ORGANISING

CONCEPT OF ORGANISING

A process which coordinates human efforts, assembles resources

and integrates both into a unified whole to be utilized for
achieving specified objectives.

A process that initiates implementation of plans by clarifying

jobs and working relationships and effectively deploying resources
for attainment of identified and desired results (goals).
ORGANISING
PROCESS
 Identification and division of work

Departmentalisation
STEPS IN THE
PROCESS OF
ORGANISING Assignment of duties

Establishing authority and

reporting relationships
IDENTIFICATION & DIVISION OF WORK

The first step in the process of

organising involves identifying and
dividing the work that has to be done in
accordance with previously determined
plans.
The work is divided into manageable
activities so that duplication can be
avoided and the burden of work can be
shared among the employees.
 DEPARTMENTALIZATION

Once work has been divided into small and manageable activities then those activities
which are similar in nature are grouped together in departments to facilitate specialisation.

Basis
of Departmentalization

Functions:
Territories: Products:
marketing, personnel,
Western, northern, Textiles, chemical,
finance etc.
central, eastern etc. power division etc.
ASSIGNMENT OF DUTIES:

Once departments have been formed, each of them

is placed under the charge of an individual. Jobs are
then allocated to the members of each department
in accordance to their skills and competencies.

It is essential for effective performance that a proper

match is made between the nature of a job and the
ability of an individual.The work must be assigned to
those who are best fitted to perform it well.
ESTABLISHING REPORTING
RELATIONSHIPS

Each individual should also know who

he has to take orders from and to
whom he is accountable.
The establishment of such clear
relationships helps to create a hierarchal
structure and helps in coordination
amongst various departments.
Benefits of Clarity in working
specialisation relationships

Optimum utilisation Adaptation to

of resources change
IMPORTANCE
OF
ORGANIZING
Effective Development of
administration personnel

Expansion and
Growth
BENEFITS OF SPECIALISATION

Organising leads to a systematic

allocation of jobs amongst the work
force. This reduces the workload as well
as enhances productivity because of the
specific workers performing a specific
job on a regular basis.
Repetitive performance of a particular
task allows a worker to gain experience
in that area and leads to specialisation
CLARITY IN WORKING RELATIONSHIPS

CLARIFIES LINES OF SPECIFIES WHO IS TO REMOVES AMBIGUITY IN HELPS IN CREATING A

COMMUNICATION REPORT TO WHOM, TRANSFER OF HIERARCHICAL ORDER
INFORMATION AND AND FIXATION OF
INSTRUCTIONS. RESPONSIBILITY &
SPECIFICATION OF THE
EXTENT OF AUTHORITY TO
BE EXERCISED BY AN
INDIVIDUAL.
ADAPTATION TO CHANGE

Allows the modification in organisation structure and Provides stability to the enterprise as it can then
the revision of inter-relationships amongst managerial continue to survive and grow inspite of changes.
levels to pave the way for a smooth transition according
to changes in environment.
 Avoidance of duplication of
Organising leads to the proper work helps in preventing
usage of all material, financial confusion and minimising the
and human resources. wastage of resources and
efforts.

OPTIMUM UTILISATION OF RESOURCES

EFFECTIVE ADMINISTRATION

Organising provides a clear

Clarity in working
description of jobs and related
relationships enables proper
duties. This helps to avoid
execution of work.
confusion and duplication.
 Effective delegation allows the
managers to reduce their workload
by assigning routine jobs to their
subordinates, allowing the manager
to develop new methods and ways
of performing tasks.

It gives them the time to explore

DEVELOPMENT areas for growth and the opportunity
to innovate thereby strengthening the
OF company’s competitive position.
PERSONNEL

Delegation also develops in the

subordinate the ability to deal
effectively with challenges and helps
them to realise their full potential
 Organising helps in the growth and
diversification of an enterprise by enabling it
to deviate from existing norms and taking up
new challenges.
EXPANSION
AND
GROWTH It allows a business enterprise to add more
job positions, departments and even diversify
their product lines. New geographical
territories can be added to current areas of
operation and this will help to increase
customer base, sales and profit.
ORGANISATION
STRUCTURE
 The framework within which managerial and
operating tasks are performed.

It specifies the relationships between people, work

and resources.

MEANING
It allows correlation and coordination among human,
physical and financial resources and this enables a
business enterprise to accomplish desired goals.

Shown in an organization chart.

RELATION BETWEEN SPAN
OF MANAGEMENT AND
ORGANIZATION
STRUCTURE:

 Span of management
refers to the number of
subordinates that can be
effectively managed by a
superior.
 The Span of
management to a large
extent gives shape to the
organization structure.
 This determines the
levels of management in
the structure.
 Narrow span of
management results in
tall structure and a
wider span of
management results in
flat structure
TYPES OF ORGANISATION STRUCTURES

Functional Divisional
structure structure
FUNCTIONAL STRUCTURE:

Grouping of jobs of similar These departments may be

nature under functional and further divided into sections.
organising these major All departments report to a Thus, a functional structure is
functions as coordinating head. an organisational design that
separate departments creates a groups similar or related jobs
functional structure. together.
ADVANTAGES

helps in increasing
promotes control and
leads to occupational managerial and
coordination within a
specialisation operational efficiency
department
thus increased profit.

leads to minimal
makes training of
duplication of effort ensures that different
employees easier as the
which results in functions get due
focus is only on a
economies of scale and attention.
limited range of skills.
this lowers cost.
DISADVANTAGES

Less emphasis on overall enterprise objectives than

the objectives pursued by a functional head

May lead to problems in coordination in

information exchange

Conflict of interests

may lead to inflexibility

FUNCTIONAL STRUCTURE

MANAGING
DIRECTOR

MARKETING PRODUCTION FINANCE

Sec. 1 Sec. 2 Sec. 3 Sec. 1 Sec.2 Sec. 3 Sec. 2 Sec. 3

Sec. 1
Large organizations producing one line
of product.

SUITABILITY

Organizations which require high

degree of
functional specialization with diversified
activities.
DIVISIONAL ORGANIZATION
STRUCTURE

 Divisional organisation structure comprises of separate

business units or divisions.
 Each unit has a divisional manager responsible for performance
and who has authority over the unit.
 Manpower is grouped on the basis of different
products manufactured.
 Each division is multifunctional because within each division
functions like production, marketing, finance, purchase, etc., are
performed together to achieve a common goal.
 Each division is self-contained as it develops expertise in all
functions related to a product line.
 Each division works as a profit center where the divisional head
is responsible for the profit or loss of his division.
ADVANTAGES:

(a) Product specialisation

(d) facilitates expansion and
helps in the development of
growth as new divisions can
varied skills in a
be
divisional head and this
added without interrupting
prepares him for higher
the existing operations
positions.

(b) basis for performance

(c) promotes flexibility and
measurement and helps in
initiative
fixation of responsibility
DISADVANTAGES

(c) a manager may gain

(a) Conflict may arise
power and in a bid to
among different divisions (b) may lead to increase
assert his independence
with reference to in costs
may ignore organisational
allocation of funds
interests.
 DIVISIONAL STRUCTURE

Managing
Director

Cosmetics Garments Footwear

Production Finance Marketing Production Finance Marketing Production Finance Marketing

SUITABILITY

This structure is suitable in organizations producing multi

product or different lines of products requiring product
specialization.

Also growing companies which intend to add more lines of

products in future adopt this structure.
 DIFFERENCE BETWEEN FUNCTIONAL
AND DIVISIONAL STRUCTURE
Basis Functional Structure Divisional Structure

Formation Formation is based on functions Formation is based on product lines

and is supported by functions.
Specialisation Functional specialisation Product specialisation
Responsibility Difficult to fix on a department Easy to fix responsibility for
performance
Managerial Difficult, as each functional manage Easier, autonomy as well as the chance
Development r has to perform multiple functions
to report to the top management helps in managerial development
Cost Functions are not duplicated Duplication of resources in various
hence economical departments, hence costly
Coordination Difficult for a multi-product Easy, because all functions related to a
company particular product are integrated in one
FORMAL AND INFORMAL
ORGANISATION
FORMAL ORGANISATION

It specifies clearly the

boundaries of authority and
Refers to the organisation
responsibility and there is a
structure which is designed
systematic
by the management to
coordination among the
accomplish a particular task.
various activities to achieve
organisational goals.
 Clarifies who has to report to whom.

helps to achieve the objectives specified in

the plans,

coordinated, interlinked and integrated

FEATURES efforts

deliberately designed by the top

management

places more emphasis on work to be

performed than interpersonal relationships
ADVANTAGES

No ambiguity in the
Easier to fix role of members so Unity of command
responsibility no duplication of is maintained
effort.

Leads to effective
Provides stability to
accomplishment of
the organisation.
goals
DISADVANTAGES

MAY LEAD TO INADEQUATE MORE EMPHASIS ON

PROCEDURAL DELAYS RECOGNITION TO STRUCTURE AND
CREATIVE TALENT, WORK.
INFORMAL
ORGANISATION

Emerges from within the formal organisation when

people interact beyond their officially defined roles.

It has no written rules, is fluid in form and scope and

does not have fixed lines of communication.
 Originates from within the formal organisation as
a result of personal interaction among employees.

Standards of behaviour evolve from group norms

rather than officially laid down rules

FEATURES No specified direction of flow of information

Emerges spontaneously and is not deliberately

created by the management.

No definite structure or form.

No prescribed lines of communication- faster
spread of information & quick feedback.

Helps to fulfill the social needs of the members

which enhances their job satisfaction & ADVANTAGES
gives them a sense of belongingness

Contributes towards fulfillment of

organisational objectives by compensating for
inadequacies in the formal organisation.
DISADVANTAGES:

Spreads rumours- becomes a destructive force

Changes cant be implemented if the informal organisation

opposes them, leading to delay

It pressurises members to conform to group expectations which

can be harmful if the norms set by the group are against
organisational interests.