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ORGANIZATION

Organizing is the group of activities necessary to attain objectives,


the assignment of each grouping to a manager with authority
necessary to supervise it and provision for coordination horizontally
and vertically in the enterprise structure

Organization involves identification and grouping the activities to


be performed and dividing them among the individuals and
establishing authority-responsibility relations among them for
accomplishment of org objectives

CHARACTERISTICSLFEATURES OF ORGANIZATION:-
(1) Group of people
(2) Division of labour
(3) Common Objectives
(4) Structure of authority & responsibility
(5) Coordination
(6) Horizontal & vertical relationships
(7) Organization is a social system

IMPORTANCE OF ORGANIZATION:-
(1) It facilitates and helps administration
(2) Provides appropriate platform for mgt to plan, organize etc
(3) It facilitates growth & diversification
(4) It encourages innovation & creativity
(5) Provides optimum use of resources
(6) It facilitates coordination & communication
(7) Provides training & development to personnel
(8) Job satisfaction to employees

PRINCIPLES OF ORGANIZATION:-
(1) Unity of objectives
(2) Division of work
(3) Principal of functional definition
(4) Scalar principle
(5) Delegation
(6) Parity of authority
(7) Unity of command
(8) Unity of direction
(9) Exception principle
(10) Span of control
(11) Principle of balance
(12) Efficiency
(13) Simplicity
(14) Flexibility
(15) Communication
(16) Leadership

Organization
Structure
Formal Inform
al
Line Org
Functional Org
Line & Staff Org
Project Org
Matrix Org
Committees

LINE ORGANIZATION:-
(1) Benefits:
(a) Simplicity
(b) Economical & effective
(c) Effective communication
(d) Unified control
(e) Quick decision making
(f) Fixed authority & responsibility
(g) Flexible
(h) Excellent discipline
(2)Demerits
(a) Lack of specialization
(b) Autocratic mgmt
(c) Rigid & Flexible
(d) Lack of coordination
(e) Over loading
(f) Encourages nepotism
(g) Lack of initiative
FUNCTIONAL ORGANIZATION:-
(1) Benefits
(a) Division of labour & specialization
(b) Mass production
(c) Better supervision & control
(d) Skilled development
(e) Better coordination
(f) Scope for growth & expansion
(g) Economy & efficiency
(h) Suitability
(2) Demerits
(a) Difficult to establish
(b) Multiple command
(c) Lack of coordination & leadership crisis
(d) Delay in decision making
(e) Conflicts
LINE & STAFF ORGANIZATION:-
(1) Benefits
(a) Specialization
(b) Stability & discipline
(c) Expert advice
(d) Prompt decisions
(e) Training & development of personnel
(f) Line managers can concentrate on other functions
(2) Demerits
(a) Complicated structure
(b) Loss of initiative
(c) Ineffective staff
(d) Conflict between line & staff
(e) Expensive
But many times there are conflicts between line & staff, following are
few
(3) View points of line managers for conflicts
(a) Staff grabs credit for work done
(b) Staff undermines the line authority
(c) Staff think in vacuum
(d) Staff provide impractical and imbalanced advice
(4) View points of staff for conflicts
(a) Line managers resist ideas and changes
(b) Ignoring the staff advice
(c) No authority to enforce their decisions
(d) Line does not make proper use of staff
(5) Other reasons
(a) Incompetent staff and inefficient line managers
(b) Lack of clarity in defining line and staff relationships
(c) Unclear and complicated org structure
(d) Ambiguity in delegation of authority
(6) Suggestion for improving relationships
(a) Staff should be qualified and trained personnel
(b) Line managers should give due consideration to the staff
(c) Line and staff should operate in terms of policies and objectives
(d) Staff should have tolerance and appreciate difficulties of line
COMMITTEES ORGANIZATION:-
(1) Characteristics/ Features of Committee:-
(a) At east 2 persons should be there to form a committee
(b) It is formed to deal with specific problem or issue & work for it
(c) They are usually formal bodies with definite structure
(d) It is entrusted with definite authority-responsibility to deal
(e) It maybe advisory or executive
(f) They maybe given authority to take decision or collection
information
(g) They maybe temporary or permanent

PROJECT ORGANIZATION

MATRIX ORGANIZATION

PROCESS OF ORGANIZATION:-
(1) Determination of objectives
(2) Identification of work
(3) Grouping the work
(4) Suitable personnel
(5) Establishing formal relationships
(6) Delegation of authority & responsibility
(7) Coordination of activities

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