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Organizing Ankita Prabhakar, Asst. Prof.. Meaning Ankita Prabhakar, Asst. Prof. Management process of determining how best to arrange an organization's.

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Presentation on theme: "Organizing Ankita Prabhakar, Asst. Prof.. Meaning Ankita Prabhakar, Asst. Prof. Management process of determining how best to arrange an organization's."— Presentation transcript:

1 Organizing Ankita Prabhakar, Asst. Prof.

2 Meaning Ankita Prabhakar, Asst. Prof. 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

3 Ankita Prabhakar, Asst. Prof. 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.

4 Ankita Prabhakar, Asst. Prof. 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.

5 Ankita Prabhakar, Asst. Prof. Step 1: Job Design 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

6 Ankita Prabhakar, Asst. Prof. 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 Specialization Autonomy Fixation of Responsibility Appraisal Management Development Administrative Control Importance

7 Ankita Prabhakar, Asst. Prof. 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

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

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

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

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

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

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

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

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

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

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

18 Ankita Prabhakar, Asst. Prof. 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. Reward Power Legitimate Power Referent Power Coercive Power Expert Power

19 Ankita Prabhakar, Asst. Prof. 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

20 Ankita Prabhakar, Asst. Prof. 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 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

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

22 Ankita Prabhakar, Asst. Prof. 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 Size & Complexity of the Org. Planning & control Procedures Degree of Diversification History of the enterprise Availability of competent Workforce Top Management Ideology

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