Unit 2 - economics topic Oranising.pptx

for students and teachers

1. 2 Organising Definition

2. 3 Concept of Organisation Organization is used in Management on 4 different ways . As a Structure As a Organizing Process As an Entity As a group of People

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6. 7 Characteristic of Organization as a Structure Common Purpose Division of Labor Authority structure People Communication Coordination Resources Man-made Environment Rule & Regulations

7. 8 Characteristic of Organization as a Structure Organization structure is not a static and it keep changes according the environment and requirements. While designing the internal structure organization should consider the factors given below: Goals Strategy Size People Technology Environment 9 th Feb 2022

8. 9 Process of Organing Process of designing Organisation structure involves: Identification of activities Grouping of activities Assignment of duties Delegation of Authority Activities Analysis Decisions Analysis : Drucker has recommended 4 criteria to determine the nature of decisions: They are , a) Degree of futurity b) Impact c) Qualitative factors or tangible factors d) Periodicity

9. 10 Process of Organing

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11. 12 Significance of Organization Organization is the foundation, upon which the whole structure of management is built. This is the backbone of sound management. A sound organization structure contributes to the success of the enterprise in the given below ways:

12. 13 Significance of Organization Facilitates administration Facilitates growth & diversifications Permits optimum use of technological improvements Encourage use of human beings Stimulates creativity Encourage good human relations Ensures continuity of enterprise Fosters coordination

13. 14 Principles of Organization Unity of objectives Division of work Span of control Scalar principle – there should be a clear chain of command extending from top to bottom of the organization. Every subordinate should know who is his / her superior is and who his or her subordinate?

14. 15 Principles of Organization 5. Functional clarity 6. Exemption principle 7. Unity of command 8. Balance 9. Efficiency 10. Flexibility 11. Continuity 12. Leadership 13. Authority and responsibility 14. Coordination

15. 16 Span of Control Definition : The term span of management is also known as span of control or span of supervision . Span of management is to the number of subordinates that report directly to a single, manager or supervisor .

16. 17 Span of Control Sir General Hamilton stated that span of control is related to the degree of responsibility exercised by the group members. The smaller the responsibility of a subordinate, the greater could be span of control. Hence, normally, at the bottom of the organization 6 subordinates is the right number to control and at the top, 3 is the most appropriate number. .

17. 18 Factors - Span of Control Nature of work Type of technology Ability of the manager Capacity of subordinates Degree of decentralization Planning Staff assistance Communication techniques Time available for supervision Geographical dispersion of subordinates

18. 19 Types- Span of Control Two types: Narrow span of control Wide span of control

19. 20 Types- Span of Control

20. 21 Types- Span of Control

21. 22 Types- Span of Control Narrow span of control – here the organizational structure will be TALL pyramid. Wide span of control - here the organizational structure will be FLAT pyramid

22. 23 Tall Organization structure Adapt to change better Better coordination Effective supervision due to centralized or close control Promotion opportunities are more Management cost is higher Motivation and satisfaction level of employee are low Communication is less effective due to frequent blockage and distortions

23. 24 Flat Organization structure Decentralized and less control Greater autonomy for employees Job satisfaction & motivation is higher Less cost effective Not adoptable to change Create problems of coordination and control

24. 25 Characteristic of Tall and Flat Structure S.No Characteristic Tall Flat 1 Level of management Many Few 2 Chain of command Long Short 3 Span of management Narrow Wide 4 Management positions Many Few 5 Degree of delegation Centralized Decentralized 6 Communication Delayed and distorted Fast and accurate 7 Nature of supervision Close Lose control 8 Cost of management High Low 9 Personal contact More personal contact Less personal contact

25. 26 Present Situation of Tall and Flat structure Tendency towards wide span of management is increased due to following factor: Trend towards decentralization Increasing size of organization Need for quick decision making Improved communication techniques Growing acceptance f group processes and new patterns of leadership.

26. 27 Present Situation of Tall and Flat structure Tendency towards wide span of management is increased due to following factor: Trend towards decentralization Increasing size of organization Need for quick decision making Improved communication techniques Growing acceptance f group processes and new patterns of leadership.

27. 28 Thank You