N.

Naveen
20071418

CONTENTS
What is organization

Steps of organizing
Formal and informal

organization
Basic departmentalization
Span of management
Factors determining effective
span
Factors influencing Basic
departmentalization
Matrix organization

ORGANISATION

whats it

THE FORMALIZED
INTENTIONAL
STRUCTURE OF ROLES
OR POSITIONS

ORGANISING
The identification and classification of required activities.
The grouping of activities necessary to attain objectives.
The assignment of each grouping to a manager with the

authority necessary to supervise it .

The provision for coordination horizontally and vertically

in organization structure.

LOGICAL STEPS OF ORGANISING

Establishing the enterprise objectives.
Formulate supporting objectives , policies and plans.
Identifying and classifying necessary actions to

accomplish these objectives.

Grouping

these activities in

terms of available resources

e.g. Human resources ,materials etc
Delegating to the head of each group the authority
necessary to perform these activities
Combining or coordinating these groups vertically
and horizontally for required information flow

ORGANIZING PROCESS

FORMAL AND INFORMAL

ORGANIZATION
Formal organization -the

intentional structure of roles in a

formally organized enterprise.
Formal doesnt mean it is rigid.
Informal organization is any

joint personal activity without

conscious joint purpose, even
though contributing to joint
result.

BASIC DEPARTMENTALIZATION
BD

is grouping of activities, roles, functions, products, job

specifications and people, etc of the organization to decide on its

establishment and expansion.
Department designates a distinct area division, or branch of an

organization over which a manager has authority for the performance

of specified activity.
E.g. for departments production division , research and development ,

etc.

SPAN OF MANAGEMENT
Organizational

levels exits
because there is a
limit to the
number of
persons a manger
can supervise
effectively ,even
though this limit
varies depending
on the situation.

EFFECTIVE
SPAN

FACTORS DETERMINING
EFFECTIVE SPAN
Subordinate training
Clarity of delegations of authority
Clarity of plans
Use of objective standard
Rate of change
Communication techniques
Amount of personal contact needed
Variation by organizational level
Need for balance
Other factors

FACTORS INFLUENCING
BASIC DEPARTMENTALISATION
Time
The function of the organization
Region or area
Customers
By process or the components of process

MATRIX ORGANISATION
It is a combination of functional and product patterns

of basic departments
Normally planning and functioning are separate
departments in organization
When both of them are done by same department
people the efficiency is more
Matrix organization is a new type where planning
functioning and execution are done by the same set of
people

ORGANIZATIOANAL CULTURE
It is the norms ,general

pattern of behavior
,shared beliefs and
values that members of
organization have in
common
Culture can be inferred
from what people say ,do
and think within an
organization