Organising

Maumita Roy
Learning Outcomes
• Meaning, Importance and Principles,
• Departmentalization,
• Span of Control,
• Types of Organization,
• Authority,
• Delegation of Authority.
• Organising in a general sense means systematic
arrangement of activities.
• Organising follows planning.
Organising: Definition
• Organising is the process of defining and
grouping the activities of the enterprise and
establishing authority relationships among them
for the realisation of the desired goals.

• Hierarchy is the ranking of job positions on the

basis of relative roles and responsibilities.
Nature of Organisation
• Group of Persons: An organization is a group of people
working together for the achievement of common objectives.
The group may be large or small. An organization is a system
of cooperative relationships of two or more persons.
• Common Objectives: Every organization has a common
objectives distinct from personal objectives of the members.
The common goal is the basis of cooperation among the
members. The objectives of the organization are usually are
made explicit.
• Division of Work: An organization comes into existence when
the total task is divided into the members of the group.
Division of work is necessary not only because one individual
cannot do all the work but specialization results in efficiency
and effectiveness.
• Cooperative Efforts: The members of an organization are
willing to help each other for the achievement of desired
goals. Cooperative relationships are stabilized both vertically
and horizontally among different units of the organization.
• Communication: People who form an organization
communicates with each other in order to integrate or
coordinate there efforts. The structure must be such that
people can perform together efficiently.
• Central Authority: In an organization, there is a central
directing authority which controls the concerted efforts of the
group. The chain of authority- responsibility relationships is
known as the chain of command.
• Rules and Regulations: For the orderly and systematic working
of the members, rules and regulations are laid down and
enforced by the central authority.
• The Dynamic Element: An organization is not a mere
mechanical structure but a living organism arising out of the
sentiments, attitudes, and behavior of people. The people are
the material of construction that holds the structure together
and gives it vitality.
Steps in Organising
The logical sequence of steps in organizing is mentioned below:-
• Establishing objectives
• Designing Plans and Policies
• Identifying specific activities
• Grouping activities and assigning them according to available
resources
• Delegating the authority necessary to perform the activities.
• Tying the groups together through authority relationship and
communication.
Case Insight
• Narendra, aged 51 is working in the production department of a manufacturing
company. He is the senior most employee in his department. He is even senior to
the departmental head, Mr. Sharma. Narendra is considered one of the most
committed, capable and hard-working employees. As a result of his abilities and
seniority, he generally received the work assignments of his choice. Although
there was no formal designation of various ‘special’ tasks assigned to Narendra,
he handled them as a matter of routine.
• A problem developed when an able and intelligent person Avinash, aged 33, was
appointed by Mr. Sharma. Avinash’s previous three years’ experience in the
closely related work, made it possible for him to catch on to the routine work of
his new job more rapidly than was customary for a new employee. On several
occasions, Mr. Sharma noticed the tension developing between the two
employees. However, he didn’t want to get involved in their personal issues as
long as the work was completed effectively and efficiently by them.
• One day, the tension between them reached the boiling point and Narendra
complained to Mr. Sharma stating that his duties were being largely taken over
by Avinash.

Q.1 Please advise Mr. Sharma on the resolution of the issue.

Mr. Sharma issued the order stating the clear allocation of the
jobs and related duties between the two. He further clarified the
working relationship between them by specifying who was to
report to whom. This helped in reducing the workload,
enhancing productivity and removing ambiguity.

Q.2 Identify and state the step of organizing process which has
not been carried out properly and contributed to this problem.

Q.3 Highlight points of importance of organizing as reflected in

the above case.
Importance
Principles of Organising
• Principle of definition
• Principles of Objectives
• Division of work
• Principles of continuity
• Principles of span of control
• Principles of exception
• Principles of flexibility
• Principles of unity of direction
• Principles of balance
• The scalar principle
• Principle of efficiency
• Delegation of authority
• Principles of responsibility
Organisation Structure
• A Design Of Organization Movement Or
Blueprint.
• Organization structure explains the position and
official relationship between various individuals
in the organization.
• https://www.youtube.com/watch?v=4rcI1u4cxGE
Organisation Chart
• It is a diagrammatic representation of
organization structure show names
designation functions of personnel in a
organization.
Types
• Formal organisation refers to the organisation structure which
is designed by the management to accomplish a particular
task.
• Informal organisation emerges from within the formal
organisation when people interact beyond their officially
defined roles.
Formal vs. Informal
Organisation
 Case Insight
• “Ronak Spices Ltd.” are the manufacturer of different food specific spices like
Tandoori Masala, Pav Bhaji Masala, Kitchen King Masala etc. Mr. Ronak, the owner
of the company has created different departments for purchase, production,
marketing, finance and human resource. There are thirty employees working in
the organisation. Planning is of paramount importance to the company as Mr.
Ronak believes that effective planning leads to achievement of organisational
objectives. So in order to make employees focus on objectives, he issued
instructions that during working hours only official matters will be discussed. He
made certain rules and code of conduct for the employees to follow, according to
which employees are not allowed to visit and talk to the employees of other
departments except for official work. He emphasised on work performance which
resulted in smooth functioning of the organisation.

• Identify and state the type of organisation mentioned in the above para.
• State one feature of the concept identified in the previous question as mentioned
in the above para.
• What was the purpose behind the formulation of rules for the employees that
restricted their personal communication with the employees of other
departments?
Types of Organisational
Structure
Line Organisation
• Each department is generally a complete self contained unit.
• The line authority flows from top to bottom vertically.
• Clearly identifies authority, responsibility and accountability at
each level
• Departmental heads are given full freedom to control their
department.
• This type of organization is followed in the army on the same
pattern. So, it is also called military organization.
Features
• It consist of vertical direct relationship
• Authority flows from top to bottom
• Operations of this system is very easy.
• It facilitate to know from whom one should get orders and to
who one should give orders
• Existence of direct relationship between superior and
subordinates
• The superior will take decisions within the scope of his
authority.
Line and Staff Organisation
• Line officers have authority to take decisions and implement
them, but the staff officers will assist them while taking
decisions.
• The function of staff officers are only an advising one.
• The line officers are not in a position to acquire all the
technical knowledge, which are necessary for taking right
decisions.
• That gap may be bridged with the help of staff officers. The
staff officers may be experts in a particular field.
Features
• Authority flows from top to bottom.
• Line Officers will takes decisions on the basis of suggestions
given by staff officers.
• Staff officers have no power to take decisions and no control
over subordinates.
• The workers get the instructions only from the line officers.
Functional Organisation
• Specialists are appointed in top position through out the
organization.
• Various activities of the enterprise are classified according to
functions and functional heads will give directions related to
his functions.
• Workers, under functional organization, receive instructions
from various specialists.
Features
• The work is divided according to specified functions.
• Authority is given to specialists to give orders and instructions
in relation to specific functions.
• The decision is taken only after making consultations with the
functional authority relating to his specialized area.
• The executives and supervisors discharge the responsibilities
of functional authority
 Span of Control
• It is also called as span of
control or span of
supervision.

• It refers to the number of

subordinates that report
directly to a single manager
or supervisor.
Types
• NARROW SPAN OF MANAGEMENT
a. Tall organization.
b. Manager oversees “few” subordinates.
c. better communication.
d. example : handicraft , ivory work , etc.

• WIDE SPAN OF MANAGEMENT

a. Flat organization .
b. Manager oversees “large” number of subordinates.
c. Less overhead cost.
d. example: large firms .
Factors affecting Span of Control
• Nature of work
• Type of technology
• Ability of the manager
• Capacity of subordinates
• Degree of decentralization
• Quality of planning
• Staff assistance
• Communication techniques
• Time available for supervision
• Geographical dispersion of
• subordinates
Authority
• Authority is the right to act and the power to make decisions
• Authority resides in positions rather than in people
• Authority is seen as the legitimate right of a person to exercise
influence or the legitimate
• right to make decisions, to carry out actions, and to direct
others.
Characteristics
• It is legitimate right to command and control
subordinates.
• Authority is granted to achieve the predetermined goal
of the enterprise.
• Authority is right to direct others to get things done.
• Authority is delegated downwards.
Responsibility
• “Responsibility is defined as the obligation of a
subordinate to whom a duty has been assigned to
perform.”
-Koontz Donnel

OR

• “ The obligation of an Individual to carry out assigned

activities of the best of his or her ability.”
-Terry and Franklin
Characteristics
• Responsibility is to assign duty to human beings only.
• Responsibility always flows upwards from juniors to seniors.
• Responsibility is result of duty assigned.
• Responsibility is the obligation to complete the job as per
instructions.
• Responsibility can never be delegated. It is the personal
obligation ,and absolute also.
Authority vs. Responsibility
Departmentalisation
• Departmentalization is the process of breaking down an
enterprise into various departments.
• How jobs are grouped together is called departmentalization.
• A Department is an organization unit that is headed by a
manager who is responsible for its activities.
• Departmentalization and Division of labor are same things but
the context differ.
There are five common forms of departmentalization:
• Functional Departmentalization
• Geographical Departmentalization
• Product Departmentalization
• Process Departmentalization
• Customer Departmentalization
Delegation
• Delegation is the transfer of authority to subordinates to
enable them to make decisions and use resources.
• Entrusting responsibility and authority to others who
then become responsible to us for their results but we
remain accountable to our boss about what our
subordinates do.
Principles
• Delegation by results
• Non-delegation of responsibility
• Parity of authority and responsibility
• Unity of Command
• The Scalar Principle
• Principle of Exception
Steps in Delegation Process

Deciding the Establishment of Determining

goals to be definite what to
achieved responsibility delegate

Control System Training

Types
• General delegation
• Specific delegation
• Written delegation
• Unwritten delegation
• Formal delegation
• Downward delegation
• Sideward delegation
Case Insight
Aman Chadha started ‘Bulls Eye’ a company for providing cyber security solutions to
businesses. Its objective is to prevent, detect and respond to cyber attacks and
protect critical data. He was a hardworking software engineer and an expert in cyber
security. His reputation grew by leaps and bounds as he was not only a person of
integrity but also did his work with utmost honesty and sincerity. The business started
growing day by day.

He was delighted when he was offered a big project by the Ministry of Defence. While
working on the project, he found that the volume of work made it impractical for him
to handle all the work by himself. He decided to expand the team. The company
maintained a close liaison with a local engineering college. During a campus
placement, Ishan and Vrinda were appointed to work for the new project.

He found the new employees capable, enthusiastic and trustworthy. Aman Chadha
was thus, able to focus on objectives and with the help of Ishan and Vrinda, the
project was completed on time. Not only this Aman Chadha was also able to extend
his area of operations. On the other hand Ishan and Vrinda also got opportunities to
develop and exercise initiative.
Q.1 Identify and briefly explain the concept used by Aman
Chadha in the above case which helped him in focusing on
objectives.

Q.2 Also, state any four points of importance of the

concept identified
THANK YOU