Download - organisation in Management
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WELCOMEWELCOME UUALLALL
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INTRODUCTIONINTRODUCTION
Organization involves division
of work among people whose
efforts must be co-ordinate to
achieve specific objectives
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DEFINITION OF ORGANISATIONDEFINITION OF ORGANISATION
Mc Ferland has defined organization as,"an identifiable group of peoplecontributing
their efforts towards the attainment ofgoals".
Mooney and Railey, "Organization is the
form of every human association forthe attainment of a common purpose.
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ORGANISATION AS A PROCESSORGANISATION AS A PROCESS
Organization is the process of establishing
relationship among the members of the
enterprise. The relationships are createdin terms of authority and responsibility.
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The variousThe various
steps involved in this processsteps involved in this process
Determination of Objectives
Enumeration of Objectives
Classification of Activities Assignment of Duties
Delegation of Authority
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Determination of ObjectivesDetermination of Objectives
It is the first step in building up an
organization. Organization is always
related to certain objectives.
Determination of objectives will consist
in deciding as to why the proposed
organization
is to be set up
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Enumeration of ObjectivesEnumeration of Objectives
The first step in organizing group effort
is the division of the total job into
essential activities. Each job should be
properly classified and grouped. For example, the work of an industrial
concern may be divided into the following
major functions production, financing,
personnel, sales, purchase, etc.
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Classification of ActivitiesClassification of Activities
Activities according to similarities and
common purposes and functions and
taking the human and material resourcesinto account. Then, closely related and
similar activities are grouped into divisions
and departments and the departmental
activities are further divided into sections.
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Assignment of DutiesAssignment of Duties
Here, specific job assignments are made
to different subordinates for ensuring a
certainty of work performance. Eachindividual should be given a specific job to
do according to his ability and made
responsible for that.
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Delegation of AuthorityDelegation of Authority
Authority without responsibility is a
dangerous thing and similarly responsibility
without authority is an empty vessel.Everybody should clearly know to whom he
is accountable; corresponding to the
responsibility authority is delegated to the
subordinates for enabling them to show work
performance.
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ORGANISATION STRUCTUREORGANISATION STRUCTURE
An organization structure shows the
authority and responsibility relationships
between the various positions in theorganization by showing who reports to
whom. Organization involves establishing
an appropriate structure for the goal
seeking activities. It is an establishedpattern of relationship among the
components of the organization.
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PRINCIPLES OF ORGANISATIONPRINCIPLES OF ORGANISATION
Consideration of unity of objectives
Specialization
Co-ordination Clear unbroken line of Authority:
Responsibility
Efficiency
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PRINCIPLES OF ORGANISATIONPRINCIPLES OF ORGANISATION
Delegation
Unity of Command:
Span of Management: Communication
Flexibility
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FORMAL AND INFORMAL ORGANISATIONFORMAL AND INFORMAL ORGANISATION
Formal Organization
Informal Organization
************************* Formal Organization:
-"a system of consciously coordinated activities
or forces of two or more persons. It refers to the
structure of well-defined jobs, each bearing a
definite measure of authority, responsibility and
accountability."
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Characteristic Features of formalCharacteristic Features of formal
organizationorganization
laid down by the top management
Formal organization prescribes the
relationships concentrates on the jobs to be
performed
individuals are fitted into jobs
is bound by rules, regulations and
procedures.
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authority, responsibility and
accountability of each level are clearly
defined.
division of labor and specialization to
achieve efficiency in operations. coordination proceeds according to the
prescribed pattern.
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Advantages of formalAdvantages of formal
organizationorganization
on the jobs to be performed.
everybody responsible for a given task.
bound by rules, regulations andprocedures.
people of the organization to work together
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Disadvantages or criticisms of formalDisadvantages or criticisms of formal
organizationorganization
does not consider the goals of the
individuals.
bound by rigid rules, regulations andprocedures. This makes the achievement
of goals difficult.
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Informal OrganizationInformal Organization
an informal organization is an organization
which is not established by any formal
authority, but arises from the personal and
social relations of the people.
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Characteristics features of informalCharacteristics features of informal
organizationorganization
It is unplanned
reflect human relationships.
It is not based on rules, Informal organizations are based on
common taste, problem, language,
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Benefits of Informal organizationBenefits of Informal organization
it more effective.
Many things which cannot be achieved throughformal organization can be achieved
It provides social satisfaction to group members. Job satisfaction.
the best means of employee communication.
It serves as an agency for social control of
human behavior.
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Differences Between Formal andDifferences Between Formal and
Informal OrganizationInformal Organization
Formal Organization:
Formal organization is established with the
explicit aim of achieving well-defined goals.
Informal Organization:
Informal organization springs on its own. Its
goals are ill defined and Intangible.
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Formal Organization:
is bound together by authorityrelationships among members.
Informal Organization:
is characterized by a generalized sort ofpower relationships.
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Formal Organization:
Formal organization recognizes certaintasks and activities
Informal Organization:
Informal organization does not have anywell-defined tasks.
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Formal Organization
The roles and relationships of people informal organization are impersonally
defined
Informal Organization In informal organization the relationships
among people are interpersonal.
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Formal Organization
In formal organization, much emphasis isplaced on efficiency, discipline, conformity,
consistency and control.
Informal Organization
is characterized by relative freedom,
spontaneity, homeliness and warmth.
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Formal Organization
the social and psychological needs andinterests of members of the organization
get little attention.
Informal Organization the socio psychological needs, interests
and aspirations of members get priority.
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IMPORTANCE OF ORGANISATION
Facilitates Administration
Facilitates Growth and Diversification
Provides for Optimum use ofTechnological Improvements
Encourages Human use of Human
Beings
Stimulates Creativity
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IMPORTANCE OF ORGANISATION
(contd)
Facilitates stability of the organisation
Reduces Employee Turnover
Reduces Duplication of Activities Fosters Coordination
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Facilitates Administration
A properly designed and balanced
organization facilitates both management
and operation of the enterprise. It
increases management's efficiency andpromptness, avoids delay and duplication
of work and motivates the employee to
perform their job efficiently.
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Facilitates Growth and Diversification
The organization structure should providefor expansion and diversification of the
enterprise otherwise, the enterprise will
find itself in a serious administrative crisis.Provides for Optimum use of Technological Improvements
A sound organization structure facilitates
the optimum use of technological
improvements like computer systems etc.
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Encourages Human use of Human Beings
A sound organization provides for efficientselection, training and development of
staff, job rotation and job enlargement.
The organization structure can profoundly
affect the people of the company. Properorganization facilitates the intensive use of
human capital.
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Stimulates Creativity
organization provides sufficient freedom to themanagers and encourages their initiative,
independent thinking and creativity.
Facilitates stability of the organization
By ensuring delegation of authority, two-waycommunication, co-operation, effective
leadership, employee morale and flexibility to
adjust to changes in the conditions, a sound
organization facilitates stability of the organization.
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Reduces Employee Turnover
Organization increases employeesatisfaction, ensures better relationsbetween the management and theworkers, and thereby reduces employee
turnover. Reduces Duplication of Activities
Organisation avoids delay and duplicationof activities and consequent confusion by
ensuring well-defined responsibilities andauthority.
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Fosters Coordination
By providing the framework for holdingtogether the various functions in an orderly
pattern, organization fosters co-ordination.
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ORGANISATION CHARTS AND MANUALS
Organization chart: The pattern of network
of relations between the various positions
in an organization as well as between the
persons who hold those positions is
referred to as "Organization chart".
In the word ofJBatty, "An organization
chart is a diagrammatic representation ofthe framework or structure of an organization."
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The
organization chart has the following characteristics:
It is a diagrammatical presentation
l It shows principal lines of authority in the
organizationIt shows the interplay of various functions
and relationships
l It indicates the channels of communication.
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Advantages of Organization Chart
It gives a clear picture of the organizationstructure.
It shows at a glance the lines of authorityand responsibility.
to avoid misunderstanding of jurisdictionalproblems
outsiders can easily know the persons
whom they have to approach in connection with
their work.
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to avoid overlapping and duplication of
authority and secure unity of command. what extra training is required for
promotion to a higher position.
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Types of Organization Chart
An organization chart can be drawn in
different forms. They are:
Top-to-down chart or vertical chart
Left-to-right chart orHorizontal chart
Circular chart.
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Top-to-down chart or vertical chart:
Most organizations use this type of chart
which presents the different levels of
organization in the form of a pyramid with
senior executive at the top of the chart and
successive levels of management
depicted vertically below that
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Left-to-right or Horizontal Chart:
Horizontal charts which read from left toright are
occasionally used. The pyramid lies
horizontally instead of standing in thevertical position.
The line of command proceeds horizontallyfrom left to right showing top level at theleft and each successive level extending tothe right.
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Circular Chart:
In this chart, top positions are located in
the centre of the concentric circle.
Positions of successive echelons extend in
all directions outward from the centre.
Positions of equal status lie at the same
distance from the centre on the same
concentric circle
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Meaning of Organization Manual
an organization may prepare a Manual or
Management Guide. Manual sets down in
the form of a book or booklet all the details
of the organization,.
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Good organization manual has the following
contents.
1.Nature of the enterprise
2. Objectives of the enterprise
3. Policies of the management4. Job Descriptions
5. Duties and responsibilities of various
personnel6. Instructions relating to the performance of
standard as well as non-standard jobs.
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Types of Manuals
Policy Manuals:
Operations Manual:
Organization Manual: DepartmentalPractice Manual:
Rules and Regulations Manual:
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Policy Manuals:Policy Manuals:
It describes the overall limitations within
which activities are to take place and thus
reveals the broad courses of managerial
action likely to take place under certain
conditions.
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Operations Manual:Operations Manual:
It is prepared to inform the employees of
established methods, procedures and
standards of doing the various kinds of
work.
DepartmentalPractice Manual:
It deals in detail with the internal policies,
organization and procedures of one
department.
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Advantages of Manuals
1. It contains in writing all-important decisions
relating to internal organization of the
enterprise.
2. It avoids conflicts and overlapping of authority.
3. It enables new employees to know the variousprocedure and practice in the shortest
possible time.
4. It enables quick decisions.
5. It contains rules and regulations which
employees must follow.
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Disadvantages of Manual
1. The preparation of manual is costly andtime consuming and process.
2. Manuals leave little scope of individual's
initiative and direction.
3. Manuals bring rigidity to the
organization.
4. Manuals may put on record those
relationships which no one would like tosee exposed.