1. Organizing-Basic Concepts
Departmentation- Functional, Project, Matrix and Virtual
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2. Identification & classification of required activities
Organising is
Identification & classification of required activities
Grouping of activities necessary to attain objectives
Assignment of each grouping to a manager with the authority necessary to supervise it.
Provision for coordination horizontally & vertically in the organizational structure.
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3. organizational structure - the formal framework by which job tasks are divided, grouped, and coordinated
Organization, as a structure, has the following features:
Two or more persons
Common goals
Cooperative efforts
Division of work
Communication
Rules and regulations

4. Organisation as a Process (Organising)
Organising is the process by which employees, facilities and tasks are related to each other, with a view to achieve specific goals.
It refers to the way, work is arranged and allocated among members of the organization, so as to achieve the goals. , the assignment of these activities to appropriate departments & the provision for authority delegation & coordination.

5. The process of organising, thus, involves the following steps:
Identifying the work
Grouping the work
Establishing relationships
Delegating authority
Providing for coordination and control

6. Importance of organization Facilitates administration & management.
Helps in growth
Ensures optimum use of human resources
Stimulates creativity
Proper use of improved technology
Helps in coordination
Helps in executive development
Ensures co-operation
Job satisfaction
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7. Features of good organization structure Simplicity Flexibility
Clear line of authority
Application of ultimate responsibility
Proper delegation of authority
Minimum possible managerial levels
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8. Formal Organization Formal and Informal Organization
It is a structure of well defined jobs, each bearing a definite measure of authority, responsibility and accountability.
The structure is consciously designed to enable the people of an organization to work together for accomplishing common objectives.

9. Characteristics of Formal Organization
According to classical theorists, the formal organization is built on four pillars:

10. Characteristics
Organizational Structure is designed by top management to fulfill certain requirement- performance of necessary activities thereby achieving organizational goals.
Based on principle of division of labor and efficiency.
Concentrates more on performance of jobs and not on individuals performing the jobs.

11. Coordination & control specified through procedures & rules.
Authority and responsibility assigned to each job have to be adhered by job holders. Based on authority and responsibility people are placed in hierarchy and their status is determined.
Coordination & control specified through procedures & rules.
Must be flexible. There should be room for discretion, for utilization of creative talents
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12. Informal Organization
It is any joint personal activity, without conscious joint purpose, even though contributing to joint results.
A network of personal and social relations not established or required by the formal organization but arising spontaneously as people associate with one another.

13. It refers to the relationship between people in an organization, based on personal attitudes, emotions, likes, dislikes, etc.
These groups are not pre-planned but develop automatically within an organization
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14. It is a natural outcome at the workplace. Not designed and planned.
Created on the basis of some similarity among its members; it may be age, sex, place of origin, caste, religion, personality characteristics, etc.

15. Membership is voluntary
Membership is voluntary. A person may become member of several informal organizations at the same time.
Behavior is coordinated and controlled by group norms and not by norms of formal organization.
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16. Benefits of Informal Organization
To employees:
Sense of belongingness.
Value for emotional problems
Aid on the job.
Innovation and originality.
Important channel of communication. News travels quickly via informal groups. They are secret transmitters and receivers of information before it is officially released.

17. Social Control. Informal groups provide all its members a set of norms or guides to correct behavior. Members are expected to conform to those norms.
Check on authority. Informal organization is a check and balance on unlimited use of authority by a manager
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18. To Management:
Less supervision.
An aid to management. Management gets feedback about employees and their work experience. It makes up for any management failures in communication.

19. Disadvantages Resistance to change.
Role conflict and sub-optimization.
Rumours.
Group Think philosophy- Workers become loyal to their groups. They believe what they seek must be good because the group has decided so.
Social cost- gossiping, joke, idle conversation.

20. Formal vs. Informal Organization.
Basis of Comparison
Formal Organization
Informal Organization
Formation
Planned & deliberate
Spontaneous
Purpose
Well-set goals
Social Interaction
Structure
Well-structured
Unstructured
Nature
Official and stable
Unofficial and unstable
Focus
Positions
Persons
Leadership
Superior
Anyone
Source of power
Delegated
Given by group
Guidelines for behaviour
Rules and procedures
Group norms
Sources of control
Reward/ Punishment
Sanctions
Size
Large
Small
Number
Comparatively small
Large overlapping of membership.

21. Span of management or span of control, refers to the number of subordinates that a superior can supervise effectively.
determines the number of levels and managers in an organization

22. Tall versus Flat Structure
Tall versus Flat Structure
Span of Control used in an organization determines whether the structure is tall or flat
Tall structure has a narrow span and more hierarchical levels
Flat structure has a wide span, is horizontally dispersed and fewer hierarchical levels
The trend has been toward wider spans of control

23. Narrow and Wide Spans of Control

24. Contrasting Spans Of Control1 2 3 4 5 6 7
Organizational Level
Members at Each Level
Span of 4
Operatives = 4,096
Managers (levels 1-6) = 1,365
Span of 8
Managers (levels 1-4) = 585 16 64
256
1,024
4,096 8
512

25. Tall and Flat Structures: Strengths and Weaknesses
Tall Structure
Flat Structure
Strengths
Closer control.
Better coordination where the work is highly interlocking.
In crisis situations insures closer supervision and possibly fewer mistakes.
Some individuals work better and actually prefer closer, detailed supervision.
Forces managers to delegate, leading to development of subordinates.
Reduces overhead costs and the number of supervisors needed.
Speeds and improves communication.
For individuals who desire challenge, responsibility and autonomy, flat structures are most suitable.
Weaknesses
Slows decision-making.
Distorted communication.
Costly in terms of administrative overheads.
Increases administrative distance between the top level and worker.
Flat structures put pressure on managers and impose heavy penalties for failure.
Lack wide application due to non-availability of competent and willing subordinates; difficult to create autonomous units.
Control and coordination difficult to achieve if work is highly interlocking in nature.

26. Basic Departmentalization Formats
Grouping of related jobs or processes into major organizational units
Permits coordination (integration) to be handled in the least costly manner

27. Departmentation is a means of dividing a large and complex organization into smaller, flexible administrative units.
Departmentation is necessary because it involves grouping of people or activities into a single department or unit to achieve organizational goals.

28. Departmentation permits an organization to take advantage of
Departmentation permits an organization to take advantage of specialization.
Departmentation enables each person to know the particular part which he is expected to play in the total activities of the company.
Departmentation facilitates communication, coordination and control contributing to the overall organizational success.
It enables a manager to locate the sources of information, skills and competence to take certain vital managerial decisions.

29. Common Organizational STRUCTURES
Traditional Organizational Structures
SIMPLE STRUCTURE –
low departmentalization, wide spans of control, authority centralized in a single person, and little formalization
commonly used by small businesses
as organizations increase in size, the structure tends to become more specialized and formalized

30. Vertical Functional Approach
Vertical Functional Approach
Grouping of positions into departments based on similar skills, expertise, and resource use
Information flows up and down
Chain of command converges at the top
Managers and employees are compatible because of similar training and expertise
Rules and procedures governing duties and responsibilities

32. Project Structure - employees work continuously on projects
all work performed by teams comprised of employees with appropriate skills and abilities
tends to be very fluid and flexible
no rigid departmentalization or organization hierarchy
managers serve as facilitators and mentors

33. Matrix Structure - assigns specialists from different functional departments to work on projects led by project managers
adds vertical dimension to the traditional horizontal functional departments
creates a dual chain of command
violates unity of command
project managers have authority in areas relative to the project’s goals
functional managers retain authority over human resource decisions (e.g., promotions)

34. A Matrix Organization in an Aerospace Firm

35. Virtual Organization
Consists of a small core of full time employees & that temporarily hires outside specialists to work on opportunities that arise.
By relying on web for freelances around the globe, the company enjoys a network of talent without all the unnecessary overhead & structural complexity.
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36. Learning Organization - an organizational mind-set rather than a specific organizational structure
has developed the capacity to continuously adapt
all members take an active role in identifying and resolving work-related issues
practice knowledge management by continually acquiring and sharing new knowledge
environment is conducive to open communication
empowered teams are important
leadership creates a shared vision for the future
organizational culture provides sense of community

37. Characteristics Of A Learning Organization
Organizational Design
Boundaryless
Teams
Empowerment
The
Learning
Organization
Organizational Culture
Strong Mutual
Relationships
Sense of Community
Caring
Trust
Information Sharing
Open
Timely
Accurate
Leadership
Shared Vision
Collaboration