1. ORGANIZING
24/8/2016

2. Organizing
People know that they must cooperate with each other to get things done.
This requires understanding of what role each one plays in the organization, and how their roles are interrelated with others
Designing and maintaining these systems of roles is the managerial function of organizing

3. Organizing For an organizational role to exist, it must have
Verifiable objectives
A clear idea of what major activities or duties involved; and
An understood area of discretion or authority, so that the person filling the role can effectively carryout the workx

4. Organizing - Definition
Organizing is the grouping of activities necessary to attain objectives, the assignment of each grouping to a manager with authority necessary to supervise it, and the provision for coordination horizontally and vertically in the enterprise structure

5. Organization Structure
An organization structure should be designed
To clarify who is to do what and who is responsible for what results;
To remove obstacles to performance caused by confusion and uncertainty of assignments; and
To furnish decision-making and communication networks reflecting and supporting enterprise objectives

6. Spans and Organization level
Narrow span
Wide span

7. Narrow span Close supervision Close control
Fast communication between superiors and subordinates
Superiors tend to get too involved in subordinates work
Many levels of management
High costs due to many levels
Excessive distance between lowest and top level

8. Wide span Superiors are forced to delegate Clear policies must be made
Subordinates must be carefully selected
Tendency of overloaded superiors to become decision bottlenecks
Danger of superiors loss of control
Requires exception quality of managers

9. Factors influencing the span of management
Narrow span
Wide span
No or little training
Inadequate or unclear authority delegation
Unclear plans for non repetitive operations
Non verifiable objectives and standards
Fast changes in external and internal environment
Complex task
Greater number of specialties at lower and middle levels
Thorough training
Clear delegation to undertake well defined tasks

10. Organization Process Enterprise objectives Supporting objectives
Identification and classification of required activities
Grouping of activities in light of resources and situations
Delegation of authority
Horizontal and vertical coordination of authority

11. What could be the size of an organization?

12. Basic Departmentation
The limitation on the number of subordinates that can be directly managed would restrict the size of enterprise if it were not for the device of departmentation
Grouping activities and people into departments make it possible to expand organizations to an infinite degree
Departments differ with respect to the basic patterns used to group activities

13. Types of departmentation
Departmentation by time
Departmentation by Enterprise function
Departmentation by territory or Geography
Departmentation by product
Departmentation by customer
Departmentation by market-orientation
Matrix organization

14. Framework for discussion
Factors
Topic of discussion
Need for
Responsibility of profits
(Where the responsibility lies)
Development of personnel
Opportunity for development/training
Coordination of functions
Where the coordination should be
Economy of scale of operations
Possibility of central services / local services
Organization control
Easy or difficult
Planning
Simple/more coordination/at which level
Capabilities of personnel
High/level of skills
Communication with market/customer
Facilitation of communication

19. Matrix organization

20. Types of structure Line structure Staff structure Functional structure
Project structure

21. Directing
Directing is the process of integrating people with the organization so as to obtain their willing and zealous cooperation for the achievement of its goals
This requires integration of organizational goals with the individual and group goals

22. Direction Strategies Rational Economic Man and Directing strategy
Based on Theory X
Social Man and Directing strategy
Based on Hawthorne studies
Self-actualizing Man and Directing strategy
Based on Theory Y
Complex man and Directing strategy

23. Rational Economic Man and Directing strategy
Theory X
Man’s primary motivation is economic gain and he does all that which maximizes it
Economic incentives are under the control of the organisation, and people are passive agents to be manipulated and controlled by the organisation
People tend to have irrational feelings and such feelings must be prevented from interfering in his calculations of maximization of his economic gains
Man is inherently lazy and avoids work. He must be motivated by external incentives
Individual goals run counter to organizational goals. He must be controlled by external forces to get him to direct his efforts towards organizationally desired channels
Directing strategy:
Find the “one best way” of performing job
Select right person for right job
Motivate through an incentive scheme

24. Social Man and Directing Strategy
Employees are motivated by social needs and gain a sense of identity through social relationships
Employees are more responsive to the social forces of their peer group than to the control and incentives provided by management
Paying more attention to the social needs of employees
Accepting informal groups as a reality of organisational like and focusing on group incentives

25. Self actualizing man and directing strategy
People seek to mature on the job and are capable of doing so.
People wanted to created autonomy in their work
People tend to integrate self goals with that of organization’s
Making work challenging and meaningful
Acting as a catalyst and a facilitator
Delegating adequate authority

26. Complex man and directing strategy
Man is complex and variable. He requires variety of needs, which keep on changing from time to time
People are capable of learning new motives through their experiences
People in different organizations and different sub parts of the same organisation differ in their motivational pattern
Manager must understand the needs, motives and attitudes of his employees
Strategy has to be on individual basis
The manager must have flexibility and resources to vary his strategy

27. Delegation
Delegation is about is giving a subordinate “discretion to make decisions” by the seniors
The process of delegation involves
Determination of results expected from a position
Assignment of task to a position
Delegation of authority for accomplishing these tasks
Holding of people in positions responsible for accomplishment of tasks

28. Principle of delegation
Principle of delegation by results expected
Authority delegated should be adequate to ensure the results expected
Principle of functional definition
The more clearer the results expected, informational relationships with other positions, more adequately the individual can contribute to the organisational goal
Scalar principle
Clearer the line of authority, clearer will be the responsibility to decision making
Authority level principle
Decisions made by the individual need not be referred upward in the organisation structure

29. Principle of delegation
Principle of unity of command
More clearer the reporting relationship to a single superior, less is the problem of conflicting instructions and greater the feeling of personal responsibility for results
Principle of absoluteness of responsibility
The superiors cannot escape the responsibility for the organisation activities of the subordinates
Principle of parity of authority and responsibility
The responsibility for actions cannot be greater than the authority delegated nor should it be lesser

30. Principles of organization
The purpose of organizing
Aid in making objectives meaningful and to contribute to organizational efficiency
Principle of unity of objective
Organisation structure is effective if individuals could contribute to enterprise objectives
Principle of organizational efficiency
The structure should ensure minimum costs in accomplishing enterprise objectives
The cause of organizing
The basic cause of organization structure is the limitation of the span of management
What if there is no such limitation?
Span-of-management principle
There is a limit to the number of person an individual can effectively manage

31. Principles of organization
The structure of organization: Authority
Scalar principles
Principle of delegation by results expected
Principle of absoluteness of responsibility
Principle of parity of authority and responsibility
Principle of unity of command
The authority-level principle

32. Principles of Organising
Process of organising
Principle of balance
Principle of flexibility
Principle of leadership facilitation

33. Motivational Theory Maslow’s Hierarchy Theory
Herzberg’s Two-factor theory
Expectancy theory
Vroom theory
Porter and Lawler Model

34. Maslow’s and Two factor theory
Self actualization
Esteem or status
Affiliation or acceptance
Security or
Safety
Physiological needs
Interpersonal relations
Company policy and administration
Quality of supervision
Working conditions
Job security
Salary
Personal life
Challenging work
Achievement
Growth in the job
Responsibility
Advancement
Recognition
Status

35. Expectancy theory (Vroom Theory)
Motivation is a product of the anticipated worth than an individual places on a goal and the chances he or she sees of achieving these goals
Force = Valence x Expectancy
Force is the strength of a persons motivation
Valence is the individual preference for an outcome
Expectancy is the probability that a particular action will lead to a desire outcome

36. Porter and Lawler theory
Value of rewards
Perceived equitable rewards
Ability to do a specified task
Intrinsic reward
Performance accomplishment
Satisfaction
Effort
Extrinsic reward
Perception of task required
Perceived effort – reward probability