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Organizing Ankita Prabhakar, Asst. Prof..

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1 Organizing Ankita Prabhakar, Asst. Prof.

2 Meaning Management process of determining how best to arrange an organization's resources and activities into a coherent structure. Identifying and arranging the work and resources needed to achieve the goals that have been set Ankita Prabhakar, Asst. Prof.

3 Process Step 1: Review plans and objectives
Objectives are the specific activities that must be completed to achieve goals. Plans shape the activities needed to reach those goals. Managers must examine plans initially and continue to do so as plans change and new goals are developed. Ankita Prabhakar, Asst. Prof.

4 Process (contd.) Step 2: Determine the work activities necessary to accomplish objectives Although this task may seem overwhelming to some managers, it doesn't need to be. Managers simply list and analyze all the tasks that need to be accomplished in order to reach organizational goals. Step 3: Classify and group the necessary work activities into manageable units A manager can group activities based on four models of departmentalization: functional, geographical, product, and customer. Step 4: Assign activities and delegate authority Managers assign the defined work activities to specific individuals. Also, they give each individual the authority (right) to carry out the assigned tasks. Step 5:Design a hierarchy of relationships/Authority & Responsibility relationships A manager should determine the vertical (decision-making) and horizontal (coordinating) relationships of the organization as a whole. Next, using the organizational chart, a manager should diagram the relationships. Ankita Prabhakar, Asst. Prof.

5 Step 1: Job Design Factors affecting
Job design means to decide the contents of a job. It fixes the duties and responsibilities of the job, the methods of doing the job and the relationships between the job holder (manager) and his superiors, subordinates and colleagues. Factors affecting Ankita Prabhakar, Asst. Prof.

6 Step:2 Departmentalization
It is the process of grouping tasks into jobs, the combining of jobs into effective work groups and the combining of groups into identifiable segment or departments Fixation of Responsibility Specialization Autonomy Importance Management Development Appraisal Administrative Control Ankita Prabhakar, Asst. Prof.

7 Bases /Types of Departmentalization
Functional Department--ation Product Department- -ation Territorial Department--ation Customer Department--ation Process Department--ation Time Department--ation Composite Department--ation Ankita Prabhakar, Asst. Prof.

8 a) Functional Departmentalization
Ankita Prabhakar, Asst. Prof.

9 b) Product Departmentalization
Ankita Prabhakar, Asst. Prof.

10 c) Territorial Departmentalization
B.O.D Managing Director Northern Region Western Region Central Region Southern Region Ankita Prabhakar, Asst. Prof.

11 d) Customer Departmentalization
B.O.D. Managing Director Wholesaler Retailer Export Ankita Prabhakar, Asst. Prof.

12 e) Process Departmentalization
B.O.D. Managing Director Ginning Spinning Weaving Dyeing Ankita Prabhakar, Asst. Prof.

13 f) Time Departmentalization
B.O.D. Managing Director Morning Shift Noon Shift Evening Shift Night Shift Ankita Prabhakar, Asst. Prof.

14 g) Composite Departmentalization
Combination of more than one departmentalization in one organization structure. Ankita Prabhakar, Asst. Prof.

15 Step 3: Delegation Delegation means assigning work to others and giving them authority to do it. Delegation by Result Expected Clear Definition of Functions Parity between Authority & Responsibility Principles of Delegation Well defined limits of Authority Absoluteness of Responsibility Unity of Command Ankita Prabhakar, Asst. Prof.

16 Step4: Span of Management
It refers to the number of subordinates that report directly to a single manager or superior. Graicunas Theory V.A.Graicunas has identified three types of superior subordinate relationship – Direct Single Relationship Direct Group Relationship Cross Relationship Ankita Prabhakar, Asst. Prof.

17 Factors Determining Span of Management
Nature of Work Ability of the Manager Communication Techniques Capacity of Subordinates Staff Assistance Spatial Proximity Planning Impact of Span on Organization Structure Tall Flat Ankita Prabhakar, Asst. Prof.

18 Step 5: Authority & Responsibility Relationships
It is the right to decide and to direct others to perform certain duties in achieving organizational goals. “Authority may be defined as the power to make decision which guide the actions of others” – Simon Power refers to the ability or capacity to influence the behavior or attitude of other individual. Legitimate Power Referent Power Reward Power Coercive Power Expert Power Ankita Prabhakar, Asst. Prof.

19 Responsibility “It is defined as the obligation of a subordinate, to whom duty has been assigned to perform the duty” – Koontz & O’Donnell “It is the obligation of an individual to perform assigned duties to the best of his ability under the direction of his executive leader” – R.C.Davis Ankita Prabhakar, Asst. Prof.

20 Sources of Authority Formal Authority Theory
Authority originates at the top of an organization and flows downwards through the process of delegation Every manager has only that much authority which has been delegated to him by his superior Also called traditional or legitimate authority Formal Authority Theory The authority of the superior is meaningless unless it is accepted by his subordinates Acc to this theory, authority evolves from below! Chester Barnard suggests that subordinate will accept an order if he understand it well and is compatible with his personal interest Acceptance Authority Theory Ankita Prabhakar, Asst. Prof.

21 Sources of Authority (contd.)
An individual derives authority from his personal competence and charisma Thus, a person may get his order accepted because of his personal qualities! Competence Authority Theory Ankita Prabhakar, Asst. Prof.

22 Decentralization It refers to the systematic effort to delegate to the lowest levels all authority except that which can only be exercised at central points. Ernest Dale’s Degree of decentralization Measuring Test (EDMT) a) Number of Decisions b) Importance of Decision c) Effects of Decision d) Checking of Decision Factors Degree of Diversification Top Management Ideology History of the enterprise Planning & control Procedures Availability of competent Workforce Size & Complexity of the Org. Ankita Prabhakar, Asst. Prof.

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