Prof.

Shailja Bhakar

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Definition: When people work together to achieve something through their coordinated and group effort, this is called organizing The concept of organization is defined on the following basis Organizing as a structure: Horizontal and Vertical Organizing as a process: Determining, arranging, grouping and assigning Nature of Organizing: Common purpose Division of labor Authority structure People Communication Coordination Environment Rules and regulation

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Unity of objectives Division of work Span of control Scalar principle Functional definition Exception principle Unity of command Balance Efficiency Flexibility Continuity Facilitation of leadership Parity of authority and responsibility Coordinating

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Identification of activities: Activities necessary for accomplishment of objective Concentration on important activities A manager must ensure: Necessary activities are performed No unnecessary duplication in performing activities Different activities are performed in coordinated manner Grouping of activities: Done on several basis depending on situation Assignment of duties: While assigning job, requirement of job and competence of individual should be matched Delegation of authority: Delegation creates superior subordinate relationship

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Facilitates Administration Proper division of labor Delegation of authority Clear authority relationship Managers direct, coordinate and control Facilitates growth and diversification Management anticipate the need for change to facilitate growth Suitability adjust the organization structure Permits optimum use of technological improvements Installation, operation and maintenance of expensive equipments need proper organization Optimum use of human effort

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Encourages human beings Psychological satisfaction Creates training and promotional avenues Stimulates creativity Enables managers to turnover repetitive jobs to supporting positions Enhances capacity of individuals Individuals can take advantage of knowledge and experience of preceding generation

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UNITY OF COMMAND Addresses who a worker reports to Given by Henry Fayol The Classical View: Subordinate should have one superior Clear separation of activities and supervisor responsible for each The Contemporary View: Unity of command is logical for simple organizations Creates a degree of inflexibility that hinders organizational performance

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AUTHORITY AND RESPONSIBILITY: Managers must determine the types and amounts of authority and responsibility the organizational members will have The Classical View: Authority refers to the rights Delegated to subordinates Comes with position Authority can be delegated but responsibility can not Two forms of responsibility: Operating and Ultimate Two forms of authority: Line and Staff members Line authority Chain of command Staff Authority

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The Contemporary View: Authority comes from the willingness of subordinates to accept it Chester Bernard Bernard also contended that subordinates will accept orders only if: They understand the order They feel the order is consistent with the purpose of the organization The order does not conflict with their personal belief They are able to perform the task as directed One dont have to be a manager to have influence over others. Authority is only one aspect of the larger concept power Authority comes with a persons position in an organization Power refers to individual capacity to influence decision Therefore authority is just one way to influence the individual decision

III. SPAN OF CONTROL: Refers to how many subordinates a manager can effectively and efficiently supervise A. The Classical View: ` The classicists favored small spans ` Level in the organization can also effect this number ` The number should be according to the variety of complex and ill structured problems ` Wider spans are more efficient in terms of cost B. The Contemporary View: ` Reducing managerial positions ` Trained and experience subordinates ` Other contingency variables the determine appropriate span: Similarity of subordinate tasks The physical proximity of subordinates The degree to which standardized procedures are in place The strength of the organizations culture The preferred style of managers

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CENTRALIZATION AND DECENTRALIZATION: Centralized is a function of how much decision making authority has been delegated to cower level of management The Classical View: Traditionally organizations were structured in the form of a pyramid with centralization of authority and power at the top Historically centralized decisions were more popular The Contemporary View: Amount of centralization and decentralization that allows best implementation of goals and strategies Environmental changes Empowerment of employees to make decision concerning their particular areas of work

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DIVISION OF LABOR: Dividing the work into a number of steps The Classical View: Each step should be completed by a separate individuals Division of labor makes efficient use of diversity of skills and capabilities that employees have Some tasks require highly skilled workers and others can be performed by unskilled workers The Contemporary View: Similar jobs create: Boredom, Job Stress, Low Productivity, Poor Quality, increased absenteeism and high turnover Managers can design more motivating jobs by: By giving employees a variety of activities to do Allowing them to do a whole and complete piece of work Putting them together in teams

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DEPARTMENTALIZATION: the process of grouping individuals into separate units or departments to facilitate the accomplishment of organizational goals known as departmentalization The Classical View: Specialization and grouping of jobs Coordination can be facilitated by putting specialists together in departments Creation of these departments can be based on: Functional departmentalization Product departmentalization Customer departmentalization Geographic departmentalization Process departmentalization

The Contemporary View: First: Importance of customer service Second: No more rigid departmentalization 1. Customer departmentalization 2. Cross functional teams 3. Matrix organization
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Organization designs now a days depend on contingency factors ` First of all two models of organization design are a follows: I. Mechanistic organizations: High in complexity, formalization and centralization II. Organic or adhocracy organization: Low on complexity, formalization and centralization ` Contingency Factors: 1. Strategy and Structure: ` Organization structure helps management achieve its objectives ` Strategies are derived from these objectives ` Therefore strategy and structure are closely related ` Alfred Chandler conducted initial research on strategy and structure in several U.S Companies ` Changes in corporate strategy precede and leads to changes in organizations structure ` Chandler found that organizations usually begins with a single product or line ` As organization grow their strategies become more ambitious and elaborate
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Size and Structure: Organization size significantly affects its structure Large organizations have more specialization, horizontal and vertical differentiation, rules and regulations then do small organizations. However the relationship is not linear that means impact of size becomes less important as an organization expands Technology and Structure: Every organization uses some form of technology to convert its inputs into outputs To reach its objective organizations use equipments, materials, knowledge and experienced individuals and combines them into certain types and patterns of activities

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Joan Woodward: She segmented the firms into three categories based on the size of their production runs: Unit Production: The production of items in units or batches Mass Production: Large batch manufacturing Process Production: Continuous process production She concluded that specific structures were associated with each of the 3 categories and that successful firms met the requirements of their technology by adopting the proper structural arrangements Charles Parrow: Woodward's technological classification can be applied to only manufacturing firms. Manufacturing firms represent fewer than half of all organization types. Charles Parrow suggested an alternative to Woodwards limitation

Parrow studied knowledge technology rather than production technology. He proposed that technology can be viewed from 2 dimensions: 1. Task Variability: Number of exceptions individuals encounter in their work 2. Problem Analyzability: The type of search procedures followed to find successful methods for adequately responding to these exception ` Parrow used these two dimensions to construct a 2 2 matrix
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TASK VARIABILITY Few Exceptions PROBLEM ANALYZABILITY Well Defined Ill Defined Routine Craft Many Executions Engineering Non Routine

Parrow argued that control and coordination method should vary with technology type. The more routine the technology, the more highly structured the organization should be conversely non-routine technologies require greater structural flexibility ` Therefore according to Parrow routine technology can best be accomplished through standardized coordination and control. So these technologies should have structure with high formalization and centralization ` On the other extreme non routinized technology demand flexibility ` CRAFT technology requires problem solving ` Engineering technology should have centralized organization structure for control and maintain low formalization for flexibility ` Managers should structure more routine technologies with a mechanistic organization. The more non routine the technology the more organic the structure should be 4.Environment and Structure: Mechanistic organizations are more effective for stable environments. Organic organizations are best matched with dynamic and uncertain environment.
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Definition: A learning organization is an organization which facilitates learning on the part of its members and continuously transforms itself It is a way organizations respond to changes in their environment and learn lessons from the experiences that is why they are called learning organization Learning may be defined as a purposeful activity aimed at acquisition and development of knowledge and skills and their application

Peter Senge of Sloan School of management MIT USA pioneered the concept of learning organization 1. It nurtures creative thinking and innovative ideas 2. It encourages its members to learn continuously and enjoy sense of achievement 3. It develops new capabilities and renews itself from time to time 4. Learning is an ongoing process for it 5. It employs learning as a competitive advantage 6. Its outlook is futuristic
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It can achieve excellence in both quantity and quality of performance It enjoys a sustainable advantage over its competitors It can successfully face environment challenges and changes It does not face obsolescence of management practices It can maintain good relations with different stakeholder groups

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To survive in the knowledge based economy of 21st century To cope with rapid changes in technology To manage global competition in future To handle tomorrows demanding and fragmented markets To build people-based system To lead to holistic values

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Peter Senge has identified five methods of creating learning organization: Mental Models: Putting aside older ways of thinking and behaving, managers have to maintain dialogue and interference with employees Build a culture in organization that extracts the best forces people to look new ways Learning requires reflection, continuously clarifying vision and improving internal picture of the world Personal Mastery Employees should be open to learning Should be motivated to manage themselves and develop from within Cherish goals of self development and organizational development Managers should show concern for others and respect their emotions Improve work climate through empowerment and self managed teams Education and training are required to develop values and skills A learning organization is a group of people who are continuously enhancing their capability to create their future

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Systems Thinking: Systems thinking involves learning to think about and understand the forces, interconnections and interrelationships that create group behavior Radical changes may be required to ensure that the organization as a system can work more in tune with the environment Every member should broaden his vision The organization is viewed as a living entity with its own behavior and learning patterns Shared Vision: Everyone should agree with the mission and future vision of the organization All members should actively participate in formulation of mission, vision values and strategies of the organization

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Team Learning Work together to achieve shared vision Should think and act in a synergistic way Unity and harmony in the team are required Effective communication between team members is required Communication opens options to find best alternative solutions for future decision Discussion in turn helps in choosing the best solution out of the alternatives available

Basis of Comparison Determination of overall direction Formulation and implementation of ideas Nature of organizational thinking

Traditional Organization Vision is provided by top management

Learning Organization Shared vision emerges from many places

Top management decides what is to be Placed at all levels of the organization done Each person is responsible for his/her Personnel should understand their job and responsibilities jobs as well as the way in which it The focus is on developing individual influences other personnel's jobs competence Resolved through the use of power and Resolved through the use of hierarchal influence collaborative learning Integration of diverse viewpoints of personnel through the organization The role of leader is to establish the organization vision provide reward punishment and maintain overall control Role of leader is to build a shared vision, empower the personnel inspire, commitment and encourage effective decision making

Conflict resolution

Leadership and Motivation