UNIT-2

ORGANISING
 ORGANIZING
Organizing, is the management
function that follows after
planning, it involves the
assignment of tasks, the grouping
of tasks into departments and the
assignment of authority with
adequate responsibility and
allocation of resources across the
organization to achieve common
goals.
 ELEMENTS OF ORGANIZATIONAL
STRUCTURE
• Work Specialization
• Documentation
• Chain of Command
• Span of Control
• Centralization/Decentralization
• Formalization
 Work Specialization
• Work specializations define how responsibilities are
split between employees based on the job description.
It’s used to split projects into smaller work activities
and assign digestible tasks to individual employees.
The most common results of improper specialization
are low efficiency
 Documentation

• Documentation is an act of grouping specialists on the

basis of the job description, skills, location, or other
factors that connect them.
• The biggest challenge is choosing the criteria for
departmentation. In many cases, it’s no more enough
to apply functional departmentation – where
employees are grouped based on the tasks they
perform.
 Chain of Command

• Chain of command represents a system for passing

instructions and reporting within an organization.
Ideally, it distributes the power, supports knowledge
sharing, and encourages employee accountability.
• The traditional chain of command makes decision-
making more complex and does not allow for much
flexibility.
 Span of Control

• Span of control (or span of management) is the

number of subordinates who report directly
to a manager or leader. The more employees
assigned to a manager, the wider their span of
control.
 Centralization/Decentralization

• Centralization and decentralization are the concepts

defining how managers, as well as employees, give
input on company goals and strategy.
• While centralization gives leaders the ultimate control
over decision-making processes,
• Decentralization allows employees to impact business
decisions.
 Formalization
• Formalization determines to which extent business
processes, policies, and job descriptions are
standardized. It may regulate communication between
employees and managers, workplace culture,
operational procedures, etc.
 ORGANISATION STRUCTURE
An organizational structure is a
system that outlines how certain
activities are directed in order to
achieve the goals of an organization.
These activities can include rules, roles, and
responsibilities. The organizational structure
also determines how information flows
between levels within the company.
TYPES OF ORGANIZATIONAL
STRUCTURES
 HIERARCHICAL STRUCTURE
• It’s the most common organizational structure type that
follows a direct chain of command.
• A chain of command, in this case, goes from senior
management to general employees through a range of
executives on the departmental and team level. The
highest-level executive has the highest power over the
decision-making process.
 HIERARCHICAL STRUCTURE
1. Hierarchical org structure
Pros
Better defines levels of authority and responsibility
Shows who each person reports to
 or who to talk to about specific
projects
Cons
Can slow down innovation or
important changes due to increased
bureaucracy
 FUNCTIONAL ORGANIZATION
A functional organization is a common type
of organizational structure in which the
organization is divided into smaller
groups based on specialized functional
areas, such as IT, finance, or marketing.
 2. FUNCTIONAL ORG STRUCTURE

Pros
 Allows employees to focus on their role
 Encourages specialization
 Help teams and departments feel self-determined
Cons
Lack of co-ordination of between departments
HORIZONTAL OR FLAT ORG STRUCTURE
• In a flat organizational structure, there are few middle
managers between employees and top managers. The
structure requires less supervision, increases employee
involvement, and boosts trust in the workplace.
3. HORIZONTAL OR FLAT ORG
STRUCTURE
Pros
 Gives employees more responsibility
 Fosters more open communication
 Improves coordination and speed of implementing
new ideas

Cons
Can create confusion since employees do not have a
clear supervisor to report to
DIVISIONAL ORG STRUCTURE
• A divisional structure organizes employees around a
common product or geographical location. Divisional
organizations have teams focused on a specific market
or product line.
4. DIVISIONAL ORG STRUCTURE

Pros
 Helps large companies stay flexible
 Allows for a quicker response to industry changes
or customer needs
Cons
 Can easily lead to duplicate resources
MATRIX ORG STRUCTURE
• Within a matrix organizational structure, team
members report to several managers at once.
 5. MATRIX ORG STRUCTURE

Pros
Allows supervisors to easily choose individuals by the
needs of a project
Cons
TEAM-BASED ORG
STRUCTURE
• A team-based organizational structure creates small
teams that focus on delivering one product or service.
These teams are capable of solving problems and
making decisions without bringing in third parties.
 6. TEAM-BASED ORG STRUCTURE

Pros
Increases productivity, performance, and transparency
and will have full control over the project.
Promotes a growth mindset
NETWORK ORG STRUCTURE
• A network structure goes far beyond your internal
company structure. It’s an act of joining the efforts of
two or more organizations with the goal of delivering
one product or service. Typically, a network
organization outsources independent contractors or
vendors to complete the work.
7. NETWORK ORG STRUCTURE
Pros
Visualizes the
complex web of
onsite and offsite
relationships in
Cons
companies
Can quickly
become overly
complex when
dealing with
lots of offsite
processes
 ORGANIZATIONAL DESIGN

Organizational Design” refers to defining,

designing, and re-structuring organizational structure.

organizational design is aimed at finding any type

of defective or dysfunctional elements related to an
organization’s system, organization structure, process,
and work culture.
Organizational design is a step-by-step
methodology which identifies dysfunctional aspects
of work flow, procedures, structures and systems,
realigns them to fit current business realities/goals
and then develops plans to implement the new
changes.
 RELATIONSHIP BETWEEN AUTHORITY AND
RESPONSIBILITY
1. Authority is the right of a superior to give
orders and instructions to his subordinates to
get things done.
2. Responsibility means the duties assigned
to a person at the time of delegation
of authority. ...
3. The authority has the power to give orders
and instructions to its subordinates that
they may work. Responsibility means duties
entrusted to a person at the time of delegation
of authority. Authority may be delegated.
Responsibility cannot be delegated.
 DELEGATION OF AUTHORITY
• MEANING:
• The delegation of authority refers to the division of
labor and decision-making responsibility to an
individual that reports to a leader or manager. It
is the organizational process of a manager dividing
their own work among all their people.
Central elements of how to delegate authority
 AUTHORITY
• In the context of a company, authority is the power and
right of an individual to use and allocate their
resources efficiently.
• This includes the ability to make decisions and give
orders to achieve the organizational objectives and
goals.
• Essentially, it is the right to give a command, meaning
the top-level management always has the greatest
authority.
 RESPONSIBILITY
• This refers to the specifics and scope of the individual to
complete the task assigned to them.
• Responsibility without adequate authority can lead to:
• Discontent
• Dissatisfaction
• Conflicts
• Frustration for the individual
• While authority flows from the top-down, responsibility flows
from the bottom-up. Middle management and lower-level
management hold more responsibility.
 ACCOUNTABILITY
• Unlike authority and responsibility, accountability
cannot be delegated.
• Anyone who sets out to accomplish a task and take on
a job in a company becomes accountable for the
outcome of their efforts.
• Accountability, in short, means being answerable for
the end result. Accountability arises from
responsibility.
STEPS TO EFFECTIVE DELEGATION IN
MANAGEMENT
 1. PLAN & PREPARE
• Before starting a formal delegation process, take the
time to think through the task and decide who you’ll
delegate to and the outcome you want.
• In addition, identify a goal and purpose for the
delegated functions. Your goal will determine the
approach you take.
 2. DISCUSS THE TASK TO BE DELEGATED
• Engage the employee in a specific conversation about
the task you want to delegate. Then make sure you
both are in agreement regarding the task and the
outcome you desire.
• This step is useful to set expectations and state the
quality of work that needs to be completed.
• It is also useful to state why you are delegating the
task to that person.
• “When you select people to delegate to, tell them
why you chose them specifically and how you hope
to see this help them grow.”
 3. IDENTIFY THE DEADLINE FOR
COMPLETION
• Make sure your deadline is realistic and achievable.
• This is particularly important when delegating a
stretch goal or something the person has not done
before.
• If you think the employee might need some revision
time, build it upfront. This ensures that you do not end
up at the deadline with an outcome that is different
from the one you wanted.
• When setting the deadline, consider where the
delegated task fits in with the person’s existing job
responsibilities.
 4. OUTLINE THE LEVEL OF AUTHORITY
• Clearly outline the level of authority you want the person to
have. Different levels of authority include the following.
• Recommend. If the risk associated with the task is high or the
person has little experience, you may ask the person for a
recommendation on a course of action. But you make the final
decision.
• Inform and initiate. If the risk associated with the task is
moderate and the person has some experience, the person will
inform you before they take action.
• Act. The person has full authority to act on his or her own if
either the risk associated with the task is low or the person has
plenty of experience.
 5. BUILD IN CHECKPOINTS OR PROGRESS
REPORTS
• Set regular checkpoints right at the beginning to
provide support and follow-through. You can
use checkpoints to review the work and give feedback
or even provide encouragement and coaching.
 6. CONDUCT A FINAL DEBRIEFING
• The final debriefing consists of a two-way discussion about
how the delegated task went.
• Ask the employee to reflect on their own performance on the
task or project. It helps to ask questions, such as what they
thought went well, what they thought could have been better
about the project, and what they would do differently if they
could do it again.
• Provide feedback on how you think they did
• Have the person provide feedback on your performance as a
delegator. Again, specific questions can be helpful: Where
could I have been more clear? What other types of support
would have been helpful to you?
 DECENTRALIZATION

Decentralization or decentralisation is
the process by which the activities of an
organization, particularly those regarding
planning and decision making, are
distributed or delegated away from a
central, authoritative location or group.
 EMERGING TRENDS IN CORPORATE
STRUCTURE
Corporate structure refers to the organization
of different departments or business units within
a company.
Depending on a company's goals and the
industry in which it operates, corporate
structure can differ significantly between companies.
Several emerging trends are
impacting organizational life.
Of these emerging trends, five will be examined:
globalization, diversity, flexibility, flat, and networks.
These five emerging trends create tensions
for organizational leaders and employees as they go
through waves of changes in their organizations.
STRATEGY AND CULTURE
 INTERDEPARTMENTAL COORDINATION

Make sharing information a normal

practice.
Listen and find out about other groups'
needs.
Talk about the greater good when working
on issues.
Bring closure to discussions
Show gratitude.
Resolve problems with peers person to
person.
 FORMAL AND INFORMAL ORGANISATION.
SI.NO POINT OF FORMAL INFORMAL
VIEW ORGANISATION ORGANISATION

1 Origin It is created It is created

deliberately and spontaneously and
consciously by the naturally
frames of the
organisation
2 Purpose It is created for It is created by the
achieving legitimate members of the
objective of the organisation for social
organisation and psychological
satisfaction
3 Nature Planned and official Unplanned and
unofficial

4 Size Large in size Small in size

SI.N POINT OF FORMAL INFORMAL
O VIEW ORGANISATION ORGANISATION

6 Number of MORE LESS

groups

7 Structure Definite structure, Structureless,

mechanical and impersonal and
rational emotional

8 Authority Authority flows from It may flow from

top to bottom upward to downward
form or horizontally

9 Communication Flows through the Pass through the

prescribed chain of informal channels
command which do not have
one single form
10 Control process Rigid rules and Group norms and
regulations values