1. Principles of Management Organising Organisation Chart Span of Management Departmentation Delegation Decentralisation www.mbainfoline.com

2. Organising “It is defining and grouping the activities of the enterprise and establishing authority, responsibility and relationships among them.”

3. Steps in Organising Process 1.Identification of tasks involved 2.Differentiation 3.Departmentation 4.Delegation and decentralisation 5.Monitoring the effectiveness of the organisation and making adjustments to maintain or increase effectiveness

4. Organisation Chart “It is a diagramatic representation of all the positions in an organisation and their formal relationships to one another. It illustrates an organisation’s overall shape and the levels of management in a comprehensible manner.”

5. Span of Management “It refers to the number of subordinates who report directly to a manager.” The ideal number of subordinates for all superior positions to be four and at the lower level of organisation the number may be eight or twelve.

6. Relationships on Span of Control 1.Direct one-to-one relationships 2.Direct group relationships 3.Cross relationships

7. Factors influencing Span of Management 1.Managers’ personality 2.Managers’ capability 3.Subordinates capabilities 4.Fatigue tolerance 5.Activity level 6.Non-supervisory activities 7.Supervision of routine and non-routine activities 8.Complexity of work 9.Availability of sophisticated facilities 10.location

8. Organisation – structure : Departmentation “It is the process of dividing the organisation into manageable subunits. The subunits are often referred to as departments, divisions, or sections. By whatever name the units are called, the process is known as departmentation.”

9. Basis of Departmentation 1.Functional departmentation 2.Product departmentation 3.Market departmentation 4.Customer departmentation 5.Project organisation 6.Matrix structure

10. Delegation “It is the process by which authority is granted to a subordinate by his superior.” Authority: is the right to command

11. Delegation Process 1.Entrustment of duties or assignment of responsibilities 2.Granting of authority 3.Creation of accountability

12. Decentralisation of Authority In delegation authority is transferred on one- to-one basis from the superior to subordinate, whereas decentralisation of authority is broader in scope and involves the transfer of authority in the organisation context from top to the lower rungs of management in the hierarchy.

13. Factors influencing Decentralisation 1.Philosophy of top management 2.Attitude of subordinate managers 3.The cost and impact of the decisions 4.Company size and growth 5.Organisation’s environment