ORGANISING

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ORGANIZATION 


An organised group of people with a particular prepare such as business or government departments. 

An organization is an entity comprising multiple people such as an institution or an association that has a collective goal and is linked to an external environment. 


• Globalization: - The process by which businesses or other organizations develop international influence or start operating on an international scale. 

• Coordination :- The process of organizing people or groups so that they work together properly and well.




Span of Management 


It refers to the number of subordinates who report directly to a manager. 

• A narrow span of control 

• A wide span of control 




Factors of span of Management: -


• Capacity of subordinates.

• Capacity of superior 

• Nature of work

• Communication techniques 

• Degree of decantation

• Planning

• Use of self assistance 

• Supervising from others 




Different forms of business structure :-


• Entrepreneurship Structure :- A structure in which decisions are made centrally by one or two people. 

• Bureaucratic or pyramid Structure :- A structure where decisions are shared throughout the organization and employees are each given a role.

• Matrix Structure :- A structure combining people with different skills into project groups or task groups.

• Independence Structure :- A Structure emphasizing the individuals in decisions and also called non-organization.



Types of Organisation Structure :-


• Line Organization :- establishes a direct flow of authority from the chief executive to subordinates.

• Line and Staff Organization :- combines the direct flow if authority of a line organization with staff departments that serve, advise and support the line departments.

• Line Manager :- interacts directly with the functions of production, finance or marketing that is the functions needed to produce and market goods and services.

• Staff Manager :- provide information advise or technical assistance to aid line managers. 

• Committee Organization :- structure that places authority and responsibility jointly in the hands of a group of individuals rather than a single manager.

• Matrix Structure and Project Management Structure :- links employees from different parts of the organisation to work together on specific projects. 



Types of authority in organization structure :-


Centralization

It refers to the degree to which authority is delegated in a business.

It means that employees have no authority to make decisions. 


Advantage 

It has tight control.

It has strong leadership.

It has improved communication.

 

Disadvantage 

It makes less participation of others.

It makes incomplete decisions. 




Decentralisation 

It refers to the degree to which authority is delegated in a business. 

It means employees have all the authority to make decisions. 

It is also known as delegation. 


Advantage 

It makes better motivate.

It reduce senior manager’s burden. 

It benefit the middle managers. 

 

Disadvantage 

It has the risk of losing control.

It is hard to make decisions as a whole.



Departmentalization

Process of dividing work activities into units within the organization. 


Subdivide of work depend on :-


  • Product departmentalization 

Organizes work units based on the goods and services offered.


  • Geographic area departmentalization

Units organized by geographic region within a country. 

For a multinational firm, units organized by regions throughout the world.


  • Customer departmentalization 

Organization that offers a variety of goods and services targeted to different types of customers might structure itself based on customers served.


  • Function departmentalization 

Works units organized according to business functions, such as finance, marketing, human resources and production. 


  • Process departmentalization 

Units organized by work processes required to complete production of goods.




Organization Chart

• A picture of the Reporting structure and the division of labor in an organization.

• Most Organizations will have an organization chart to provide people with this information.



Importance of Organisation chart

Help manages to spot communication problems

Help individuals to see their position and responsibility

Help people to understand their relationship with other parts of business.

Help to find who has authority to make decisions.




Chain of Command :-

The way in which authority is organized within an organization 

A set of relationships that indicates who direct which activities and who reports to whom.


Short chain of command

Long chain of command


Location: Julana, Haryana 126101, India

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