Unit 3

Organisation

It is social unit or a human grouping deliberately structured for attaining a specific goal of an organization Sehein defines that, it rational coordination of activities for the achievement of goal, through division of labor and function through hierarchy of authority and responsibility. Even though it is more clear still some wordings are implicit. Hence alternative definitions exist
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 A purpose, based on a goal or set of goals as per the plan A clear set of duties or activities required to achieve the purpose Classification of activities into jobs Establishment of relationship between these jobs
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Typology of an Organisation
1. Organisation that benefit their owners. Ex.- All Business Firms

2. Organisation that benefit their members. Ex.-Unions, Cooperatives

3. Organisation that benefit their clients Ex.-Insurance Companies 4. Organisation that benefit the whole society. Ex.- Govt. Depts.
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 In the process towards constructing Organisation, manager has to differentiate & Integrate the activities of the Organisation Where in the differentiation is the segmenting the activities called as departmentalization The other, achieving the unity of efforts among the departments called as Integration

 The said Integration & Differentiation is a 6 step procedure. Which are as follows, 1. Consideration of Objectives 2. Grouping of activities into departments 3. Deciding about key department(s) 4. Determining levels at which various types of decisions are to be made 5. Determining the span of management 6. Setting up a coordination mechanism

1. Objectives of an Organisation should be clearly mentioned, then every part of it is geared up to achieve these objectives 2. Must promote specialization. Activities of enterprise should be divided into functions and assigned to person as per their specialization

3. Span of control, every manager or superior has certain boundaries of control

4. Exception, handling the tasks based on the strategy first, then based on the priority 5. chain of command

6. Unity of command
7. Delegation 8. Responsibility 9. Authority

10. Efficiency 11. Simplicity 12. Flexibility, adaptability to changing circumstances& permit corrections in the deficiencies 13. Balance, it is a reasonable balance in the size of the departments, indirectly refers the span of control 14. Unity of direction, one plan one objective for one group

15. Personal ability, proper selection, placement and training of the staff to encourage optimum use of human resource
16. Acceptability

Departmentalization

Horizontal differentiation of tasks or activities into discrete segments is called departmentalization. The main aim is to take an advantage of division of labour & specialization up to the maximum extent There are several bases of departmentalization of which some important are, Functions, Products, Customers, Region / Territory, Divisional structure,Time,Process

Departmentalization

Apart from the bases referred, there should be a choice to choose the suitable base also which helps organizational growth. Such choice includes few factors like Specialization, Coordination, Economy & Whole task. The meaning of the said factors are distinct.

Departmentalization
FUNCTION as the base: Advantages & Disadvantages Choice of base as function has has few advantages like it is simple, it promotes excellence in performance, it leads to improved planning & it ensures economy It also has some disadvantages like goals will be localized to department, it doesnt offer good training to every manager for the overall development is concerned, it is not suitable for the large organisations which involve innovative functions as-well-as occupying more geographical regions for the functions and duplication of the procedures leading to confusions

Departmentalization
Products as base has advantages & disadvantages Relives top management from the responsibility about the operating task, develops team work, enables comparing the product performance. The drawbacks of the same are, more number of managerial staff requirement, most precious equipment not used efficiently, additional expenditure on sale of each product.

ORGANIZATIONAL - STRUCTURE
Organizational Chart Organization Manuals Mechanistic & Organic Structure Collateral Organization Virtual Organization

WHICH ONE IS BEST STRUCTURE ?? The factors to be considered are , Environment Culture Task Technology Strategy Span of control Form Managerial characteristics Employee characteristics

Contingency View
Environment Culture Task Technology Strategy Size Span of Control

Contingency View
Form Managerial Characteristics

Collateral View

Existing is Working successfully has to be developed Alternative to the present laterally

Virtual Organizations
The devises used
The business structure The Concept

COMMITTEES
Team is a small group of people with different backgrounds, skills and knowledge who are drawn from different functional areas of an Organization.
Characteristics Strengths Weaknesses Comparison of Formal work group & Team

TEAMS
A committee is group of people, who have been formally assigned some task or some problems for their decisions and/or implementation, assigned .
Linking pin figure represents the structure. Advantages Weaknesses Suggestions to make committees more effective Types of Teams(Project, Permanent & Prob.Solving)

DELEGATION OF AUTHORITY

-Manager

in an organization cant do all the tasks assigned for team or group for achieving goal. -In this concern he forms some teams for handling the peculiar task and assigns them with some set of authority to make decisions to them self to complete the task. -This downward pushing of responsibility towards accomplishment of a whole task called as delegation of authority.

DELEGATION OF AUTHORITY

-Subsequently

the meaning of delegation of authority can be dealt with meaning of decentralization & centralization of authorities. -In case of centralized authorities the benefits are - In case of decentralized authorities the benefits are

Staffing

Importance &need for proper staffing Manpower planning short term and long term

Recruitment

Source of recruitment re employing, known people, application call for, employment exchange, college and technical organizations Alternative source