CHAPTER -ORGANISING

                                     

                              

Chapter -5

Organising

   Organising is a process of grouping different resources and bringing together for the achievement of organisational objectives.

PROCESS OF ORGANISING   

1.      Identification and division of work: Organising process starts with the identification of work and division of total work into smaller units according to skill and knowledge of employees.

2.      Grouping and departmentalization: After division the next step is departmentalization i.e. grouping the similar activities into one place and putting under on Department.

3.      Assignment of duties: After grouping the similar works into specialised department the next step is the assignment of duties to the departments according to their skill and qualification.

4.      Establishing reporting relationship: This is the last step in organising process where managerial hierarchy is developed and reporting relationship i.e. who will report who clearly defined.  

ORGANISATIONAL STRUCTURE 

 

Advantages and Disadvantages of Formal functional Structure

 

Advantages

               1.Specialisation: when the activities are grouped according to the type of function then all the activities are related one type only .So Specialised and professional expert can be hired to supervise the activities .This leads to efficiency.

2      2.      Easy Supervision: The supervisor becomes familiar with the type of function to be performed and as a result he can supervise and guide the employees who are performing those activities.

        3.  It helps in increasing managerial efficiency: By performing the tasks again and again managers become specialised in doing those tasks and improves their efficiency.

 

Disadvantages

1.      The Department become specialised in their own way only and they fail to see the prospects of whole organisation.

2.      When the departments become too large then co-ordination decreases and result in delay of decision.

3.      When the organisatioal goal is not achieved then it becomes very difficult to make one department accountable because all the departments are interrelated.

Advantages and Disadvantages of Divisional Structure

Advantages

1    1.     Product specialisation: All the activities related to one type of product are grouped under one department only which brings integration and co-ordination in the activities.

2    2.      Fast Decision making: The decision is taken much faster in divisional structure because there is no dependence on other departments.

3    3.      It become easy to make accountable for non accomplishment of goal as there is no dependence on other departments.

Disadvantages

1     1.      Each department will require all the resources as very division will be working as an independent unit.

2     2.      Each department focuses on their product only and they fail to keep themselves as a part of one common organisation.

3     3.      Conflict on allocation of resources.

              DIFFERNCE BETWEEN FUNCTIOANअ L AND DIVISIONAL STRUCTURE

Points of Difference	Functional Structure	Divisional Structure
Basis of Formation	It’s formed on the basis of function.	Its formed on the basis of product
Accountability	Difficult to make one department accountable	Easy to fix the accountability.
Economy	It is economical	It is not economical
Specialisation	This structure brings functional specialiastion	This structure brings product specialisation.
Suitable	It is suitable for all types of organisation	It is suitable for multiproduct organisation
Autonomy of operation	Less autonomy of action	More autonomy.

 

DELIGATION OF AUTHORITY

                      In simple words we can define delegation of authority as a process of assigning the decision making power to the subordinates.

Process of Delegation of authority (MARK 3)

1       1.      Responsibility: The process of delegation begins when managers pass some of his some of his work to his subordinates.

2      2.      Authority: The next step in delegation is the assignment of decision making power to the subordinates.

3      3.      Accountability: The last n final step in delegation process is to make   answerable for non accomplishment of goal.

Importance

1     1.      Effective management: Delegation of authority reduces the work load of managers as a result they can concentrate on other important matters.

2     2.      Development of employees: Due to delegation of authority employees get more opportunity to utilize their skills.

3     3.      Motivation of employees: Delegation of authority creates the feeling of belongingness among the employees and this feeling motivates them to give their best performance.

4    4.      Better co-ordination: Delegation of authority brings effective co-ordination in the organisation as it gives clear picture of work to everyone.

5    5.      Reduces the work load: By delegating the authority a manager can reduce his work load and he can concentrate on other activities.

CENTRALISATION & DECENTRALISATION

                 In simple words centralization means concentration of decision making power in few hands i.e. Top Level

                        Decentralization means distribution of decision making power at all level of management.

Point of difference	Decentralization	Centralization
Meaning	It refers to concentration of authority at higher level	It refers to distribution of authority at every level of management.
Authority at different level	Only top level remains the authority	All levels remains the authority
Suitable	It is suitable for small scale organisation.	It is suitable for large scale organisation.

IMPORTANT QUESTIONS

Delegation is necessary in every organisation but decentralization is not necessary.Explaim

Ans. Delegation of authority is necessary because with the help of it managers reduces their work load and it also motivates the employees. But decentralization is required when the organisation is growing and the top level management is not able to control all the affairs.

1. Name the network of social relationship that arises spontaneously due to

interaction at work .

Ans: Informal organization

2. What is the type of organization where the decision making authority lies

with the top management.

Ans: Centralisation

3. What is span of management?

Ans: Number of subordinates that can be managed efficiently by superior.

4. What is the form of organization known for giving rise to rumours?

Ans: Informal.

5. A company has its registered office in Delhi, manufacturing unit at

Guragaon & marketing & salses department at Faridabad. The company

manufactures the consumer products. Which type of organization

structure should it adopt to achieve its targets.

Ans: Functional organization structure.

6. Name the function of management that initiates implementation plans by

clarifying jobs & working relationships.

Ans: Organising.

7. In an electrical goods manufacturing company,there are 4 main activitiesmarketing,

production,finance & personnel. The general manager is

planning to structure the organization. Which type of organization

structure should be adopt and why? Give two reasons.

Ans: In the given situation the general manager should go for functional

organization structure. The reason for suggesting such an organization

structure are:

a) The firm is clealing in electrical goods which requires services of the

professtionally trained experts, and b) All the activities of similar nature will be placed under one wordinating

head, this will facilitate specialization as well as standarisation.

8. “If we delegate authority, we multiply it by two: If we decentralize it, we

multiply it by many. Name the two concepts to which this statement is

related?

Ans: a) Delegation of authority b) Decentralisation.

9. “A Manager is of the view that he is not responsible for the quality of

work that he has delegated to his subordinate.” Do you agree with his

view point? Justify you answer by giving proper agreements.

Ans: Hint: Statement is incorrect as the principle of absoluteness of

responsibility is violated.

10. A Manager revises the production target from 3000 kg per month to 6000

kg per month. But the authority to purchase raw material was not given

by the manager. Therefore, revised production target could not be

achieved. Who is responsible?

Ans: Hint: The Manager is responsible because responsibility has been created

without granting authority. It violates the principle of parity of authority

and responsibility.

11. Kavita runs a factory manufacturing ready made clothes. The business

has been doing well and she intends to expand the business by

diversifying the business into ladies footwears, thereby keeping her

company growing. Which type of structure would you recommend her

for expanding organization? Give two reasons in support of your answer.

Ans: She should adopt ‘Divisional organizational structure’ for expanding her

business because of the following reasons:

i) Product specialization enhances various skills in a divisional head .

ii) Easy to fix responsibility and hold divisions accountable for their results

Q12) the marketing manager of abha ltd an organization manufacturing motor

cycles is asked to achieve a target sale of 200 motor cycles per day . he

delegates the task to 20 sales managers working under him. Five of the

sales managers could not achieve tneir respective targets. Is the

marketing manager responsible? Explain in brief the relevant principal in

support of your answer.

Ans) yes the marketing manager is responsible for it.

Here the principal of absoluteness of responsibility will apply.