MANAGERIAL ROLE IN ORGANIZATIONS

Planning Leads to Organizing

ORGANIZING

PROCESS OF ESTABLISHING ORDERLY USES FOR ALL RESOURCES

WITHIN THE MANAGEMENT SYSTEM.
Making objectives transparent, clarifying which resources will be used
to attain objectives
What individual employees in an organization will do
How individual efforts should best be combined to achieve
organizational goals.

ORGANIZATION – the result of the organizing

process.
Appropriate organization of resources increases the
efficiency and effectiveness of their use.
Extremely important
Primary mechanism managers use to activate plans
Creates and maintains relationships between all
organizational resources
Which resources are to be used when, where, and how
they are to be used.
ORGANIZING PROCESS • Machinery
• Engineers

Step 1 – Reflect
on plans and • Finance
objectives
5 main steps • Procurement
• Marketing
Continuously repeat • Architecture
Step 5 – Evaluate
results of Step 2 – Establish
• Monitoring organizing major tasks
strategy
Housing Scheme
• Finance
• Salary accounts
• Daily expenses
• Documentation
• Authority • Audit
Step 4 – Allocate Step 3 – Divide
resources and major tasks into
directives for sub-tasks
subtasks
Reflects on Plans & Objectives :
At the first stage of organising process, a manager identity and determines
those activities that are to be performed for achieving common goals.
Those activities are determined on the basis of common goals.
For example, an organisation producing and distributing washing machines
has to perform large number of activities that may be related to production,
distribution, finance, purchase and personnel, etc.

2. Establish Major Task:

After determining and enumerating activities, these are to be divided and
into small components known as jobs and tasks.

3. Grouping-up of activities:
Once the activities have been broken into small elements, these can be
easily put into various groups on the basis of their relationship and
similarities. For example, each job and task related to production is to be
grouped up into production group, and elements that are related to
marketing, finance and purchase are to be grouped-up in the respective
groups.
5. Allocate resources and directives for subtasks:
Assignment of group of activities among various departments is
followed by giving them adequate rights so that they can perform
assigned work in a satisfactory manner.
The rights are granted through the process of delegation. In this
process higher level manager gives away some of his right in
favor of other who becomes his subordinate and it continues till
the last level of management.

6. Evaluate results of organizing strategy:

In the process of organizing, attempts are also made for
coordinating to evaluate working of individual with respective
department, and finally to coordinate functioning of various
departments towards the achievement of common goals.
There are four main considerations of classical
organizing theory which we must study and
incorporate into business practices:

1. Structure
2. Division of Labor
3. Span of Management
4. Scaler Relationships
I. STRUCTURE
The designated relationships among resources of the
management system
Organization structure is represented by means of a
graphic illustration called an organization chart.

Types of Structure
Formal Structure
Informal Structure
CHARACTERISTICS OF FORMAL GROUP

Formal means something

systematic.
It is in an official structure
It provides officialrelationship
between individual.
It is objective oriented
It abides with rules and regulations
INFORMAL GROUPS
It is the outcome of personal ,social
and friendly relationship and it
develops spontaneously .
It arises naturally on the basis of
friendship or some common interest
which may or may not be related with
work
Formal Structure Informal Structure
Departmentalization can be done in the following ways:
1. Functional – type of work done (eg. production,
marketing, HR, finance)
2. Product
3. Geographic
4. Customer departmentalization
5. Manufacturing process
DEPARTMENTALIZATION

It is a process of grouping individual jobs

into departmentalization.

TYPES:

departmentalization by function.
departmentalization by products.
departmentalization by territory.
departmentalization by customers.
departmentalization by process.
Departmentation by
FUNCTIONS

Deparmentation done by the functions.

MERITS & DEMERITS
Provides scope of specialization.
Eliminates cost of duplication of
work.
Effective control over performance.
Facilitates delegation of authority.

Interdepartmental conflicts.
Difficulty in coordination of activities.
Increases responsibility of departmental
heads.
DEPARTMENTATION BY
PRODUCTS

It is suitable for different lines of products.

MERITS & DEMERITS
Reduces problem of coordination.
It leads to specialization.
Performance evaluation can be done
easily.
It is flexible and adaptable to change .

Chance of duplication is more.

There may be underutilization of plant
capacity when the demand of product is
not adequate.
TERRITORIAL
Whose activities are geographically spread over.
MERITS & DEMERITS
It helps in achieving benefits of local
operation.
Better coordination of activities.
Provideseffective span of control.
Opportunity to train managers.
Facilitates expansion of business to
various regions

Due to geographical distance problem of

communication.
Coordination and control becomes less
effective.
Departmentation By Customers
Each department will serve the particular
type or class of customers.
MERITS & DEMERITS
Offer scope of specialization.
Enterprise gain ultimate
Knowledge about needs of various
categories of customers.

Lead to duplication of activities.

 DEPARTMENTATION BY PROCESS OR
EQUIPMENT
The activities are grouped according to process
or equipment.
It is generally used in manufacturing industries.

Lead to specialization.
No confusion.
Proper utilization of manpower and machine
engaged in proper way.
Departmentalization by product assembles all functions needed
to make and market a particular product are placed under one
executive. For instance, major department stores are structured
around product groups such as home accessories, appliances,
women's clothing, men's clothing, and children's clothing.

Departmentalization by geographical regions groups jobs on

the basis of territory or geography. For example, Merck, a major
pharmaceutical company, has its domestic sales departmentalized
by regions such as Northeast, Southeast, Midwest, Southwest, and
Northwest.

Departmentalization by process groups jobs on the basis of

product or customer flow. Each process requires particular skills
and offers a basis for homogeneous categorizing of work
activities. Eg. ENGRO.
Departmentalization by customer groups jobs on the
basis of a common set of needs or problems of specific
customers. For instance, a plumbing firm may group its
work according to whether it is serving private sector,
public sector, government, or not-for-profit
organizations.

Departmentalization by function organizes by the

functions to be performed. The functions reflect the
nature of the business. for example human resources, IT,
accounting, manufacturing, logistics, and engineering.
II. DIVISION OF LABOR
Assignment of various portions of a particular task among a
number of organization members
Individuals specialize in doing a part of a task rather than the
whole task
Advantages:
1. Skill level of workers for that work increases
2. Workers become more efficient, saves time
3. Less understanding and training required

Disadvantages:
1. Overlooks human variable
2. Workers get bored, feel like parts of a machine
III. SPAN OF MANAGEMENT/CONTROL
NARROW SPAN OF MANAGEMENT

•Tall organization.
•Manager oversees “few” subordinates.
•Better communication.
IV. SCALER RELATIONSHIPS:
The CHAIN OF COMMAND
Authority is scaled downwards
Unity of command – an individual should have only one
boss
Fayol said that strict adherence to the chain of command
is not always a good idea
In some situations a GANGPLANK must be used and
allowed
However, this must be used very carefully, all top
managers must be informed