Organizing-Basic Concepts Departmentation- Functional, Project, Matrix and Virtual

1. Organizing-Basic Concepts Departmentation- Functional, Project, Matrix and Virtual 10-

2. Organising is • Identification & classification of required activities • Grouping of activities necessary to attain objectives • Assignment of each grouping to a manager with the authority necessary to supervise it. • Provision for coordination horizontally & vertically in the organizational structure. 10-

3. organizational structure - the formal framework by which job tasks are divided, grouped, and coordinated Organization, as a structure, has the following features: Two or more persons Common goals Cooperative efforts Division of work Communication Rules and regulations

4. Organisation as a Process (Organising) Organising is the process by which employees, facilities and tasks are related to each other, with a view to achieve specific goals. It refers to the way, work is arranged and allocated among members of the organization, so as to achieve the goals. , the assignment of these activities to appropriate departments & the provision for authority delegation & coordination.

5. The process of organising, thus, involves the following steps: • Identifying the work • Grouping the work • Establishing relationships • Delegating authority • Providing for coordination and control

6. Importance of organization • Facilitates administration & management. • Helps in growth • Ensures optimum use of human resources • Stimulates creativity • Proper use of improved technology • Helps in coordination • Helps in executive development • Ensures co-operation • Job satisfaction 10-

7. Features of good organization structure • Simplicity • Flexibility • Clear line of authority • Application of ultimate responsibility • Proper delegation of authority • Minimum possible managerial levels 10-

8. Formal and Informal Organization Formal Organization • It is a structure of well defined jobs, each bearing a definite measure of authority, responsibility and accountability. • The structure is consciously designed to enable the people of an organization to work together for accomplishing common objectives.

9. Characteristics of Formal Organization • According to classical theorists, the formal organization is built on four pillars:

10. Characteristics • Organizational Structure is designed by top management to fulfill certain requirement- performance of necessary activities thereby achieving organizational goals. • Based on principle of division of labor and efficiency. • Concentrates more on performance of jobs and not on individuals performing the jobs.

11. Authority and responsibility assigned to each job have to be adhered by job holders. Based on authority and responsibility people are placed in hierarchy and their status is determined. • Coordination & control specified through procedures & rules. • Must be flexible. There should be room for discretion, for utilization of creative talents 10-

12. Informal Organization • It is any joint personal activity, without conscious joint purpose, even though contributing to joint results. • A network of personal and social relations not established or required by the formal organization but arising spontaneously as people associate with one another.

13. It refers to the relationship between people in an organization, based on personal attitudes, emotions, likes, dislikes, etc. • These groups are not pre-planned but develop automatically within an organization 10-

14. It is a natural outcome at the workplace. Not designed and planned. • Created on the basis of some similarity among its members; it may be age, sex, place of origin, caste, religion, personality characteristics, etc.

15. Membership is voluntary. A person may become member of several informal organizations at the same time. • Behavior is coordinated and controlled by group norms and not by norms of formal organization. 10-

16. Benefits of Informal Organization • To employees: • Sense of belongingness. • Value for emotional problems • Aid on the job. • Innovation and originality. • Important channel of communication. News travels quickly via informal groups. They are secret transmitters and receivers of information before it is officially released.

17. Social Control. Informal groups provide all its members a set of norms or guides to correct behavior. Members are expected to conform to those norms. • Check on authority. Informal organization is a check and balance on unlimited use of authority by a manager 10-

18. To Management: • Less supervision. • An aid to management. Management gets feedback about employees and their work experience. It makes up for any management failures in communication.

19. Disadvantages • Resistance to change. • Role conflict and sub-optimization. • Rumours. • Group Think philosophy- Workers become loyal to their groups. They believe what they seek must be good because the group has decided so. • Social cost- gossiping, joke, idle conversation.

20. Formal vs. Informal Organization.

21. Span of management or span of control, refers to the number of subordinates that a superior can supervise effectively. • determines the number of levels and managers in an organization

22. 0 Tall versus Flat Structure • Span of Control used in an organization determines whether the structure is tall or flat • Tall structure has a narrow span and more hierarchical levels • Flat structure has a wide span, is horizontally dispersed and fewer hierarchical levels • The trend has been toward wider spans of control

23. Narrow and Wide Spans of Control

24. Contrasting Spans Of Control Members at Each Level 1 1 1 4 8 2 3 16 64 Organizational Level 64 512 4 5 256 4,096 1,024 6 4,096 7 Span of 4 Operatives = 4,096 Managers (levels 1-6) = 1,365 Span of 8 Operatives = 4,096 Managers (levels 1-4) = 585

25. Tall and Flat Structures: Strengths and Weaknesses

26. Basic Departmentalization Formats • Departmentalization • Grouping of related jobs or processes into major organizational units • Permits coordination (integration) to be handled in the least costly manner

27. Departmentationis a means of dividing a large and complex organization into smaller, flexible administrative units. Departmentation is necessary because it involves grouping of people or activities into a single department or unit to achieve organizational goals.

28. Departmentation permits an organization to take advantage of specialization. • Departmentation enables each person to know the particular part which he is expected to play in the total activities of the company. • Departmentation facilitates communication, coordination and control contributing to the overall organizational success. • It enables a manager to locate the sources of information, skills and competence to take certain vital managerial decisions.

29. Common Organizational STRUCTURES Traditional Organizational Structures SIMPLE STRUCTURE – low departmentalization, wide spans of control, authority centralized in a single person, and little formalization commonly used by small businesses as organizations increase in size, the structure tends to become more specialized and formalized

30. 0 Vertical Functional Approach • Grouping of positions into departments based on similar skills, expertise, and resource use • Information flows up and down • Chain of command converges at the top • Managers and employees are compatible because of similar training and expertise • Rules and procedures governing duties and responsibilities

32. Project Structure - employees work continuously on projects all work performed by teams comprised of employees with appropriate skills and abilities tends to be very fluid and flexible no rigid departmentalization or organization hierarchy managers serve as facilitators and mentors

33. Matrix Structure- assigns specialists from different functional departments to work on projects led by project managers adds vertical dimension to the traditional horizontal functional departments creates a dual chain of command violates unity of command project managers have authority in areas relative to the project’s goals functional managers retain authority over human resource decisions (e.g., promotions)

34. A Matrix Organization in an Aerospace Firm

35. Virtual Organization Consists of a small core of full time employees & that temporarily hires outside specialists to work on opportunities that arise. By relying on web for freelances around the globe, the company enjoys a network of talent without all the unnecessary overhead & structural complexity. 10-

36. Learning Organization- an organizational mind-set rather than a specific organizational structure has developed the capacity to continuously adapt all members take an active role in identifying and resolving work-related issues practice knowledge management by continually acquiring and sharing new knowledge environment is conducive to open communication empowered teams are important leadership creates a shared vision for the future organizational culture provides sense of community

37. Characteristics Of A Learning Organization • Organizational Design • Boundaryless • Teams • Empowerment The Learning Organization • Organizational Culture • Strong Mutual • Relationships • Sense of Community • Caring • Trust • Information Sharing • Open • Timely • Accurate • Leadership • Shared Vision • Collaboration