management function of organising

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MANAGEMENT FUNCTION OF ORGANINSING : 

MANAGEMENT FUNCTION OF ORGANINSING JEETENDRA RAI (CO-ORDINATOR) ATUL MISHRA SHISHIR GUPTA ANKUR VERMA JEETENDRA KR. YADAV

HENRY FAYOL : 

HENRY FAYOL Henry Fayol (1841–1925) was the French pioneer of management theory.Fayol believed management theories could be developed, then taught. His theories were published in a monograph titled General and Industrial Management (1916). This book offers the first theory of general management and statement of management principles. His theorising about administration was built on personal observation and experience of what worked well in terms of organization

Fayol's five functions are still relevant to discussion today about management roles and action. : 

Fayol's five functions are still relevant to discussion today about management roles and action. To forecast and plan - prevoyance: Examine the future and make plans of action To organise: Build up the structure, material and human of the undertaking To command: Maintain activity among the personnel To co-ordinate: Bind together, unify and harmonise activity and effort To control: See that everything occurs comfortably with policy and practise

Fayol also synthesised 14 principles for organizational effective administration. : 

Fayol also synthesised 14 principles for organizational effective administration. Specialization of labour : Specializing helps people to improve their skills and develop improvements in methods. Authority : The right to give orders and the power to exact obedience Discipline: The workers should obey and show respect to the organization. Unity of command: Each employee has one and only one boss Unity of direction: A single mind creates a single plan and all play their part in that plan.

Slide 5: 

Subordination of Individual Interests: At work nothing should be thought rather than work. Remuneration: Payment is an important motivator , so it must be fair in order to keep both the employees and employers satisfied Centralization: Consolidation of management functions: Employer gives the orders. Chain of Superiors (line of authority): There is a hierarchy that commands are given from top to bottom. Order: All materials and personnel have their own stable places and they must remain there. Equity: Equality of treatment (but not necessarily identical treatment)

Slide 6: 

Personnel Tenure : Limited turnover of personnel. Lifetime employment for good workers. Initiative: Thinking out a plan and do what it takes to make it happen. Esprit de corps: Here Fayol emphasises the need for building and maintaining of harmony among the work force , team work and sound interpersonal relationships.

MANAGEMENT FUNCTION OF ORGANIZING : 

MANAGEMENT FUNCTION OF ORGANIZING Organizing means a process of identifying the activities to be performed, grouping these activities into work units, assigning takes to the various job position, defining rules and established the relationship of authority and responsibility among them. The process of arranging people and other resources to work together to accomplish a goal.

In fact it consists of two sub-processes : 

In fact it consists of two sub-processes Differentiation- It is process of dividing and sub-dividing unit of activity or authority into identifiable sub units because every single person cannot handle the total activity of authority of the organization. Integration- It is a process of coordinating differentiated unit together so as to ensure unity of efforts and harmony in the functioning of the organization. “ The higher the degree of differentiation, the greater is the need of integration ”

Figure 1.1 Organizing viewed in relationship with the other management functions : 

Figure 1.1 Organizing viewed in relationship with the other management functions

IMPORTANCE OF ORGANISING : 

IMPORTANCE OF ORGANISING Job section and working rates It permits to decision making Reduces the work load Interaction among various managerial positions Principal of division of work, unity of command Span of management or control and parity of authority and responsibility.

SPAN OF MANAGEMENT/SPAN OF CONTROL : 

SPAN OF MANAGEMENT/SPAN OF CONTROL I here is a limit to the number of subordinates which a manger can directly control. This limit is known as span of management i.e. it means the no of subordinates that report directly to a manager. When a manager manages a small number of subordinate it is called narrow span of management. While if where are large number of subordinate it is called wide span of management. There is no specific limit to decide the span of management as it varies organization and situation to situation.

Figure 1.2 Spans of control in “wide” versus “narrow” structures : 

Figure 1.2 Spans of control in “wide” versus “narrow” structures

Span of management depends on : 

Span of management depends on Nature of Work Organizational Planning Staff assistance Communication techniques Use of electronic and other devices Ability and capacity of managers and subordinate Graphical dispersion of subordinate Degree of Decentralisation

DELEGATION OF AUTHORITY : 

DELEGATION OF AUTHORITY Delegation of Authority is a process by which managers assign some of their tasks to their subordinate and permit them to exercise authority of their behalf. The manager also holds them accountable for their performance. Delegation of authority is the mean by which total authority vested in top management is passed to the next chain in a graded manner.

STEPS IN DELEGATION : 

STEPS IN DELEGATION Define the task Division of work a) Task which he should handle alone b) Task which has to be assigned to his subordinate Assignment of duties Granting of Authority Creating Accountability

NEED AND IMPORTANCE OF DELEGATION : 

NEED AND IMPORTANCE OF DELEGATION Managers to distribute their work load to other Quick decision making as the authority Improving the job satisfaction, motivation and morale of subordinate Manager can maintain a healthy relationship with them Promotes the superior and subordinate relationship Acquire valuable experience in decision making

DISADVANTAGES OF DELEGATION OF AUTHORITY : 

DISADVANTAGES OF DELEGATION OF AUTHORITY Better control than why to delegate They afraid of that subordinate may dominate and replace them. Authorities may reduce their power and status is the organization. Motivate their subordinate cannot delegate authority effectively. Due to the lack of explicity, clearity and formalness in the procedure of the organization.

GUIDELINES FOR EFFECTIVE DELEGATION OF AUTHORITY : 

GUIDELINES FOR EFFECTIVE DELEGATION OF AUTHORITY Function definition Delegation by results expected Priority of Authority and Responsibility Absoluteness of Responsibility Unity of command Well defined limit of authority Authority level principle Proper training Effective control mechanism Proper communication

CENTRALISATION DECENTRALISATION : 

CENTRALISATION DECENTRALISATION Centralization of authority refers to systematic retention or concentration of managerial authority in a relatively few managerial position at the top level i.e. managers at middle and operating level are vested with very little authority. It refers to systematic and purposeful dispersal of managerial authority among all levels of management i.e. managers at all levels are vested with authority upto their task and responsibility.

Advantages of Centralization Limitations of centralisation : 

Advantages of Centralization Limitations of centralisation little confusion as to the locus of authority Uniformity in organizational functioning Top management is strong and powerful Organizational focus is always on its goals and interest Result in lower cost of operations Absence of authority level managers become weak Top management usually abuses their excusive Top management becomes over burden Bureaucratic and autoerotic and discourages initiative Communication system tends to be weak

Advantages of Decentralisation Limitations of Decentralisation : 

Advantages of Decentralisation Limitations of Decentralisation Executives from routine and repetitive responsibility Enable large and multi product organizations Facilitates growth and diversification of the organisation organisation has multiple managerial centers Improve the quality of operating decisions less beuroeratic and more democrates Staff at operating level increases the cost operation Result in loss of control over semi-autonomous unit Semi-autonomous units requires general management skill Difficult to ensure uniformity of decisions Actions between semi-autonomous units Operating units may conflicts between them

Forms/ Pattern/ Basis of Decentralisation : 

Forms/ Pattern/ Basis of Decentralisation Geographical decentralisation Functional decentralisation Product decentralisation Profit decentralisation

BALANCE BETWEEN CENTRALISATION AND DECETRALISATION : 

BALANCE BETWEEN CENTRALISATION AND DECETRALISATION If the decision is costier in terms of monetary and other aspects the need for centralisation of authority increases. Decisions where the organisation commits itself over a longer period centralisation are proffered. Authority should be decentralised for the decision which need to be taken near the point of action. Decision which are departmental or have interred divisional implications need to be taken at higher level which have requisite authority

LINE AND STAFF : 

LINE AND STAFF On the basis of nature of activities :-All primary and core activities which are directly related to the attainment of organizational goal are known as Line activities. All secondary and supportive activities which facilitate the execution of line activities are designated as staff activities. On the basis of authority :- Line authority means the formal right vested in a manager to perform his managerial functions such as planning, organizing. Staff authority means the formal right vested in a manager to undertake a advisory and supportive activities in relation to the authority

TYPES OF STAFF UNIT AND THEIR ROLES : 

TYPES OF STAFF UNIT AND THEIR ROLES Personal staff– It is attached to the individual manager to perform the task which the manager cannot delegate. General staff– it is attached with the top management to advice and assists in decision making, control, co-ordination. They prepare reports, draft proposal and make recommendation on major organizational issues Specialized Staff– It provides experts advice and guidance to operating unites at various levels of organizations.

LINE AND STAFF CONFLICTS : 

LINE AND STAFF CONFLICTS Line manager believe that staff experts are there to disturb the smooth flow of organizational working through give vague and irresponsible suggestion Lines manager have the view that staff experts without sharing the responsibility encroach the authority of he line on the contary staff experts feel that they deserve authority due to their expertise Line manager considered that creation of staff represents the lock of confidence in them by the top management Staff experts are better educated than line manager and enjoy better status in the organization this also creates complex in many managers

Line manager depend upon common sense and experience and prefer simple and easy to implement suggestatio. But staff experts give advice which has academic and intellectual flavors : 

Line manager depend upon common sense and experience and prefer simple and easy to implement suggestatio. But staff experts give advice which has academic and intellectual flavors When respective role and relationship of the line and staff are not clearly defined conflict are likely to arise Line staff distinction implies the division of work into planning and doing and hence the assumption that line are good in doing and staff are good in planning creates conflicts Line and staff activities are interdependent, success of line depends on the quality and timeliness of staff service whereas the performance of staff is evaluated in terms of utility of their advice to the line .this interdependence creates conflicts among them.

HOW TO RESOLVE LINE AND STAFF CONFLICTS : 

HOW TO RESOLVE LINE AND STAFF CONFLICTS Clarify relationship Educate line Compulsory staff advice Inform staff Sell advice Overcome résistance Competed staff work Orientation Position rotation

DESIGNING EFFECTIVE ORGANISATION : 

DESIGNING EFFECTIVE ORGANISATION The system of tasks, workflows, reporting relationships, and communication channels that link together diverse individuals and groups. Organizational structure refers to deliberate and purposive creation designed by the management to achieve some common goals. It is a structure or network of task roles and relationships among people working for a common organizational purpose. It provides the basic for the flow of authority as well as the flow of communication.

FORMAL INFORMAL ORGANIZATION ORGANIZATION : 

FORMAL INFORMAL ORGANIZATION ORGANIZATION Formal organization means the intentional structure of roles in a formally organized enterprise. A network of personal and social relations not established or required by the formal organization but arising spontaneously as people associate with one another

IT HAS TWO DIMENSIONS : 

IT HAS TWO DIMENSIONS Horizontal dimensions Vertical dimension VARIOUS FACTOR DETERMINING THE ORGANISATIONAL STRUCTURES Goals Strategy Technology External Environment Size of organization People

TYPE OF DEPARTMENTATION : 

TYPE OF DEPARTMENTATION Departmentation by Function Departmentation by Products Departmentation by Territory Departmentation by Customer Departmentation by Process Departmentation by time and numbers

FUNCTIONAL DEPARTMENTATION : 

FUNCTIONAL DEPARTMENTATION People with similar skills and performing similar tasks are grouped together into formal work units Members work in their functional areas of expertise Are not limited to businesses Work well for small organizations producing few products or services

Figure 1.3 Functional structures in a business branch bank, and community hospital : 

Figure 1.3 Functional structures in a business branch bank, and community hospital

ADVANTAGES DISADVANTAGES : 

ADVANTAGES DISADVANTAGES Economies of scale Task assignments consistent with expertise and training High-quality technical problem solving In-depth training and skill development Clear career paths within functions Difficulties in pinpointing responsibilities Sense of cooperation and common purpose break down Functional chimneys problem Narrow view of performance objectives Excessive upward referral of decisions.

DIVISIONAL DEPARTMENTATION : 

DIVISIONAL DEPARTMENTATION Group together people who work on the same product or process, serve similar customers, and/or are located in the same area or geographical region Common in complex organizations Avoid problems associated with functional structures

Figure 1.4 Divisional structures based on product, geography, customer, and process : 

Figure 1.4 Divisional structures based on product, geography, customer, and process

ADVANTAGES DISADVANTAGES : 

ADVANTAGES DISADVANTAGES More flexibility in responding to environmental changes Improved coordination Clear points of responsibility Greater ease in restructuring Expertise focused on specific customers, products, and regions Duplication of resources and efforts across divisions Competition and poor coordination across divisions Emphasis on divisional goals at expense of organizational goals

MATRIX STRUCTURE : 

MATRIX STRUCTURE Combines functional and divisional structures to gain advantages and minimize disadvantages of each Used in Manufacturing Service industries Professional fields Non-profit sector Multi-national corporations

Figure 1.4 Matrix structure in a small multi project business firm : 

Figure 1.4 Matrix structure in a small multi project business firm

ADVANTAGES DISADVANTAGES : 

ADVANTAGES DISADVANTAGES Two-boss system is susceptible to power struggles Team meetings are time consuming Team may develop “groupitis” Increased costs due to adding team leers to structure Two-boss system can create task confusion Better cooperation across functions Improved decision making Increased flexibility in restructuring Better customer service Better performance accountability

FREE FORM STUCTURE : 

FREE FORM STUCTURE In free form structure tasks, roles and authority relationship are not well defined. Members themselves decide the task to be performed and method of performing them. There is not chain of command or superior. Subordinate relationship. The interact is an is formal spontaneous manner stress is on voluntary commitment, consensus, cooperation. It is an opportunistic structure designed to exploit opportunities. It promotes innovation team spirit and self discipline. It is very suitable in a complex and turbulent environment

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