means the numer of suordinates that can e managed
efficiently
and effectively y a superior in an organization. +t suggests ho
the relations are
designed eteen a superior and a suordinate in an
organization.
'actors Affectin! S-an of control:
a) Ca-acit# of Su-erior:
Different aility and capacity of leadership, communication
affect management of
suordinates.
b) Ca-acit# of Suborinates:
(fficient and trained suordinates affects the degree of span of
management.
c) Nature of 1or2:
Different types of or! reCuire different patterns of
management.
) De!ree of Centrali&ation or Decentrali&ation:
Degree of centralization or decentralization affects the span of
management y affecting
the degree of involvement of the superior in decision ma!ing
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e) De!ree of Plannin!:
7lans hich can provide rules, procedures in doing the or! higher
ould e the degree of
span of management.f) Communication $ec"ni3ues:
7attern of communication, its means, and media affect the time
reCuirement in managing
suordinates and conseCuently span of management.
!) %se of Staff Assistance:
&se of taff assistance in reducing the or! load of managers
enales them to manage more
numer of suordinates.
") Su-ervision of ot"ers:
+f suordinate receives supervision form several other personnel
esides his direct
supervisor. +n such a case, the or! load of direct superior is
reduced and he can supervise
more numer of persons
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S-an of control is of t4o t#-es:
./ Narro4 s-an of control:
$arro pan of control means a single manager or
supervisoroversees fe suordinates. %his gives rise to a tall
organizational structure.
Avanta!es4
)lose supervision, )lose control of suordinates, ast
communication
Disavanta!es4
%oo much control,
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CEN$RAIZA$ION:
+t is the process of transferring and assigning decision-ma!ing
authority to higher
levels of an organizational hierarchy.
%he span of control of top managers is relatively road, and
there are relatively many
tiers in the organization.
DECEN$RAIZA$ION:
+t is the process of transferring and assigning decision-ma!ing
authority to loer levels
of an organizational hierarchy.
%he span of control of top managers is relatively small, and
there are relatively fe
tears in the organization, ecause there is more autonomy in the
loer ran!s.
DEEGA$ION O' A%$+ORI$,
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DEEGA$ION O' A%$+ORI$,
A manager alone cannot perform all the tas!s assigned to him. +n
order to meet
the targets, the manager should delegate authority.
Delegation of Authority means division of authority and poers
donards to
the suordinate
udivision and suallocation of poers
Elements of Dele!ation
1. Aut"orit#- authority can e defined as the poer and right of a
person to use
and allocate the resources efficiently, to ta!e decisions and to
give orders so as
to achieve the organizational o#ectives.
5. Res-onsibilit# - is the duty of the person to complete the
tas! assigned to
him
6. Accountabilit# - means giving e?planations for any variance
in the actual
performance from the e?pectations set
DEEGA$ION PROCESS
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DEEGA$ION PROCESS
./ Allocation of utiesE %he delegator first tries to define the
tas! and duties to
the suordinate.
5. Grantin! of aut"orit# E udivision of authority ta!es place
hen a superior
divides and shares his authority ith the suordinate.
6. Assi!nin! of Res-onsibilit# an Accountabilit# E %he
delegation process
does not end once poers are granted to the suordinates.
8. Creation of accountabilit# E Accountaility, on the others
hand, is the
oligation of the individual to carry out his duties as per the
standards of
performance
S$A''ING
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S$A''ING
taffing involves filling the positions needed in the
organization structure y
appointing competent and Cualified persons for the #o.
%he staffing process encompasses man poer planning, recruitment,
selection,
and training.
a2
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RECR%I$(EN$ PROCESS
a) Ientification of acanc
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a) Ientification of vacanc#:
7osts to e filled
$umer of persons
Duties to e performed
Hualifications reCuired
b) Pre-aration of job escri-tion an job s-ecification: A #o
description is a
list of the general tas!s, or functions, and responsiilities of
a position.
c) Selection of sources:(very organization has the option of
choosing thecandidates for its recruitment processes from to !inds
of sources4 internal and
e?ternal sources.
) Avertisin! t"e vacanc#:After choosing the appropriate sources,
the vacancy
is communicated to the candidates y means of a suitale media
such astelevision, radio, nespaper, internet, direct mail etc.
e) (ana!in! t"e res-onse:After receiving an adeCuate numer of
responses from
#o see!ers, the sieving process of the resumes egins.
6O* ANA,SIS
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6O* ANA,SIS
a2 Io description
2 Io specification
6ob Descri-tion
A #o description 0ID2 is a ritten statement of hat the #o holder
does, ho it is done,
under hat conditions it is done and hy it is done.
Contents
A #o description usually covers the folloing information4Io
title
Io summary
Io activities
3or!ing conditions
ocial environment
6ob S-ecification
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6ob S-ecification
Io specification summarizes the human characteristics needed
for
satisfactory #o completion
Contents
A #o specification usually covers the folloing information4
(ducation
(?perience
!ill, Knoledge, Ailities 3or! Orientation actors
Age
SEEC$ION PROCESS
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SEEC$ION PROCESS
electing a suitale candidate can e the iggest challenge for any
organisation. %he
success of an organization largely depends on its staff.
election of the right candidate
uilds the foundation of any organization's success and helps in
reducing turn overs
a) Initial Screenin!
%his is generally the starting point of any employee selection
process.
b) Preliminar# Intervie4
+t is used to eliminate those candidates ho do not meet the
minimum eligiility criteria
laid don y the organization.
%he s!ills, academic and family ac!ground, competencies and
interests of the
candidate are e?amined during preliminary intervie.
7reliminary intervies are less formalized and planned than the
final intervies.
%he candidates are given a rief up aout the company and the #o
profileF and it is
also e?amined ho much the candidate !nos aout the company.
7reliminary
intervies are also called screening intervies.
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c) 'illin! A--lication 'orm
An candidate ho passes the preliminary intervie and is found to
e eligile for the
#o is as!ed to fill in a formal application form.uch a form is
designed in a ay that it records the personal as ell
professional
details of the candidates such as age, Cualifications, reason
for leaving previous #o,
e?perience, etc.
) Personal Intervie4
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References c"ec2
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!) 'inal Intervie4
inal intervie is a process in hich a potential employee is
evaluated y an
employer for prospective employment in their organization.
During this process, the employer hopes to determine hether or
not the
applicant is suitale for the #o.
Different types of tests are conducted to evaluate the
capailities of an applicant,
his ehaviour, special Cualities etc.
eparate tests are conducted for various types of #os.
") P"#sical E8amination
+f all goes ell, then at this stage, a physical e?amination is
conducted to ma!e
sure that the candidate has sound health and does not suffer
from any serious
ailment.
i) 6ob Offer
2A candidate ho clears all the steps is finally considered right
for a particular #o
and is presented ith the #o offer.
2An applicant can e dropped at any given stage if considered
unfit for the #o.
Em-lo#ee Inuction 9 Orientation
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Em-lo#ee Inuction 9 Orientation
Orientation or induction is the process of introducing ne
employees to an
organization, to their specific #os G departments, and in some
instances, to their
community.
Pur-oses of Orientation
1. %o educe tartup-)osts4
5. %o educe An?iety
6. %o educe (mployee %urnover48. %o ave %ime for upervisor G
)o-3or!ers4
9. %o Develop ealistic Io (?pectations, 7ositive Attitudes and
Io atisfaction4
An orientation program principally conveys 6 types of
information, namely4
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An orientation program principally conveys 6 types of
information, namely4
a2 eneral information aout the daily or! routine to e
folloed
2 A revie of the organizationJs history, founders, o#ectives,
operations G
products or services, as ell as ho the employeeJs #o contriutes
to the
organizationJs needs.
c2 A detailed presentation of the organizationJs policies, or!
rules G employee
enefits.
$4o ins of Orientation
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$4o ins of Orientation
./Overvie4 Orientation;
Orientation includes helping employees understand4
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%he secon 2in of orientation is called Io pecific Orientation,
and is the
process that is used to help employees understand4
unction of the organization,
esponsiilities,
(?pectations,
Duties
7olicies, procedures, rules and regulations
Bayout of or!place
+ntroduction to co-or!ers
CARRER DE7EOP(EN$
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CARRER DE7EOP(EN$
)areer development not only improves #o performance ut also
rings aout the
groth of the personality. +ndividuals not only mature regarding
their potential
capacities ut also ecome etter individuals.
Pur-ose of evelo-ment
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Develo-ment Process:
%he development process consists of the folloing steps
1. etting Development O#ectives
5. Ascertaining Development $eeds4
6. Determining Development $eeds4
8. )onducting Development 7rograms4
9. 7rogram (valuation
CAREER S$AGES
3hat people ant from their careers also varies according to the
stage of
one's career. 3hat may have een important in an early stage may
not eimportant in a later one. our distinct career stages have een
identified4 trial,
estalishmentadvancement, mid-career, and late career. (ach
stage
represents different career needs and interests of the
individual
a) $rial sta!e:
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2 %he trial stage egins ith an individual's e?ploration of
career-related matters
and ends usually at aout age 59 ith a commitment on the part of
the
individual to a particular occupation.
2&ntil the decision is made to settle don, the individual
may try a numer of #os
and a numer of organizations.
2&nfortunately for many organizations, this trial and
e?ploration stage results in
high level of turnover among ne employees.
2(mployees in this stage need opportunities for self-e?ploration
and a variety of
#o activities or assignments.
2 (stalishment tage4
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2 g
%he estalishmentadvancement stage tends to occur eteen ages 59
and
88.
+n this stage, the individual has made his or her career choice
and is concerned
ith achievement, performance, and advancement.
%his stage is mar!ed y high employee productivity and career
groth, as the
individual is motivated to succeed in the organization and in
his or her chosen
occupation.
Opportunities for #o challenge and use of special competencies
are desired in
this stage.
%he employee strives for creativity and innovation through ne #o
assignments.
(mployees also need a certain degree of autonomy in this stage
so that they can
e?perience feelings of individual achievement and personal
success.
c) (i Career Crisis Sub Sta!e: %he period occurring eteen the
mid-thirties
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) ! p g
and mid-forties during hich people often ma!e a ma#or
reassessment of their
progress relative to their original career amitions and
goals.
) (aintenance sta!e:
%he mid-career stage, hich occurs roughly eteen the ages 89 and
:8, has
also een referred to as the maintenance stage.
%his stage is typified y a continuation of estalished patterns
of or! ehavior.
%he person is no longer trying to estalish a place for himself
or herself in the
organization, ut see!s to maintain his or her position.
%his stage is vieed as a mid-career plateau in hich little ne
ground is ro!en.
%he individual in this stage may need some technical updating in
his or her field.%he employee should e encouraged to develop ne #o
s!ills in order to avoid
early stagnation and decline.
e2 ate
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+n this stage the career lessens in importance and the employee
plans for retirement
and see!s to develop a sense of identity outside the or!
environment.
