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Organizing Function of Management

The document discusses the organizing function of management. It covers key concepts like organizing, departmentalization, span of control, types of organization structures, and delegation vs decentralization. The main points are: 1) Organizing involves defining roles, departments, coordination and authority. There are different types of organization structures like line, staff, functional and project-based. 2) Authority can be centralized or decentralized. Centralization keeps authority at the top while decentralization disperses it. 3) Delegation is the formal assignment of duties and authority from superiors to subordinates. It is important for sharing work, quick decisions, and development. Guidelines help ensure proper delegation.

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Jose Francis
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27 views

Organizing Function of Management

The document discusses the organizing function of management. It covers key concepts like organizing, departmentalization, span of control, types of organization structures, and delegation vs decentralization. The main points are: 1) Organizing involves defining roles, departments, coordination and authority. There are different types of organization structures like line, staff, functional and project-based. 2) Authority can be centralized or decentralized. Centralization keeps authority at the top while decentralization disperses it. 3) Delegation is the formal assignment of duties and authority from superiors to subordinates. It is important for sharing work, quick decisions, and development. Guidelines help ensure proper delegation.

Uploaded by

Jose Francis
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Organizing Function of Management

“Organizing is a function by
which the concern is able to
define the role positions, the
jobs related and the co-
ordination between authority
and responsibility”.
Chester Barnard
(1886-1961)
Four steps

• Identification of activities

• Departmentally organizing activities

• Assignment of duties

• Classifying the authority

• Coordination between authority and responsibility


Importance of Organization
• Administration
• Efficiency
• Utilization of resources
• Growth and diversification
• Coordination
• Creativity
• HR
Principles
• Unity of objectives
• Division of work
• Span of control
• Scalar principle
• Functional definition
• Exception
• Unity of command, direction
• Balance
• Efficiency
• Flexibility
• Continuity
• Parity of authority and responsibility
• Coordination and simplicity
Formal and Informal Organization
Features of Informal Organization
• Evolving constantly.
• Dynamic and responsive.
• Excellent at motivation.
• Not planned
• Requires insider knowledge to be seen.
• Treats people as individuals like.
• Flat and fluid.
• Cohered by trust and reciprocity
• No structure
Difference
Types of Organization
• Line
• Functional
• Line and Staff
• Project
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.
• This is the reason for calling this organization as
scalar organization
Pure and Departmental Line
Advantages and Disadvantages
Advantages Disadvantages

Simplicity Lack of specialization

Prompt Decision Overloading

Communication Low morale

Economical Instability

Effective control Favouritism

Coordination

Responsibility and executive development


Functional Organization
• F.W Taylor developed the concept
• The functional head and Marketing Director
directs the subordinates throughout the
organization in his particular area.
Functional Organization
Advantages and Disadvantages
Advantages Disadvantages

Specialization Double command

Reduce workload Delay in DM

Mass production Lack of coordination

Flexibility Difficulty in fixing responsibility

Effective control Complexity

Coordination
Line and Staff Organization
Advantages and Disadvantages
Advantages Disadvantages

Expert Advice Line and Staff conflict

Reduce workload Confusion

Quality Decisions Lack of responsibility

Better discipline More dependence on staff

Growth and expansion Expensive


Project Organization
• The core concept of project organisation is to
gather a team of specialists to work on and
complete a particular project.
• The project staff is separate and is independent
of the functional departments.
• Project organisation is employed in aerospace,
construction, aircraft manufacture and
professional areas like management
Project Organization
Committee
“A Committee as a group of persons either
appointed or elected who are to meet for the
purpose of considering matters assigned it”

Types of Committees
Standing
Advisory
Formal or informal
Advantages and Disadvantages
Advantages Disadvantages
Pooling of knowledge Expensive
Motivation Delay in decision making
Different groups interest Compromise decisions
Management Development
Communication
Consolidation of Authority
Check against misuse of power
Organization Manual
• Small book which contains the information
regarding the organisation structure, duties
and responsibilities of each position, job,
description, salaries, prevailing relationships
among members
Contents
Introductory Administrative
• Name of the organization • Organization Structure
• Nature • Job Description
• Objectives • Organization charts
• Location • Policies of management
• Purpose • Rules and regulations
Procedural
• Office procedures
• Specimen forms
• Methods and instructions
• Glossary
Merits and Demerits
Merits Demerits
• Helps in training • Expensive
• Provide information • Time consuming
• Quick decisions • Rigidity
• Provides uniformity
• Helps for delegation
Types of Manual
• Organization
• Policy
• Operations
• Rules and regulations
Delegation
• Primary formal mechanism by which the
network of authority relationship is
established
Process and Features
• Assignment of duties
• Granting authority
• Creation of accountability
Features
• Cannot delegate authority which he himself does not
possess
• Part of authority can be delegated
• Superior have full control
• Delegation may be specific, general, written, formal
or informal
Importance & Principles
Importance Principles
• Sharing of work • Functional definition
• Quick decision • Delegation by results
• Motivation expected
• Effective functioning • Parity of authority and
• Specialized knowledge responsibility
• Executive development • Responsibility can not be
delegated
• Expansion and
diversification • Limits of authority
• Quality of work • Authority level principle
• Scalar principle
Delegation
Types of Delegation Barriers
• General or specific • Superior
• Formal or informal • Subordinate
• Written or oral • Organization
• Downward and sideward
Guidelines
• Clear definition
• Proper selection
• Proper communication
• Adequate controls
• Rewards for implementation
• Training of subordinates
• Work environment
Centralization of Authority
• Authority at central point
• Uniformity of action
• Integration
• Quick decision
• Personal leadership
Merits and Demerits
Merits Demerits
• Standardization of • Over burden
procedure • No scope for specialization
• Evaluation performance • Destroy individual initiative
• Economies of large scale
operations
• Co-ordination
Decentralization
• Dispersal of authority
• No. of decision
• Importance of decision
• Effect of decision
• Checking decision
Merits and Demerits
Merits Demerits
• Reduce work burden • Lack of competent mangers
• Motivation • Issues
• Quick decisions • Expensive
• Growth and diversification
• Executive development
• Control
Guidelines for Decentralization
• Central Authority Factors affecting
• Executive development Decentralization
• Sound communication • Size
system • Location
• Coordination • Diversification
• Control • Competent managers
• Outlook of top
management
• Communication system
Difference B/W Delegation and
Decentralization

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