ORGANISING

Organization is the process of identifying and grouping work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives

Nature of organizing
Common purpose Division of labor Authority structure People Communication Coordination Resources Man-made Environment Rules and regulations

Types of Organization
Formal organization: Formal organization is deliberately designed to achieve some particular objectives. It refers to the structure of well-defined jobs, each bearing a definite authority, responsibility and accountability. Informal Organization: A network of personal and social relations not established or required by the formal organization but arising spontaneously as people associate with one another.

Difference between formal and informal organization

Basis Origin Formal organization Created deliberately Informal Organization Created because of the operation of psychological forces Created for social and psychological satisfaction Small as to maintain Group cohesiveness Continues indefinitely

Purpose

Created for achieving objectives of organization Large

Size

Nature of Groups

Stable and continue for long time

Organization structure

Organization structure refers to the pattern of relationships among individuals and department in an organization.

Types of Organization Structure

1. 2. 3. 4. 5. 6. Line organization Line and staff organization Functional organization Divisional organization Team based organization Free form organization

Line organization
Lines of authority and instructions are vertical ,i.e., they may flow from top to the bottom. The unity of command is maintained in a straight and unbroken line. It implies that each subordinate receives instruction from his immediate superior alone and is responsible to him only.

Advantages

Simple

Discipline

Prompt decision

Economical

Easy supervision and control

Orderly Communication

Limitations
Absence of conceptual thinking

Lack of specialization

Problem of coordination

Autocratic approach

Lack of groundwork for subordinates training

Line and staff organization

Line and staff organization structure refers to a pattern in which staff specialists advice managers to perform their duties. Staff managers provide advice to the line managers who are generally specialists in the field.

Advantages
Quality decision

Planned specialization

Advantages

Prospect for personnel growth

Training ground for personnel

Disadvantages
Line staff conflicts

confusion

Ineffective staff

Functional Organization
Functional structure is created by grouping the activities on the basis of functions required for the achievement of organizational objectives. For this purpose, all the functions required are classified into basic, secondary and supporting functions according to their nature and importance.

Advantages

Reduction of work load

Higher efficiency specialization Scope of expansion

Easier staffing

Better control

Disadvantages
Double command Lack of coordination

Complexity

Delay in decision making

Problem of succession

Divisional Organization
In this form , the organization is divided into several fairly autonomous units. Each unit is relatively self-contained in that it has the resource to operate independently of other divisions. For example, each division has its own manufacturing, engineering, marketing etc.

Basis of Divisionalisation
1. Product division: In this form, each major product or product line is organized as a separate unit. Each unit has its own functional structure. Example; Reliance industries. 2. Territorial division: In this form regional offices are established as separate units. Each regional office has its own set of functional department and operates under the strategic policies and guidelines established by corporate management. Example; North zone, south zone, west zone and east zone. 3. Strategic Business unit (SBU): In multi-product or multigeographical area companies, divisions are created in the form of various strategic business units.

Evaluation of divisional structure

Advantages 1. Emphasizes on the end results. 2. Focus on particular product, its perfomance is easy to measure. 3. Higher level of motivation because managers work in the environment of authority. Disadvantages Quiet costly

Team based organization

A team is a small number of people with complementary skills who are committed to a common purpose, performance goals and approach for which they hold themselves mutually accountable.

Characteristics of teams
Mutual accountability Small number of people Complementary skills Common purpose and performance goals Common approach

Free form organization

Free-form organization, also known as naturalistic, organic or ad hoc organization, is based on the premise that the organization is an open system and the basic task of a manager is to facilitate change in the organization. Characteristics; Higher flexibility Suits to highly dynamic business No traditional superior-subordinate relationship Highly democratic organization