CONCEPT OF MANAGEMENT

ORGANISING
PRESENTING TEAM ANIRUDH AKSHAY LALITH PRAJWAL ROHAN RAJDEEP TUSHER

INTRODUCTION
 It is the process of identifying and grouping the work to be performed and establishing relationships for the purpose of enabling people to work more effectively in accomplishing objectives .  Act of rearranging elements following one or more rules.

DEFINITION
organizing can also be defined as to place different objects in logical arrangement for better searching.

I M P O RTA N C E O F O RG A N I Z I N G I N A N O RG A N I S AT I O N
 Specialization - Organizational structure is a network of relationships in which the work is divided into units and departments.  Co-ordination - Organization is a means of creating coordination among different departments of the enterprise.  Effective administration - The organization structure is helpful in defining the jobs positions.

NATURE OF ORGANIZATION
 Organization as a process : organization is a continues process through which work is allotted among the employees in order to achieve goals of the organisation  organisation as a group : organisation is a group of recognised persons who contribute their efforts for the attainment of goals .  organisation as a structure of relationships : organisation is also interpreted by some writers as a structure of relationships among positions and jobs for the purpose of achieving organisational objectives.

NATURE OF ORGANIZATION (contd)

 Organization as a creative ideology : it gives new thoughts new ideas with combination of skilled and unskilled employees .  Organization as a function : Organization is one of the important function of management , the person behind this fact is that Organization combines other activities of business .

PURPOSE OF ORGANIZATION
 Determination of activities for the accomplishment of objectives  Grouping and classifying all the activities  Assigning all the activities to the right person at right place .  Establishing effective coordination among the employees

PRINCIPLES
 rinciple of responsibility : this principle explains that the responsibility in consideration to the delegated authority must be absolute and clear .  Principle of authority : authority that is given to the manager enables him to accomplish the objectives of the enterprise .  Principle of efficiency : the structure that is formulated should enable the business concern to function efficiently and achieve its objective .

PROCESS OF ORGANIZATION
 Establishing objectives : organization is a means to achieve objectives hence establishing the objectives is the first step involved in the organization process.  Determining activities : all the work should be classified into its nature size objectives and responsibility .  Grouping activities : in this step closely related and similar type of activities must be grouped in sections on the basis of certain criteria .  Allocating responsibility : job assigned should be according to the principle of right man for the right job

TYPES OF ORGANIZATION

FORMAL ORGANIZATION
 Meaning : Organization is formal when the activities of two or more persons are consciously coordinated towards a given objectives

INFORMAL ORGANISATION
Meaning : Informal organization exists in every Organization and at all levels of managerial hierarchy

DIFFERENCE
 Within any company, there are two types of organization Formal Structure and Informal Structure. Both effect the organization and relationships between staffs.  The formal Organization refers to the formal relationships of authority and subordinates withing a company. While theinformal organization refers to the network of personal and social relations that is developed spontaneously between people associated with each other.  The primary focus of the formal organization is the position of the employee/manager holds. While the primary focus of theinformal organization is the employee as an individual person.

DIFFERENCE (CONTD)
 Power is delegated from the top levels of the management down to the organization. In an informal organization power is derived from the membership of the informal groups within the organization.  In formal Organization, each position has rules governing what can be done or what cannot be done. There are rewards and penalties for complying with these rules and performing duties as well. While in an informal organization, the conduct of individuals within organization is governed by norms that is social rules of behavior.

TYPES OF FORMAL ORGANIZATION

Formal organization Line organization Line and staff organization Functional organization Committee organization

LINE ORGANIZATION
 Line organization is the most oldest and simplest method of administrative organization. According to this type of organization, the authority flows from top to bottom in a concern. The line of command is carried out from top to bottom.

FEATURES OF LINE ORGANIZATION

 It is the most simplest form of organization.  Line of authority flows from top to bottom.  Specialized and supportive services do not take place in these organization.  Unified control by the line officers can be maintained since they can independently take decisions in their areas and spheres.  This kind of organization always helps in bringing efficiency in communication and bringing stability to a concern.

LINE AND STAFF ORGANIZATION

According to this organization, specialized and supportive activities are attached to the line of command by appointing staff supervisors and staff specialists who are attached to the line authority.

FEATURES OF LINE AND STAFF ORGANIZATION

 There are two types of staff :
Staff Assistants- P.A. to Managing Director, Secretary to Marketing Manager. Staff Supervisor- Operation Control Manager, Quality Controller, PRO

 Line and Staff Organization is a compromise of line organization. It is more complex than line concern.  Division of work and specialization takes place in line and staff organization.  The whole organization is divided into different functional areas to which staff specialists are attached.

FUNCTIONAL ORGANIZATION
 Functional organization is a type of organizational structure that uses the principle of specialization based on function or role.

FEATURES OF FUNCTIONAL ORGANIZATION

 The entire organizational activities are divided into specific functions such as operations, finance, marketing and personal relations.  Complex form of administrative organization compared to the other two.  Three authorities exist- Line, staff and function.  Each functional area is put under the charge of functional specialists and he has got the authority to give all decisions regarding the function whenever the function is performed throughout the enterprise.

COMMITTEE ORGANIZATION
 A committee as a group of people who meet by plan to discuss or make a decision for a particular subject. Advisor committee examples : sales & finance committee . Executive committee examples : board of directors of a company.

ORGANIZATIONAL CHARTS
 An organization chart is a diagrammatic representation of the framework or structure of an organization. There are three types :  From top to down  From left to right  circular

FROM TOP TO DOWN METHOD

C.E.O Production manager Marketing manager personnel manager Finance manager

TOP TO DOWN LEVEL ORGANISATIONAL STRUCTURE

 A "topdown" approach is one where an executive, decision maker, or other person or body makes a decision. This approach is disseminated under their authority to lower levels in the hierarchy, who are, to a greater or lesser extent, bound by them.

ADVANTAGES AND DISADVANTAGES

Advantages Greater efficiency and superb overview of higher levels You can replace many manual processes with early identification Organization broadens identity management skills and understanding during the first phase Disadvantages The solution provides limited coverage in the first phases The implementation cost is likely to be higher The organizational structure you establish might have to be changed in a later roll-out phase

CIRCULAR METHOD
Finance manager

Production manager

C.E.O

Personal manager

Marketing manager

CIRCULAR METHOD
 This is often called the hub-and-spoke pattern of staff organization. It has the advantage of allowing the president access to a variety of staffers whom he can task with specific projects, receive information directly and ensure that he remains in control of his flow of information

ADVANTAGE AND DISADVANTAGE

 The advantage is that it allows the president to remain as the "decider".  The disadvantage of this approach is that it is very time consuming and can be wearing on the staff.

Matrix Design
The matrix structure groups employees by both function and product. This structure can combine the best of both separate structures.


 

 

Functional and divisional chains of command simultaneously Dual lines of authority Functional hierarchy of authority runs vertically Divisional hierarchy runs laterally Violates the unity of command concept.

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Matrix, Team and Network

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TYPES
 Weak/Functional Matrix: A project manager with only limited authority is assigned to oversee the cross- functional aspects of the project. The functional managers maintain control over their resources and project areas.  Balanced/Functional Matrix: A project manager is assigned to oversee the project. Power is shared equally between the project manager and the functional managers. It brings the best aspects of functional and projectized organizations. However, this is the most difficult system to maintain as the sharing power is delicate proposition.  Strong/Project Matrix: A project manager is primarily responsible for the project. Functional managers provide technical expertise and assign resources as needed.

A MATRIX ORGANIZATION IN AN AEROSPACE FIRM

Prentice Hall, 2002

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