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Management
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INTRODUCTION : PRINCIPLES OF
ORGANIZATION
An Organization is a purposeful arrangement of people
to accomplish some Specific Purpose. College or
University is an organization, government departments,
Restaurants, Indian Cricket Team are Formal
Organizations.
All are considered organizations because all have the 3
Common Characteristics
Purpose of Organizing :
1. Divides work to be done into specific jobs & departments
2. Assign tasks & responsibilities associated with individual
jobs
3. Establishes relationships among individuals , groups &
departments
4. Allocates & arranges Organizational Resources
5. Co-ordinate various Organizational Tasks
ORGANIZATIONAL STRUCTURE :
DEFINATION
WORK SPECIALIZATION
TYPES OF ORGANIZATIONAL
STRUCTURES
Advantage :
Disadvantage :
Disadvantages :
1. Interest of the division may be ahead of the goals
The Project Manager has authority over the functional members who
are part of his /her project team areas related to the Projects Goals.
The Functional area manager has authority to take decisions about
Promotions, Salary Recommendations and annual reviews typically
remain the Functional Managers Responsibility. To work Effectively,
both managers have to communicate regularly, co-ordinate work
demands on employees and resolve conflicts together.
Advantage :
Disadvantage :
DEPARTMENTALIZATION
FUNCTIONAL
DEPARTMENTALIZATION
Functional Departmentalization :
Groups jobs according to the functions or tasks they
perform.
Advantages :
1. Efficiencies from putting together similar experts and people
with common skills
2.Co-ordination within Functional area
3. In depth specialization
Disadvantages :
1.Poor Communication across all areas
2. Limited view of companys goals
GEOGRAPHICAL
DEPARTMENTALIZATION
Geographical Departmentalization :
Advantages :
1.More effective & efficient handling of specific regional issues
that arise
2.Provide needs of unique geographic markets better
Disadvantages :
1.Duplication of Functions
2.Can feel isolated from other organizational areas.
PRODUCT
DEPARTMENTALIZATION
Product Departmentalization :
Every individual department is responsible for producing
and selling the type of product assigned to them. A good
example of product departmentalization is witnessed in an
automobile manufacturing company. In such a company, we
generally see departments like a two-wheeler department,
three-wheeler department, four-wheeler department, heavy
motors department, etc., which manufacture vehicles such
as bikes, auto-rickshaws, cars, buses and trucks,
respectively.
Advantages :
1.Allows specialization in particular products & services
2.Managers can become experts in their industry
3.Closer to customers
Disadvantages :
1.Duplications of Functions
2. Limited view of Organizational Goals
PROCESS
DEPARTMENTALIZATION
In process departmentalization, departments are
separated based on their role in a Production Process.
Best example of process departmentalization can be seen in
any Manufacturing firm where we may have a Milling
department, Assembling department, Inspection
department, Shipping department, etc.
Here, inside a company, all activities, which are directly or
indirectly related with assembling are grouped together to
make a Assembling department.
Advantages :
More efficient flow of work activities.
Disadvantages :
It can only be used with certain types of Products.
CUSTOMER
DEPARTMENTALIZATION
CHAIN OF COMMAND :
SPAN OF CONTROL
1. Job Complexity :
Complicated jobs require more managerial Input and
Involvement and thus the span of control tends to be
narrower.
2. Job Similarity :
If one manager a group of employees performing similar
jobs, the span of control can be considerably wider than if
the jobs of subordinates are substantially different.
4. Amount of Co-ordination :
A narrower span of control is advisable in firms where
management spends much time in coordinating tasks
performed by subordinates.
7. Ability of Management :
More capable managers can manage more employees than
less competent mangers.
-The abilities of manager to educate employees and
effectively respond to their questions lesser the need for a
narrow span of control.
8. Technology :
Communication technology, such as Mobile phones, Fax,
Email, work sharing softwares can allow managers to
effectively supervise even distant employees having complex
and different jobs and require significant co-ordination.
CENTRALIZATION &
DECENTRALIZATION
CENTRALIZATION :
DECENTRALIZATION :
FORMALIZATION
CONTINGENCY FACTORS
1. Organizations Strategy
2. Organizations Size
3. Organizations Technology
ORGANIZATIONAL DESIGN
Common Organizational Design
1. Simple Structure
2. Functional Structure
3. Divisional Structure
Functional
Structure
Divisional
--It is an organizational
structure made up of separate
Business units or divisions.
--Here, each division has limited
autonomy, with a division
manager, who has authority
over his/her unit and is
responsible for performance.
Structure
CONTEMPORARY ORGANIZATIONAL
DESIGN
- After using Traditional organizational designs,
now organizations need to be Future oriented,
Flexible and Innovative. These structures are
following Organic Structural Design. Mainly
3 Designs are there
- 1. Tem Structure
- 2. Matrix Structure
- 3. Boundary less Structure
Matrix Structure
Boundary less
Structure
Weaknesses : 1.Complexity of
LINE ORGANIZATION :
(1)
(2)
STAFF ORGANIZATION
Merits
Demerits
ASSIGNMENT QUESTIONS
1. What is Organization? What are the types of Organization? Or List different type of
Organizational structures. Explain Functional structure. Or Short Note : Line and
Staff organization Or When a matrix structure can be used? Or Short Note - Hybrid
Structures
2. What is meant by Departmentalization? List different type of Departmentalization.
Give its advantages and disadvantages.
3. Explain SPAN OF CONTROL. State the merits and demerit of a limited span of
control.
Or Discuss the factors affecting the span of control
4. Write a note on Centralization Vs Decentralization.
5. Discuss about the Tall and Flat structure of organization Or Why are both Vertical
And Horizontal dimensions important to organization structure and design?
6. Write a note on Organizational Design.