BNCS311- Principles of Management

Chapter 4: Organizing

Topic : Types of Organization Structure

Dr. Rashmi Tripathi, PhD., Associate Professor

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 Principles of Management
2

Where you are ?

1. Introduction to Management
2. Management Function and Planning
3. Decision Making in Organization
4. Organizing
5. Staffing and Directing
6. Coordination and Control

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 Learning Objectives of Today’s Session
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Describe Organizing

Explain its types of organization structures

Explain Organization Culture

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 Organizing: Meaning
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This refers to the process of arranging organizational resources

both physical and human, allocating these resources, assigning
tasks with the aim of achieving organizational goals.

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 Importance
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1.Specialization - Organizational structure is a network of relationships in

which the work is divided into units and departments. This division of work
is helping in bringing specialization in various activities of concern.

2.Well defined jobs - Organizational structure helps in putting right men on

right job which can be done by selecting people for various departments
according to their qualifications, skill and experience. This is helping in
defining the jobs properly which clarifies the role of every person.

3. Clarifies authority - Organizational structure helps in clarifying the role

positions to every manager . This can be done by clarifying the powers to
every manager and the way he has to exercise those powers should be
clarified so that misuse of powers do not take place. Well defined jobs and
responsibilities attached helps in bringing efficiency into managers working.
This helps in increasing productivity.

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 Contd…
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 Effective administration - The organization structure is helpful in

defining the jobs positions. The roles to be performed by different
managers are clarified. Specialization is achieved through division of
work. This all leads to efficient and effective administration.

 Co-ordination - Organization is a means of creating co-ordination

among different departments of the enterprise. It creates clear cut
relationships among positions and ensure mutual co-operation
among individuals. Harmony of work is brought by higher level
managers exercising their authority over interconnected activities of
lower level manager.

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 Process of Organizing
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1. Detailing of work; this involves determining in

detail of what kind of work to be done. E .g.
Lecturing as a job.
2. Division of work; After work has been detailed, the
organization will divide the work among various people
to perform various tasks. E. g. lecturing is done by
various lecturers that teach different course units.
3. Departmentalization; Once work has been detailed,
divided, then the organization will group similar kinds
of work in the same units called departments. This will
result into specialization.

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 Contd…
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3. Hierarchy; Once work is detailed, divided and

departments created, then managers decide who reports
to whom.
4. Coordination; This is the process of integrating the

activities of separate departments in order to pursue

organizational goals effectively.

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 Organizational Structure
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This is the way in which organizational activities are

divided, grouped and coordinated into relationships
between managers and employees; they include:

 Structure by function
 Structure by product
 Structure by geography
 Structure by consumer

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 Contd…
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 Structure by function; this is where every one in the

organization is engaged in one or several related activities that
are called functions, such as, finance, marketing, accounting ,
production, etc.

PRESIDENT

VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT

ACCOUNTING MARKETING FINANCE PRODUCTION

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 Contd…
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Product structure; here each general manager is in charge of a

major category of products, and the Vice Presidents of functional
areas provide support services to the General Managers.

PRESIDENT

VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT

ACCOUNTING MARKETING FINANCE PRODUCTION

GENERAL MANAGER GENERAL MANAGER

GENERAL MANAGER
PHARMACETICAL PERSONAL CARE
PROPRIETARY PRODUCTS
PRODUCTS PRODUCTS

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 Contd…
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Geography Structure; here each manager is in charge of the

company`s business in one geographical area.
The functional Vice Presidents provide support services and
coordination assistance for their areas or responsibilities

PRESIDENT

VICE PRESIDENT VICEPRESIDENT VICE PRESIDENT VICE PRESIDENT

MARKETING FINANCE PRODUCTION ACCOUNTING

MANAGER MANAGER MANAGER

NORTH AMERICA LATIN AMERICA EUROPE

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 Contd…
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Division by consumer; each Vice President is charged with a

set of products grouped according to the type of customer to
whom they will be marketed.

PRESIDENT

VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT

INDUSTRIAL CONSUMER MILITARY
PRODUCTS PRODUCTS PRODUCTS

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 Organizational Committees
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 A committee organization is an association of

individuals set up to reach at resolutions to common
challenges which are faced by the organization.

 It represents a group of people with various kinds of

knowledge, which is formally constituted to solve
specific problems of the organization.

 A committee helps to gather collective ideas and

information, properly analyze them which helps to make
strong managerial decisions and solve difficult problems.

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 Example
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 Organizational Culture
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Organizational culture is defined as the underlying beliefs,

assumptions, values and ways of interacting that contribute
to the unique social and psychological environment of an
organization.

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 Contd…
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 Factors which can influence organizational culture include:

 the organization's structure, the system and processes by

which work is carried out

 the behavior and attitudes of employees

 the organization's values and traditions, and

 the management and leadership styles adopted

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 Learning Outcomes
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At the end of this session, students are able to:

 Describe Organizing

 Differentiate Organization structures

 Explain the Organization culture

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 To Do
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1. Which factors can affect and organization's culture?

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20

Thank you

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