CHRIST

Deemed to be University

To make the sports day of the school successful the

Headmaster of the school divided all the activities into
task groups each dealing with a specific area like
holding of event, arrangement of medals, refreshments
etc. Each group was placed under the overall
supervision of a senior teacher. The physical education
teacher was made responsible for holding different
events, the home science teacher for refreshments and
the Maths teacher for medals.
Identify the function of management performed by the
Headmaster in doing so.
Excellence and Service
 CHRIST
Deemed to be University

Organizing

Division of work
Structure of relationship
Authority and responsibility
Attainment of goals

Excellence and Service

 Principles of Management

(BBA 131)

Unit 3. ORGANISING

MISSION VISION CORE VALUES

CHRIST is a nurturing ground for an individual’s Excellence and Service Faith in God | Moral Uprightness
holistic development to make effective contribution to Love of Fellow Beings
the society in a dynamic environment Social Responsibility | Pursuit of Excellence
 CHRIST
Deemed to be University

Initiates implementation of plans

Excellence and Service

 CHRIST
Deemed to be University

Clarifying Jobs

Excellence and Service

 CHRIST
Deemed to be University

● CEO
● Direct reporting manager
● Team member
● Coworker
● Client
● Mentor
● Mentee
● People who report to you

Clarifying working relationship

Excellence and Service

 CHRIST
Deemed to be University

Deploying resource

Excellence and Service

 CHRIST
Deemed to be University

Attainment of goals

Excellence and Service

 CHRIST
Deemed to be University

• Organising can be defined as a process that initiates

implementation of plans by clarifying jobs, working
relationships and effectively deploying resources for
attainment of goals.

• Once the plans are formulated, the next step is to organise the
activities and resources, identifying the tasks, classifying them,
assigning duties to subordinates and allocating the resources.

Excellence and Service

 CHRIST
Deemed to be University

Importance of organising

● Efficient Administration
● Resource Optimization
● Benefits of Specialization
● Promotes Effective Communication
● Creates Transparency
● Expansion and Growth

Excellence and Service

 CHRIST
Deemed to be University

Importance of organising
A comprehensive approach to organizing helps the management in many ways.
Organizing aligns the various resources towards a common mission.

Efficient Administration
● It brings together various departments by grouping similar and related jobs
under a single specialization.
● This establishes coordination between different departments, which leads to
unification of effort and harmony in work.

Resource Optimization
● Organizing ensures effective role-job-fit for every employee in the
organization.
● It helps in avoiding confusion and delays, as well as duplication of work and
overlapping of effort.

Excellence and Service

 CHRIST
Deemed to be University

Benefits Specialization

● It is the process of organizing groups and sub-divide the various

activities and jobs based on the concept of division of work.
● This helps in the completion of maximum work in minimum time
ensuring the benefit of specialization.

Promotes Effective Communication

● Organizing is an important means of creating coordination and

communication among the various departments of the organization.
● Different jobs and positions are interrelated by structural relationship.
● It specifies the channel and mode of communication among different
members.

Excellence and Service

 CHRIST
Deemed to be University

Creates Transparency
● The jobs and activities performed by the employees are clearly defined on the
written document called job description which details out what exactly has to
be done in every job.
● Organizing fixes the authority-responsibility among employees. This brings in
clarity and transparency in the organization.

Expansion and Growth

● When resources are optimally utilized and there exists a proper division of
work among departments and employees, management can multiply its
strength and undertake more activities.
● Organizations can easily meet the challenges and can expand their activities
in a planned manner.

Excellence and Service

 CHRIST
Deemed to be University

Nature of organizing

• Division of Work
• Coordination
• Plurality of Persons
• Common Objectives
• Well-defined Authority and Responsibility
• Organizing is a Structure of Relationship
• Organizing is a Universal Process

Excellence and Service

 CHRIST
Deemed to be University

• Division of Work: Division of work is the basis of an organization. In

other words, there can be no organization without division of work. Under
division of work the entire work of business is divided into many
departments .The work of every department is further sub-divided into
sub-works. In this way each individual has to do the same work
repeatedly which gradually makes that person an expert.
• Coordination: Under organizing different persons are assigned different
works but the aim of all these persons happens to be the same - the
attainment of the objectives of the enterprise. Organization ensures that
the work of all the persons depends on each other’s work even though it
happens to be different. The work of one person starts from where the
work of another person ends. The non-completion of the work of one
person affects the work of everybody. Therefore, everybody completes
his work in time and does not hinder the work of others. It is thus, clear
that it is in the nature of an organization to establish coordination among
different works, departments and posts in the enterprise.
Excellence and Service
 CHRIST
Deemed to be University

Plurality of Persons: Organization is a group of many persons who

assemble to fulfill a common purpose.
A single individual cannot create an organization.

Common Objectives: There are various parts of an organization with

different functions to perform but all move in the direction of achieving a
general objective.

Well-defined Authority and Responsibility: Under organization a chain

is established between different posts right from the top to the bottom. It is
clearly specified as to what will be the authority and responsibility of every
post. In other words, every individual working in the organization is given
some authority for the efficient work performance and it is also decided
simultaneously as to what will be the responsibility of that individual in case
of unsatisfactory work performance.
Excellence and Service
 CHRIST
Deemed to be University

• Organizing is a Structure of Relationship: Relationship between

persons working on different posts in the organization is decided. In
other words, it is decided as to who will be the superior and who will be
the subordinate. Leaving the top level post and the lowest level post
everybody is somebody's superior and somebody's subordinate. The
person working on the top level post has no superior and the person
working on the lowest level post has no subordinate.

Excellence and Service

 CHRIST
Deemed to be University

● Organizing is a Universal Process: Organization is needed

both in business and non-business organizations. Not only
this, organization will be needed where two or more than two
people work jointly. Therefore, organization has the quality of
universality

Excellence and Service

 CHRIST
Deemed to be University

Principles of Organization

https://www.yourarticlelibrary.com/organization/top-14-principles-of-an-
organization/53220

Excellence and Service

 CHRIST
Deemed to be University
Principles of Organization
1. Principle of Objectives
2. Principle of Specialization
3. Principle of Co-ordination
4. Principle of Authority- Responsibility
5. Principle of Definition
6. Span of Control
7. Principle of Balance
8. Principle of Continuity
9. Principle of Uniformity

Excellence and Service

 CHRIST
Deemed to be University

10. Principle of Unity of Command

11. Principle of Exception
12. Principle of Simplicity
13. Principle of Efficiency
14. Scalar Chain Principle

Excellence and Service

 CHRIST
Deemed to be University

Types of Organization

Excellence and Service

 CHRIST
Deemed to be University

Formal Organizations Vs Informal Organizations

• Formal organizations are designed to achieve

certain goals through the collective work of the
individuals who are its members. They rely on a
division of labor and hierarchy of power and
authority to ensure that the work is done in a
unified and efficient manner.
• A formal organization is an organization with a
fixed set of rules of intra-organization procedures
and structures. They have a definite place in
the organization due to a well defined hierarchical
structure which is inherent in any formal
organization.
Excellence and Service
 CHRIST
Deemed to be University

● Examples of formal organization are:- A

company, a school, a college, a bank, etc. The
members who are working there and their
relationship and transactions are formal

Excellence and Service

 CHRIST
Deemed to be University

Informal organization
• Informal Organization exists within the formal
organization. An informal organization is a
network of personal and social relationships among
the people working in the organization

• For example : Production manager and production

shop floor engineers apart from work they are very
friendly share their personal views, have lunch and
go for outing together

Excellence and Service

 CHRIST
Deemed to be University

Why Informal organizations required?

• When people can associate themselves with each

other socially, they always feel a sense of
togetherness and belongingness.

• Consequently, another function of informal

organizations is to provide social satisfaction to
members.

Excellence and Service

 CHRIST
Deemed to be University

Organisational Structures
1) Hierarchical Structure
Grouping of employees and having one supervisor/Boss

2) Matrix Structure
More than one manager to report to

3) Horizontal/Flat Structure
Many levels of middle management are eliminated

4) Network Structure
A network organization is a business structure where employees form
multidisciplinary teams that work independently to achieve common goals.
In this type of model, the organization does not rely on the traditional top-to-
bottom supervisory mechanisms
Excellence and Service
 CHRIST
Deemed to be University

5) Divisional Structure
Divisional types of organizational charts have their own division which
corresponds to either products or geographies.

6) Line Organizational Structure

The chain of command and each department head has control over their
departments.

7) Team-based Organizational Structure

Team-based organizational structures are made of teams working towards a
common goal while working on their individual tasks
https://creately.com/blog/diagrams/types-of-organizational-
charts/

Excellence and Service

 CHRIST
Deemed to be University

Excellence and Service

 CHRIST
Deemed to be University

Line Vs Staff Function

• Both line and staff personnel have important roles
to play in an organization. The line authority flows
in a vertical line in the same manner as in line
organisation. In addition staff specialists are
attached to line positions to advise them on
important matters.
• In a line and staff organisation, the work of
administration of business units is divided into
two broad divisions, viz., the staff which is
responsible for planning and the line for the actual
execution of the work.

Excellence and Service

 CHRIST
Deemed to be University
Line Vs Staff Function
• A line manager is vested with executive authority.
He is responsible for making important decisions
and is also accountable for their implications. Line
officers are responsible for the accomplishment of
various objectives. The authority flows vertically
from top to bottom.
• Staff officers are experts in their fields. They are
attached to line managers to advise them in the
field of their specialisation. Their role is of advisers.
The line officers may or may not rely on their
advice. The staff organisation facilitates the
accomplishment of organisational objectives by
making available valuable advice and expert
knowledge.
Excellence and Service
 CHRIST
Deemed to be University

Line Vs Staff Function

• Staff officers may be asked to suggest solutions to

various problems encountered by line officers. They
have no authority to command the line staff but
have control within their own organisation.
• Louis Allen has clarified these roles as – “line refers
to those positions and elements of the organisation
which have the responsibility and authority and are
accountable for the accomplishment of primary
objectives.
• Staff elements are those which have responsibility
and authority for providing advice and service to
the line in the attainment of objectives.”
Excellence and Service
 CHRIST
Deemed to be University

Examples of Line and Staff function

• In a typical manufacturing company

• Manager- Production : Line function

• Manager – Production Planning : Staff function

• Manager – Marketing & Sales : Line Function

• Manager – Market Research : Staff Function
• Line people are directly involved in accomplishing the goals
and objectives of the organization, staff are involved in
planning, advisory and rendering other support services to
line function
Excellence and Service
It is also known as scalar, military, or vertical organisation and
perhaps is the oldest form
Characteristics:
Line authority and instructions are vertical, that is, they flow from
the top to the bottom.
● The unity of command is maintained in a straight line.
● All persons at the same level of organisation are independent of
each other.
● This structure specifies responsibility and authority for all the
positions limiting the area of action.

Merits: Demerits:
Simplicity Lack of Specialisation
Discipline Absence of Conceptual Thinking
Prompt Decisions Autocratic Approach
Orderly Communication Problems of coordination
Easy Supervision & Economical
Suitability:-
It is suitable to small – scale organizations where the number of subordinates is quite small.
Characteristics:
It refers to a pattern in which staff specialists advise line
managers to perform their duties.
Line people will give advices
The staff people have the right to recommend, but have no
authority to enforce their preference on other departments

FEATURES:-
This origin structure clearly distinguishes between two
aspects of administration viz., planning and execution.
Staff officers provide advice only to the line officers; they do not
have any power of command over them.
The staff supplements the line members.
ADVANTAGES:-
It adds functional specialists to the pure line organisation and
thus aims at combining the merits of the two.
It brings expert knowledge to bear upon management.
Functional specialists provide expert advice to the
management on wide-ranging matters.
It provides for better placement and utilization of personnel
and leads to more skill development

DEMERITS:-
The line and staff relationship often lead to many frictions
and Jealousies
Line mangers may depend too much on staff experts and
thus lose much of their judgment and initiatives
The staff experts may remain ineffective because they do not
get the authority to implement their recommendation.
 More frequently line and staff relations become potent sources of
friction, inefficiency and organisational ill health.
Rivalry between them very often takes the form of animosity.
Both line and staff have their own view points to offer relating to
this problem.
Line View point:
Staff undermines line authority
Staff think in vacuum
Staff steals Credit
Staff fails to keep the line informed
Staff fails to give the sound advice to line
Staff Point of View:
Lack of authority to command line subordinates
Resistance to change by the line
Inability to make proper use of staff
Allured by the special skill and ability in a particular field the staff is
tempted to think that the solution to the problem recommended by
him is best and needs be enforced on the line manger. Line is also
charged with being short-sighted and resistant to change

How to minimise:
Line and Staff should understand their proper position in the
organsiation
Line should be educated and encouraged to use staff effectively
Staff should render complete advice on the problem concerned
staff should constantly strive to acquire and increase its proficiency
 Functional structure is created by grouping the activities on the
basis of functional required for the achievement of organisational
objectives

Features:
The whole activities of an organisation are divided into various
functions
Each functional area is put under the charge of one executive
For any decision, one has to consult the functional specialist
Limited span of control
Merits: Demerits:
High Specialisation Calls for more coordination
Clarity in functioning Clear line of authority
No duplication Slow decision making
Satisfactions
Control and Coordinate
 A committee does not represent a separate type of
organization like line and staff, or functional.

Definitions:
“A committee consists of a group of people specifically
designated to perform some administrative work”

“ A committee is a body of persons appointed or elected to

meet on an organised basis for the consideration of
matters brought before it”.
 CHRIST
Deemed to be University

Authority, Responsibility, Accountability

Authority is the power delegated by senior
executives to assign duties to all employees
for better functioning.

Responsibility is the commitment to fulfill a

task given by an executive.

Accountability makes a person answerable

for his or her work

Excellence and Service

 CHRIST
Deemed to be University

Delegation

● It is the process of distributing and entrusting

work to another person

Excellence and Service

 CHRIST
Deemed to be University

Principles of Delegation
1. Principle of result expected

● suggests that every manager before delegating the powers to the

subordinate should be able to clearly define the goals as well as
results expected from them.

● For example, a marketing manager explains the salesmen regarding

the units of sale to take place in a particular day, say ten units a day
have to be the target sales.

● While a marketing manger provides these guidelines of sales,

mentioning the target sales is very important so that the salesman can
perform his duty efficiently with a clear set of mind.

Excellence and Service

 CHRIST
Deemed to be University

2. Principle of Parity of Authority and Responsibility

The manager should keep a balance between authority and
responsibility. Both of them should go hand in hand.

● If a subordinate is given a responsibility to perform a task,

then at the same time he should be given enough
independence and power to carry out that task effectively.

● This principle does not provide excessive authority to the

subordinate which at times can be misused.

● The authority should be given in such a way which matches

the task given.
Excellence and Service
 CHRIST
Deemed to be University

3. Principle of Authority level

This principle suggests that a manager should
exercise his authority within the
jurisdiction/framework given.

Excellence and Service

 CHRIST
Deemed to be University

4.Principle of Absoluteness of Responsibility

This principle asserts that responsibility cannot be delegated.

This means even after delegating the authority to the

subordinate to perform certain tasks on the manager’s
behalf; the manager will be solely responsible for the doings
of the subordinate.

In other words, whatever actions being taken by the

subordinate, the manager will be accountable to his senior.

Thus, the responsibility is absolute and remains with the

superior.
Excellence and Service
 CHRIST
Deemed to be University

5. The Scalar Principle

There are clear lines of authority in the organization, i.e. who is

under whom.

This helps the subordinate to know, who delegates the authority

to him and to whom he shall be accountable.

Also to whom he shall contact in case things are beyond his

control.

Thus, this principle asserts, that there should be a proper

hierarchy in the organization.
Excellence and Service
 CHRIST
Deemed to be University

6. Principle of Exception

According to this principle, the subordinate shall be given

complete freedom to perform responsibilities under the
purview of authority.

The manager should not interfere in between work and must

allow to do even if he commits mistakes.

But in some exceptional cases, the managers can interfere and

even withdraw the authority delegated to the subordinate.

Excellence and Service

 CHRIST
Deemed to be University

Steps in Delegation
1. Select the Right Person.
Match personnel skills and abilities with the task
based on aptitude, not simply on convenience.
2. Specify the Desired Result
3. Set a Deadline
4. Determine Authority
5. Track Progress and Results

Excellence and Service

 CHRIST
Deemed to be University

Centralization Vs Decentralization
● In centralized organizations, strategic
planning, goal setting, budgeting, and talent
deployment are typically conducted by a single,
senior leader or leadership team.

● In contrast, in decentralized organizations,

formal decision-making power is distributed
across multiple individuals or teams.
Excellence and Service
 CHRIST
Deemed to be University

Factors determining the degree of

Decentralization of authority
● Costliness of Decisions
● Uniformity of Policy
● Business Unit Size
● History of the Enterprise
● The Philosophy of the Management
● Environmental Influences
● Availability of competent personnel

Excellence and Service

 CHRIST
Deemed to be University

https://www.yourarticlelibrary.com/management/8-factors-to-determine-the-
degree-of-effective-decentralization/25709

Excellence and Service