UNIT 5 ORGANISING DR RAMESH SHARMA Organising Process

UNIT- 5 ORGANISING DR. RAMESH SHARMA

Organising Process Structure of Organization: Functional and Divisional - concept Formal and Informal Organization -concept Delegation Concept Importance Concept Elements Importance Decentralization Concept Importance DR. RAMESH SHARMA

“A poor organization could Run a Good Product into the ground and that a Good organization which has comparatively poor product could run a good product out of the Market” - Kenneth C. Towe DR. RAMESH SHARMA

Harmonious Adjustments of various parts to Achieve Common Objective Features of Organizing Division of Work Coordination Plurality of Persons Common Objectives Organization is a Machine of Management DR. RAMESH SHARMA

Benefits of Specialization Clarity in Working Relationship Optimum Utilization of Resources Adaption to Change Effective Administration Development of Personnel Expansion and Growth DR. RAMESH SHARMA

o R G A N IS I N G P R O C E S S 1. Identification and Division of Work 2. Departmentalization 3 Establishing Reporting Relations 2. Assignment of Duties DR. RAMESH SHARMA

General Manager Informal organization Purchase Manager Production Manager Finance Manager Purchase Executive Production Superintendent Finance Executive Formal organization DR. RAMESH SHARMA

Advantages of Formal organization Easy to Fix Accountability No Overlapping of Work Unity of Command Possible Easy to Get Goals Stability in Organization DR. RAMESH SHARMA

Limitations of Formal organization Delay in Work Lack of Initiative Mechanization of relations DR. RAMESH SHARMA

Informal Organisation: It refers to the natural groupings of people in the work situation to meet personal needs. Characteristics of Informal Organization Based on Formal Organization No written Rule and Procedure, Independent Channel of Communication Not Deliberately Created No place on Organizational Chart Personal Lacks Stability DR. RAMESH SHARMA

Advantages of Informal organization Effective Communication Fulfils Social Needs Fulfils Organizational Objectives DR. RAMESH SHARMA

Limitations of Informal Organization Creates Rumors Resists Change Pressure of Group Norms DR. RAMESH SHARMA

The Wrong Organization Structure will seriously impair Business Performance and may even destroy it” - Peter F. Drucker DR. RAMESH SHARMA

Functional organisation Divisional organisation Line and Staff organisation DR. RAMESH SHARMA

Division of the whole organization according to the major activities performed by it. � Shareholders Board of Directors General Manager/CEO Productio n Manager Sales Manager Marketing Manager Advertisemen t Manager Finance Manager Market research Manager DR. RAMESH SHARMA Personnel Manager

Advantages: Benefits of Specialization Coordination is Established Managerial Efficiency is Increased Minimal Duplication of Efforts Training is facilitated equal weightage to all functions Disadvantages: Ignorance of organizational Objective Difficulty in inter-departmental Coordination Conflict of Interest Hurdle in Complete Coordination Suitability: Large size of the unit Specialization is required Decentralization is needed Single product unit DR. RAMESH SHARMA

Advantages: Development of Divisional Heads Divisional Results can be Assessed Quick Decision Making Easy Expansion Disadvantages: Conflicts between Divisional Heads Duplicity of Functions Selfish Attitude Suitability: Multi-product organizations. Growing organizations DR. RAMESH SHARMA

It refers to the process of entrusting responsibility and authority, creating accountability of the person to whom work or responsibility has been handed over. DR. RAMESH SHARMA

Responsibility Authority Assignment of job to a subordinate The power to take decision Accountability Answerability of the subordinate to his superior for his work performance DR. RAMESH SHARMA

Assigning Responsibility Granting Authority (Delegation of responsibility to subordinates) (Delegating authority to fulfil responsibility) Fixing Accountability (Demanding justification by the superior) DR. RAMESH SHARMA

Effective Management Employee Development Motivation of Employees Facilitation of Growth Basis of Management Hierarchy Better Coordination DR. RAMESH SHARMA

It refers to the situation which exists as a result of the systematic delegation of authority throughout the organization. DR. RAMESH SHARMA

Develops Initiative among Subordinates Develops Managerial Talent for Future Quick Decision Making Relief to Top Management Facilitates Growth Better Growth DR. RAMESH SHARMA

THANK YOU Please be free to write query at: Dr. Ramesh C Sharma rameshchandersharma@gmail. com http: //rameshchandersharma. blogsspot. in +91 -94180 -45154 DR. RAMESH SHARMA