3 organising
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ORGANIZINGORGANIZING
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Importance ofImportance of
OrganizationOrganization Sound organization can contributeSound organization can contribute
greatly to the continuity andgreatly to the continuity and
success of enterprise.success of enterprise.
A sound organization leads to A sound organization leads to
specialization.specialization.
A sound organization minimizes A sound organization minimizes
corruption and ineiciencies.corruption and ineiciencies.
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Importance of OrganizationImportance of Organization
contcont !acilitate Optimum use of!acilitate Optimum use of
resources.resources.
A sound organization does not A sound organization does not
generate confusion.generate confusion.
A sound organization facilitates A sound organization facilitates
the training and managerialthe training and managerial
de"elopment of personnel.de"elopment of personnel.
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#$ARA#%&RIS%I# ' !&A%(R&S O!#$ARA#%&RIS%I# ' !&A%(R&S O!
ORGANIZA%IONORGANIZA%ION
Organization is a group of people) small orOrganization is a group of people) small orlarge.large.
It leads to di"ision of *or+ andIt leads to di"ision of *or+ andresponsibilities.responsibilities.
It de,nes and ,-es the duties andIt de,nes and ,-es the duties and
responsibilities of employees.responsibilities of employees.
It establishes a relationship bet*eenIt establishes a relationship bet*een
authority and responsibility and controlsauthority and responsibility and controls
the eorts of the groups.the eorts of the groups.
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OrganisingOrganising
%he deployment of organisational%he deployment of organisational
resources toresources to
achie"e strategic goals.achie"e strategic goals.
%he deployment of resources is%he deployment of resources is
re/ected in the organization0s di"isionre/ected in the organization0s di"ision
of labour intoof labour into speci,c departmentss
peci,c departmentsand 1obs) the formal lines ofan
d 1obs) the formal lines of
authority) and the mechanisms forauthorit
y) and the mechanisms for
co2ordinating tas+sco2ordinatin
g tas+s.3.3
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4RO#&SS O!4RO#&SS O!
ORGANIZINGORGANIZING
5etermination of ob1ecti"es.
5eciding "arious acti"ities.
Grouping of acti"ities.
Assignment of responsibilities
to de,nite persons. 5elegation of authority.
4ro"iding physical facilities and
proper en"ironment.
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%&N 6ASI# 4RIN#I47&S O!%&N 6ASI# 4RIN#I47&S O!
ORGANIZA%IONORGANIZA%ION
8.8. %he Scalar 4rinciple%he Scalar 4rinciple
9.9. (nity of #ommand(nity of #ommand
:.:. Span of ;anagementSpan of ;anagement
. Authority and Responsibility Authority and Responsibility
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6ASI# 4RIN#I47&S O!6ASI# 4RIN#I47&S O!
ORGANA%ION contORGANA%ION cont
?.?. 5elegation of Authority 5elegation of Authority
@.@. #entralization and#entralization and5ecentralization5ecentralization
.. !ormalization!ormalization
B.B. 5epartmentalization5epartmentalization
8C.8C. #oordination and $uman Relations#oordination and $uman Relations
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Need for organizationNeed for organization
structurestructure
%he organization structure%he organization structure
facilitates in ,-ing thefacilitates in ,-ing the
responsibility department *ise)responsibility department *ise)
section *ise or on indi"idual basis.section *ise or on indi"idual basis.
It is necessary for theIt is necessary for the
establishment of authority.establishment of authority.
It promotes di"ision of *or+ andIt promotes di"ision of *or+ and
leads to specialization.leads to specialization.
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It a"oids confusion) duplication)It a"oids confusion) duplication)
*astage and ineiciencies. *astage and ineiciencies.
It facilitates the /o* ofIt facilitates the /o* of
information and decision ma+inginformation and decision ma+ing
from one le"el to another.from one le"el to another.
It de,nes the positions and unitsIt de,nes the positions and units
*ith in the organization. *ith in the organization.
Need for organizationNeed for organization
structurestructure cont..cont..
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%ypes of organization%ypes of organization
structurestructure
7ine or military or scalar7ine or military or scalar
organization.organization.
!unctional or sta organization.!unctional or sta organization. 7ine and sta organization.7ine and sta organization.
#ommittee organization.#ommittee organization.
4ro1ect organization.4ro1ect organization.
;atri- organization.;atri- organization.
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7IN& ORGANIZA%ION7IN& ORGANIZA%ION
It is based upon relati"eIt is based upon relati"e
authority and responsibility.authority and responsibility.
It is direct and people atIt is direct and people at
dierent le"el +no* to *homdierent le"el +no* to *hom
they are accountable) assignthey are accountable) assign
duties) dismiss and ta+eduties) dismiss and ta+edisciplinary action against them.disciplinary action against them.
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General ManagerGeneral Manager
Accounts Production Marketing Manager Manager Manager
Accountant 1 Accountant 2
Supervisor 1 Supervisor 2
Sales
Supervisor 1Sales
Supervisor 2
Clerks Clerks
Workers Workers
Salesmen Salesmen
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S%A!!'!(N#%IONA7S%A!!'!(N#%IONA7
ORGANIZA%IONORGANIZA%ION
!.=.%aylor disco"ered this method of!.=.%aylor disco"ered this method ofdi"iding the *or+ of management indi"iding the *or+ of management in
such a *ay that each man in the factorysuch a *ay that each man in the factoryshould ha"e as fe* functions as possibleshould ha"e as fe* functions as possibleto perform.to perform.
(nder this type of organization *or+ers(nder this type of organization *or+ersor subordinates) instead of coming inor subordinates) instead of coming incontact *ith only one immediatecontact *ith only one immediatesuperior) recei"e daily *or+ orders fromsuperior) recei"e daily *or+ orders from
se"eral specialists or oicers.se"eral specialists or oicers.
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Superintendent
Oice Shop
RouteClark
Instruction Clark
Time &isciplinar! Clark
Repair"oss
Speed"oss
Gang"os
s
#orkers
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7ine and sta7ine and sta
organizationorganization %he combination of line%he combination of line
organization *ith e-pert staorganization *ith e-pert sta
constitutes the type ofconstitutes the type of
organization +no*n as line andorganization +no*n as line andsta organization.sta organization.
In this method) the line maintainsIn this method) the line maintainsdiscipline D stability and stadiscipline D stability and sta
pro"ides e-pert informationpro"ides e-pert information
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%he line delegates the authority by%he line delegates the authority by
*hich the sta performs these *hich the sta performs thesefunctions and the performance mustfunctions and the performance must
be acceptable to the line beforebe acceptable to the line before
action is ta+en.action is ta+en.
&ach department is headed by a line&ach department is headed by a line
oicer *ho is to decide) plan) e-ecuteoicer *ho is to decide) plan) e-ecute
and control business operations onand control business operations onthe guidelines indicated by the stathe guidelines indicated by the sta
e-perts associated *ith his dept.e-perts associated *ith his dept.
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Share Holders
Board of Directors
eneral Manager !esearch
"ngineers
#ndustrial
!esearch
"ngineers
Work Manager Assistant Assistant
Production Superintendent AccountingSales
Manager
$oremen
Workers
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5epartmentalization5epartmentalization
Departmentalization is the basis for grouping Departmentalization is the basis for grouping positions into departments and departments positions into departments and departments
into the total organization.into the total organization.
%here are > approaches%here are > approaches
8.8. !unctional!unctional
9.9. 5i"isional5i"isional:.:. ;atri- ;atri-
. Net*or+ Net*or+
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Functional structure Functional structure
people are grouped together inpeople are grouped together in
departments by common s+illsdepartments by common s+ills
and *or+ accordingly.and *or+ accordingly.
e.g. ;anufacturing) ;ar+eting)e.g. ;anufacturing) ;ar+eting)
!inance3!inance3President
Finance Manufacturing Marketing
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Divisional structure Divisional structure
5epartments are grouped into5epartments are grouped into
di"isions based on a commondi"isions based on a common
product) program or geographicalproduct) program or geographical
region territory3.region territory3.President
Division 1 Division 2 Division 3
Finance
Marketing
R&D Finance
Marketing
R&D Finance
Marketing
R&D
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Matrix structure Matrix structure
!unctional and di"isional chains!unctional and di"isional chains
of command are in eect all atof command are in eect all at
once in the same departments.once in the same departments.
%*o chains of command e-ist and%*o chains of command e-ist and
some employees report to t*osome employees report to t*o
bossesbosses President
VP Finance VP Marketing
Product Manager A
Product Manager B
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Team-based structureTeam-based structure
A A structure in *hich the entirestructure in *hich the entireorganisation is made up of teamsorganisation is made up of teams
that coordinate their *or+ andthat coordinate their *or+ and
*or+ directly *ith customers to *or+ directly *ith customers to
accomplish organisational goals.accomplish organisational goals.
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Network structure Network structure
%his is *here the company%his is *here the company
subcontracts many of its ma1orsubcontracts many of its ma1or
functions to separate companiesfunctions to separate companies
and coordinates their acti"itiesand coordinates their acti"itiesfrom a small headEuartersfrom a small headEuarters
organisation.organisation.
Compan Core
!"#B$
Design Compan
%ransportation
Compan
Manufacturing Compan
AC Receiva'(eCompan
Distri'ution Compan
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#&N%RA7IZA%ION#&N%RA7IZA%ION It is the systematic and consistentIt is the systematic and consistent
reser"ation of authority at centralreser"ation of authority at central
points *ithin the organization.points *ithin the organization.
#entralization can be found#entralization can be found
necessary for thenecessary for the
follo*ing reasons Ffollo*ing reasons F
%o facilitate personnel leadership.%o facilitate personnel leadership.
%o introduce better coordination .%o introduce better coordination .
%o handle emergencies.%o handle emergencies.
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5&N%RA7IZA%ION5&N%RA7IZA%ION
It implies a systematic delegationIt implies a systematic delegationof authority through out the *holeof authority through out the *holeorganization.organization.
5ecision authority is pushed5ecision authority is pusheddo*n*ard to lo*er organizationdo*n*ard to lo*er organizationle"els.le"els.
5ecentralization is belie"ed to5ecentralization is belie"ed torelie"e the burden of top managers)relie"e the burden of top managers)ma+e greater use of *or+ers s+ills.ma+e greater use of *or+ers s+ills.
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