1. CHARCTERISTICS An organization has a purpose
It has a clear concept of the major duties or activities
It has a classification of activities into jobs
It has an establishment of relationships between these jobs

3. Span of Management Sales Manager Sales Manager Salesmen Asst. Manager
Meaning and Importance It means that number of subordinates who report directly to a manager Span affects the efficiency of managers and the effective performance of their subordinates Organizational structure depends on the span of management. It may be a tall or flat organization
Sales Manager
Sales Manager
Salesmen
Asst. Manager
Salesmen

4. What is an appropriate span?
The ideal number of subordinates is 3 to 6
The limiting factor is no of relationship
Direct one-to-one relationship
Direct group relationship
n[(22/2)-1]
3. Cross-relationships n[(22/2)+n-1]

5. Factors Governing the Span of Management
Ability of the manager
Ability of the employees
Type of work
Well-defined authority and responsibility
Geographic location
Sophisticated information and control system
Level of management
Economic considerations

6. Principles of Organizing
Objectives
Specialization
Span of control
Exception
Scalar principle
Unity of command
Delegation
Responsibility
Authority
Efficiency
Simplicity
Flexibility
Balance
Unity of direction
Personal ability
Acceptability

8. CHOICE OF SUITABLE BASE
SPECILISATION
COORDINATION
ECONOMY
WHOLE TASK

9. ORGANIZATION STRUCTURE
ORGANIZATION CHART – Vertical, Horizontal and Circular
ORGANIZATION MANUALS
Company’s mission and philosophy
Company’s objectives, policies and processes
Authority and responsibility of each person
Relationship of each position with other positions
Committees- membership, objectives & functions
MECHANISTIC AND ORGANIC STRUCTURES
Mechanistic or classical organization structure
Pyramid-shaped, Tall organization
Organic or behavioural structure - Flat
WHAT TYPE OF STRUCTURE IS BEST?
Environment
Culture
Task
Technology
Strategy

10. ORGANIZATION STRUCTURE
WHAT TYPE OF STRUCTURE IS BEST?
Size
Span of Control
Form
Managerial Characteristics
Employee Characteristics
COLLATERAL ORGANIZATIONS
Mode of functioning could be to involve both
mechanistic or organic structure depends on
his problem
VIRTUAL ORGANIZATIONS
1. Technology
2. Opportunism
3. No borders
4. Trust
5. Excellence

11. COMMITTEES
GROUP OF PEOPLE FORMALLY ASSIGNED A TASK OR A PROBLEM FOR SOLUTION
TYPES OF COMMITTEES
Advisory committee
Executive committee
Standing committee
ADVANTAGES
Committees help to understand each other
It helps to improve the quality of decisions
It helps to communicate either upward or downward

12. COMMITTEES WEAKNESSES Committees delay decision making
It encourages irresponsibility
It consumes more money
It is difficult to dissolve the committees after their term is over
Log-rolling phenomena affects the decisions
Suggestions for making the committees effective
Committees must have minimum number of members
Members must have equal powers
Chairman of the committee must be firm and fair in dealing with issues

13. TEAMS
What do you mean by a Team? A team is a small group of people with different backgrounds, skills and knowledge They are drawn from different function areas of the organization to work together on a specific and defined task One of the member will be designated as Team leader
What are the characteristics of a Team? Skill diversity, clear and defined objectives, task oriented and the entire team is responsible for the task are the characteristics of a team

14. Problem-solving teams Permanent Work Teams
TYPES OF TEAMS
Project Teams
Problem-solving teams
Permanent Work Teams

15. IMPORTANT TERMS AND DESCRIPTIONS
What is called Parochialism? Teams overcome the functional insulation and it is flexible to adopt to any role
What is called social loafing? In a team, there is a possibility that an individual reduce his/her effort and performance levels since they think that the performance of others will cover for their reduced effort.
What is called sucker effect? Sucker Effect means that few individuals do not want to do more than their perception of effort being given by others in the team

16. FORMAL WORK GROUP AND TEAM
Superior-subordinate relationship are maintained
Leadership and composition are permanent in nature
Management is by direction and control
Communication is up and down
Decisions are based on simple majority
Purpose is same as organization’s
No such relationships are there
It changes according to the situation
Management is by integration and self-discipline
Communication is lateral
Decisions are unanimous
Purpose is specific

17. DECENTRALISATION AND DELEGATION OF AUTHORITY
Classical View Authority originates from and flows down to subordinates
Human Relations View Acceptance of authority by subordinates and it is considered to be legitimate
Tradition
Rationality
Charisma

18. It is the institutionalized right of a superior
AUTHORITY Vs POWER
It is the institutionalized right of a superior
No position; no authority
It can be delegated
It is formal
It is the ability of the person to influence an another person
Power remains even if position changes
It cannot be delegated
It is informal

19. It enforces obedience to norms
USES OF AUTHORITY
It enforces obedience to norms
It secures expertise in the making of decisions
It permits centralization of decision making and coordination of activity
RESPONSIBILITY
AUTHORITY should equal RESPONSIBILITY

20. LINE, STAFF AND FUNCTIONAL AUTHORITY
HIGHEST
FUNCTIONAL AUTHORITY
CONCURRING AUTHORITY
COMPULSORY CONSULTATION
VOLUNTARY CONSULTATION
LOWEST
Fig LEVELS OF AUTHORITY OF A STAFF MAN

21. GUIDELINES FOR EFFECTIVE DELEGATION
Make the scope and nature of the task clear
Assign the authority proportionate to the task
Make the subordinates understand the limits of his authority
Provide incentives to the subordinate for accepting responsibility
Train them properly
Create climate of mutual trust and goodwill
Let there be no overlaps or splits in delegation

22. DECENTRALIZATION OF AUTHORITY
Delegation is a process
Superior continues to be responsible
Delegation is vital
Decentralization is the end result
Subordinates become liable for the work
Decentralization is optional

23. ADVANTAGES OF DECENTRALIZATION
It reduces problem of communication and red tape
It permits quicker and better decision making
It recognises and actually capitalizes on the importance of human element
It leads to competitive climate within the organization
It ensures the development of employees