Organising Keywords and Brief Notes

Organising

  • Process
  • Function of management
  • Integrates human efforts with different resources
  • Defining and grouping activities
  • Establishing authority relationships

 

Organising Process:

  1. Identification and division of work
  2. Departmentalisation: grouping together similar activities.
  3. Assignment of Duties
  4. Establishing reporting relationships

 

Importance of Organising:

  1. Division of work,
  2. Clarity in reporting relationships,
  3. Optimum utilization of resources,
  4. Growth,
  5. Better administration,
  6. Greater creativity.

 

Organising Keywords and Brief Notes

Organisational Structure

  • Framework for managerial and operating tasks
  • Can be functional or divisional.

Span of management: number of subordinates under a superior.

 

Functional Structure:

grouping activities on the basis of functions.

Advantages of Functional structure

  1. Specialisation,
  2. Better control,
  3. Managerial efficiency
  4. Ease in training employees.

Disadvantages Functional structure

  1. Functional empires
  2. Conflict of interest
  3. Inflexibility
  4. Restriction in managerial development.

 

Divisional structure:

Grouping activities on the basis of products.

Advantages of Divisional structure:

  1. Integration
  2. Product specialisation
  3. Greater accountability
  4. Flexibility
  5. Better coordination
  6. More initiative.

 Disadvantages of Divisional structure:

  1. Departmental conflicts
  2. Costly process
  3. Ignoring of organisational interests
  4. Increase in requirements of general managers.

 

Organising Keywords and Brief Notes 

Formal organisation

  • designed by the management
  • to achieve organisational goals.
  • Guided by rules and regulations
  • Clear cut authority and responsibility.
  • Can be Functional or Divisional.
  • Procedural delays

Advantages of Formal organisation

  1. Fixation of responsibility,
  2. Clarity of roles
  3. Unity of command
  4. Effective accomplishment of goals.

Disadvantages of Formal organisation

  1. Procedural delays
  2. Inadequate recognition of creativity
  3. Limited in scope.

 

Informal organisation

  • arises out of interaction amongst people at work.
  • Spontaneous
  • Within Formal Organisation.
  • No defined roles.
  • No fixed lines of communication.
  • Grapevine structure

Advantages of Informal organisation

  1. Speed
  2. Fulfilment of social needs
  3. Fills inadequacies of formal structure.

Disadvantages of Informal organisation

  1. Disruptive force
  2. Resistance to change
  3. Priority to group interests.

 

Organising Keywords and Brief Notes 

Delegation

  • Transfer of authority
  • From superior to subordinate.
  • Manager extends his area of operations.
  • Delegation does not mean abdication.
  • Authority can be taken back and be given to someone else.

 

Elements of Delegation:

  1. Authority
  • power to take decisions or take work from others
  • flows downwards
  • can be delegated
  1. Responsibility
  • obligation to do task
  • flows upwards
  • can’t be entirely delegated
  1. Accountability
  • Answerability
  • can’t be delegated
  • flows upward

Importance of Delegation

Delegation helps in:

  1. Effective management,
  2. Employee development
  3. Motivation
  4. Growth 

 

Organising Keywords and Brief Notes

Decentralisation

  • Delegation of authority throughout the organisation.
  • Dispersal of authority through entire organisation.
  • Extension of delegation to the lowest level of management.
  • Policy decision of the Top management.

Importance of Decentralization

It helps in:

  1. Development of managerial talent,
  2. Quick decision making
  3. Reducing burden on top management,
  4. Development of initiative
  5. Growth
  6. Better control.

 

Staffing Keywords and Brief Notes

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