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Organize
What is Organizing?
Identification & classification
Grouping of activities to attain objectives
Assignment of each group to a manager
Coordination – horizontally & Vertically
Formal Organization
• An intentionally formed structure
• Of roles assigned to people• In a formally organized
enterprise
Informal Organization
• A joint personal activity• Without conscious joint
purpose• Contributing to joint results
Example of formal & informalPresident
Vice- president
Division manager
Dpt. manager
Dpt. manager
Division manager
Vice- President
Division manager
Division manager
Vice-President
Division manager
Division manager
Play cricket every weekend
Play chess every Sunday
Informal organization
Organization with narrow span
Advantages:1. Close supervision
2. Close control3. Fast communication
Disadvantages:1.Superiors interfere in subordinates work
2. High costs3. Distance between lowest and highest
level
Organization with wide span
Advantage:1. Superiors are forced to delegate2. Clear policies should be made3. Subordinates must be carefully
selected
Disadvantage:1. Requires good quality managers
2. Superior’s loss of control3. Superiors make decisions
excessively
Structure & Process of Organizing
1
•Formulating objectives, policies & plans
2
•Identifying & classifying
3
•Grouping
4
•Delegating authority
5
•Coordinating authority
VIRTUAL ORGANISATION
Customer
Supplier
Competitor
• Flexible• Reduce risks
• Respond rapidly to
market needs
Organizational Division: Department
Distinct area
Division Branch
Manager has authority
Departmentation by Territory or Geography:Grouping activities according to the areas
President
Marketing Personnel Finance Finance Purchasing
Western region
Central region
Eastern region
South- east
South-west
engineering production accounting Sales
Departmentation by Enterprise function:Grouping activities according to the functions
President
Assistant
Marketing
Market Research
Advertising & Promotion
Engineering
Electrical
Mechanical
Finance
Planning
Budget
Personnel
Departmentation by Product:Grouping activities according to the product or product lines.
Matrix organization
AUTHORITY
•Right in a position to exercise discretion
POWER
•Ability to induce the beliefs
EMPOWERMENT
•Giving Powers to take actions•Without asking superiors for permission
• Affects business directly• Eg: Operations,
MarketingLINE
• Affects business Indirectly, Advisory functions
• Eg: HR, FinanceSTAFF
Example of Line Management
Disperse decision making authority
Selection of which decisions to push down
Affects all areas of management
DECENTRALIZATION
CENTRALIZATIONRestricted Delegation
Concentration of activities in one department
Decision Making lies in the hands of Top Management
ART OF DELEGATION
Receptiveness Willingness to Let Go
Willingness to Allow Mistakes
Trust Subordinates Establish & Use Broad Controls
Complete Centralization
Complete Decentralization
Authority Not Delegated
Authority Delegated
TENDENCIES
PLANNING
OVERCOMEINFLEXIBILITY
MAKE LINE LISTEN TO STAFFAVOID CONFLICTS
PROMOTING ORGANIZATION
CULTURE
EFFECTIVE ORGANISING
Zenia Choksey 405Rashi Agarwal 401
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