Organising Flashcards
What is meant by organising
Organisation is the process which coordiantes human efforts and assembles resources - both human and physical and integrates them all into a whole, to achieve specified objectives.
Process of organising
1.identifying and division of work
2 departmentalization
3 assignment of duties
4 establishing reporting relationship
Importance of organising
1 Benefits of specialization
2 clarity in working relationship
3 optimum utilization of work
4 adaptation to change
5 effective administration
6 development of personnal
7 expansion and growth
Whta is organisational structure?
It can be defined as the framework within which managerial and operating tasks are peformed.
What is span of management?
Span of management refers to the number of subordinates that can be effectively managed by a superior
Types of organizational structure
Functional structure
Divisional structure
What is functional structure?
It is an organizational structure, wherein jobs of similar nature are grouped into major functions, and these major functions are organized as separate departments
Advantages of functional structure
Specialization
Better control and coordination
Increased profit
Economics of scale
Training becomes easier
Disadvantages of functional structure
Organizational interest overlooked
Problems in coordination
Inderdepartmental conflicts
Inflexibility
The structure of organization is suitable in
When the size of organization is large
Where there are diversified activities
Where are a high degree of specialization is required
What is divisional structure?
Devotional structuring organization design where there are separate divisions for different products each division having functions like production, marketing, etc.
What are the advantages of divisional structure
Development of skills
Fixation of responsibilities
Quickness in decision-making
Facilitates expansion and growth
What are the disadvantages of devotional structure?
Conflict among divisions
Increased cost
Independent authority harmful
What is the suitability of divisional structure in organization?
The large variety of products are manufactured
When an organization grows and requires more departments and employees and introduces new level of management
What is formal organization?
Formal organization refers to the organization structure, which is deliberately planned and created by the management to achieve organizational goals
Features of formal organization
Superior supportive relationship
Rules and procedures
Deliberately created
Efforts coordinated
Emphasis on work
What are the advantages of formal organization?
Easier to fix responsibility
Avoidance of duplication of efforts
Unity of command
Accomplishment of goals
Provides stability
What are the disadvantages of formal organization?
Procedural delay
No creativity
More emphasis on structure and work
What is informal organization?
Informal organization is a network of personal and social relations, not established or required by the formal organization, but arising spontaneously as people associate with one another
Features of informal organization
Personal interaction
Group norms
Independent channel of communication
Spontaneous
No definite structure
Advantages of informal organization
Speedy communication
Fulfill social needs
Support formal organization
Disadvantages of informal organization
Spread of false news
Delays or restrict growth
Against organizational interests
What is delegation?
Delegation refers to the downward transfer of authority from a superior to subordinate
What are the elements of delegation?
Authority
Responsibility
Accountability
