Principles of Management

1. Principles of Management BBA 1th Semester Mashal Institute of Higher Education

2. Chapter No. 03 Organizing Lecturer Kamran Khan MIHE

3. Introduction to Organizing Organizing is a management function. It is the second function of all managers and all managers will organize for the success of the business. Lecturer Kamran Khan MIHE

4. Topic-1 Definitions of Organizing: 1. Organizing means “combining human and non-human resources to achieve objectives” 2. The management function of organizing involves identifying activities, making departments for these activities, giving responsibility and authority to the employees of the departments and creating a co-ordination among the departments to achieve the objectives. 3. Arranging the resources to achieve objectives. Lecturer Kamran Khan MIHE

5. Topic-2Organization and types of organization: Organization: Group of people working together towards the achievement of goals. Types of organization: • Profit organization: organizations established to earn profit are called profit organizations. Examples: Safi airlines, Kabul Bank, Kardan,…… etc. • Nonprofit organization: Opposed to profit organization there are nonprofit organization, the main motive of which providing some kind of services to the society like, providing education, medical services, etc. Examples: WHO, IRC, UNICEF etc….. Lecturer Kamran Khan MIHE

6. Manufacturing organization: The type of organization involve in manufacturing of some product like cars, shirts, shoes, etc For example: Uniliver, P & G, DELL, Sony, Nokia,……. Lecturer Kamran Khan MIHE

7. Lecturer Kamran Khan MIHE

8. Topic-3 Characteristics of Planning: • Manufacturing organization: the organizations who make some products like cars, shirts, shoes, etc. Examples: Peps i Company, DELL, Sony, Nokia…….etc. Lecturer Kamran Khan MIHE

9. Service organization: The organization whose purpose is to provide services to the society like banking, insurance, hospitals, are called service organizations. Examples: Safi Airlines, Azizi Bank, Kardan Institute of Higher Education,……………………….. • Public organization: Public generally means open to outsiders, like common man can become a stake holder in the organization. On the other side in most of the countries the organization which are government owned are called public organizations Lecturer Kamran Khan MIHE

10. Private organization: The organizations that are privately owned are called private organization. Outsiders can not become owner. • Formal organization: An organization having the following points is a formal. • Combination of two or more people. • Working to achieve some common goal. • There are strict rules and all will follow • There are duties and authorities. Lecturer Kamran Khan MIHE

11. Informal organization: These are the groups of people who have made the group within a formal organization for social activities. Lecturer Kamran Khan MIHE

12. Topic: Organizational Structure Organizational structure is a design which shows who is at the top, middle, low and who are non-managers. This design shows who is senior and who is junior and who will repor t to whom and who will receive from whom. Lecturer Kamran Khan MIHE

13. Lecturer Kamran Khan MIHE

14. Topic: Span of control Span of control is a span of supervision which depicts the number of employees that can be handled and controlled effectively by a single manager. There are two kinds types of span of control: • Wide Span: one employee is supervising many Subordinates. • Narrow Span: one employee is supervising few subordinates. Lecturer Kamran Khan MIHE

15. Lecturer Kamran Khan MIHE

16. Lecturer Kamran Khan MIHE

17. Advantages of wide span of control: • Delegation of authority • Few levels of management • Strict rules Disadvantages of wide span of control: • Overloaded supervision • Danger of control • Requires high quality of management Lecturer Kamran Khan MIHE

18. Advantages of narrow span of control: • Close supervision • Close control • Fast communication Disadvantages of narrow span of control: • Superiors are too involved in the subordinates’ work • Many levels of management • High cost due to many levels of management • Too distance between low and top level of management Lecturer Kamran Khan MIHE

19. Departmentalization The process of grouping the functions and activities in an organization is known as departmentalization. what is a department? A department is a separate section, section or part of the organization where a manager is given authority and responsibility to carry out activities. basis of departmentalization: By: function, product, process, location, customers. Lecturer Kamran Khan MIHE

20. 1. Departmentalization by function: Making departments on the basis of work to be done in the organization is called departmentalization on the basis of functions. For example, production function, marketing function, finance function, personnel/HR function, and research and development function. 2. Departmentalization by product: When an organization makes more than one product, then making departments on the basis of products to be made is called departmentalization on the basis of product. For example, Sony company. Computers department, Mobile department, video games department………. Lecturer Kamran Khan MIHE

21. 3. Departmentalization by process Making departments on the basis of steps in which a product is made. Like in Textile Company have processes of receiving raw material, separating, spinning, weaving, bleaching, dyeing, inspecting, packages etc. 4. Departmentalization by location Making departments on the basis of customers. Like separate department for children, young, old, male or female. Like in the clothes or shoes outlets. Lecturer Kamran Khan MIHE