POM 3rd Unit BID

PoM –Hand notes
Unit-3
Organizing
'Organizing is the process of identifying and grouping the work to be performed, defining and delegating
responsibility and authority, and establishing relationships for the purpose of enabling people to work
most effectively together in accomplishing objectives'.
Organisational structure
An organizational structure outlines how certain activities are directed to achieve the goals of an
organization. Successful organizational structures define each employee's job and how it fits within the
overall system.
Types of organizational structures:
 Functional structure.
A functional organizational structure is a common type of business structure that organizes a company
into different departments based on areas of expertise, grouping employees by specialty, skill or related
roles.
 Divisional structure.
A divisional structure is a common organizational framework that groups business activities based on
products, services, geographical locations, or markets. Each division within this structure operates as a
semi-autonomous entity equipped with its own set of resources and functions.
 Matrix structure.
A matrix organization is a company structure where teams report to multiple leaders. The matrix design
keeps open communication between teams and can help companies create more innovative products
and services.
 Team structure.
A team structure defines the relationships between activities, leadership, and team members. While this
may seem simple enough, team structures can have a huge impact on the distribution of authority and
how teams collaborate and work together on a daily basis.
 Network structure.
A network organizational structure is one in which organizations group certain types of employees
together based around a common specialization. These employees then form partnerships with other
specialists from throughout the organization to take on new projects and work toward a common goal.
 Hierarchical structure.
A hierarchical organizational structure has a direct chain of command from the top of the company to
the bottom. Senior management makes all essential decisions, which are handed down to the lower
levels of management.
 Flat organization structure.
A flat organizational structure is a company with few or no hierarchical levels between employees,
which means that all employees have essentially the same power and authority. The lack of hierarchy
can be seen as a positive attribute because it allows for more communication and collaboration between
employees.
Example :
Departmentalization and span of control
Departmentalization is an organizational structure that separates people into groups, or departments,

based on a particular set of criteria. These departments have their own leadership and work together to
complete tasks. With large or complicated projects, multiple departments may work together.
Span of control is the number of staff members that report to a manager. A higher number of reports
per manager results in a flatter organizational structure and fewer opportunities for promotion. A lower
number of reports per manager results in a taller organizational structure and more management
direction and input.
Authority, responsibility and delegation
Authority is a power or right, usually because of rank or office, to issue commands and to punish for
violations: to have authority over subordinates. control is either power or influence applied to the
complete and successful direction or manipulation of persons or things: to be in control of a project.
Responsibility refers to an obligation to perform certain functions in order to achieve certain results.
Following are the main characteristics or features of responsibility: An organization can assign
responsibility to human beings only and not to any non-living objects such as a machine, equipment, etc.
Delegation is the act of redirecting tasks and initiatives to other team members. You might delegate
work to distribute responsibility more evenly, or because the task or initiative is more relevant to
another team member's priorities, skills, or interests.
Delegation of authority
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PoM –Hand notes

Types of organizational structures:

 Flat organization structure.

Departmentalization and span of control

Departmentalization is an organizational structure that separates people into groups, or departments,

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