• Organizing is the second key management function, after

planning, which coordinates human efforts, arranges

resources and incorporates the two in such a way which
helps in the achievement of objectives.
• It involves deciding the ways and means with which the
plans can be implemented.
Process of Organizing
Nature and Purpose of organization
• An organization is a collection of people and
resources who work together to achieve a defined set
of goals and objectives.
• There are two major types of organizations:

a. Formal organization :

b. Informal organization :
 Purpose of organization
a) Allocation of duties
b) Delegation and Demarcation of authority.
c) Specialization and division of labour
d) Adequate communication
e) Coordination
f) To set hierarchy of authorities.
 Types of organizations
a. Line organization
b. Functional or Staff organization
c. Line and Staff organization
d. Committee organization
e. Matrix organization
 Line organization
• It is a vertical structure where authority flows
from top to the lower levels.
• It is also known as chain of commands or
scalar principle.
•Military, Paper industry, Sugar
,textile industry etc.
Line Organisation
Functional Organization
• Suggested by F.W.Taylor, who recommended the
appointment of specialists at important positions.
• Educational institutes, Government organizations
etc
 Committee organization :
• In this organizational structure, line people are given
opportunities to discuss their problems in the committee and
arrive at solutions.

• The various functions of the committee organization are

❖ Collecting information.
❖ Examining and analyzing the collected information.
❖ Preparing the report containing the recommendations of
committee.
❖ Framing organization policies
❖ Selection of personals.
❖ Directing and controlling the officers.
• It is employed in election committees, fundraising
committees, Program Committees etc
 The Elements of Organizing
Organizing is deciding how best to group
organizational elements (resources).

Organizational Structure is a set of six

basic building blocks (elements) that
managers may use to configure
(construct) an organization.
 Six Basic Building Blocks for
Organization Structure
1) Designing jobs
2) Grouping Jobs
3) Establishing reporting
relationships between
jobs
4) Distributing authority
among jobs
5) Coordinating activities
among jobs
6) Differentiating among
positions
1. Designing Jobs
Job design is the determination of an
individual’s work-related responsibilities.

Job specialization is the degree to which

the overall task of the organization is
broken down and divided into smaller
component parts. Sometimes referred to
as the division of labor. [assembly-line tasks, Disney characters drawn
by only one animator, etc.)
 Designing Jobs. . . [continued]

Benefits of Job Specialization:

a) Workers performing small, simple tasks will become

very proficient at each task.
b) Transfer time between tasks decreases. [switching from one
task to another]

c) The more narrowly defined a job is, the easier it is

to develop specialized equipment to assist with that
job.
d) When an employee who performs a highly
specialized job is absent or resigns, the manager is
able to train someone new at relatively low cost.
 Designing Jobs. . . [continued]

Limitations of Job Specialization:

a) Workers who perform highly specialized jobs may become

bored and dissatisfied.
b) The job may be so specialized that it offers no challenge or
stimulation.
c) If boredom and monotony set in, absenteeism rises and the
quality of work may suffer.
d) The anticipated benefits of job specialization do not always
occur.
 Designing Jobs. . . [continued]

Alternatives to Job Specialization:

Job Rotation
Job Enlargement
Job Enrichment
Job Characteristics Approach
Work Teams
 Designing Jobs. . . [continued]

Job Rotation involves

systematically moving
employees from one job to
another.
Different part of the job is done
on various days of the weeks.
Used primarily as a training
practice to improve workers’
skills and flexibility.

Job rotation is a well planned management approach that is

beneficial both for employees and management
 Objectives of JOB ROTATION
• Reducing Monotony of the Job

• Succession Planning

• Creating Right-Employee Job Fit

• Exposing Workers to All Verticals of the

Company

• Testing Employee Skills and Competencies

• Developing a Wider Range of Work Experience

 Designing Jobs. . . [continued]

Job enlargement involves giving the employee

more variety of tasks to perform within the same
level of an existing role.
Designed to allow the worker to perform a
variety of tasks to reduce the level of job
boredom or dissatisfaction.
 Designing Jobs. . . [continued]

Job enrichment involves increasing both the number of

tasks the worker does and the control the worker has
over the job.
To implement job enrichment, managers remove some
controls from the job, delegate more authority to
employees, and structure the work in complete, natural
units.
Another part of job enrichment is to continually assign
new and challenging tasks to allow the employee an
opportunity to grow and advance.
Before undertaking job enrichment, work systems should
be analyzed and managers should ask for employee
preferences.
2. Grouping Jobs: Departmentalization

Departmentalization is the process of grouping

jobs according to some logical arrangement.
In smaller organizations, the owner-
manager/partner may be able to personally
oversee everyone who works there.
As an organization grows, new managerial
positions are created to supervise work of others
grouped according to some plan which leads to
the creation of departments
2. Grouping Jobs: Departmentalization

Functional Departmentalization groups jobs involving

the same or similar activities.
Most common in smaller organizations; has three
primary advantages:
Each department can be staffed by experts in that functional
area.
Supervision is also facilitated because an individual manager
needs to be familiar with only a relatively narrow set of skills.
Coordinating activities inside each department is easier.
Disadvantages emerge as an organization grows
because it becomes increasingly difficult to monitor
accountability and performance. [was product failure due to poor marketing or
production deficiencies?]
2. Grouping Jobs: Departmentalization
Product Departmentalization groups activities around
products or product groups.

Has three major advantages:

All activities associated with one product or product group can
be easily integrated and coordinated

The speed and effectiveness of decision making are enhanced.

The performance of individual products or product groups can

be assessed more easily and objectively,
.
Has two major disadvantages:
Managers in each department may focus on their own product
or product group to the exclusion of the rest of the organization.

Administrative costs may rise

2. Grouping Jobs: Departmentalization

Location Departmentalization groups jobs on

the basis of defined geographic sites or areas.
Primary advantage is that it enables the
organization to respond easily to unique
customer and/or environmental characteristics in
the various regions.
A disadvantage is that a larger administrative
staff may be required if the organization must
keep track of units in various locations.
Figure 11.2: Departmentalization
3. Establishing Reporting Relationships

Chain of Command is a clear and distinct line

of authority among the positions in an
organization that has two components:
Unity of command – each person within an
organization must have a clear reporting
relationship to one and only one boss.
Scalar principle – there must be a clear and
unbroken line of authority that extends from the
lowest to the highest position in the
organization.
3. Establishing Reporting Relationships

Span of Management,
sometimes called the span of
control, is the number of
people who report to a
particular manager.
 Figure 11.3
Tall Versus Flat Organizations
 Span of Control
• The span of control in
management suggests
estimating the optimum
number of subordinates
managed by a single
supervisor.
• It is a primary factor that
determines the shape of the
organization.
• Also, it involves all the
management activities than
just supervision and control.
• The span of control can interchangeably
termed as:
• Span of Management
• Span of Supervision
• Span of Authority
There are two types of span- wide and
narrow span of control
1.Degree of autonomy granted to employees.
2.Number of layers in the organization
structure.
3.Nature of work.
4.Need for supervision, etc
Note: The flatter organization has a wide
span of control, whereas the taller
organization has a narrow span of control.
When one manager supervises many subordinates, it shows a
wide span of control. It is also called Operative Span as it is
generally applicable at the lower or operating managerial level.
The supervisors have excellent coordination and communication horizontally &
vertically because of the fewer levels.
When one manager
manages a few
subordinates, it shows a
narrow span of control.
It is also called
the Executive span because
it is applicable at the top or
middle managerial level.

A narrow span contains fewer

Organizations opt narrow span subordinates at a single level.
when the nature of work Consequently, it increases the
number of management levels
is complex and requires more making an
assistance from the superior organization taller in structure.
Steps(elements) in the
Delegation Process
4. Distributing Authority

Decentralization:

The process of systematically

delegating power and authority
throughout the organization to
middle and lower-level managers.
4. Distributing Authority

Centralization:

The process of systematically

retaining power and authority in the
hands of higher-level managers.
• Elements of Delegation
– Authority
– Responsibility
– Accountability
– Creating Responsibility and Accountability
 Staffing

• Staffing is the process of hiring

eligible candidates in
the organization or company
for specific positions.

Staffing is one of the most important functions of management. It involves

the process of filling the vacant position of the right personnel at the right
job, at right time.
 • Functions of Staffing

• The first and foremost function of staffing is to obtain

qualified personnel for different jobs position in the
organization.
• In staffing, the right person is recruited for the right jobs,
therefore it leads to maximum productivity and higher
performance.
• It helps in promoting the optimum utilization of human
resource through various aspects.
• Job satisfaction and morale of the workers increases through
the recruitment of the right person.
 • Characteristics of Staffing
People-Centered
• Staffing can broadly view as people-centered function
and therefore it is relevant for all types of
organization. It is concerned with categories of
personnel from top to bottom of the organization.

– Blue collar workers (i.e., those working on the machines

and engaged in loading, unloading etc.) and white collar
workers (clerical employees ,administrative or managerial
duties).
– Professionals (eg.- Chartered Accountant, Company
Secretary)
 Process-Staffing
• Staffing is the process of recruiting employees
who are eligible for certain positions in
a company. Steps involved in the staffing
process are 1. Manpower Planning,
2. Recruitment,
3. Selection,
4. Placement,
5. Training,
6. Development,
7. Promotion,
8. Transfer,
9. Appraisal,
10. Determination of
Remuneration
 Line and Staff Relationship & Conflict
• For running an organization properly both line and staff
member’s contribution is required and their relationship
must be well defined in the organizational structure.
• Relationships between individuals, groups, and divisions
are based on lines of authority that are predetermined.
• In a highly centralized structure, decisions are made by a
few executives or managers and flow downward through
the enterprise.
• As organizations grow in scope and complexity, they need
to be flexible in the extent to which coordination and
control are centrally applied.
• The principle of line-staff organization introduces flexibility
into hierarchical lines of authority while trying to preserve a
unified command structure.
• Line groups are engaged in tasks that constitute the technical
core of the firm or the subunit of a larger enterprise. They are
directly involved in accomplishing the primary objective of the
enterprise.
• Staff groups are engaged in tasks that provide support for line
groups. They consist of advisory (legal), service (human
resources), or control (accounting) groups.
• Staff groups support those engaged in the central productive
activity of the enterprise.
• Thus, staff groups create the infrastructure of the organization.
Human resources, information technologies, and finance are
infrastructural functions. Staff groups provide analysis,
research, counsel, monitoring, evaluation, and other activities
that would otherwise reduce organizational efficiency if carried
out by personnel in line groups.