CH-5 Organizing Flashcards
What is organizing?
Identification and grouping the work to be performed, assigning duties to job positions and establishing relationships for the purpose of accomplishing objectives.
PROCESS OF ORGANISING
IDAE
- Identification and Division of Work
- Departmentalisation Grouping of similar nature people
- Assignment of duties Allocation of jobs
- Establishing reporting relationships Establishing a heirarchy
Importance of organising
- Specialisation Allocation
- Clarity in working relationships
- Effective administration Provides clear description
- Optimum utilisation of resources
- Growth and expansion
- Adaptation to change
- Devlopment of personnel
What is organisation Structure?
Blueprint, framework.
Org structure refers to the framework within which managerial operating tasks are performed.
Needed in growth/ complexity of organisation
What is “Span of management”?
It refers to the no. of employees/ subordinates managed by a superior.
TYPES OF ORGANISATIONAL STRUCTURE.
- Functional Structure Functions
Happens directly in a company (Marketing, finance etc)
Grouping of jobs similar in nature.
Suitable for organisations with one category of products to offer.
- Divisional
Products
An org struacture whcih comprises seperate business divisions.
Manpower divided on the basis of products, org having a vareity of products.
Product based departmentalisation.
Functional divisions withing these departments.
Advantages of Functional structure
Imp. Any 4
- Due attention Proper attention
- Promotes control and coordination
- Increased efficiency
- Lowers the cost Minimal duplication of work
- Makes training easier
- Occupational Specialisation
Disadvantages of Functinal Structure
- Functional empires Less focus on overall org goal
- Problems in coordination
- Conflict of interests
- Inflexibility Only trained employess in specific feilds
Advantages of Divisional structure
- Greater accountability
- Product specialisation
- Flexibility and initiative autonomous untis
- Expansion and growth
Limitations/Disadvantages of Divisional structure
- Conflicts
- Costly process
- Ignoring of organisational intrests
What is a formal organisation?
Refers to the organisation structure which is deliberately created to accomplish tasks, there is functional and divisional strucutres.
Features of Formal Organisation
- Deliberately designed
- Specified relationships
- More emphasis on work
- Rules and procedures
- Coordinate, interlinked and integrate
Merits of formal org
- Ease fix responsibilities
- Avoid duplication
- Unity of commant
- Achieving goals
- Stability within organisation
Limitations within Formal Structure
- Procedural Delay, delay in descion goes through scalar chain
- Rigidity Fails to recognize creative talent
- Non- fulfilmet of social needs No social life
What is informal organisation?
It is a network of perosonal and social relationships that arises as poeple associate with another.
What are the features of an informal Organisation?
- Orignates from formal organisation
- Not deliberare
- Independent channel of communication
- No definetive structure
- The standards of behaviour
Advantage of Informal organisation
- Faster comm
- Fullfill social needs
- Fulfilment of organisational objectives
Disadvantages of informal strucutre
1) Rumors
2) Resistance to change
3) Group Norms
What is delegation?
Transfer of authority from superioir to subordninate (Immediate subordinate), entrustment of responsibility and creating accountability.
What are the elements of Delegation?
- Authority- (Power to take descion ) (Downward)
- Accountability (Answerability) (Upwards)
- Responsibility (Obligation) (Upwards)
Importance of delegation
- Effective management
- Growth
- Employee devlopment
- Management Heirarchy
- Motivation of employees
- Better coordination
What is decentralisation?
Refers to the systematic delegation of authority throughout all the levels of management and in all departments
Importance of decentralisation
1) Relief to top mgt
2) Inititative amongst subordinates
3) Managerial Talent for the future
4) Facilitates growth
5) Quick descion making
6) Better control
