Neha Mahajan  Sulochana Maral  Swathi Lokhande  Seema Mangutte  Anil Mhaske

Organizing
Introduction :organizing is the second fundamental function of management. The organizing process results in the creation of a formal organisation.It is a process which consists of determining the activities to be performed in an organization, grouping these activities and assigning managerial authority and responsibility to people employed in the organization.

Meaning & Definition

organisation is a social unit or human grouping, deliberately structured for the purpose of attaining specific goals. Thus, corporation s armies, schools, hospitals, churches etc.all are organisations. organising involves the preparations necessary for implementing plans. The manager must determine who reports to whom in the organisation. With job divided, it will be important for some individuals to be an charge of coordinating the efforts of the members of the organisations.

Importance of organising
 Specialization  Well defined jobs  Clarifies authority  Co-ordination  Effective administration

Principles of Organising
1.

Division of labour

2. Consideration of Objectives 3. The scalar principle 4. The principle of Departmentation 5. The principle of unity of command

6. The principle of span of control 7. The principle of flexibility 8. The principle of balance 9. The exception principle 10.The principle of Decentralization 11.The principle of simplicity

CENTRALISATION AND DECENTRALISATION

CENTRALISATION
Powers are reserved for the central authority  Authority to be exercised by the lower staff is limited  Important decisions are taken by the top management

Advantages of centralization
Flexible decisions  Unity and quality in action  Accurate decision and leadership

Disadvantages of centralization
 Lack of specialization  No opportunity for individual personality  Inequality in the distribution of authority

DECENTRALISATION
Decentralization means the division of group of functions and activities into relatively autonomous units with overall authority and responsibility for their operation delegated to a head of each unity

Advantages of centralization
Lesser burden on the top executive  Motivation for productivity  Satisfactory services to the customers

Limitations of decentralization
 Not useful in emergency decision making.  Lack of co-ordination.  Increases pressure on managers.

Line and Staff Organization:

Line refers to those positions and elements of organization who have the responsibility and authority, and who are accountable for the accomplishment of primary objectives.  Staff elements are those who have responsibility and authority for providing advice and services to line officers in the attainment of objectives.  It refers to a pattern in which staff specialists advise managers to perform their duties.


y Staff managers provide advice to the line manage who are generally specialists in the field. y In order to complete a job and attain a specific objectives, staff officers provide advice, consultancy services or give direction and supply up to date and accurate information to line officers.

Advantages of the line and staff system:

y Increase in knowledge and skill. y Planned specialization. y Centralized responsibility. y Discipline and obedience. y Proper distribution of work.

Disadvantages of Line and Staff Organization:

y Conflicts. y Possibility of misunderstanding. y Lack of direct command or control. y Responsibility for faults. y Shifting of responsibility.

Suitability :
y Not suitable for small organizations as it is quite costly for them.

Functional Organization:
y Functional structure is created by grouping the activities on the basis of functions required for the achievement of organisational objectives. y Each worker, instead of coming into contact with only one superior, would receive his orders from a group of specialized supervisors, each of whom perform a particular function. y The characteristic feature of this organization is that, at all levels of management division of labor and specialization is preplanned. y The workers who actually do the job, take instructions from these bosses. The specific designations of these eight bosses are:

1) Route clerk 2) Instruction card clerk 3) Time and cost clerk 4) Disciplinarian 5) Gang boss 6) Speed boss 7) Repair boss 8) Inspector.

y y y y y y y

Advantages: Benefit of minute specialization. Benefit of expert knowledge. Reduced pressure of duties. Staff specialization. Disadvantages: Confusion and indiscipline owing to lack of unity of command. Overlapping of authority or encroachment. Difficulty in assigning responsibility.

Suitability :

y Required when small org. grows & business activities become more & more complex. y Works better if organisation has one major product or similar product line.