Organising

Organisation structure
• An organizational structure is a system that outlines how certain
activities are directed in order to achieve the goals of an organization.
These activities can include rules, roles, and responsibilities.
The organizational structure also determines how information flows
between levels within the company.
• An organization that is well structured achieves effective coordination, as
the structure delineates formal communication channels, and describes
how separate actions of individuals are linked together.
 Groups
• A group is two or more individuals who share common interests or
characteristics and whose members identify with each other due to similar
traits.
Types of Groups
• The groups can be classified on the basis of the structure of the
organization. These are:
 Formal Groups
• Definition: The Formal Groups are formed deliberately and consciously
collectively to direct the efforts of group members, especially the
employees towards the accomplishment of organizational objectives.
• Formal group is formed based on job specialization and similarity of skill-
sets to reap the advantages of division of labour.
•  Formal group members report to their superiors and interact with each
other to achieve the common goals.
 Command group
• This group is also known as task group. A task is defined as cross-
functional activities, carried out by group members to accomplish a
common goal. A team represents the nature of a command group. A
command group can be formed by drawing members from various formal
groups.
 3. Committees
• To achieve results, organizations often form permanent or temporary
committees, drawing members from various formal groups. Committees
also represent the presence of cross-functional members. While for a
command group, goals may be specific, for committees, it is varied.
 Informal groups
• Informal groups are formed within a formal organizational structure. Informal
group members primarily meet the social or affiliation needs sharing their
commons interests. Thus informal groups are not organizationally determined; the
members themselves from such groups to fulfil their needs for social interaction.
• An informal group may be a friendship group, interest group, reference group, or
membership group. Friendship groups are formed by like-minded people; those
who have common interests form interest groups; reference groups are formed
based on the compatibility of decisions and opinions; while membership groups
are formed for the affiliation related needs.
 Line and staff authority
In many organizations, managers use authority by dividing it into line
authority, staff authority and functional authority. These kinds of authority
differ according to the kinds of power on which they are based.
• Line Authority: Managers with line authority are those people in the
organization who are directly responsible for achieving organizational goals.
Line authority is represented by the standard chain of command starting with
the board of directors and extending down activities of the organization that
are carried out. Line authority is based primarily on legitimate power.
 Line and staff authority
• Staff Authority: Staff authority belongs to those individuals or groups in an organization
who provide services and advice to line mangers. The concept of staff includes all
elements of the organization that are not classified as line. Advisory staffs have been
used by decision makers from emperors and kings to dictators and parliaments over the
course of recorded history.
• Staff provides managers with varied types of expert help and advice. Staff authority is
based primarily on expert power. Staff offer line managers planning advice through
research, analysis and options development. Staff can also assist in policy
implementation, monitoring and control in legal and financial matters; and in the design
and operation of data processing systems.
 Functional Authority
• Functional authority is common in organizations. It is necessary in
carrying out many organizational activities, both to provide or a degree of
uniformly and to allow unhindered application of expertise. Thus, it is
based on both legitimate and expert power.
• The skills required to manage functional authority relationships and the
problem arising from those relationships are similar to the skills required
to manage dual-boss relationships in matrix organizations.
 Centralization and Decentralization
• Centralization and Decentralization are two modes of working in any
organization.
• In centralization, there is a hierarchy of formal authority for making all the
important decision for the organization.
• In decentralization decision making is left for the lower level of organization.
• Both centralization and decentralization have their own advantages and
disadvantages. Even if an organization is working in a decentralized manner,
some functions are usually centralized.
 Advantages of Centralization
• The organization can strictly enforce uniformity of procedures and policies.
• It can help in the elimination of overlapping or duplicate activities and save
costs.
• The organization has a better chance of utilizing the potential of its
outstanding employees.
• It offers a better control over the activities of the organization by ensuring
consistency in operations and uniformity in decision-making.
 Advantages of Decentralization

• Faster decision-making and better quality of decisions

• Improves the effectiveness of managers.
• Offers a democratic environment where employees can have a say in their
governance.
• Provides good exposure to mid and lower-level managers and creates a pool of
promotable manpower with managerial skills.
• Since managers can see the results of their own actions, they are more driven and
have improved morale.