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Unit - 1 Lecture No 7,8

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18 views45 pages

Unit - 1 Lecture No 7,8

Uploaded by

nitin
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Brief of Last lecture

•Theories of mgmt
•Scientific Theory----- F.W. Taylor
•Administrative ------ Henry Fayol
•Bureaucratic Theory----- Max Weber
• Modern mgmt system
Organisation
“Entity or Group people are form together for particular
objective”

•Authority
• rules , regulations ,orders ,commands , discipline, culture .
•Recruitment and selection.
•Training and development.
•Compensation and benefits.
•Employee and labor relations.
•Retention , Payroll, Surveys.
•Safety and health.
“The formal positions or hierarchy of authority form to achieve the organizational goals”
TATA GROUP -Business
An organization is nothing but a group of people who aim to
achieve common objectives.

“Organisation involves creating a structure of


relationship among people working for the desired
results”.
CONCEPT OF ORGANISATION
Organisation refers to the institution
Organising is one of the functions of management
Determining, grouping and structuring the activities

Creating rules for effective performance at work.

Allocation necessary authority and responsibility.

Define detailed procedures and systems.


Review system.
•
TYPES OF ORGANISATION
• FORMAL ORGANISATION
• “A well-defined organisation structure of authority and
responsibility amongst the organizational members.”
• EX. Production plant

• INFORMAL ORGANISATION
Network of personal and social relationships that arise as people
associate with other people in a work environment.

Service Industries ,Social Activities


Formal Organization
• PRODUCTION PLANT
INFORMAL ORGANISATION

Service industries
Social Events
Informal organisation
Model for business
Department of
MECHANICAL ENGINEERING

Vision
• To develop quality mechanical engineers,
researchers and entrepreneurs with
commitment for excellence, learning
enthusiasm, ethical behavior and serving the
society.
Organization structures
1. Line Organization structures

2. Staff Organization structures

3. Line and staff Organization structures

4. Functional Organization structures

5. Matrix Organization structures

6. Committee Organization structures


Line organisation
• Small and micro scale industries
It is also known as scalar, military, or vertical organisation and
perhaps is the oldest form

1. PURE LINE ORGANISATION


2. DEPARTMENTAL LINE ORGANISATION
Small scale Industries
Line authority and instructions are vertical, that is, they flow
from the top to the bottom.

The unity of command is maintained in a straight line.

All persons at the same level of organisation are independent of


each other.

This structure specifies responsibility and authority.


Merits:
Simplicity & Discipline
Prompt Decisions & Orderly Communication
Easy Supervision & Economical

• Demerits:
Lack of Specialization & Problems of coordination

Absence of Conceptual Thinking & Autocratic Approach

Suitability:-
It is suitable to small – scale organizations

where the number of subordinates is quite small.


2. STAFF ORGANIZATION
- Grouping by certain functions like prod. , marketing etc

- The charge of a specialist as the executive himself cannot perform all of


them.

- These specialists can only recommend but have no right to enforce their
preference on other departments

- An employee reports to more than one supervisor


Characteristics:
It refers to a pattern in which staff specialists advise line
managers to perform their duties.

Line people will give advices.

The staff people have the right to recommendations.

Staff officers provide advice only to the line officers; they do


not have any power of command over them.
The staff supplements the line members.
ADVANTAGES:-
Aims at combining the merits of the two(line & staff)
It brings expert knowledge to bear upon management.
Functional specialists provide expert advice.
It provides for better placement and utilization of personnel

DEMERITS:-
The line and staff relationship often lead to many frictions
and Jealousies

Line mangers may depend too much on staff experts and


thus lose much of their judgment and initiatives

The staff experts may remain ineffective because they do not


get the authority to implement their recommendation.
Functional structure is created by grouping the activities.

it required for the achievement of organizational objectives

These structures are classified into


basic, secondary and supporting functions.

Each functional area is put under the charge of one executive.

For any decision, one has to consult the functional specialist.

Limited span of control is there.


ADV:
High Specialization
Clarity in functioning
No duplication
Satisfactions
Control and Coordinate

Demerits:
Calls for more coordination
Clear line of authority
Slow decision making
A project manager is appointed to co-ordinate the activities of the
project.

It is a violation of unity of command

It is the realisation of two-dimensional structure / two dimensions


of authority.

Personnel are drawn from their respective functional


departments.
Merits:-
It offers operational freedom & flexibility
It focuses on end results.
It maintenance professional Identity.
It holds an employee responsible for management of resources
Demerits:-
It calls for greater degree of coordination
Difficult to define authority & responsibility.

Suitability
Ex:- Aerospace, chemicals, Banking, Brokerage, Advertising etc.
Definitions:
“A committee consists of a group of people specifically designated
to perform some administrative work”
--W.H. Newman

A committee does not represent a separate type of organization


like line and staff, or functional.

It a group of people performing some aspects of Managerial


functions.
MERITS DEMERITS
Pooling of Knowledge Slow decisions

Effective co-ordination is available Most Expensive

Effective Communication Difficult to maintain secrecy

Motivation through participation of Compromise


employees
SPAN OF CONTROL
• What is the Span of Control?
– The number of people who report to one manager in a
hierarchy

– The more people under the control of one manager - the


wider the span of control

– Less means a narrower span of control

• Ex.
Marketing
Manager

Marketing Market Telesales Customer Care


Assistant Researcher Supervisor Assistant
TYPES OF SPAN OF MANAGEMANT
• TALL HIERACHY OR NARROW SPAN OF MANAGEMANT:-
• This means a single managers or supervisor oversees few subordinates.
• This gives a rise to a tall organizational structure.

• FLAT HIERACHY or WIDE SPAN OF MANAGEMENT:-

• This means a single managers or supervisor oversees a large number of


subordinates.

• This gives a rise to a flat structure.


Tall Hierarchy:
Low Span of Control

BOXES DEFINE THE LABEL OF MANAGERS


OR SUBORDINATES
Flat Hierarchy:
Wide Span of Control
FACTORS AFFECTING SPAN OF
MANAGEMENT
• Capacity Of Superior , Subordinate.

• Nature Of Work.

• Degree Of Decentralization.

• Degree Of Planning.

• Communication Technique.

• Use Of Staff Assistance.


Decision Making

“Decision-making is the act of choosing between

two or more courses of action”

Every decision-making process produces a final choice,

which may or may not prompt action.


Decision Making Steps
Recognize need for
a decision

Frame the problem

Generate & assess alternatives

Choose among alternatives

Implement chosen
alternative

Learn from feedback


Delegation OF AUTHORITY
“Delegation is the assignment of any authority to another
person to carry out specific activities”

• It is one of the core concepts of management leadership.

• However, the person who delegated the work remains accountable for the
outcome of the delegated work.
Delegation Steps
1. Decide what to delegate

2. Decide who will do the task

3. Assign responsibility

4. Grant authority

5. Establish accountability
Benefits of Delegation
• More involved , empowered workforce

• Increased productivity and quality

• Reduced costs

• More innovation

• Greater commitment

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