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ORGANISATIONMANAGEMENT

UNIT - I

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Derived from the word organism, which means a structure of

body divided into parts.

Co-ordinated efforts of the different individuals working

collectively and effectively to achieve a common Goal.

A process that initiates implementation of plans by clarifying

jobs and working relationships and effectively deploying

resources for attainment of identified and desired results.

Meaning

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Organising is the process of identifying and grouping the work to

be performed, defining and delegating responsibility and

authority, and establishing relationships for the purpose of

enabling people to work most effectively together inaccomplishing objectives.

- Louis Allen

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Division of Work

Co-ordination

Common Objective

Co-operative Relationship

Welldefined AuthorityResponsibility Relationships

Characteristics

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Optimum Utilization of Resources

Effective Administration

Development of Personnel

Expansion and Growth

Increase in Managerial and Administrative Efficiency

Increase in Production and Productivity

Encouragement to Specialization

Training Facilities

Better Co-ordination

Encouragement to Contribute

Increase in Morale

Success of Economic Planning

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Traditional Principles

Modern Principles

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Principle of Unity of Objectives

Principle of Authority

Principle of Responsibility Principle of Assignment of Exceptions

Principle of Definition

Principle of Certainty

Principle of the Span of Control

Traditional Principles

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Principle of Unity of Command

Principle of Effectiveness of Organisation

Principle of Unity of Direction

Principle of Flexibility

Principle of Continuity

Scalar Principle

Principle of Leadership

Contd

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Principle for Formalism

Principle of Challenge and Response

Principle of Efficiency

Principle of Division of Work

Principle of Communication

Principle of Balance

Principle of Directive Approach

Modern Principles

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Refers to the Determination of Organization system of an

Enterprise.

Frame-work of the activities of the enterprise within which

managerial and operating tasks are performed

It specifies the relationship between people, work and

resources

It allows correlation and coordination among human, physicaland financial resources and this enables to accomplish desired

goals.

Organization Structure

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Advantages :-

Ensures a smooth flow of communication

Better control over the operations of a business enterprise

Helpful in training

Helpful in delegation

Reveals the Draw-backs of an organisation

Advantages & Disadvantages

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Disadvantages :-

Reveals only the Formal Relations

Sometimes creates Conflicts

Develops Rigidness in the activities of enterprise

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It varies with the nature and types of activities performed by an

organisation.

1) Formal Organisation2) Informal Organisation

3) Functional Structure

4) Divisional Structure

Types of Organisation

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Formal and Informal Organisation

Formal Organization

An organizational structure which is designed by the management to

accomplish a particular task. It specifies clearly the boundaries of

authority and responsibility and there is a systematic coordination

among the various activities to achieve organizational goals.

Informal Organization

Interaction among people at work gives rise to a network of social

relationships among employees called Informal Organization.

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Functional Structure

An organizational structure composed of all the departments thatan organization requires to produce its goods or services.

Advantages

Encourages learning from others doing similar jobs.

Easy for managers to monitor and evaluate workers.

Possible Disadvantages

Difficult for departments to communicate with others.

Preoccupation with own department and losing sight of

organizational goals.

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Divisional Structures

An organizational structure composed of separate business units

within which are the functions that work together to produce a

specific product for a specific customer

Divisions create smaller, manageable parts of a firm.

Divisions develop a business-level strategy to compete.

Divisions have marketing, finance, and other functions.

Functional managers report to divisional managers who

then report to corporate management.

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Types of Divisional Structures

Product structure

Divisions by the product group or category

Market structure Divisions by type of customer

Geographic structure

Global or regional divisions

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Divisional Structures

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Divisional Structures

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Divisional Structures

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QUESTIONS ??