UNIT - I

ORGANISATION
MANAGEMENT
ORGANISATION
 Meaning

• Derived from the word ‘organism’, which means a structure of

body divided into parts.
• Co-ordinated efforts of the different individuals working
collectively and effectively to achieve a common Goal.
• A process that initiates implementation of plans by clarifying
jobs and working relationships and effectively deploying
resources for attainment of identified and desired results.
Organising is the process of identifying and grouping the work to
be performed, defining and delegating responsibility and
authority, and establishing relationships for the purpose of
enabling people to work most effectively together in
accomplishing objectives.

- Louis Allen
 Characteristics

• Division of Work
• Co-ordination
• Common Objective
• Co-operative Relationship
• Well – defined Authority – Responsibility Relationships
• Optimum Utilization of Resources
• Effective Administration
• Development of Personnel
• Expansion and Growth
• Increase in Managerial and Administrative Efficiency
• Increase in Production and Productivity
• Encouragement to Specialization
• Training Facilities
• Better Co-ordination
• Encouragement to Contribute
• Increase in Morale
• Success of Economic Planning
• Traditional Principles

• Modern Principles
 Traditional Principles

• Principle of Unity of Objectives

• Principle of Authority
• Principle of Responsibility
• Principle of Assignment of Exceptions
• Principle of Definition
• Principle of Certainty
• Principle of the Span of Control
 Contd…

• Principle of Unity of Command

• Principle of Effectiveness of Organisation
• Principle of Unity of Direction
• Principle of Flexibility
• Principle of Continuity
• Scalar Principle
• Principle of Leadership
 Modern Principles

• Principle for Formalism

• Principle of Challenge and Response
• Principle of Efficiency
• Principle of Division of Work
• Principle of Communication
• Principle of Balance
• Principle of Directive Approach
 Organization Structure

• Refers to the Determination of Organization system of an

Enterprise.
• Frame-work of the activities of the enterprise within which
managerial and operating tasks are performed
• It specifies the relationship between people, work and
resources
• It allows correlation and coordination among human, physical
and financial resources and this enables to accomplish desired
goals.
 Advantages & Disadvantages

• Advantages :-
– Ensures a smooth flow of communication

– Better control over the operations of a business enterprise

– Helpful in training

– Helpful in delegation

– Reveals the Draw-backs of an organisation

• Disadvantages :-
– Reveals only the Formal Relations

– Sometimes creates Conflicts

– Develops Rigidness in the activities of enterprise

 Types of Organisation

It varies with the nature and types of activities performed by an

organisation.

1) Formal Organisation
2) Informal Organisation
3) Functional Structure
4) Divisional Structure
 Formal and Informal Organisation

Formal Organization
An organizational structure which is designed by the management to
accomplish a particular task. It specifies clearly the boundaries of
authority and responsibility and there is a systematic coordination
among the various activities to achieve organizational goals.

Informal Organization
Interaction among people at work gives rise to a ‘network of social
relationships among employees’ called Informal Organization.
 Functional Structure

An organizational structure composed of all the departments that

an organization requires to produce its goods or services.
– Advantages
• Encourages learning from others doing similar jobs.
• Easy for managers to monitor and evaluate workers.
– Possible Disadvantages
• Difficult for departments to communicate with others.
• Preoccupation with own department and losing sight of
organizational goals.
 Divisional Structures

An organizational structure composed of separate business units

within which are the functions that work together to produce a
specific product for a specific customer
• Divisions create smaller, manageable parts of a firm.
• Divisions develop a business-level strategy to compete.
• Divisions have marketing, finance, and other functions.
• Functional managers report to divisional managers who
then report to corporate management.
 Types of Divisional Structures

• Product structure
– Divisions by the product group or category

• Market structure
– Divisions by type of customer

• Geographic structure
– Global or regional divisions
Divisional Structures
Divisional Structures
Divisional Structures
QUESTIONS ??