organization struture (2)

8/10/2019 Organization Struture (2)

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ORGANISATION STRUCTURE

1. DEPARTMENTATION

Meaning

Departmentation is an element of the organization process. It is

a flexible administrative units. It involves horizontal differentiation at

activities in an enterprise. A department is distinct area, unit or sub-system

of organization over which a manager has authority for performance of

specified activities.

Definition

Departmentation may be defined as the process as the process of

grouping individual jobs into departments. It involves groping of activities

and employees into departments. So as to facilitates the accomplishment

of organization objectives.

Kinds of Departments

A.Secretarial Department

B.

Personnel Department

C.

Purchase Department

D.Marketing Department

E.Accounts Department

F. Computer Department


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A.SECRETARIAL DEPARTMENT

SECRETARY

AGM AGM DMG

Secretarial Insurance Legal

Senior Senior Legal Senior

Manager Manager Manager

Insurance

Other

Executives

Chart No.3.1 a (i) Showing Organization Hierarchy of Secretarial

Department.

Introduction

Every organization needs a separate department for carrying on the

functions of conducting correspondences, to keep records & transact

various other business to deal general administration & co-ordination of

the activities of other department. Besides this department also deals with

maintaining records and documents and paper relating to capital, finance

& controlling the department. Secretarial Department is headed by the

Company Secretary Mr. V. P. Thirumoorthy.


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Meaning

The Secretary is a person who writes for other person. He writes

letter reports, Statements, Proceeding and minutes of the company. He is

interested with a work of a confidential nature.

Definition

According to concise dictionary a person employed by another to

assist him in correspondence. Literary work gathering information and

other confidential matter.

Qualification of Secretary

The qualification which a person shall possess in order to be eligible

for appointment a Company Secretary shall be as follows.

The qualification specified in (a) above.

Degree in law granted by University.

Membership of the institute of cost and work account of India.

Post-graduate degree or Diploma in management sciences granted

as any University or the institute of management Calcutta.

Post-graduate degree in commerce granted as any University.

Duties of Secretary

As the principal officer of the company the Company Secretary is

responsible for observing all legal for militias in respect of the provision

of the companies Act and other laws of the country having a bearing on

the activities of the company. Thus the statutory duties of a company.


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Secretary arises in connecting with the Companies Act, Income Tax Act,

Stamp Act, Sales Tax Act, etc.

Secretary may sign any document or proceedings recurring

authentication by the company.

He has to deliver for registration return of allotment to the register.

He has to give notice of the increase in the share capital to the

register.

Functions of Secretarial Department in Best & Crompton

Engineering Limited

Transfer of Shares

One of the important characterisitor of shares in a companys capital

is their transferability section 82 empowers every shareholders of transfer

his shares in the manner laid down by the articles but in spite of any

provisions in the articles to the company section 108. Requires to that a

proper instrument of transfer in a prescribed from must be delivered to the

company.

Transmission of Shares

Transmission of Shares means transfer of property or title in share

by operation of law. It implies succession to shares for example on the

death of shareholders his legal reprehensive on the insolvency of a

shareholder his official receiver on the lunacy of a shareholder

administrator appointed by the court shall become entitle to the share

owned by the deceased insolvency or a lunatic member respectively.

Transposition of Shares

Transposition of name of shareholders i.e., change in the order of

names does not require any transfer stamps, transposition would be done


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Kinds of Meetings

Meetings

Members Directors Creditors

Meetng Meeting Meeting

Board Committee Creditors Debenture

Meeting Meeting and Holder

Contributors Meeting

in Winding

Statutory Annual Extra-Ordinary Class

Meeting General General Meeting

Meeting Meeting

Chart No. 3.1.a (ii) Showing Kinds of Meetings


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I. Members Meetings

It is already stated that the meeting of the shareholders can be

classified into four kinds. Now shall discuss them in detail.

Statutory Meeting

This is the first meeting of the shareholders conducted after the

commencement of the business of a public company. Sec.165 of the

Companies Act provides that every public company limited by share or

limited by guarantee and having a share capital should hold a meeting of

the shareholders with 6 months but not earlier than one month from the

date of commencement of business of the company. It is conducted only

once in the life time of the company. A private company or a public

company having no share capital need not conduct a statutory meeting.

The member present at meeting any may discuss any matter relating to the

information of the company statutory meeting was help on February 1974.

Annual General Meeting

The Annual General Meeting is the one of the important meeting of

a company. It is usually held once in a year. This meeting is to be

conducted by every company whether public or private; limited by share

or by guarantee; having or not having a share capital. As the name

suggests, the meeting is to be held annually to transact the ordinary

business of the company. Annual General Meeting of the company heldon Monday December, 2013.

Extra-Ordinary General Meeting

Statutory Meeting and Annual General Meeting are called the


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ordinary meeting of a company. All other general meeting other than these

two are called Extra-Ordinary General Meetings. As the very name

suggests, these meeting are convened to deal with all the extra-ordinary

matters, which fall outside the usual business of the Annual GeneralMeetings. These meeting generally called for transacting some urgent or

special business, which cannot be postponed till the next Annual General

Meeting. Every business transacted at these meeting is called Special

Business.

Class Meeting

Class Meeting are those meeting which are held by the shareholders

of a particular class of shares e.g. preference shareholders or debenture

holders. Class Meeting are generally conducted when it is proposed to

alter, vary or affect the rights of a particular class of shareholders. Thus,

for effecting such changes it is necessary that a separate meeting of the

holders of those share is to be held and the matter is to approved at the

meeting by a special resolution.

II. Directors Meetings

Directors Meetings are the most important as well as the most

frequently held meeting of the company.

Board Meeting

Meeting of directors are called Board Meeting. It is only at these

meeting that all important matters relating to the company and its policies

are discussed and decided upon. Board Meeting should be held at least


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once in every three calendar months. At least four such meeting should be

held in every year.

Committee Meeting

As stated in one of the previous chapter. This directors meet either

at regular. Intervals or whenever there is any urgent matter to be discussed

they in order the to expedite some routine or important work. Delegate

their powers to a committee or committees appointed as convener or

secretary of the committee a directors is requested to perform such a

functions. The committee is sometimes empowered to co-operative certain

persons.

Shareholders Meeting

To give the shareholders a general idea about the progress made by

the company since its formation; how the shares have been allotted, the

nature of the contracts entered into and other matters and its working up to

the time.

III. Creditors Meetings

Creditors and Contributors in Winding

Strictly speaking, these are not meeting of a company. They are held

when the company proposes to make a scheme of arrangements with its

creditors. Companies like individuals may sometimes find it necessary to

compromise or make some arrangements with their creditors. In these

circumstances, a meeting of the creditors is necessary.


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Debenture Holders Meetings

These meeting are conducted by debenture holders of a particular

class. They are generally conducted when the company wants to vary the

term of security or to modify their rights or to vary the rate of interest

payable etc. Rules and Regulations regarding the holding of the meetings

of the debenture holders are either entered in the Trust Deed or endorsed

on the Debenture Bond so that they are binding upon the holders of

debentures and upon the company.

Duties of secretary regarding all the meetings

Before the Meeting

Consult with the Chairperson on the order of business for the meeting,

and the way in which it should be dealt with on the agenda.

Decide what business requires discussion and what requires a decision

by the Management Committee;

Ensure that the notice of the meeting is given, that suitableaccommodation is arranged and confirmed, and that copies of the

agenda is prepared;

Circulate to all members (a) any papers to be discussed at the

upcoming meeting and (b) a copy of the agenda, minutes of the

previous meeting; and

Make sure that any reports or information requested at the last meeting

is available or that there is a good reson why not.


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At the Meeting

Arrive in good time before the meeting with the minutes and with

all the relevant correspondence and business matters for that meeting,

in good order.

Record the names of those who are present, and convey and record

apologies received from those who are absent;

Read the minutes of the previous meeting, and if they are

approved,obtain the Chairpersons singnature on them;

Report on action or matter arising from the previous minutes.

Read any important correspondence that has been received;

Unless there is a Minutes Secretary, take notes of the meeting,

recording the key points and making sure that all decisions and

proposals are recorded, as well as the name of the persons or group

responsible for carrying them out.

Make sure action points are clear; and

Make sure that the Chairperson is supplied with all the necessaryinformation for items on the agenda, and remind the Chairperson if an

item has been overlooked.

After the Meeting

Details of the day, date and place of the meeting and the time of

commencement the names of those present and details of any apologies

received.

That the Chairperson announced a quorum was present and that the

meeting was duly constituted.


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A reference to minutes of the previous general meeting and the signing

of them as a correct record. Details of every resolution put to member

and whether it was passed with the required majority.

Details of members voting against a motion or abstaining from voting,if those members request that this be recorded details of any

appointment made, members elected to office and any leave of absence

granted to a member

Details of election of committee members (if applicable) overview of

discussions concerning decisions made at the meeting decisions made

at management committee meetings

The date and time for the next meeting, if this determined during the

meeting the time that the meeting closed.

Prepare a draft of the minutes (unless is a minutes secretary) and

consult the Chairperson and most senior staff member (where relevant)

for approval;

Send a reminder notice of each decision requiring action to the relevant

person; this can be done by telephone, or by an action list with the

relevant action for each person duly marked; and

Promptly send all correspondence as decided by the Management

Committee.

Legal requirements to run the meeting

Notice

A Meeting cannot be held unless a proper notice of it is served to

all the members of the company the expression not less than 21 days

means 21 clear Days. The Companies Act contains elaborate provisions

regarding the notice of the meeting, particularly for general meetings.


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Agenda

The preparation of the company secretary. He should do this job in

consultation with the Chairman of the company. In preparation the agenda

the secretary should take care to include therein all business to betransacted. The matters should be presented clearly and in a summary

form so that the members can grasp the matters in advance, and form some

opinion.

Quorum

A Quorum is the minimum number of people who must be present

to pass a law, make a judgment, or conduct business. Quorum

requirements typically are found in a court, legislative assembly, or

corporation (where those attending might be directors or stockholders). In

some cases, the law requires more people than a simple majority to form a

quorum. If no such defining number is determined, a quorum is a simple

majority. The purpose of a quorum rule is to give decisions made by a

quorum enough authority to allow binding action to be conducted.

Proxy

A Proxy is an agent or representation of a shareholder. The

Companies Act provides that a member who entitled to attend and vote at

a meeting can vote either in person or through some other person. The

person so appointed is known as the proxy. The system of appointing

proxies is now very popular because of the unwillingness as well of the

inability of the shareholders to be personally present at the meeting.Voting Poll

The chairperson of any meeting is responsible for supervision and

administering the voting. We recommend voting be carried out by show of

hands or balloting. Every member, who has a right to demand a poll, must


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do it immediately before or after the declaration of the result by show of

hands. The format and process for postal voting is at the discretion of your

incorporated association and should be set out in the rules.

MinutesA incorporated association must record Minutes at all meeting,

including management committee meeting, general meeting and the AGM.

If asked by a member of your incorporated association, the Secretary must

within 28 days, make the minute book for a particular general meeting

available for inspection by the member at a mutually agreed time and

place. The Secretary must also give the member copies of the meeting

minutes.

Resolutions

Meaning

It is already stated that if motion is put before the meeting and is

carried, it becomes a Resolution. A major part of the companys

administration and policy decisions are done by passing resolutions in the

meeting. The resolution can be passed in all kinds of meeting. The

resolution may be passed even at an adjourned meeting of the company.

However, the most frequent resolution are passed in the General Meetings

and the Directors Meetings.

Kinds of Resolutions

Ordinary Resolution

An Ordinary Resolution is one which is passed by simple majorityof the members entitled to vote and voting in person or by proxy. An

ordinary resolution is sufficient in all the cases where a special resolution

is not required to be passed either by the Articles of the company or by

the Companies Act. The precise words of the proposed ordinary resolution


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need not be set out in the notice convening the meeting. It is sufficient if

the business to be transacted in the meeting is specified in the notice.

Special Resolution

A Special Resolution is a resolution that is passed at a generalmeeting (including the AGM) of an incorporated association by the votes

of 75 percent of the members who are present and entitled to vote.

Matters that must be decided by special resolution are:

A change of name for the incorporated association

A change to the incorporated associations rules

The decision to wind up the incorporated association.

Postal voting is not allowed for special resolutions.

Resolution Requiring Special Notice

This is a new kind of resolution introduced by the Companies Act,

1956. According to Sec.190 of the Act, for transacting certain types of

businesses, a special notice of the intention to move the resolution is

necessary. The proposer should give a special notice to the company

stating his intention to move the resolution. The notice should be given not

less than 14 days before the meeting at which the resolution is to be

moved. The objects of special notice are to give the Board of Directors to

inform their views on the resolution and also to give the members

sufficient time to consider the proposed resolution.

Resolution made in the Last Annual General Meeting

There is no Resolution made at the Annual General Meeting which

was held on Monday December, 2013.


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DEMATERIALIZATION OF SHARES

Meaning

Dematerialization is process by which physical artificial are

converted into electronic forms. It is a safe and convenient way to held

securities compared to holding securities the physical forms. Instantaneous

transfer of securities enhances liquidity.

Dematerialization of Shares in Best & Crompton Engineering

Limited as on 31stMarch 2011.

Dematerialization of Shares in Best & Crompton Engineering

Limited as on 31.3.2012, the company 20 has entered into necessary

agreement with are (depositors) for Dematerialization of the shares held

by the investors. The share or the company held compulsory Trade in

Dematerialization form as on 31.3.12 about 22.01.13 at shares holding has

been Dematerialization.

Particulars No of Shares Percentage of Shares

Total Number of Shares 1,238415 100

Shares Dematted 272575.1415 22.01

As on 31.3.2011

Shares not Dematted 965839.8585 77.99

Table No. 3.1.Showing Details of Dematerialization of Shares


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Conclusion

Thus Secretarial Department deals with all the things related to

share dealings, arranging meeting etc. In Best & Crompton Engineering

Limited the Secretarial Department runs under the guidance of the

Company Secretary.


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must have sufficient power and authority to help ensure that personnel

policies are implemented legally and proactively. The Personnel

Department is headed by Mr. J. Samuel.

Functions of Personnel Department

Personnel Department has the duties to fill up vacancy by the

conducting interviews.

It has the power to appoint and promote the staff of the company.

It is fixes remuneration to the staff.

It conducts training programmers for the workers.

It provide psychological motivation to the staff and for the directly.

It provides assistance by filling up vacancies and there by setting the

organizations work at right place.

To maintain a close relationship the workers union and the

management.

To recruit new people.

Knowledge skills and abilities.

Providing support services such as recruitments, selection, training

development reward system.


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C. PURCHASE DEPARTMENT

Manager

Assistant Manager

Store keeper Store keeper

Assistant Assistant

Chart No.3.1.c. Showing Organization Hierarchy of Purchase

Department

Meaning

Forming a Purchase Department is a smart move if your business

activity purchase goods and services. By approaching purchasing

systematically you can reduce your expenses and greatly improve your

bottom line profits. The Purchase Department is headed by Mr. A.

Elango.


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Functions of Purchase Department

The Purchase Department is organized on the basis of functions.

Securing the necessary materials equipments and supplies as per

predetermined specifications and standards.

It makes purchase strictly as per the established schedule.

The invoices are approved by the purchase department before making

payments for the purchase. This department participates in the formulation of purchase policies.

Exploring the sources of supply and choosing suppliers.

To ascertain in purchasing needs of the organization in terms of sales

or production requirements.

Passing purchase invoice for payment if everything is in order.


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D. MARKETING DEPARTMENT

Marketing Manager

Product Work Job Work

Staff Staff

Chart No.3.1.d. Showing Organization Hierarchy of Marketing

Department

Meaning

The essence of marketing is an exchange or a transaction intended

to satisfy human needs or wants. That is marketing is a human activity

directed of satisfy needs advances. Through an exchange process. A

demand is a want for which the consumer is prepared to pay a price. The

Marketing Department is headed by Mr. R. Sureshkumar.


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Functions of Marketing Department

Marketing research determines the needs and expectations of

consumers.

Planning and developing suitable product.

Selling the right appropriate prices.

Selling the right channels of distribution.

Promotional activities like advertising and salesmanship tocommunicate with customers.

Create new ideas.

Communicate internally.

Production and marketing research.

Formulation of marketing policy to cater to market chosen.

Identification and assessment of the market and sales force casting. An effective in house mechanism for order processing production

planning storage and medial dispatch.


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E. ACCOUNTS DEPARTMENT

Chairman and Managing Director

General Manager

Manager

Works Manager

Commercial Assistant

Accountant Works Clerk Office

Chart No.3.1.e. Showing Organization Hierarchy of Accounts

Department

Meaning

The fundamental accounting is the development and communicates

of the financial and operational information necessary for management

decisions in both the private and public sectors. Accounting seek to

measure the results for an organizations economic activity and convey this


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information to management investors creditors regularly agencies

consumers and employees. The Accounts Department is headed by

Mr. P. Padmanaban.

Functions of Accounts Department

This department is concerned with the maintain of book of accounts

and preparation of financial statements.

Making and supplying all kinds of accounting and financial

information to the management.

Sometimes it maintains cost records and prepares cost account.

Recording the business transactions of financial character in the book.

Preparation of statement of wages, salaries etc.

Maintains of investment rewards.

Supplying and aiding the management with details relating to the

financial state of affairs of the company.


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F. COMPUTER DEPARTMENT

System Analysis

Software Maintenance Program

Language

Processor

Inter Preter Compliers Assemble

Chart No.3.1.f. Showing Organization Hierarchy of Computer

Department

Meaning

A computer is high speed machine capable of performing many

function at very high speed and accuracy it computed the give work very

quickly. The computers receives data from is and gives correctively to


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ours questions immediately with the help or electronic micro process. The

Computer Department is headed by Mr. B. SelvaKumar.

Functions of Computer Department

Creation of E-mail ID of the employees.

Provides technical and engineering support for micro computer

network.

It helps to provide a good customer oriented service it gives instruction

and control.

They uses can easily access report and give the defined output to the

management efficiently.

Provides representation for all matters related to information

technology. Both internal and external.

This department gives the proper output of the telephone bill it helps

customer details.

They has been functioning effectively by the department which is

proving all the necessary facilities for the officers and other workers.

Conclusion

Thus all department should work hard to increase the profit of the

concern and also take necessary steps to satisfy the shareholders and the

customers because they the real owners of the company.


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VARIOUS BOOKS AND REGISTERS MAINTAINED

IN THE COMPANY

Purchase Book

Purchase Book also known as bought day book is used to record all

credit purchase of goods which are meant for resale in the business. Cash

purchase of goods, cash and credit purchase of assets are not entered in

this book.

Journal Proper

Is the Journal which records which cannot be entered in any of the

above listed subsidiary books.

Sales Book

The Sales Book is used to record all credit sales of goods dealt with

by the trader in this business cash sale, cash and credit, sale of assets are

not entered in this book. The entries in the sale book are on the basis of the

invoices issued to the custom with the net amount of sale.

Purchase Return Book


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This book is used to record all returns do goods by thaw business to

the suppliers. The entries in the Purchases Returns Book are usually made

on the basis of debit note issued to the suppliers or credit note received

form the suppliers. We call it a debit note because the partys account isdebited with the amount written in this note.

Sales Return Book

This book is used to record all returns of goods to the business by

the customers. The entries in the Sales Return Book are usually on the

basis of credit notes issued to the customers or debit notes issued by the

customers.

Register of Members

In terms of section 150 every company is mandated to maintain a

Register of Members in print form and there is no mandatory provision to

maintain the same in magnetic from. Although a company may on its own

choose to maintain the register in magnetic from in addition to the print

from, therefore a member is entitled to a copy in print from only and not in

the magnetic from.

Bills Books

When the number of bills received or issued in large journalizing of

all bill transaction will result in enormous waste of time. Hence suitable

registers like bills received book and bills payable book are maintained to

record the receipt of bills receivable and issued of bills payable

respectively. These books are also called bills journals books.


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2. OFFICE LAYOUT

Meaning

Systematic and scientific arrangement of different departments and

equipments on a well-defined plan, so as to set the maximum benefit from

the space available can be called as office layout in an average firm it is

not possible for the management or the owner to do all the jobs. Office

layout should ensure an office, steady and smooth flow of work.

Definition

The problem of layout relates to the arrangement in the space

involved so that all the equipments, supplies, procedures and personnel

can function at maximum efficiency- hicks and place.

Importance of Office Layout

It will keep clerks and executives at their desks and papers and enable

maximum control.

The receptionist section should be near the main gate or entrance so

that the customers may fell convenient and easy.


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If the interlined departments are located for apart much time is wasted

to go over and come back.

The office records, equipments machines etc may for as possible as be

kept in their respective section. This will facilitate to speed up thework.

It there must be sufficient, natural or artificial light.

3.ORGANISATION HIERARCHY

Meaning

A hierarchical organization is an organization structure where every

entity in the organization, except one, is subordinate to a single other

entity. This arrangement is a form of a hierarchy. In an organization, the

hierarchy usually consists of a singular/ group of power at the top with

subsequent levels of power beneath them.

Definition

Members of hierarchical organisation structure chiefly communicate

with their immediate superior and with their immediate subordinates.

Structure organization in this way is useful partly because it can reduce the

communication overheads by limiting information flow; this is also its

major limitation.

Importance of Organisation Hierarchy

It Helps the Management


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Organization serves as an effective instrument for realizing the

objectives of the enterprise. It is through organization plans are put into

practice and other managerial function is carried out to achieve goals.

Facilities Growth

A well designed and balanced organization provides for systematic

division of work and permits necessary change. It is the framework with in

which an organization grows.

Ensures Optimum Use of Resources

A good organization setup facilities the best possible utilization of

available human and physical resources.

Stimulates Creativity

Sound organization encourages creative thinking and initiative on

the part of employs new and improved ways of working can be developed.

Facilitates Continuity

It provides opportunities for leadership and helps in ensuring the

efforts. It helps in co-operation and harmony of actions.

Helps in Co-Ordination

Organization is an important means of integrating individual efforts.

It helps in co-operation and harmony of actions.


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Conclusion

Thus, organization weaves a neat pattern of relationship among

personnel, jobs, activities for ensuring harmonious team work towards thefulfillment of common aims.

organization struture (2)

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