1. Organizing
Ankita Prabhakar, Asst. Prof.

2. Meaning
Management process of determining how best to arrange an organization's resources and activities into a coherent structure.
Identifying and arranging the work and resources needed to achieve the goals that have been set
Ankita Prabhakar, Asst. Prof.

3. Process Step 1: Review plans and objectives
Objectives are the specific activities that must be completed to achieve goals. Plans shape the activities needed to reach those goals. Managers must examine plans initially and continue to do so as plans change and new goals are developed.
Ankita Prabhakar, Asst. Prof.

4. Process (contd.)
Step 2: Determine the work activities necessary to accomplish objectives
Although this task may seem overwhelming to some managers, it doesn't need to be. Managers simply list and analyze all the tasks that need to be accomplished in order to reach organizational goals.
Step 3: Classify and group the necessary work activities into manageable units
A manager can group activities based on four models of departmentalization: functional, geographical, product, and customer.
Step 4: Assign activities and delegate authority
Managers assign the defined work activities to specific individuals. Also, they give each individual the authority (right) to carry out the assigned tasks.
Step 5:Design a hierarchy of relationships/Authority & Responsibility relationships
A manager should determine the vertical (decision-making) and horizontal (coordinating) relationships of the organization as a whole. Next, using the organizational chart, a manager should diagram the relationships.
Ankita Prabhakar, Asst. Prof.

5. Step 1: Job Design Factors affecting
Job design means to decide the contents of a job. It fixes the duties and responsibilities of the job, the methods of doing the job and the relationships between the job holder (manager) and his superiors, subordinates and colleagues.
Factors affecting
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6. Step:2 Departmentalization
It is the process of grouping tasks into jobs, the combining of jobs into effective work groups and the combining of groups into identifiable segment or departments
Fixation of Responsibility
Specialization
Autonomy
Importance
Management Development
Appraisal
Administrative Control
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7. Bases /Types of Departmentalization
Functional Department--ation
Product Department- -ation
Territorial Department--ation
Customer Department--ation
Process Department--ation
Time Department--ation
Composite Department--ation
Ankita Prabhakar, Asst. Prof.

8. a) Functional Departmentalization
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9. b) Product Departmentalization
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10. c) Territorial Departmentalization
B.O.D
Managing Director
Northern Region
Western Region
Central Region
Southern Region
Ankita Prabhakar, Asst. Prof.

11. d) Customer Departmentalization
B.O.D.
Managing Director
Wholesaler
Retailer
Export
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12. e) Process Departmentalization
B.O.D.
Managing Director
Ginning
Spinning
Weaving
Dyeing
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13. f) Time Departmentalization
B.O.D.
Managing Director
Morning Shift
Noon Shift
Evening Shift
Night Shift
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14. g) Composite Departmentalization
Combination of more than one departmentalization in one organization structure.
Ankita Prabhakar, Asst. Prof.

15. Step 3: Delegation
Delegation means assigning work to others and giving them authority to do it.
Delegation by Result Expected
Clear Definition of Functions
Parity between Authority & Responsibility
Principles of Delegation
Well defined limits of Authority
Absoluteness of Responsibility
Unity of Command
Ankita Prabhakar, Asst. Prof.

16. Step4: Span of Management
It refers to the number of subordinates that report directly to a single manager or superior.
Graicunas Theory
V.A.Graicunas has identified three types of superior subordinate relationship –
Direct Single
Relationship
Direct Group
Relationship
Cross
Relationship
Ankita Prabhakar, Asst. Prof.

17. Factors Determining Span of Management
Nature of Work
Ability of the Manager
Communication Techniques
Capacity of Subordinates
Staff Assistance
Spatial Proximity
Planning
Impact of Span on Organization Structure
Tall
Flat
Ankita Prabhakar, Asst. Prof.

18. Step 5: Authority & Responsibility Relationships
It is the right to decide and to direct others to perform certain duties in achieving organizational goals.
“Authority may be defined as the power to make decision which guide the actions of others” – Simon
Power refers to the ability or capacity to influence the behavior or attitude of other individual.
Legitimate Power
Referent Power
Reward Power
Coercive Power
Expert Power
Ankita Prabhakar, Asst. Prof.

19. Responsibility
“It is defined as the obligation of a subordinate, to whom duty has been assigned to perform the duty”
– Koontz & O’Donnell
“It is the obligation of an individual to perform assigned duties to the best of his ability under the direction of his executive leader”
– R.C.Davis
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20. Sources of Authority Formal Authority Theory
Authority originates at the top of an organization and flows downwards through the process of delegation
Every manager has only that much authority which has been delegated to him by his superior
Also called traditional or legitimate authority
Formal Authority Theory
The authority of the superior is meaningless unless it is accepted by his subordinates
Acc to this theory, authority evolves from below!
Chester Barnard suggests that subordinate will accept an order if he understand it well and is compatible with his personal interest
Acceptance Authority Theory
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21. Sources of Authority (contd.)
An individual derives authority from his personal competence and charisma
Thus, a person may get his order accepted because of his personal qualities!
Competence Authority Theory
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22. Decentralization
It refers to the systematic effort to delegate to the lowest levels all authority except that which can only be exercised at central points.
Ernest Dale’s Degree of decentralization Measuring Test (EDMT)
a) Number of Decisions b) Importance of Decision
c) Effects of Decision d) Checking of Decision
Factors
Degree of Diversification
Top Management Ideology
History of the enterprise
Planning & control Procedures
Availability of competent Workforce
Size & Complexity of the Org.
Ankita Prabhakar, Asst. Prof.