Unit 3
ORGANIZING
“Organizing is the function of
gathering resources, establishing orderly uses for such resources and structuring tasks to fulfill organizational plans”
Principles of Organizing
The principles of organizing are
1. Unity of objective
2. Specialization
3. Span of control
4. Principles of Co-ordination
5. Scalar principle
6. Unity of command
7. Exception Principle
8. Delegation
9. Unity of Direction
Organizing process
The process of organizing consists of 5 steps
Reviewing plans and Objectives
Determinin g activities
Classifying and
grouping activities
Assigning work and resources
Evaluatin g results
Need and Importance of organizing
The need and importance of organizing is based on the following points
1. Effective management
2. Co-ordination
3. Clarity of job
4. Efficiency
5. Decentralisation
6. Coping with change
7. Communication
8. Broader span of control
9. Discipline
10.Management development
Organisation chart
A graphic representation of organizational structure.
1. Depicts the organization's formal structure and show only formal relationships.
2. Essentially illustrates who reports to whom.
3. Shows only the designation of the individuals
4. It is a model of the organization structure
Types of organization chart / structure
Three types of organization charts are usually employed
1. Vertical charts
2. Horizontal charts
3. Circular charts
1. Vertical charts
Vertical charts place major functions on the top and
subordinate functions at the bottom of the organizational hierarchy.
2. Horizontal charts
The horizontal chart moves from left to right
3. Circular charts
In circular charts the chief executives position is in the middle of the chart. The flow of authority moves outwards in circles drawn outside the middle circle.
Advantages of Organization charts
1. Clear superior subordinate relationships is explained
2. Better understanding objectives
3. It provides useful information to outsider contacting the
organization
4. It helps in boosting team spirit
5. It narrows down scope of politics
Limitations of Organization chart
1. Individuals may confuse
authority relationships with status
2. It shows only formal authority
3. It tends to destroy team spirit and hindrance in team building
4. The cost of preparing, storing and updating charts are high
5. Updating in the organizational charts is difficult.
Departmentation
“Departmentation is the efficient and effective grouping of jobs
into meaningful work units to co- ordinate number of jobs towards accomplishing organizational
goals”
Basis of Departmentation
There are several basis of departmentation
1. Departmentation by function
General manager
Productio
n Sales Finance
1. Departmentation by Product
General manager
Manager Automobi
les
Manager
Refigeration Manager Spare parts
3. Departmentation by Territory
General manager
Manager East zone
Manager west zone
Manager North
zone
Manager South zone
4. Departmentation by Process
General manager
Drilling Grinding welding Assemblin
g Finishing
5. Departmentation by customer
General Manager
Foreign customers Wholesale
customers Retail customers
5. Departmentation by Time
General Manager
Night Shift Evening Shift
Day Shift
Factors in
Departmentation
1. Take advantage of specialization
2. Facilitate control
3. Secure adequate attention
4. Recognize local conditions
5. Reduce expenses
Delegation of Authority
Delegation is the downward transfer of formal authority to subordinates to facilitate the
accomplishment of the assigned work
Delegation of work becomes necessary as the organization grows
Nature of Delegation
Some of the important features of delegation are as follows
1. Two-sided relationship
2. Act of trust
3. Freedom to think and act
4. Dependency relationship
5. A challenging task
6. Forward-thinking principle
Principles of Delegation
Some of the principles that serve as guidelines for the delegation of authority are as bellow
1. Functional authority
2. Matching authority and responsibility
3. Unity of command
4. Principle of communication
5. Principle of management by exception
Process of Delegation
The process of Delegation includes
1. Determination of results to be obtained
2. Assignment of task or responsibility
3. Delegation of authority to make decisions
4. Accounting for the
accomplishment (results)
Advantages of Delegation
Delegation has several advantages
1. It relieves the manager of his heavy workload
2. Speeds up decision making
3. Helps to create a formal organisation structure
4. Helps subordinates to be trained for a future position
5. Motivates the subordinates
6. Creates a sense of belongingness
Centralization and Decentralization
Centralization
Centralization is that condition where much of the decision
making authority is retained at the top of the managerial
hierarchy
Centralization refers to systematic reservation of
authority at central points within the organization
Advantages of Centralization
1. It facilitates personal leadership
2. It is a best means for integration of overall activities
3. It helps to handle emergencies successfully
4. It promotes uniformity in action
5. Duplication of functions are minimised
Decentralization
Centralization is the condition where much of the decision
making authority is pushed downwards to the lower
management levels
Decentralization means
delegation of authority to the subordinates
Advantages of Decentralization
1. Decentralization permits quicker and better decision making
2. Decentralization leads to a
competitive culture within the organization
3. Efficiency is increased
4. It enhances the capability of managers
5. Helps in the diversification of products
6. Reduces problems of communication
