8/14/2019 7.Organising

1/9

Principles of Management

Organising

Organising - Meaning and definition

Process of organising

Types of organisations- Formal and Informal

Departmentation Meaning

Bases of departmentation

Span of control

8/14/2019 7.Organising

2/9

Principles of Management

Organising - Meaning

It is a process of

Identification and grouping of work to be performed

Defining and delegating authority and responsibility to theright people and

Establishing relationships among the activities to enable thepeople to work effectively to achieve objectives

8/14/2019 7.Organising

3/9

Principles of Management

Process of organising

1. Determine the objectives to be achieved

3. Identify the total work involved in achieving the objectives

5. Enumerate the activities by breaking down the work intoessential functions

7. Classification of the activities after taking into consideration,the human and material resources needed

9. Allocation of duties to the right employee

11.Establishing formal reposting system to keep a tab on theprogress of work in each department

13.Measurement of performance

15.Delegation of authority

8/14/2019 7.Organising

4/9

Principles of Management

Types of organisations

Formal Organisation

A group of people work towards a common objective/goal

The formal groups are a typical part of every organisation

The groups are given official status and need o operate withinthe rules and regulations

The job responsibilities and positions are well defined givingclarity on work to be done by every member of the group

8/14/2019 7.Organising

5/9

Principles of Management

Informal Organisation

It is a network of personal and social relations which arisewhen people associate with each other

It does not take a conscious effort to build an informalorganisation

It is not governed by any rules and can exist within the formal

organisation

It is formed due to common interests of the members of thegroup

8/14/2019 7.Organising

6/9

Principles of Management

Departmentation

It is the process of dividing the organisation in to convenientsmaller units

Such smaller units are called departments

This process is carried out for ease and efficiency of functioning

The process assumes importance, as the organisation grows in

size, in order to cope with complexities of business

8/14/2019 7.Organising

7/9

Principles of Management

Bases for Departmentation

By Function (e.g. HR dept, finance department etc)

By Process (e.g. Printing, mixing, molding, etc)

By Product (e.g. Cold drinks, biscuits, etc)

By Geographical Location (e.g. Asia-Pacific, middle East etc)

By Customers (e.g. Retainers, wholesalers, foreign buyers,NGOs)

By Time (e.g. Morning, evening, night shifts etc)

8/14/2019 7.Organising

8/9

Principles of Management

Span of Control

It refers to the number of sub ordinates who can besuccessfully supervised, directed and controlled by onesupervisor or manager

A superior cannot keep an effective control on too many subordinates

Hence it is advisable to have a span of control which is neither

too large nor too small

8/14/2019 7.Organising

9/9

Principles of Management

Factors affecting the span of control

Capacity of the manager and efficiency of the sub ordinates

Nature of work to be carried out

Clarity of responsibility for each sub ordinate

Degree of decentralisation

Training provided to the employees

Communication methods employed

Leader- sub ordinate relationship (Level of trust, faith etc)