UNIT - I

ORGANISATION MANAGEMENT

ORGANISATION

Meaning
Derived from the word organism, which means a structure of body divided into parts. Co-ordinated efforts of the different individuals working collectively and effectively to achieve a common Goal. A process that initiates implementation of plans by clarifying jobs and working relationships and effectively deploying resources for attainment of identified and desired results.

Organising is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.
- Louis Allen

Characteristics
Division of Work Co-ordination Common Objective Co-operative Relationship Well defined Authority Responsibility Relationships

Optimum Utilization of Resources Effective Administration Development of Personnel Expansion and Growth Increase in Managerial and Administrative Efficiency Increase in Production and Productivity Encouragement to Specialization Training Facilities Better Co-ordination Encouragement to Contribute Increase in Morale Success of Economic Planning

 Traditional Principles
Modern Principles

Traditional Principles
Principle of Unity of Objectives Principle of Authority Principle of Responsibility

Principle of Assignment of Exceptions

Principle of Definition Principle of Certainty Principle of the Span of Control

Contd
Principle of Unity of Command Principle of Effectiveness of Organisation Principle of Unity of Direction

Principle of Flexibility
Principle of Continuity Scalar Principle Principle of Leadership

Modern Principles
Principle for Formalism Principle of Challenge and Response Principle of Efficiency

Principle of Division of Work

Principle of Communication Principle of Balance Principle of Directive Approach

Organization Structure
Refers to the Determination of Organization system of an Enterprise. Frame-work of the activities of the enterprise within which managerial and operating tasks are performed

It specifies the relationship between people, work and resources

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

Advantages & Disadvantages

Advantages : Ensures a smooth flow of communication Better control over the operations of a business enterprise

Helpful in training
Helpful in delegation Reveals the Draw-backs of an organisation

 Disadvantages : Reveals only the Formal Relations Sometimes creates Conflicts

Develops Rigidness in the activities of enterprise

Types of Organisation
It varies with the nature and types of activities performed by an organisation. 1) 2) 3) 4) Formal Organisation Informal Organisation Functional Structure Divisional Structure

Formal and Informal Organisation

Formal Organization
An organizational structure which is designed by the management to accomplish a particular task. It specifies clearly the boundaries of authority and responsibility and there is a systematic coordination among the various activities to achieve organizational goals.
Informal Organization Interaction among people at work gives rise to a network of social relationships among employees called Informal Organization.

Functional Structure
An organizational structure composed of all the departments that an organization requires to produce its goods or services. Advantages Encourages learning from others doing similar jobs. Easy for managers to monitor and evaluate workers. Possible Disadvantages Difficult for departments to communicate with others. Preoccupation with own department and losing sight of organizational goals.

Divisional Structures
An organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer Divisions create smaller, manageable parts of a firm. Divisions develop a business-level strategy to compete. Divisions have marketing, finance, and other functions. Functional managers report to divisional managers who then report to corporate management.

Types of Divisional Structures

Product structure Divisions by the product group or category Market structure Divisions by type of customer Geographic structure Global or regional divisions

Divisional Structures

Divisional Structures

Divisional Structures

QUESTIONS ??