organisation - ragupathy

7/31/2019 Organisation - Ragupathy

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ORGANIZATION


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INTRODUCTION

Organization is the backbone ofthe management , without official

Organization no management canperform its functions smoothly secondOrganization contributes greatly to the

continuity and success makesenterprise poor Organization structuremakes good performance is possible ,

no matter how good the individual .


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DEFINITIONS

Organization is the form of every human association forthe attainment of common purpose and the process ofrelating specific duties or functions of the whole.

-J.D.Mooney.

Organization is the arrangement of personnel forfacilitating the accomplishment of agreed purpose

through allocation of functions and responsibilities.

-L.White.


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NATURE OF ORGANIZATION

Make careful determination of what jobs

are to be done & what workers are

required to do them.

Assess the amount of materials , tools,

equipments needed for theaccomplishment of the work.


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PURPOSES OF ORGANIZATION

The purpose of organization is to unify that effort & a clearunderstanding of human relationship is necessary if thedesired result is to be obtained.

To achieve this organization should have four Ps. Which form

the base for organization as follows-

P = purpose (Health & FP)

P = Process (e.g.) Law, Personnel

P = Person Target group (e.g.) Eligible couple, Down trodden.

P = Place setting (e.g.) Primary Health Centre, (34000population) Hospital


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ADVANTAGES

Organization ensures an optimum use of humanefforts through specialization.

Organization places a proportionate andbalanced emphasis on various activities.

It fosters co-ordination in the enterprises.

Adds expansion & growth of the enterprise

Provides scope for training and developing

managers.


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PRINCIPLES OF ORGANIZATION

Hierarchy

Span of control.

Integration Vs Disintegration

Centralization Vs Decentralization

Unity of command

Delegation


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HIERARCHY

This means the rule or control of the higher tolower.

Organization is essentially the division offunctions among a given number of persons. Thedistribution of functions and responsibilities isboth horizontal and vertical.

Vertical distribution creates levels like topmanagement , middle management , supervisionand the level of specific performance.


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Advantages of scalar chain of command:

Instrumental in integration & cohesiveness.

Serves as a channel of communication upwards &downwards.

No chance of ignoring the intermediate links.

Clarifies / defines the relative position of each post inthe organization.

Disadvantages

Dela s decision makin .


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Functions of hierarchal structure:

Fixing the responsibility .

Providing leadership.

Providing means for exerting influence and exercisingfellowship.

Making the organization manageable

Making it acceptable.

Decides at which level decision of various kinds aremade.


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SPAN OF CONTROL

It means the number ofsubordinates an officercan effectivelysupervise.

The shorter the span,the greater will be

contact & consequentlymore effective control.


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SPAN OF CONTROL

Span of control varies with four features:

Function Type of work to be supervised

Personality competence of the supervisor &the subordinates concerned

Time age of the organization concerned

Space place where the work is to besupervised


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INTEGRATION VS DISINTEGRATION

Integration is unification . Line ofauthority runs unbroken from chief

executive, through various levels toall the parts of the system.

Disintegration is not connectedcontinually. There can be broken line.


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CENTRALIZATION VS DECENTRALIZATION

Centralization

Authority at top level. Every decision

is taken by the top level person.

Decentralization

Central authority gives power to thesubordinates to use their discretion in decisionmaking in most of the matters. Major and importantdecisions are referred to top level


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S.No Centralization Decentralization1 Greater decision at

top-Falser

At Middle.2. Responsibility at top At Middle3. Hqrs issue orders Hqrs supply leadership4. Lower Personnel have

no initiativeMore Initiative


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UNITY OF COMMAND


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DELEGATION

Delegation has 3 aspects of dimensions.

Assignment of duties

Grant of authority

Creation of accountability

Principles of delegation:

Assign duties in terms of expected

results

Parity of authority & responsibility

Clarify limits of subordinates authority

Unity of command


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ADVANTAGES..

It serves as a vehicle of co-ordination.

It develops increase sense of responsibility.

It reduces the executive burden.

It minimizes delay.

It ensures effective control (by providing authority).

It multiplies the limited personal capacity of thesupervisor.

It permits subordinates to develop their capacity.

It increases subordinates job satisfaction.


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STEPS INDELIGATION

PLAN

Identify the

skill or

educational

level

Communi

-cate

exactly

Delegate

authority &

responsibility

Set time

limits,

monitor

Be

available

Evaluate


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FORMAL ORGANIZATION

The formal organization is a system ofwell defined jobs, each bearing definitemeasure of authority, responsibility and

accountability to enable the people ofthe enterprise to work most effectively in

accomplishing their objectives andorganizational goals.


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NONFORMAL ORGANIZATION

Existing within the formal organization isNonformal organization that permits andsometime encourages behavior by members.

This Nonformal behavior is frequently desirableand also work oriented and contributessignificantly to efficiency.

Behavioral factors such as unnecessarysocializing on the job, group values and culturallikes and dislikes serve as bases for nonformal

education.


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INFORMAL ORGANIZATION

It refers to largely to what people do because they arehuman personalities.

Their actions are directed in terms of needs, emotions and

attitude and only in the terms of procedures and regulations.

Organization is nothing system of employees andemployees groups which develop in any work environment

for achieving explicit goals.

In the informal organization, people work together becauseof their personal likes and dislikes.


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LINE ORGANIZATION

The line type organization iscommonly used for smallenterprises, especially by retailerand manufactures having perhaps

seven to eight employees.

It has outstanding advantages:quick decision making is fostered;

buck passing is eliminatedexcellent management trainingexperience provided; and the typeof authority relationships areclearly understood.


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LINE AND STAFF ORGANIZATION

A second d type of formal structure is line and stafforganization.

This pattern develops when a simple lineorganization is altered to provide managementspecialists to support the chief executive.

The typical line and staff organization to which staffspecialists were later attached to improvemanagement functions.


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LINE AND STAFF ORGANIZATION


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COMMITTEE ORGANIZATION

It can be defined as A body of persons elected or

appointed to meet on an organized basis for thediscussion and dealing of mattes brought before it.


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STEPS OF ORGANIZATION

Determine the objectives for each activities

Decide on the various types of activities

Group the activities

Decide group of activities in terms of number of staff

Determine the authority, responsibility & accountability of differentmembers of staff which includes:

-Lines of authority with the channels ofcommunication.

- The relationship between members, departments,

supervisors, peers and subordinates.


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THEORIES OF ORGANIZATION

USES OF ORGANISATIONAL THEORY:

Guidelines to work in different situations.

Achieve efficiency and effectiveness.

Testing hypothesis and improve the theory further.

Knowledge is expanded.

Helps for research.


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OBJECTIVES OF ORGANIZATIONAL THEORY:

To explain and product the process and behavior patterns inorganizational settings.

It focuses attention on social or human grouping and explain

human behaviors.

It provides a scientific basis for managerial actions designedto improve organizational effectiveness.

Seeks to any type of inner process in organizations.

To discover important variables of organizational behaviors.


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DIFFERENT THEORIES

Classical organizational theory.

Bureaucratic model introduced by Max Webber.

Scientific management introduced by FW Taylor.

Process management by Henry Fayol

Neo classical or behavioral theory.

Human relations propounded by Elton Mayo.

Behavioral sciences movements by Maslow.

The modern management.

Quantitative approach to management.

Systems approach to management by vennetht Boulding.

Contingency approach by Johnson Woodward.


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CLASSICAL ORGANISATIONAL THEORY

Division of work

Authority

Discipline

Unity of command

Unity of direction

Subordination of individual

interest to general interest

Remuneration

Centralization ordecentralization

Scalar chain

Order equity

Stability of tenure

Initiative

Esprit decorps .He mainlyhas dealt with formedorganization.


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NEO CLASSICAL ORGANISATIONAL THEORY

The organization is a social system.

Social environment on the job affects the people and also themanagement.

In the formal organization , an informal organization also exists, itis affected by the formal organization.

Man in inter dependant and his behavior can be predicted in termsof social and psychological factors.

Men is diversely motivated and wants to fulfill different types ofneeds.

Communication is necessary for the functioning of organization.

Team work is essential.


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HUMAN RELATIONS ORGANISATIONAL THEORY

Mechanistic approach :

More power to top managers

Organization is seen as machineWorkers are viewed as cogs

Humanistic Approach

(Participatory management)

More importance to people

Informal groups functioning

Human motivation


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BUREAUCRATIC ORGANIZATIONAL THEORY

Features of Bureaucratic Theory

Staff are expected to do only impersonal duties.

Clear hierarchy exist.

Officers functions are clear.

Officials are appointed based on contact.

Selection is based on professional qualification.

Have salary & pension right.

Has career structure & promotion.

Subject to unified control & discipline.


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CONTIGENCY ORGANISATIONAL THEORY

Contingency theory is an extension of the

systems theory of organization. There is noparticular managerial action or organizationaldesign that is appropriate for all situations. Thedesign and managerial action depends on the

situation. It is contigent on the situation andcircumstance , this theory can also be called assituational theory.


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MANAGERIAL MODELS

Traditional model.

Human relation model

Human resource model


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ORGANIZATIONAL STRUCTURE

organizational structure consists of activities such as task allocation,coordination and supervision, which are directed towards theachievement of organizational aims

TYPES:

- Bureaucratic structures

- Post-bureaucratic

- Divisional structures

- Matrix structure.

- Team , matrix and virtual


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ORGANIZATIONAL CLIMATE

Organizational climate (sometimes known as Corporate Climate) is theprocess of quantifying the culture of an organization. It is a set of

properties of the work environment, perceived directly or indirectly by theemployees, that is assumed to be a major force in influencing employeebehavior.

The approaches are:

- Cognitive schema approach.

- Shared perception approach.

- Climate surveys


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ORGANIZATIONAL EFFECTIVENESS

Organizational effectiveness is theconcept of how effective an organization is inachieving the outcomes the organization

intends to produce.[1] The idea oforganizational effectiveness is especiallyimportant for non-profit organizations

:Instead of measuring organizationaleffectiveness, the organization determinesproxy measures which will be used to

represent effectiveness
http://en.wikipedia.org/wiki/Effectivenesshttp://en.wikipedia.org/wiki/Outcomehttp://en.wikipedia.org/wiki/Organizational_effectivenesshttp://en.wikipedia.org/wiki/Non-profit_organizationhttp://en.wikipedia.org/wiki/Non-profit_organizationhttp://en.wikipedia.org/wiki/Non-profit_organizationhttp://en.wikipedia.org/wiki/Non-profit_organizationhttp://en.wikipedia.org/wiki/Organizational_effectivenesshttp://en.wikipedia.org/wiki/Outcomehttp://en.wikipedia.org/wiki/Effectiveness


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organisation - ragupathy

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