Unit - 2 MPOB fghgjjfdfhhgjhjjhjjjjjjjhj

management of process and organisational behaviour

1. Unit - 2 Organising and Controlling

2. Organizing and Controlling : Principles of organizing – Organization Structure and Design – Delegation of Authority and factors affecting delegation – Span of control –Decentralization – Coordination definition and principles - Formal and Informal Organization- Nature and importance of Controlling, process ofControlling , Requirements of effective control and controlling techniques

3. Organizing Organizing is the process of assembling the people, organizing resources, and distributing the planned work necessary to carry out the organization’s plan. Organizing is the process of dividing and designing the jobs, setting the proper job relation, grouping the jobs to make the units & departments, assigning jobs to employees, allocating resources, and coordinating efforts among the organizational members.

4. Principles of Organising Principle of Unity Principle of Objective Principle of Specialization Principle of Authority and Responsibility Principle of Delegation of Authority Principle of Unity of Command Principle of Scalar Chain

5. Principles of Organising 8. Principle of Span of Control 9 Principle of Continuity 10. Principle of Simplicity

6. Organisational Structure and Design Organizational Structure refers to the way in which an organization arranges its lines of authority, communication, and allocation of responsibilities to achieve its objectives. It defines the hierarchy and the reporting relationships within an organization, outlining how different roles, functions, and activities are organized and coordinated. A well-designed structure helps facilitate communication, coordination, and efficiency within the organization. Additionally, the structure should align with the strategic objectives of the organization and support its overall mission and vision.

7. Types of Organisational Organization Line Organization Structure Line and Staff Organization Structure Functional Organization Structure Divisional Organization Structure Matrix Organization Structure Project Organization Structure

8. Line Organization

9. Line Organization It is the most simplest form of organization. Line of authority flows from top to bottom. Specialized and supportive services do not take place in these organization. Unified control by the line officers can be maintained since they can independently take decisions in their areas and spheres. This kind of organization always helps in bringing efficiency in communication and bringing stability to a concern.

10. 2. Line and Staff Organization

11. Line and Staff Organization is a compromise of line organization. It is more complex than line concern. Division of work and specialization takes place in line and staff organization. The whole organization is divided into different functional areas to which staff specialists are attached. Efficiency can be achieved through the features of specialization. There are two lines of authority which flow at one time in a concern : Line Authority Staff Authority Power of command remains with the line executive and staff serves only as counselors. 2. Line and Staff Organization

12. 3. Functional Organisation

13. The entire organizational activities are divided into specific functions such as operations, finance, marketing and personal relations. Complex form of administrative organization compared to the other two. Three authorities exist- Line, staff and function. Each functional area is put under the charge of functional specialists and he has got the authority to give all decisions regarding the function whenever the function is performed throughout the enterprise. Principle of unity of command does not apply to such organization as it is present in line organization. 3. Functional Organisation

14. 4. Divisional Organization Organisation structure in which various departments are created on the basis of products, territory or region, is called a divisional structure. Each unit has a divisional manager, who is responsible for performance and has authority over their division. Each division is further divided into functional units like production, sales, finance, etc. The divisional head is solely responsible for the profit or loss of their division.

15. A matrix organizational structure is a company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. In other words, employees have dual reporting relationships - generally to both a functional manager and a product manager. In a matrix organization, instead of choosing between lining up staff along functional, geographic or product lines, management has both. Staffers report to a functional manager who can help with skills and help prioritize and review work, and to a product line manager who sets direction on product offerings by the company. 5. Matrix Organization

16. 5. Matrix Organization

17. 6. Project Organization Structure

18. A project organizational structure is a specific type of organizational arrangement that is designed to facilitate the successful planning, execution, and completion of projects. Unlike traditional functional structures, a project structure is temporary and created to achieve a specific goal within a set timeframe. Projectized organizations are those that have a structure that is designed to create and deliver projects rather than complete long-term goals. The advantage of a projectized organization is that it can be very flexible in terms of how it organizes its resources, which helps to ensure that the most appropriate people are assigned to each task at hand. 6. Project Organization

19. Delegation of authority Delegation of authority is the process by which a manager assigns responsibility and authority to subordinates to carry out specific activities. It involves transferring a portion of the manager’s duties and powers to another person, while the manager retains overall accountability for the results. In simple terms, delegation means “entrusting part of one’s work to others and giving them the authority to perform it.”

20. Elements of Delegation Authority – The right to make decisions, issue orders, and allocate resources to achieve organizational objectives. Responsibility – The obligation of a subordinate to perform the task assigned. Accountability – The subordinate’s answerability for the outcome of the assigned task to the superior.

21. Process of Delegation Assignment of duties – The manager identifies the tasks to be delegated. Granting authority – The subordinate is given the necessary power to accomplish the assigned work. Creating responsibility – The subordinate accepts the obligation to complete the task. Accountability – The manager evaluates the subordinate’s performance and holds them accountable for results.

22. Principles of Delegation Principle of Unity of Command – Each subordinate should report to one superior only. Principle of Parity of Authority and Responsibility – Authority and responsibility should be balanced. Principle of Absolute Responsibility – The manager remains accountable even after delegating. Principle of Clarity – Duties and authority must be clearly defined. Principle of Unity of Direction – Delegation should support organizational goals and directions.

23. Span of Control Span of control is a span of supervision which depicts the number of employees that can be handled and controlled effectively by a single manager. According to this principle, a manager should be able to handle what number of employees under him should be decided. There are two types of span of control: - Wide span of control Narrow span of control

24. Factors influencing Span of Control Managerial abilities Competence of subordinates Nature of work Delegation of authority Degree of decentralization

25. Decentralization Decentralization is a systematic delegation of authority at all levels of management and in all of the organization. In a decentralization concern, authority is retained by the top management for taking major decisions and framing policies concerning the whole concern. Rest of the authority may be delegated to the middle level and lower level of management.

26. Advantages of Decentralization Motivation of Subordinates Growth and Diversification Quick Decision Making Efficient Communication Better Supervision And Control

27. Coordination Coordination is the unification, integration, synchronization of the efforts of group members so as to provide unity of action in the pursuit of common goals. It is a hidden force which binds all the other functions of management. According to Mooney and Reelay, “Coordination is orderly arrangement of group efforts to provide unity of action in the pursuit of common goals”.

28. Principles of Coordination 1. Early Stage 2. Personnel Contact 3. Continuity 4. Reciprocal Relationship 5. Dynamism 6. Simplified Organization

29. Principles of Coordination 7. Self-Coordination 8. Clear-Cut Objectives 9. Clear Definition of Authority and Responsibility 10. Effective Communication 11. Effective Supervision

30. Controlling The controlling function involves monitoring, comparing, and correcting work performance to ensure that organizational goals are achieved. It helps managers ensure that the activities are on track and that deviations from the plan are identified and corrected. Controlling is a primary goal-oriented function of management in an organization. It is a process of comparing the actual performance with the set standards of the company to ensure that activities are performed according to the plans and if not then taking corrective action.

31. Nature of Controlling 1. Controlling is an end function 2. Controlling is a pervasive function 3. Controlling is forward looking 4. Controlling is a dynamic process 5. Controlling is related with planning

32. Process of Controlling 1. Establishment of standards 2. Measurement of performance 3. Comparison of actual and standard performance 4. Taking remedial actions