copy of ppt bhalla
TRANSCRIPT
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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.