2 MeaningManagement 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 setAnkita 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 objectivesAlthough 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 unitsA manager can group activities based on four models of departmentalization: functional, geographical, product, and customer.Step 4: Assign activities and delegate authorityManagers 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 relationshipsA 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 affectingAnkita 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 departmentsFixation of ResponsibilitySpecializationAutonomyImportanceManagement DevelopmentAppraisalAdministrative ControlAnkita Prabhakar, Asst. Prof.
7 Bases /Types of Departmentalization Functional Department--ationProduct Department- -ationTerritorial Department--ationCustomer Department--ationProcess Department--ationTime Department--ationComposite Department--ationAnkita 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.DManaging DirectorNorthern RegionWestern RegionCentral RegionSouthern RegionAnkita Prabhakar, Asst. Prof.
11 d) Customer Departmentalization B.O.D.Managing DirectorWholesalerRetailerExportAnkita Prabhakar, Asst. Prof.
12 e) Process Departmentalization B.O.D.Managing DirectorGinningSpinningWeavingDyeingAnkita Prabhakar, Asst. Prof.
13 f) Time Departmentalization B.O.D.Managing DirectorMorning ShiftNoon ShiftEvening ShiftNight ShiftAnkita Prabhakar, Asst. Prof.
14 g) Composite Departmentalization Combination of more than one departmentalization in one organization structure.Ankita Prabhakar, Asst. Prof.
15 Step 3: DelegationDelegation means assigning work to others and giving them authority to do it.Delegation by Result ExpectedClear Definition of FunctionsParity between Authority & ResponsibilityPrinciples of DelegationWell defined limits of AuthorityAbsoluteness of ResponsibilityUnity of CommandAnkita 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 TheoryV.A.Graicunas has identified three types of superior subordinate relationship –Direct SingleRelationshipDirect GroupRelationshipCrossRelationshipAnkita Prabhakar, Asst. Prof.
17 Factors Determining Span of Management Nature of WorkAbility of the ManagerCommunication TechniquesCapacity of SubordinatesStaff AssistanceSpatial ProximityPlanningImpact of Span on Organization StructureTallFlatAnkita 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” – SimonPower refers to the ability or capacity to influence the behavior or attitude of other individual.Legitimate PowerReferent PowerReward PowerCoercive PowerExpert PowerAnkita 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.DavisAnkita 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 delegationEvery manager has only that much authority which has been delegated to him by his superiorAlso called traditional or legitimate authorityFormal Authority TheoryThe authority of the superior is meaningless unless it is accepted by his subordinatesAcc 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 interestAcceptance Authority TheoryAnkita Prabhakar, Asst. Prof.
21 Sources of Authority (contd.) An individual derives authority from his personal competence and charismaThus, a person may get his order accepted because of his personal qualities!Competence Authority TheoryAnkita Prabhakar, Asst. Prof.
22 DecentralizationIt 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 Decisionc) Effects of Decision d) Checking of DecisionFactorsDegree of DiversificationTop Management IdeologyHistory of the enterprisePlanning & control ProceduresAvailability of competent WorkforceSize & Complexity of the Org.Ankita Prabhakar, Asst. Prof.