Unit III

Organizing
Definition
It is determining what tasks are to be done,
who is to do them, how the tasks are to be
grouped, who reports to whom & where
decisions are to be made.
The process of identifying & grouping the
work to be performed, defining & delegating
responsibility & authority & establishing
relationships for the purpose of enabling
people to work most effectively together in
accomplishing objectives.
 Benefits of Organizing
Helps individual to develop clear picture of
the tasks
Supports planning & control activities
Creates channel of communication
Helps maintain the logical flow of work
activities
Make efficient use of its resources
Coordinates activities that are diverse in
nature
Helps managers to focus task efforts
 Formal Vs Informal
Organization
Formal Basis of Informal
Organization Comparison Organization
Official General Nature Unofficial
Authority & Major concepts Power & Politics
Responsibility
Position Primary focus Person
Delegated by Source of leader Given by group
management power
Rules Guidelines for Norms
behaviour
Rewards & Source of control Sanctions
penalties
 Span of Management
Also called span of control
Number of subordinates who report directly
to a specific manager
The principle states that there is a limit to
the number of subordinates a manager can
effectively supervise
 Tall Vs Flat Structure
Tall Structure
Many hierarchical levels in an organization with
narrow spans of control
As number of levels increases, the effort &
expenditure in managing them increases
Complicated communication
Flat Structure
Wide span of control & fewer hierarchical levels
Not possible to determine specific number of
subordinates that a manager can supervise
effectively
Tasks are inter-related, as a result, control &
 Contd..
Factors determining Span of Control
Amount of time spent by the supervisor with
his/her subordinates
Flow of communication in the organization
Capability of the supervisor
Problems faced
Over-supervision
Delay in decisions
Problems in communication
Decreased levels of initiative & morale
Less opportunity for responsibility & development
 Factors determining an
Effective Span
Trained subordinates
Clarity of delegation of authority
Clarity of plans
Use of objective standards
Rate of change
Communication techniques
Amount of personal contact needed
Organizational levels
Use of staff assistance
Supervision by others
 Process of Organizing
Follows logical sequence
Objectives of the organization should be
established
Supporting objectives, policies & plans
should be formulated
Activities required to achieve the objectives
should be identified & classified
Best way of grouping the activities &
utilizing human resource should be chosen
Authority should be delegated
 Factors Influencing Design of
Organizational Structure
Formulation of
vision,
mission & goals
Contingency
factors
Technology Strategy
Structural methods
Environment for
Organization structure
promoting
Functional
innovation
Divisional
Hybrid
Matrix
Attainment of
organizational
goals
 Departmentation
Definition
It is the process of grouping activities, &
delegating authority to managers to
supervise the resulting divisions & to guide
the staff, giving the managers responsibility
for the performance of the divisions.
Why departmentation is required?
Helps organization to take advantage of
functional specialization
Defines the role of each individual
Facilitates control, coordination &
communication
Provides necessary platform to build loyalty
among members of the organization
Helps manager to identify & locate source of
skills, information & competence to take vital
decisions
 Contd..
Departmentation can be done through four major
structural
alternatives.
Functional structure – positions are grouped
according to their main functional area
Divisional structure – positions are grouped
according to their similarity of products, services or
markets
Product division
Geographic division
Customer division
Hybrid structure – adopts both functional &
divisional structures (geographic)at the same level
 Other Bases for
Departmentation
Departmentation by simple numbers –
based on the number of people involved in
it
Departmentation by time – use of shifts in
such organizations
Departmentation by process or equipment –
activities are often grouped on the basis of
processes or equipment. Brings together
people & material to carry out a particular
operation
 Authority
It is the power to make decisions & see that
they are carried out in the right way at the
right time, providing necessary guidance,
as & when required.
Relationship between two individuals – the
superior & the subordinate.
It is exercised to achieve organizational
goals.
 Differences between Authority& Power
Authority Power
Right to do something Ability to do something
Legitimate power given Requires no formal
by an organization to a position
member holding a
position
Derived only through Derived from many
position sources
Narrow term & is a major Broader concept that
source of power creates action when
authority fails to achieve
results
 Difference between Line &
Authority
Line Manager Staff Manager
Generalist Specialist-knowledge limited to
specialized field only
Directs others Assists others
Delegates authority Serves authority
Trains his/her subordinates Investigates the problems related to
his/her field of specialization
Exerts control over his/her Makes plans
subordinates
Uses sanctions Solves special problems
Has veto power Supports line effort
Makes operating decisions Provides ideas to line managers
Bears final responsibility Expertise in a specialized field
 Line and Staff Conflict
Line managers complaints over staff
Staff officers claim credit for successful
programmes but not for failure.
Staff officers are more theoretical than
practical.
Staff officers are well qualified but they try
to dominate the line officers.
Staff officers not only give advice but try to
persuade line for implementing.
Contd..
Staff managers complaints over line
Line officers consult staff only at last and do
not make proper use of expert knowledge.
Line officers do not consult staff while
implementing the advice.
Line officers are not generally enthusiastic
about new ideas suggested by the staff.
Staff officers do not have authority to
implement their ideas.
 Delegation of Authority

It is the delivery by one individual to another

of the right to act, to make decisions, to
requisite resources & to perform other tasks
in order to fulfill job responsibilities.
It is the process by which managers allocate
a chunk of their workload to their
subordinates.
 Factors Affecting Delegation of
Authority
The Delegator’s (superior’s) aspect
Love of authority
Fear of subordinate’s advancement
Fear of exposure
Attitude towards subordinates
Personality traits & experiences of the superior
The Delegant’s (subordinate’s) aspect
Fear of criticism
Lack of information & resources
Lack of self-confidence
Absence of rewards & incentives
 Centralization Vs
Decentralization
Centralization Decentralization
It is the systematic & Applies to the
consistent reservation of systematic delegation of
authority at central authority in an
points within an organization-wide
organization
Relative retention of context
Granting of decision-
decision-making making authority by
authority by top management to lower
management level employees
 Decentralization-Centralization
depends on the foll. Situational
variables
History of an organization
Availability of competent managers
Size of the organization
Geographical dispersion
Technical complexity of tasks
Time frame of decisions
Importance of a decision
Planning & control procedures
Views of subordinates
Environmental influences
 Delegation Vs
Decentralization
Delegation Decentralization
It is a process It is the end result of
delegation & dispersal of
authority
It refers to the granting of It is the situation which exists
authority & creation of as a result of the systematic
responsibility delegation of authority
Superior continues to be Superior is relieved from his
responsible for the work responsibility for the work
delegated to his decentralized
subordinates
It is vital & essential to the It is optional, it may or may not
management process be practiced
 Chain of Command
Order in which authority and power in an
organization is wielded and delegated from top
management to every employee at every level of
the organization.
Instructions flow downward along the chain of
command and accountability flow upward.
A system whereby authority passes down from the
top through a series of executive positions or
military ranks in which each is accountable to the
one directly superior.
Structure of decision-making responsibilities from
the higher levels of authority to the lower levels.
 Job Design
Definition
It integrates work contents (tasks,
functions,
relationships), the rewards & qualifications
required including skills, knowledge &
abilities
for each job in a way that meets the needs
of
employees & the organization.
 Steps in Job Design

Specification of individual tasks

Specification of methods of tasks
performance
Combination of tasks into specific jobs to
be assigned to individuals
 Factors affecting Job
Design
Organizational Factors
Characteristics of tasks (planning, execution &
controlling of task)
Work flow (process sequences)
Ergonomics (time & motion study)
Work practices (set ways of performing tasks)
Environmental Factors
Employees abilities & availability
Social & cultural expectations
Behavioural Elements
Feedback Use of abilities
Autonomy Variety
Techniques of Job Design
Work simplification
Job rotation
Job enlargement
Job enrichment