planning notes in a detailed format planning and decision making notes

Planning is the process of setting objectives and deciding in advance the actions required to achieve them.

It is the primary function of management because all other functions (organizing, staffing, directing, controlling) depend on it.

1. Module:2 – PLANNING, DECISION MAKING & ORGANIZATION STRUCTURE

2. MODULE:2 PLANNING, DECISION MAKING & ORGANIZATION STRUCTURE 12 Hrs Planning: Meaning and Definition, Features & Importance – Steps in planning Process – Types of Planning – Types of Plans (Meaning) – Advantages and Disadvantages of Planning - MBO & MBE (Meaning) Decision making: Meaning, Characteristics & Process – Types of Decisions Organization: Nature, Need and Importance – Organization Structure – Types of Organization Structure – Formal and Informal Organization s

3. MEANING AND DEFINITION MEANING Planning involves selecting missions and objectives and deciding on the actions to achieve them; it requires decision-making, i.e., choosing a course of action from among alternatives. Plans thus provide a rational approach to achieving preselected objectives. DEFINITIONS “Planning is the selecting and relating of facts and the making and using of assumptions regarding the future in the visualization to achieve desire results.” - George Terry “Planning is deciding advance what to do, how to do it, when to do it, who is to do it. It bridges the gap between where we are, where we want to go. It makes it possible for things to occur which would not otherwise happen.” - Koontz and O’Donnel

4. NATURE OF PLANNING Planning is goal-oriented Primacy of Planning Pervasiveness of Planning Efficiency, Economy and Accuracy Planning is an intellectual process Limiting Factors Flexibility Co-ordination

5. i. Planning is goal-oriented: Every plan must contribute in some positive way towards the accomplishment of group objectives. Planning has no meaning without being related to goals. ii. Primacy of Planning: Planning is the first of the managerial functions. It precedes all other management functions. iii. Pervasiveness of Planning: Planning is found at all levels of management. Top management looks after strategic planning. Middle management is in charge of administrative planning. Lower management has to concentrate on operational planning. iv. Efficiency, Economy and Accuracy: Efficiency of plan is measured by its contribution to the objectives as economically as possible. Planning also focuses on accurate forecasts. v. Planning is an intellectual process: The quality of planning will vary according to the quality of the mind of the manager. vi. Limiting Factors: A planner must recognize the limiting factors (money, manpower etc ) and formulate plans in the light of these critical factors. vii. Flexibility: The process of planning should be adaptable to changing environmental conditions. viii. Co-ordination: Planning co-ordinates the what, who, how, where and why of planning. Without co-ordination of all activities, we cannot have united efforts.

6. FEATURES OF PLANNING It is primary function of management. It is an intellectual process. Focuses on determining the objectives. Involves choice and decision making. It is a continuous process. It is a pervasive function.

7. IMPORTANCE OF PLANNING Planning seems to take a lot of effort. As a managerial function planning is important due to the following reasons:- i. To provide direction ii. To reduce / offset uncertainty and change iii. To minimize waste and redundancy iv. To set the standards to make control effective v. To manage by objectives vi. To help in co-ordination vii. To secure economy in operation viii. To increase organizational effectivenes s

8. Planning Process ( 1) Setting Objectives This is the primary step in the process of planning which specifies the objective of an organisation, i.e. what an organisation wants to achieve. The planning process begins with the setting of objectives. Objectives are end results which the management wants to achieve by its operations. Objectives are specific and are measurable in terms of units. Objectives are set for the organisation as a whole for all departments, and then departments set their own objectives within the framework of organisational objectives. ( 2) Developing Planning Premises Planning is essentially focused on the future, and there are certain events which are expected to affect the policy formation. Such events are external in nature and affect the planning adversely if ignored. Their understanding and fair assessment are necessary for effective planning. Such events are the assumptions on the basis of which plans are drawn and are known as planning premises. ( 3) Identifying Alternative Courses of Action Once objectives are set, assumptions are made. Then the next step is to act upon them. There may be many ways to act and achieve objectives. All the alternative courses of action should be identified.

9. (4) Evaluating Alternative Course of Action In this step, the positive and negative aspects of each alternative need to be evaluated in the light of objectives to be achieved. Every alternative is evaluated in terms of lower cost, lower risks, and higher returns, within the planning premises and within the availability of capital. (5) Selecting One Best Alternative The best plan, which is the most profitable plan and with minimum negative effects, is adopted and implemented. In such cases, the manager’s experience and judgement play an important role in selecting the best alternative. (6) Implementing the Plan This is the step where other managerial functions come into the picture. This step is concerned with “DOING WHAT IS REQUIRED”. In this step, managers communicate the plan to the employees clearly to help convert the plans into action. This step involves allocating the resources, organising for labour and purchase of machinery. (7) Follow Up Action Monitoring the plan constantly and taking feedback at regular intervals is called follow-up. Monitoring of plans is very important to ensure that the plans are being implemented according to the schedule. Regular checks and comparisons of the results with set standards are done to ensure that objectives are achieved.

10. Types of Planning Strategic Planning Strategic planning involves decisions about the organisation’s long term goals such as survival, growth etc. It involves setting long term objectives (by top management) and deciding about the judicious deployment of resources to achieve those objectives. Strategic planning, thus, is long-term in nature. It tends to be a top management responsibility. It requires looking outside the organisation for threats and opportunities. It also requires looking inside the organisation for finding out weaknesses and strengths. It affects many parts of the organisation, as its decisions have enduring effects that are difficult to reverse. It tries to equip the organisation with capabilities needed to confront future uncertainties, by taking a holistic view of the entire organisation. Its focus is clearly on the ‘jungle, not the trees’. The main objective is to position the firm in an advantageous position in relation to the environment, keeping the firm’s own capabilities in mind. Example:  In business, it means how much money is going to be dedicated to a project, and by when you expect the project complete. In personal life, suppose you plan a wedding, it means deciding on the budget and the date .

11. Tactical Planning Tactical planning translates broad strategic goals and plans into specific goals and plans that are relevant to a definite portion of the organisation, such as a functional area like marketing or human resources. Tactical plans focus on a major actions a unit must take to fulfil a part of the strategic planning. They are often focused on 1-2 years in the future. This is the implementation of the strategic plan stage combining your available resources, look at obstacles, and review alternatives. Example:  In business, it means an analysis of resource combination, planning for obstacles, and general timetable. In personal life, for the wedding, it means, finding the place, developing a guest list, deciding on a menu and music. Operational Planning Operational planning identifies the specific procedures and processes required at lower levels of the organisation. Frontline managers usually focus on routine tasks such as production runs, delivery schedules, and human resource needs etc. They typically focus on the short term, usually 12 months or less. These plans are the least complex of the three and rarely have a direct effect or other plans outside of the department or unit for which the plan was developed. Example:  In business, it means engaging the team, develop and answer the who, what, when, where, how management questions. In personal life, for the wedding, it means, choosing the band, finding the caterer, decide on flowers, etc. To be fully effective, the organisation’s strategic, tactical and operational plans must be aligned – that is, they must be consistent, mutually supportive and focused on meeting the common purpose and direction.

12. TYPES OF PLANS

13. Types of Plan To provide guidelines to the managers for taking decisions and solving problems, there are various kinds of plans. These plans are helpful in managing day-to-day affairs and in regulating the work behaviour of the subordinates. These various types of plans are grouped into two categories that are  standing plans  and  single-use plans. I. Standing Plans Standing plans are those plan which is used again and again whenever a particular situation arises. It is designed to make sure that the internal operations of an enterprise run smoothly. These plans are developed once but are designed to be used over the years. It is generally developed in such a manner that it can be modified when needed. These plans are also known as multiple-use plans or repeated-use plans. These plans are generally prepared by top-level managers. Standing plans include objectives and goals, strategy, policy, procedure, rules, and methods. The following are explained below: 1. Objectives and Goals Both the terms are used interchangeably, as both imply the target one desires to accomplish. Goals are the desired set of affairs that an organization wants to accomplish. Whereas objectives are specific targets within the general goal to achieve a certain task. Thus objectives are specific with support in the attainment of goals. The process of planning beings with the setting up of objectives. The planning stage includes courses of action and identifies the results that the company desires. These are usually set up by the top level. All organizations large or small can identify problems and establish overall goals for their business, but they need specific objectives to progress.  .

14. 2. Strategy The term strategy is mostly used in military science and games. But in view of growing competition and a rapidly changing environment, now it has become equally relevant to the business organization. In business, it refers to a comprehensive  (i.e., determining long-term objectives, adopting a course of action, and allocation of resources)  and an integrated plan, which indicates the desired future of the organization. It is very often said that a proper strategy is the blueprint of an organization’s desired destination. It is an elaborate, systematic and special type of plan, which is formulated to meet the challenges forwarded by the competitors or other external factors, such as changes in the economic, political, social, legal, and technological environment. It involves preparing itself for meeting unforeseen factors. 3. Policy The policy is a general statement that guides thinking or channelizing energy towards a particular direction. It also defines boundaries within which the decision can be made. It is a parameter within which managers use their discretion to apply the policy. There are policies for all levels and departments in the organization. There are major company policies that are common for all customers, clients, competitors, etc. Whereas minor policies are for the insiders of an organization and mainly contain minute details of information important to the employees.  4. Procedures A procedure refers to a particular course of action in order to achieve the desired result. Basically, it is a series of chronological steps to be taken to perform an activity. It simplifies the work by eliminating unnecessary steps and brings uniformity of action. Procedures may bring rigidity in the working of all organizations by specifying the best way of doing it. It tends to become outdated unless reviewed and revised at periodic intervals. It provides no room for creative thinking and at times discourages initiatives.

15. 5. Rules Rules are a set of directives or statements to do or not to do certain things, to behave or not to behave in a particular way. Every organization aims to operate in an orderly manner to regulate and control the working behaviour of employees. Rules are formed by the organization and these are enforced to maintain. They are rigid and do not allow derivations. The breach of rules usually carries a penalty. It aims to maintain discipline and thereby helps to improve efficiency. Any violation of the rule is generally associated with some sort of disciplinary action. 6. Method Methods are formalized techniques and standard ways of doing repetitive and routine jobs. It prescribes the manner of doing the task. They also provide detailed guidance for day-to-day activities and are helpful in the use of procedures with minimum expenditure of time, effort, and money. The method specifies the manner in which a work can be performed effectively and efficiently. It should be stated clearly and in precise terms to improve organizational efficiency and bring a sense of order to the workplace. It is a prescribed way in which one step of the procedure is to be performed. Specified techniques are to be used in a particular operation.

16. II. Single-use Plans Single-use plans are made to serve a specific objective. They cease to exist once such an objective is achieved. They are nonrecurring and the duration of this plan generally depends upon the type of project. These plans are short-lived and they have to be reformulated after every use. These plans include programme and budget, following are explained below: 1. Programme Programmes are comprehensive plans designed to implement the policies and accomplish the objective by combining goals, task assignments, policies, resources, etc. They are usually single-use plans indicating the steps to be taken, resources to be used, and the period for completion of the task. It gives a step-by-step approach to guide the action necessary to reach a pre-determined goal. There are two types of programmes major and minor. Major programmes are basic plans for example- the poverty eradication programme. Minor programmes are derivative programmes designed to implement major programmes. 2. Budget According to George. R. Terry,” a budget is an estimate of future needs arranged to an orderly basis covering some or all of the activities of an enterprise for a definite period of time”. A budget is a statement of expected results that are expressed in numerical terms for a definite period. It is a single-use plan expressed in quantitative terms. It is a projection of anticipated cost results and the allocation of resources. On one hand, it is an instrument of planning, as it helps to make the plans clear, on the other hand, it is an instrument of control, as it serves as a standard for evaluating performance. It is prepared for one year.

17. Advantages of Planning In the present tumultuous climate, Planning in excess of a couple of months ahead of time might appear to be worthless. Progress, in any case, is seldom made through arbitrary movement. Planning gives helps work with progress in any event, when confronted with vulnerability and a continually evolving climate. A portion of the advantages incorporate the accompanying: Planning gives a manual for activity:  Plans can coordinate everybody’s activities toward wanted results. At the point when activities are composed and centred around explicit results, they are significantly more successful. Planning further develops asset use . Assets are in every case scant in associations, and supervisors need to ensure the assets have been utilized successfully. Planning assists supervisors with figuring out where assets are generally required so they can be assigned where they will give the most advantage. Plans give inspiration and responsibility.  Individuals are not persuaded when they don’t have clear objectives and don’t have any idea what is generally anticipated of them. Planning decreases vulnerability and shows what everybody is generally anticipated to achieve. Individuals are bound to run after an objective they know and comprehend. Plans set execution principles . Planning characterizes wanted results as well as mileposts to characterize progress. These give a norm to surveying when things are advancing and when they need rectification. Planning permits adaptability.  Through the objective setting process, chiefs recognize distinct advantages in the association as well as basic variables outside the association that should be checked. At the point when changes happen, chiefs are bound to distinguish them and ability to send assets to react.

18. Disadvantages of Planning Planning gives clear advantages to associations, yet Planning can likewise hurt associations on the off chance that isn’t executed as expected. Coming up next are a few disadvantages to Planning that can happen: Planning forestalls activity.  Administrators can turn out to be so centred around Planning and attempting to get ready for each possibility that they never find time to implement the plans. This is designated “demise by Planning.” Planning does minimal great in the event that it doesn’t prompt different capacities. Planning prompts a lack of concern.  Having a decent arrangement can persuade administrators to think they know where the association is going and the way that it will arrive. This might make them neglect to screen the advancement of the arrangement or to identify changes in the climate. As we talked about before, Planning is certainly not a one-time process. Plans should be consistently changed as they are executed. Plans forestall adaptability.  Albeit great plans can prompt adaptability, the inverse can likewise happen. Mid-and lower-level supervisors might feel that they should follow an arrangement in any event when their experience shows it isn’t working. Rather than announcing issues to upper chiefs so changes can be made, they will keep on committing time and assets to insufficient activities. Plans hinder innovativeness.  Connected with information disclosed before, individuals in the association might feel they should complete the exercises characterized in the arrangement. In the event that they believe they will be decided by how well they complete arranged errands, then, at that point, inventiveness, drive, and trial and error will be hindered. Achievement regularly comes from development as well as Planning, and plans should not forestall imagination in the association.

19. MBO AND MBE MBO stands for " Management by Objectives " and MBE stands for " Management by Exception ." MBO is a management approach in which managers and employees work together to set, communicate, and achieve specific, measurable goals for the organization. MBE is a management approach in which managers focus on identifying and addressing exceptions or deviations from established standards or goals. This approach is used to identify and resolve problems or inefficiencies in the organization.

20. Decision Making Decision Making in Management? Decision making in management is the process of making a choice between two or more options. This involves evaluating the pros and cons of various choices and choosing the best option to achieve a desired outcome. In management decision making is about acting in a way that meets organizational goals and objectives.  For example, a business manager may decide to invest in marketing to attract new customers. This decision could involve analyzing the costs, benefits, and risks involved with each possible course of action and choosing the best course of action for the organization. 

21. Characteristics of Decision Making in Management

22. 1. Rational-thinking Rational thinking is a process in managerial decision making that helps us to make sound decisions. It involves systematically analyzing options and choosing the best course of action based on logic and evidence. To think rationally, we must first identify our goals and objectives. 2. Process Many people view decision making as a cold, rational process. However, there is much more to it than simply choosing the most logical option. In reality, management decision making is influenced by a variety of factors, both conscious and unconscious. For example, our emotions play a role in the decisions we make, as do our personal values and beliefs.  3. Selective A key characteristic of managerial decision making is that it is selective. That is, deciding involves picking the best options. There are many factors that influence what gets selected, including the clarity of the options, the relevance of the criteria, and weighing the various factors.  4. Purposive A purposive approach to decision making is one that is based on the specific goals and objectives of the individual or organization. This type of decision making takes into account the desired outcome of the decision, and considers all of the available options in order to select the best possible course of action.   5. Positive Decision making process in management is an essential skill in any area of life, whether you're choosing what to eat for lunch or deciding which company to work for. While there are many different approaches to management decision making, there are some common characteristics that tend to lead to positive outcomes.  6. Commitment If you want to make successful decisions, it is crucial that you have commitment. This means having the drive to see the decision through, even when it gets tough. It also means being able to defend your decision to others, even if they do not agree with you. 7. Evaluation Evaluation is a key characteristic of good decision making. This involves considering all of the options and weighing their pros and cons before making a choice. It is important to be as objective as possible when evaluating the different options, and to look at the situation from all angles.

23. Decision Making Process 1 . Establishing Objectives Establishing objectives is among the crucial decision-making steps in management. Without clear objectives, it can be difficult to make effective decisions that will help the organization meet its goals. Establishing objectives involves setting specific goals that need to be achieved within a certain timeframe.    For example, if you are the CEO of an e-commerce start-up with your business expanding, you would want to hire the right employees for various roles. Firstly, you would have to establish your objectives regarding which parts of your business you would need to hire new people. 2. Identify the Decision The next important step in the decision-making process in management is identifying the problem that needs to be addressed. Once the problem has been identified, the manager will gather information about possible solutions. This may involve consulting with others, doing research, or running simulations. After weighing the pros and cons of each option, the manager will choose the course of action that they believe is most likely to succeed.  For example, after establishing the objectives regarding which parts of your business need new recruits, you would have to identify the course of action with others to recruit the ideal employees for the various job roles. 3. Gather Appropriate Information This process of gathering information is known as information gathering. The different sources of information that managers can use include surveys, interviews, focus groups, observation, and secondary data sources such as articles and reports. After gathering this information, managers must then analyze it to determine which option is best.   For example, after identifying the course of action for the new recruits, you, along with your team, have to gather proper information about the various hiring trends and how to recruit the ideal talents .

24. 4. Identify the Alternatives One of the most important aspects of the decision-making process in management is identifying the alternatives. Without knowing what your options are, it can be difficult to make an informed decision. There are a number of different ways to identify the alternatives, but some of the most common methods include brainstorming, research, and consultation.   For example, after gathering the appropriate information on how to recruit the ideal talents, identify what alternatives you can offer to attract talents. Like, can you offer remote working or a hybrid working model? 5. Weigh the Evidence When we define decision making in management One key step in this process is known as 'weighing the evidence'. This simply means taking the time to consider all of the available information before making a final decision. This can include things like market research, financial data, and even gut instinct. By taking the time to weigh the evidence, managers can make better-informed decisions that are more likely to lead to success. For example, after identifying what alternatives you can offer to attract new recruits, consider all the options to understand which would be the most profitable for your business. For this, you can take insights from market research, financial data, and even gut instinct.

25. 6. Choose Among the Alternatives One of the most important decisions that a manager has to make is which alternative to choose. There are multiple ways to approach this, such as by first considering all available alternatives, then assessing each against an explicit set of criteria. Finally, choosing one alternative over another could depend on other factors such as political considerations and the influence of stakeholders. For example, after considering all the alternatives and research regarding hiring new recruits, choose the alternative which is the most profitable for your business. 7. Take Action There are many approaches to decision making, but one of the most popular is the "take action" approach. This approach involves taking decisive action in response to a problem, without overthinking or second-guessing yourself. While this approach can lead to quick results, it also carries the risk of making impulsive decisions that may not be in the best interest of the company. For example, after choosing the most profitable ways to hire new talents, take the course of action of searching and interviewing the individuals. 8. Review the Decision Finally, after a decision has been made, it is important to review the results and make any necessary adjustments.  For example, after hiring the new recruits, review the whole process to see where you can make some changes to make the process more efficient.

26. Types Of Decision Making In Management 1 . Routine and Basic Decision-making Some decisions are more complex and require more thought. For instance, you may need to decide what to wear to a job interview or how to handle a difficult customer at work. In these situations, it is important to take the time to carefully consider your options before making a decision. Basic decision-making skills involve considering the potential consequences of each option and choosing the one that is most likely to lead to the desired outcome. 2. Personal and Organizational Decision-making Decision making is a key component of both personal and organizational success. When making decisions, it is important to consider all of the potential options and their consequences. In some cases, there may be a clear best choice, while in others, the decision may be more difficult. However, the ability to make sound decisions is essential for both individuals and organizations. 3. Individual and Group Decision-making Individual decision-making process in project management typically occurs when the stakes are low and the impact will be limited to a single person. Group decision making is necessary when the stakes are high or the impact will be felt by multiple people. In general, group decision making is more effective than individual decision making because it allows for a greater diversity of perspectives and more thorough deliberation. 4. Programmed and Non-Programmed Decision-making Non-programmed decisions making in operation management are unique and not repetitive. Typically, they are made in response to an unforeseen event or opportunity. Programmed decisions, on the other hand, are routine and often based on established rules or procedures. Because they are more predictable, programmed decisions are typically less risky and easier to make. However, non-programmed decisions often require more creativity and judgment, and can be more difficult to reverse if they turn out to be wrong. 

27. 5. Policy and Operating Decision-making Policy and operating decision making are two important aspects of any business. Policy decisions are made at the strategic level and focus on long-term issues, such as the overall direction of the company. Operating decisions, on the other hand, are made at the operational level and focus on short-term issues, such as which products to produce and how to staff the production process. 6. Tactical and Strategic Decision-making This is an essential type of managerial decision making. Tactical decision making is important because it helps organizations to respond quickly to changes in the environment. However, too much emphasis on tactical decision making can lead to a lack of focus on long-term goals. Strategic decision making is important because it helps organizations to establish a clear direction and make informed choices about resource allocation. Both tactical and strategic decision making are necessary for an organization to be successful. 7. Planned and Unplanned Decision-making There are two types of decision making in management: planned and unplanned. Planned decisions are those that are made in advance, after considering all the options and their possible outcomes. Unplanned decisions, on the other hand, are those that are made on the spot, without any prior consideration. Both types of decision making in management have their own advantages and disadvantages. 8. Organizational, Departmental, and Interdepartmental Decision-making Organizational type of managerial decision making is the process of identifying and choosing the best course of action to achieve organizational goals. It includes both formal and informal methods of decision making, and it occurs at all levels of an organization. This is one of the managerial decision-making examples that managers have to be great at. Interdepartmental decision making is the process of identifying and choosing the best course of action to achieve interdepartmental goals. It occurs at all levels where two or more departments interact.

28. ORGANIZATION An organization is a group of people who work together, like a neighbourhood association, a charity, a union, or a corporation. You can use the word organization to refer to group or business, or to the act of forming or establishing something.

29. Nature of Organization The following points explain the nature of organization: 1.    Structure of relationships : Organization is a system of well-defined tasks and duties assigned to people along with delegation of authority, responsibility and accountability. Delegation provides formal structure to the organization. Constant interaction amongst individuals creates social relations helps and a structure of informal organization. 2.    Managerial function : It is a function of management which integrates human and non-human (physical) resources for achieving organizational goals. It is a function in itself and also helps in performing other managerial functions. For planning, directing and staffing functions to be effectively performed, it is necessary that they are effectively organized. 3.    Ongoing process: Organizing is a process which involves a series of steps, from determination of objectives to accomplishment of objectives. It is a continuous process which requires management to introduce changes (re-organization) in the way and organization works. Many organizations re-structure their set-up every five to seven years. 4.    Encourages teamwork : Since the early times, people always lived in groups. With increase in size of these groups, it was not possible for one person to accomplish the organizational task alone. The work, therefore, got divided amongst people and each person co-ordinate his work with other. This required organizations the group activities towards common goal. According to Louis A. Allen: “Organization has enabled men to increase their teaches far beyond the dreams of the wealthiest potentates of old by making effective use of a potent multiplier-meshing, power and mechanized tools” Organization comes into existence when there are a number of persons in communication and relationship to each other who are willing to contribute towards a common Endeavour.

30. IMPORTANCE OF ORGANIZATION 1 . Optimizes the use of resources Organizations facilitate the optimum use of human and financial resources. It helps assign jobs to the right employees and prevents duplication of work. This ensures that resources and efforts are not wasted. 2. Helps make administration easier A good  organizational structure  helps with daily operations and long-term strategies. It helps employees understand how the company works. It clarifies job roles, avoids duplication and waste, and makes administration easier. 3. Improves business stability An organization promotes stability by establishing clear processes and structures. It reduces confusion, ensuring smoother operations and adaptability. It enhances team collaborations, open communication, and effective leadership strategies to make businesses more stable. 4. Promotes specialization of individuals An organization contains a diverse range of employees. Its structure allows for focused roles and expertise. It empowers employees to develop specialized skills and maximize productivity. 5. Fosters growth and development An organized structure facilitates scalability and resource management. It supports strategic planning and continuous growth. Continuous growth makes way for organizational change, which is fundamental in expansion and development. 6. Supports a sense of culture An organization develops a sense of culture tied to its people. It is a collection of shares values and beliefs that holds the organization together. This organizational culture forms the backdrop of communication and collaboration across teams focusing on the ultimate goals and objectives.

31. 5.    Foundation of management : Success of an institution depends upon its sound organization. Clear definition of jobs and their division amongst members with clear identification of authority and res possibility is the foundation of successful management. Unless there is clarity of who is responsible to whom, no management can function effectively. 6.    Goal-oriented: Every organization is formed for some objective; profit or service. All organizational activities are divided amongst members, departments are created. Work is co-ordinate and continuous monition of activities is done to achieve the objective. The process of organization is, thus, a goal-oriented process. 7.    Adaptive to change: Though organization structure provides stability to activities of members, it sis open to change. Changes in the environment, internal or external, are incorporated into the organization structure. This makes organization and ongoing process. 8. Situational: No structure can be described as best. Depending upon the nature of activates size of the organization and nature of relationship amongst people, the organizing structure also varies.

32. Need for Organization Management Organization management gives a sense of security and oneness to the employees. An effective management is required for better coordination among various departments. Employees accomplish tasks within the stipulated time frame as a result of effective organization management. Employees stay loyal towards their job and do not treat work as a burden. Effective organization management leads to a peaceful and positive ambience at the workplace.

33. WHAT IS AN ORGANIZATIONAL STRUCTURE? An organizational structure outlines how responsibilities and roles are assigned and grouped throughout an organization. At some point, you have likely seen an organizational chart for your company. And we can probably guess what it looked like. The typical org chart looks like a pyramid, your C-level executives at the top with lines stretching down to middle management and finally staff-level employees.  But not every company functions best with a hierarchical organizational structure. Many types of organizational charts exist because many types of organizational structures exist. 

34. Types of Organisation and their Structure There are two broad categories of organisation, which are: 1. Formal Organisation 2. Informal Organisation Formal Organisation:  Formal organisation is that type of organisation structure where the authority and responsibility are clearly defined. The organisation structure has a defined delegation of authority and roles and responsibilities for the members. The formal organisation has predefined policies, rules, schedules, procedures and programs. The decision making activity in a formal organisation is mostly based on predefined policies. Formal organisation structure is created by the management with the objective of attaining the organisational goals. There are several types of formal organisation based on their structure, which are discussed as follows: 1. Line Organisation 2. Line and Staff Organisation 3. Functional Organisation 4. Project Organisation 5. Matrix Organisation Let us learn about these organisation structures in detail in the following lines .

35. Line Organisation:  Line organisation is the simplest organisation structure and it also happens to be the oldest organisation structure. It is also known as Scalar or military or departmental type of organisation. In this type of organisational structure, the authority is well defined and it flows vertically from the top to the hierarchy level to the managerial level and subordinates at the bottom and continues further to the workers till the end. There is a clear division of accountability, authority and responsibility in the line organisation structure. Advantages of Line organisation 1. Simple structure and easy to run 2. Instructions and hierarchy clearly defined 3. Rapid decision making 4. Responsibility fixed at each level of the organisation. Disadvantages of Line organisation 1. It is rigid in nature 2. It has a tendency to become dictatorial. 3. Each department will be busy with their work instead of focusing on the overall development of the organisation.

36. Line and Staff Organisation:  Line and staff organisation is an improved version of the line organisation. In line and staff organisation, the functional specialists are added in line. The staff is for assisting the line members in achieving the target effectively. Advantages of Line and Staff organisation 1. Easy decision making as work is divided. 2. Greater coordination between line and staff workers. 3. Provides workers the opportunity for growth. Disadvantages of Line and Staff Organisation 1. Conflict may arise between line and staff members due to the improper distribution of authority. 2. Staff members provide suggestions to the line members and decision is taken by line members, it makes the staff members feel ignored. Functional Organisation:  Functional organisation structure is the type of organisation where the task of managing and directing the employees is arranged as per the function they specialise. In a functional organisation, there are three types of members, line members, staff members and functional members. Advantages of Functional organisation 1. Manager has to perform a limited number of tasks which improves the accuracy of the work. 2. Improvement in product quality due to involvement of specialists. Disadvantages of Functional organisation 1. It is difficult to achieve coordination among workers as there is no one to manage them directly. 2. Conflicts may arise due to the members having equal positions.

37. Project Organisation:  A project organisation is a temporary form of organisation structure that is formed to manage projects for a specific period of time. This form of organisation has specialists from different departments who are brought together for developing a new product. Advantages of Project organisation 1. The presence of many specialists from different departments increases the coordination among the members. 2. Each individual has a different set of responsibilities which improves control of the process. Disadvantages of Project Organization 1. There can be a delay in completion of the project. 2. Project managers may find it difficult to judge the performance of different specialists. Matrix Organisation:  Matrix organisation is the latest form of organisation that is a combination of functional and project organisation. In such organisations there are two lines of authority, the functional part of the organisation and project management part of the organisation and they have vertical and horizontal flow of authority, respectively. Advantages of Matrix Organisation 1. Since the matrix organisation is a combination of functional and project management teams, there is an improved coordination between the vertical and horizontal functions. 2. Employees are motivated as everyone will be working towards one project. Disadvantages of Matrix Organisation 1. Due to the presence of vertical and horizontal communication, there will be increased cost and paperwork. 2.Having multiple supervisors for the workers leads to confusion and difficulty in control.

38. Informal Organisation:  Informal organisations are those types of organisations which do not have a defined hierarchy of authority and responsibility. In such organisations, the relationship between employees is formed based on common interests, preferences and prejudices.

39. ORGANISATIONAL STRUCTURE FUNCTIONA L STRUCTURE A functional structure groups employees into different departments by work specialization. Each department has a designated leader highly experienced in the job functions of each employee supervised by them. Most often, it implements a top-down (centralized) decision-making process where department managers report to upper management. Ideally, leaders of different teams communicate regularly and coordinate their strategies while lower-level employees have little idea of the processes taking place outside their department.

40. DIVISIONAL STRUCTURE In a divisional organizational structure, the company is divided into different business units that have complete control of their budget, resources, and strategy – essentially acting as an independent company. Each division can have its own dedicated marketing, sales, product, and IT teams. A divisional structure works well with large enterprises who have multi-product offerings, have acquired or merged with multiple business entities, service many geographical regions, and serve different industries.

41. MATRIX ORGANIZATIONAL STRUCTURE Matrix organizational structure, team members report to several managers at once. Wait, what’s the point? Having multiple supervisors allows for company-wide interaction and faster project delivery. For instance, when answering to functional managers and project managers, employees have a chance to collect experience outside their team. While functional managers can help to solve job-specific issues, project managers can bring in knowledge or talents from other departments.

42. TEAM-BASED STRUCTURE A team-based organizational structure creates small teams focusing on delivering one product or service – often via Scrum or tiger teams. These teams can solve problems and make decisions without bringing in third parties. Team members are responsible for managing their workload and have full control over the project. Team-based organizations are distinguished by little formalization and high flexibility. This structure works well for global organizations and manufacturers.

43. NETWORK STRUCTURE A network structure goes far beyond your internal company structure. It’s the act of joining the efforts of two or more organizations to deliver one product or service. Typically, a network organization outsources independent contractors or vendors to complete the work. In a network organization, teams are built from full-time employees as well as freelance specialists – this way, in-house workers can spend most of their time focusing on the work they specialize in. Such an approach allows companies to adapt to market changes and obtain the skills they need quickly.

44. HIERARCHICAL STRUCTURE A hierarchical structure is the most common type of organizational structure. This pyramid-shaped structure follows a direct chain of command from the top (the CEO) and flows down the org chart through individual teams and entry-level employees. The chain of command goes from the C-suite to senior management to team leaders to lower-level employees. The highest-level executive (typically the CEO) has the most power and authority on the decision-making process.

45. FLAT ORGANIZATION STRUCTURE In a flat organizational structure, there are few middle managers between employees and top managers. The structure requires less supervision, increases employee involvement, and boosts trust in the workplace.