22509_Management_CO1_LO4_PART2_PPT (1).pptx

22509_Management_CO1_LO4_PART2_PPT (1).pptx

1. Management-22509 Unit No-1 Introduction to Management Concept and Managerial Skills. (For MSBTE Diploma Engineering students) Ravindra Nafade , Lecturer in Mechanical Engg , Government Polytechnic, Nashik

2. Course Outcome: Use basic management principles to execute the daily activities. Ravindra Nafade , Lecturer in Mechanical Engg . Government Polytechnic , Nashik

3. Unit No.-1: Introduction to Management Concept and Managerial Skills . UO-4: Suggest the suitable type of organisation structure for the given examples

4. PART ONE 1. Organisational Structure 2. Principles of Organising. PART TWO 1. Types of Organisation 2. Steps in Organising CONTENT

5. Objectives (PART-2) After this session you should be able to – 1 . List the types of organisation. 2. Explain the functions of various types of organisation. 3. Differentiate between the various types of organisation. 4. Suggest the suitable type of organisation for a given example. .

6. Organization Organizational structure  : It is a plan that outlines who reports to whom and who is responsible for what. It defines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational goal. Features of Organizational structure: shows the authority and responsibility relationship between the various positions of the organization set of planned relationships ( Formal task allotted )between groups .Related to functions , physical and personal factors . should not be static but dynamic, subject to change from time to time in as business environment changes .

7. Types of Organization structures Following are the organisation structures- 1. Line, Military or Scalar Organization 2. Functional Organization 3. Line and Staff Organization

8. 1. Line, Military or Scalar Organization Orders and instructions issued from the top level is followed by the people below. In line organization authority flows vertically downward from top to bottom throughout the organization. As the flow of authority moves from top to bottom, this is also called line or scalar organization. People at different levels know to whom they are accountable. The quantum of authority is highest at the top and reduces at each successive level. The superior communicates his decision and orders to his subordinates. The subordinates, in turn, can communicate them to those who are immediately under them.

9. Line, Military or Scalar Organization The advantages of line organization are - Simple: It is simple and easy to understand. Flexibility: Is flexible and easy to expand or contract. Fixed Responsibility: Clear division of authority and responsibility, hence no scope of shifting the responsibility. Unity of command and better discipline. Quick Decisions: It encourages speedy action. Disadvantages Lack of specialisation. Over reliance on superiors decision: As line executives decisions are implemented to the bottom It overloads a few key executives. Inadequate communication: Chances of delay in communicating the orders to subordinates by superiors therefore, possibility of distortion, due to long channel. Authority Leadership: It encourages dictatorial way of working . Applications: Suitable for factories of small and medium size, where the number of subordinate and operational staff is less. Suitable for continuous process such as sugar, paper, oil refining, spinning and weaving industries, textiles, etc. Suitable where automatic plants are used.

10. 2. Functional Organization Functional organization is created by grouping , various activities of whole of the enterprise according to certain functions like production, marketing, finance, personnel etc. Each functional area is put under the charge of functional specialists.(Manager) A functional incharge directs the subordinates throughout the organization in his particular area of business operation. Subordinates receive orders and instructions not from one superior but from several functional specialist.

11. Functional Organization Advantages of functional organization Quality of work is better due to specialisation . Mass production by standardisation and specialisation. Wastage of materials, man and machine hours are reduced due to expert guidance is available Unnecessary overloading of responsibilities will not be there, as was in the case of line organization. Clarity in functioning and no duplication . Disadvantages As line workers will not be using their skills, their initiative cannot be utilised. It is very difficult to fix up the responsibility to any one foreman in case something goes wrong. Workers will always be confused about the authority and activity of each expert. Lack of coordination among functional executives and subordinates. By employing high waged experts, the total cost of job may become high. Industrial relationships become more complex. Application: A pure functionalised system is rarely found in practice. This is appropriate for large manufacturing using concerns which are capable of expansion in future.

12. 3. Line and Staff Organization Line and staff organization has advantages of both line and functional organization. Line authority flows down the chain of command Line executives have supervisory authority and control over subordinates. Authority flows from top to bottom as it does in the line organization In addition, specialists called staff are recruited to advise the line executives on important matters. Staff authority is the right to advise or counsel those with line authority. The staff officials do not have any power of command in the organization as they are employed only to provide expert advice to the line manager .

13. Line and Staff Organization Advantages : Specialized and expert advice from staff executives is available. Reduction of burden on line managers. Better decisions, as staff specialists help the line managers Unity of command Flexible when compared to functional organization. Less wastage of material, man and machine hours. Quality of product is improved. Disadvantages : If allocation of duties between line and staff is not clear, it may give rise to confusions. There might be conflict between line and staff executives. Since staff is not accountable, they may not perform well. Product cost will increase because of high salaries of staff executives Application: Now-a-days this type of organization is preferred for medium and large scale industries. It is applied in automobile industries and other intermittent nature of industries

14. Steps in organizing After determining the objectives of enterprise the following step to be followed: 1. Identification of activities 2. Grouping of activities. 3. Assignment of responsibilities. 4. Granting authority - Delegation of authority 5. Establishing relationship - Providing physical facilities and proper environment

15. Summary Types of organization : 1. Line, Military or Scalar Organization : Advantages: Simple, Flexible, Fixed Responsibility, Unity of command and better discipline. Quick Decisions. Disadvantages : Lack of specialisation, Over reliance , Overloads a few key executives, Inadequate communication. Applications: Suitable for factories of small and medium scale. 2. Functional Organization : Advantages: Quality of work due to specialisation, Disadvantages : Difficult to fix up the responsibility , confusion may occur about authority and responsibility. Applications: Suitable for factories of small and medium . 3. Line and Staff Organization Advantages: Specialized and expert advice , Better decisions, Disadvantages : Might be conflict between line and staff executives. Applications: Suitable for medium and large scale industries. Steps in organizing: . 1. Identification of activities 2. Grouping of activities. 3. Assignment of responsibilities. 4. Granting authority - Delegation of authority 5. Establishing relationship .

16. Thank You