Unit3 Engineering
Unit3 Engineering
O RG A N I Z I N G :
Organizing is the process of arranging and structuring work
to accomplish an organization’s goal.
Organizing is the process of identifying and grouping the
activities required to attain the objectives, delegating authority,
creating responsibilities and establishing relationship for people to
work effectively.
According to Haimann, “Organizing is the process of defining
and grouping the activities of the enterprise and
establishing the authority relationships among them”.
N AT U R E A N D P U R P O S E O F O RG A N I Z I N G :
N AT U R E O F O RGA N I Z I N G :
1. Common objectives:
Every organization exists to achieve some common goals
or
targets of the organization.
2. Division of labour:
Overall function of an organization is sub – divided into number
of sub – functions (various departments).
Each department is headed by a manager, who is
sole
responsible for function of the department.
3. Authority structure:
Graded series of arrangement in an organization, creates a series
of superior and subordinate relationships called chain of
command.
Responsibility associated with various positions are defined.
4. Group of persons:
Work force of an organization constitute active environment in
an organization.
5. Communication:
Every organization have free flow of communication.
These channels of communication are necessary for mutual
understanding and cooperation among members of an
organization.
N AT U R E O F O RG A N I Z I N G :
6. Co-ordination:
Diverse efforts of various functional departments are integrated
towards the common goal through the process of coordination.
7. Environment:
No organization works in a vacuum. Social, political, economic
and legal factors exert influence on the environment.
Beside it is influenced by internal factors like
materials,
machines, level of technology, economic measures, H R , etc.
1. To facilitate organization:
Helps to earn highest profit.
A properly designed organization facilitates both management
and operation of the enterprise.
1. Arises voluntarily.
Willingness to take
risks More risk averse More willing to take risks
O RG A N I Z AT I O N S T RU C U T R E :
Organization structure is a flow chart which defines, the formal
arrangement of jobs within and organization.
An organization structure is designed both from
mechanistic
and humanistic point of view.
T Y P E S O F O RG A N I Z AT I O N S T RU C U T R E :
1. Bureaucratic structure:
They are tall structures with a clear chain of
command.
Power is centralized with top managers.
Structures are formed based on formal
authority.
Adaptive structure:
Maintains high degree of openness to input from internal and
external environment.
Framed based on knowledge based authority and cooperation.
More flexible.
T Y P E S O F O RG A N I Z AT I O N S T RU C U T R E :
1. Functional structure:
Groups the people / employee based on similarity in
work
nature.
T Y P E S O F O RG A N I Z AT I O N S T RU C U T R E :
Example
Companies like Larsen & Tourbro (L&T) adopt this structure for the
execution of various projects. The execution of L&T’s construction
of Jawaharlal Football Stadium in Chennai is entrusted to a team
drawn from the functional departments of the headquarters. The
overall responsibility for the project lies with project manager. The
people who work in the project are responsible to the project
manager as well as their functional head from whom they are
drawn. The matrix may be temporary or permanent. In
construction activities, the project is disbanded after the execution,
whereas it may take a permanent form in the case of consumer
goods company
T Y P E S O F O RG A N I Z AT I O N S T RU C U T R E :
5. Network structure:
A network structure is one in which more than one organization
combines to produce a good or provide a service.
These organizations permit outsourcing or hire others to
handle one or more of its functions (outsourcing), for example,
marketing, production, sales etc.
Helps to visualize both internal and external relationships
between managers and top-level management.
Relies on other organization.
E.g. H&M (Hennes & Mauritz). H& M outsourced the production to
China to benefit from the cheap labor in China.
MarutiUdyog, Wipro, Larsen and Toubro
Network structure
Advantages
• Less hierarchical,
more decentralized
more flexible
span of control wider
Work can be outsourced to other firms which specialize in that
particular work. This lowers the cost
5. Network structure:
A network structure is one in which more than one organization
combines to produce a good or provide a service.
These organizations permit outsourcing or hire others to
handle one or more of its functions (outsourcing), for example,
marketing, production, sales etc.
Helps to visualize both internal and external relationships
between managers and top-level management.
Relies on other organization.
E.g. H&M (Hennes & Mauritz). H& M outsourced the production to
China to benefit from the cheap labor in China.
MarutiUdyog, Wipro, Larsen and Toubro
L I N E A N D S TA F F AU T H O R I T Y,
D E PA RT M E N TA L I Z AT I O N
L I N E AUTHORITY:
It is the primary authority responsible for achieving the organization's
core objectives and making day-to-day decisions
Line managers have the authority to issue orders, manage resources,
and make operational decisions related to their department.
It represents the direct hierarchical chain of command within an
organization.
L I N E AUTHORITY:
In line authority, the superior will be exercising the authority
directly over the subordinates to carry out orders and
instructions.
E.g. In a manufacturing company, the plant manager, production
manager, and the sales manager would typically have line authority over
their respective departments. They make decisions that directly affect
production levels, quality, and sales targets.
L I N E AUTHORITY:
Advantages:
Simple and easy to understand.
Delegation of authority is clear.
Channel of communication is clear.
Ensures discipline in an organization.
Disadvantages:
Inflexible.
Neglects advices from experts.
Limited to small organization.
S TA F F AUTHORITY:
Staff authority is authority that helps line authority
in
attaining the objectives of the organization. It is a support
function within an organization
Staff authority involves giving advice to the line managers to
carry out the operation.
S TA F F AUTHORITY:
It does not have direct control over the organization's core
activities but provides expertise, advice, and support to line
managers and departments. Staff authority roles are typically
advisory in nature, helping line managers make informed
decisions.
In the same manufacturing company, the HR manager, legal
counsel, and financial analyst would typically have staff
authority. They provide guidance and support to line managers
but do not have the same level of direct control over production
or sales processes.
S TA F F AUTHORITY:
3. Concurring authority:
Staff will be given complete authority to take decisions.
S TA F F AUTHORITY:
Advantages:
Improves the quality of decision.
Reduces complexity to line authority.
Leads to innovations.
Disadvantages:
Managerial problem.
Weakens line authority.
L i n e Vs S TA F F AUTHORITY
• Both line and staff roles are essential for the efficient
functioning of an organization, with line roles focused on
execution and staff roles focused on providing expertise and
guidance.
D E PA RT M E N TA L I Z AT I O N :
Departmentalization is the process of breaking down a large monolithic
enterprise into small and flexible departments.
How jobs are grouped together is called departmentalization.
A Department is an organizational unit that is headed by a manager who is
responsible for its activities.
Aim : To group activities and personnel to make manageable units.
I M P O RTA N C E O F D E PA RT M E N TAT I O N :
Provides autonomous.
Increases operating efficiency.
Helps in fixing the responsibilities to various executives.
Easier for appraisal identification.
Facilitates budget preparation, control over expenditure.
D E PA RT M E N TAT I O N T Y P E S :
1. Departmentation by numbers:
Departments are created on the basis of strength of employees.
Same activities will be performed by small groups.
e.g.: Military
D E PA RT M E N TAT I O N T Y P E S :
2. Departmentation by time:
Departments are formed on the basis of time of performance.
e.g.: Shift work
D E PA RT M E N TAT I O N T Y P E S :
2. Departmentation by time:
Advantages:
24 × 7 service.
May provide part time work.
Disadvantages:
Night time supervision.
L a c k of coordination.
D E PA RT M E N TAT I O N T Y P E S :
3. Departmentation by function:
Departments are formed on the basis of work nature.
Large scale enterprise follows this method.
For example, Manufacturing, Production, R & D, Purchasing, etc.
Same kinds of jobs are grouped together in departments.
This kind of departmentalization includes persons with the same
knowledge or skills (like Accounting Department having persons of
commerce, Marketing Department having MBA persons).
D E PA RT M E N TAT I O N T Y P E S :
3. Departmentation by function:
Advantages:
Ensures performance control.
Facilitates delegation of authority.
Ensures coordination.
Disadvantages:
Lack of interdepartmental communication.
D E PA RT M E N TAT I O N T Y P E S :
4. Departmentation by territory:
Departments are formed on the basis of geographical function
of organization.
D E PA RT M E N TAT I O N T Y P E S :
4. Departmentation by territory:
Advantages:
Helps the organization to improve sales.
Reduces operation cost.
Expands business.
Disadvantages:
Lack of communication among branch organization.
Friction between regional managers.
D E PA RT M E N TAT I O N T Y P E S :
5. Departmentation by customers:
Departments are formed on the basis of needs of customer.
Each expert will serve a specific group of customer.
D E PA RT M E N TAT I O N T Y P E S :
5. Departmentation by customers:
Advantages:
Facilitates concentration on customer satisfaction.
Helps to analyze the market requirement.
Disadvantages:
Need experts in specific problems.
Production activities cannot be organized effectively.
D E PA RT M E N TAT I O N T Y P E S :
6. Departmentation by process:
Departments are formed the basis of equipments and
on
process.
e.g. Ginning, spinning, weaving, etc. in a textile industry.
D E PA RT M E N TAT I O N T Y P E S :
6. Departmentation by process:
Advantages:
Focuses on optimistic technology.
Effective utilization of resources.
Disadvantages:
Lack of coordination.
Experts are required.
Conflicts.
D E PA RT M E N TAT I O N T Y P E S :
7. Departmentation by product:
Departments are formed on the basis of type of service
and product.
Each will have individual functional
department
departments.
e.g. Kirloskar, Honda
D E PA RT M E N TAT I O N T Y P E S :
8. Matrix organization
Nature of work : When the spans are narrowed, the levels in the
organization increase. This involves delegation of authority and
responsibility. If the work is of a routine and repetitive nature, it can
easily be delegated to the subordinates.
C E N T R A L I Z AT I O N A N D
D E C E N T R A L I Z AT I O N
D E L E G AT I O N O F AUTHORITY:
Delegation is the process of granting authority or right to
decision making in certain defined areas and charging the
subordinate with responsibility for carrying through assigned
task.
D E L E G AT I O N O F AUTHORITY:
It is common knowledge that there is a limit to the number of
subordinates a superior can effectively manage, however
talented he may be.
Once a man’s job grows beyond his personal ability, he succeeds
when he delegates his authority.
Process of Delegation:
Process of Delegation:
4. Creation of obligation:
Delegate will be taking in charge.
He/she will be responsible for all the activities performed.
Advantages of Delegation:
Reduction of executive burden.
Facility of expansion / multiplicity of skill.
Efficient running of branch organizations.
Identification of talents.
Disadvantages of delegation:
Dependence on managers.
Failure in completion of duty, due to lack of skill.
Conflict among workers.
C E N T R A L I Z AT I O N :
Centralization is the reservation of authority at a central point
within the organization.
Role of subordinates becomes insignificant in this case.
Advantages of Centralization:
Facilitates greater uniformity.
Lowers operating cost.
Enhances coordination.
Disadvantages of Centralization:
Individual initiative destroyed.
Overburden with routine functions.
Communication gap with lower units.
Keeps the customer away.
D E C E N T R A L I Z AT I O N :
Dispersal of decision making authority down to the
level
where work is to be performed.
Characteristics of decentralization:
Reflects the management’s attitude and philosophy.
Managerial skills need to be developed among employees.
Number of decisions must be made by lower level of management.
Advantages of decentralization:
Facilitates diversification.
Higher motivation for employees.
Ensures effective control.
Minimizes risk.
Development of management.
Disadvantages of decentralization:
May increase operational cost.
Conflict among same level of employees.
Lack of communication.
D E C E N T R A L I Z AT I O N vs D E L E G AT I O N :
Delegation is entrustment of authority from one to another.
Decentralization is organization wide delegation between top
managements and departments.
Jo b D e s i g n
E xa mp l e
Custome r s e r v i ce re pre se n t a t ive : a pa r t f rom ha n d li n g
custome r i n qui r i e s a n d re solv i n g i ssue s, a custome r
se r v i ce re p re s e n t a t ive ca n e n ga g e i n cross-se lli n g or
upse lli n g p ro d uc t s or se r v i ce s, con d uct i n g custome r
sa t i sfa ct i o n s ur veys, or a ssi st i n g w i t h soci a l me d i a
ma n a g e me n t fo r t he compa ny.
Jo b E n ri c hm e n t
• Job e n r i c hme n t focuse s on e n ha n ci n g t he d e pt h a n d
qua l i t y o f a jo b by prov i d i n g e mploye e s w i t h more
a uto n omy, re s p o n si bi li t y, a n d oppor t un i t i e s for
pe r son a l g row t h a n d d eve lopme n t .
• Job e n r i c hme n t i nvolve s e n r i chi n g t he ex i st i n g job
by i n cre a s i n g t he sk i ll, re spon si bi li t y, a n d cha lle n g e
leve l.
J o b E n ri c hm en t VS Jo b en l a rgemen t
• Jo b en l a rg e m e n t : ex pa n d s t he n umbe r a n d va r i e t y
of t a s ks w i t hi n a job.
• Jo b en r i c hm en t : focus e s on e n ha n ci n g t he qua li t y
a n d d e p t h of t he t a sks.
J o b E n ri c hm en t VS Jo b en l a rgemen t
2. Selection tests:
Tests are being conducted in this process to evaluate qualities
of scrutinized applicants.
It is the systematic procedure for comparing the behavior of
applicants.
These tests enable the management to bring out the right person for the
job
S E L EC T IO N PROCESS:
3. Interview process:
Interview is face to face interaction between interviewer and
the candidate.
Types: Preliminary, Structured, Unstructured, Stress,
Panel,
Telephonic, Online.
Selection
test
Intelligence
test
Aptitude test
Personality
test
Achievement test
Simulation
test Assessment
test
Intelligence test:-
It tests the mental ability of the candidate. These
test measure the learning ability of candidate &
their power to take quick decisions on crucial
points
Aptitude tests:-
It tests an individual’s capacity to learn a particular
skill.
Cognitive tests:- which measure intellectual, mental
aptitudes.
Motor tests:- these tests check the hand-eye
coordination of employees.
Proficiency tests:-
These test are designed to measure the skills
already by the individuals. They are used to test
the level of knowledge.
Personality tests:-
These tests judge the psychological make-up of any
person. These tests check an individual’s
motivational level, emotions, integrity, sympathy,
sensitivity, etc.
In this test a controversial situation is
presented to the person.
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personality)
Interest test:-
These test will suggest what type of jobs may be
Achievement test:- These are designed to
measure what the applicant can do on the job
currently. These tests are also known as the work
sample tests.
test:-
These tests are designed to measure employees’
honesty to predict those who are more likely to steal
from an employer or otherwise act in a manner
unacceptable to the organization.
In it, many “yes” or “no” type questions are asked.
BENEFITS
comparing applicants
background.
LIMITATIO
N
These tests measure only a part of
total information
These tests are far from perfection, it
Objective Inviting more candidates to apply for a vacant Choosing the most suitable candidate and
position. rejecting the rest.
Key Factor Advertising the job. Appointing the candidate.
Sequence First. Second.
Vacancies are notified by the organization through The organization makes an applicant go
Process various sources, then an application form is made through various levels (submitting a form,
available to candidates. writing a test, undergoing an interview, etc.) to
deem whether they’re an appropriate fit.
The recruitment policy specifies the objectives of The selection policy consists of a series of
Specifications recruitment, providing rules and regulations for the methods/steps/stages by which the evaluation
implementation of the recruitment program. of the candidate will be done.
Contractual Recruitment only implies communication of Selection involves the creation of a contractual
Relation vacancies and open positions – therefore, no agreement between the employer and
contractual relation is established. employee.
1. O n job training
1. Apprenticeship training:
Individuals those learns trade skills like plumbing,
carpentry, machining, etc are imparted theoretical knowledge.
Then they have to go for hands on training practice.
2. J o b rotation:
This training method involves the movement of trainee from one job to
another to gain knowledge and experience from different job assignments.
This method helps the trainee understand the problems of other employees.
These rotations are predominantly lateral, meaning that they happen between
jobs on the same level and are not considered promotions.
They are also often temporary with people moving back to their original job
after a certain time.
E.G. A retail company rotates employees through various departments, such as
sales, customer service, and inventory management. This allows them to gain
a broad understanding of the business operations.
JOB ROTATION
ADVANTAGES DISADVANTAGES
• Allow managers to see your • Wastage of time & efforts
hidden talents • Employees take time
• Helps in exploring interest &
• Leads a whole lot of stress
ideas
& anxiety
• Motivates all employees &
help them to deal with new • It doesn’t check the time
challenges wasted
• Keeps away fraudent
practices
• Boosts satisfaction
Coaching :
Newly hired employees are trained under the section head
/ divisional manager.
Under this method, the trainee is placed under a particular supervisor who
functions as a coach in training and provides feedback to the trainee.
Sometimes the trainee may not get an opportunity to express his ideas.
Example: An aspiring leader is paired with a senior executive who
serves as their mentor. The mentor provides guidance, advice, and
coaching to help the individual develop leadership skills.
COACHING
ADVANTAGES DISADVANTAGES
• Proper guidance on how to • Ideas given by trainee are
conduct an activity not considered
• Cost effective • Trainee wouldn’t get a
• No loss of productivity chance to explore more
4. Committee Assignments:
A group of trainees are asked to solve a given organizational
problem by discussing the problem.
This helps to improve team work.
COMMITTEE ASSIGNMENTS
ADVANTAGES DISADVANTAGES
• Improves employees • Can’t always reach to a
interrelationship. conclusion
• Builds team spirit • Creates hassle among
• Deals with real organization employees.
problem
O N J O B T R A INING :
5. Temporary promotion:
In absence of manager, his subordinate will be taking charge.
O F F J O B T R A INING :
1. Lecture method:
Trainees are exposed to concepts, theories, etc.
2. Simulation training:
Duplication of organization training environment.
Under this method an imaginary situation is created and trainees are
asked to act on it.
Example: Airline pilots undergo flight simulator training, which replicates
real-world scenarios and emergencies. This helps them practice decision-
making and responses in a controlled environment.
SIMULATION
ADVANTAGES
• Gain understanding about
DISADVANTAGES
the
consequences of their action and • Expensive
take corrective action
• Real life situation cant be
• Feedback to learners can be given
immediately
completely re-created
• don’t wait for real life • Not every situation can not
situation to deal with be included
• Allows trainee to undertake high-risk
involving decisions
3. Role playing:
A problem situation is simulated asking the employee to assume the role of a
particular person in the situation.
The participant interacts with other participants assuming different roles.
The whole play will be recorded, and trainee gets an opportunity to examine
their own performance.
Example: In customer service training, employees act out scenarios where
they play the roles of both customers and service providers. This helps them
practice handling various customer interactions effectively.
ROLE PLAY
ADVANTAGES DISADVANTAGES
• Indicates skill level • Time consuming
• Prepares for real life • May not be taken seriously
• It’s social & communal • Some feel uncomfortable
4. Case studies:
Case study deals with any problem confronted by a business which can be
solved by an employee.
The trainee is given an opportunity to analyse the case and come out with all
possible solutions.
This method can enhance the analytic and critical thinking of an employee.
Example: In a business management course, participants analyze real case
studies of successful companies and develop solutions for current business
challenges, applying their theoretical knowledge.
CASE STUDY METHOD
ADVANTAGES DISADVANTAGES
1.Good source of ideas about 1. Hard to draw definite
behavior cause-effect conclusions
2. Good opportunity for
innovation 2.Hard to generalize from a
3.Good method to study rare single case
phenomena 3.Possible biases in data
4.Good method to challenge collection and interpretation
theoretical assumptions
5.Good alternative or
complement to the group focus
of psychology
Career
Development
• Career development not only improves job
performance but also brings about the
growth of the personality.
• Individuals not only mature regarding their
potential capacities but also become better
individuals.
Purpose of development
Management development attempts to improve
managerial performance by imparting
Knowledge
Changing attitudes
Increasing skills
Career
Development
The major objective of development is
managerial effectiveness through a planned
and a deliberate process of learning. This
provides for a planned growth of managers to
meet the future organizational needs.
• Career Stages
Four distinct career stages have been
identified: trial, establishment/advancement,
mid-career, and late career. Each stage
represents different career needs and interests
of the individual
Career
Development
• Trial stage
The trial stage begins with an individual's
exploration of career-related matters and ends
usually at about age 25 with a commitment on
the part of the individual to a particular
occupation. Until the decision is made to settle
down, the individual may try a number of jobs
and a number of organizations. Unfortunately
for many organizations, this trial and
exploration stage results in high level of
turnover among new employees. Employees in
this stage need opportunities for self-
exploration and a variety of job activities or
assignments.
Career
Development
• Establishment Stage
The establishment/advancement stage tends to
occur between ages 25 and 44. In this stage,
the individual has made his or her career
choice and is concerned with achievement,
performance, and advancement. This stage is
marked by high employee productivity and
career growth, as the individual is motivated to
succeed in the organization and in his or her
chosen occupation. Opportunities for job
challenge and use of special competencies are
desired in this stage. The employee strives for
creativity and innovation through new job
assignments. Employees also need a certain
degree of autonomy in this stage so that they
can experience feelings of individual
achievement and personal success.
Career
Development
• Mid Career Crisis Sub Stage
The period occurring between the mid-thirties
and mid-forties during which people often
make a major reassessment of their
progress relative to their original career
ambitions and goals.
• Maintenance stage
The mid-career stage, which occurs roughly
between the ages 45 and 64, has also been
referred to as the maintenance stage. This
stage is typified by a continuation of
established patterns of work behaviour. The
person is no longer trying to establish a place
for him or herself in the organization, but
seeks to maintain his or her position. This
stage is viewed as a mid-career plateau in
which little new ground is broken. The
individual in this stage may need some
Career
Development
• Late-career stage
In this stage the career lessens in importance
and the employee plans for retirement and
seeks to develop a sense of identity outside the
work environment.