2. What is an Organization?
An organization is
a collection of
people who work
together to achieve
individual and
organizational
goals.
3. What is an Organization
An intentionally coordinated social unit,
composed of two or more people, that
functions on a relatively continuous
basis to achieve a common goal or set
of goals.
5. Organizations Role in Society
• Organizations exist to allow accomplishment of work that could not be
achieved by people alone.
• As long as the goals of an organization are appropriate, society will allow
them to exist and they can contribute to society.
Organizations and People
• Organizations are strongly influenced by the people that form part of them.
• Organizations can take in part of the personality of the people within them
and their attitudes, perceptions and behaviors affect how an organization
will operate.
Organizations Require Management
• Organizations use management to accomplish the work that is required to
achieve the goals.
7. Necessity of Organization
The increasing size of the manufacturing plant,
introduction of most complex methods of
production, tough competition between the
enterprise and labor problems has necessitated
every factory to be well organized, in order to
produce required quantity of the products of the
required quality, at the required time with the
minimum production cost.
8. A good organization is therefore necessary for the following
reasons:
Complexity of
Industry
Growing
competition
Optimum
utilization of
resources
Reduced labor
problem
Fixation of
authority and
responsibility
Co-ordination
and directing
efforts
Facilitates
Administration
Stimulates
Creativity
9. Principles of Organization
• The objectives must be clearly defined for the entire enterprise, for each
department and even for each position in the organization structure
• all efforts can be concentrated on achieving the set goals- at minimum
cost
Unity of Objectives
• Degree to which tasks are subdivided into separate jobs.
• Grouping of related activities into units
Division of Labor and
Departmentalization
•Line of authority from the top to the bottom of the organization.
Chain of Command
• It is the number of employees reporting to a manager.
• The number of employees reporting to one manager affects the number
of levels of managers.
Span of
Management
• With centralized authority, top managers make important decisions
• With decentralized authority, middle and first-line managers make
important decisions where the action is
Centralized and
Decentralized Authority
• With the division of labor and departmentalization comes the need to
coordinate the work of all departments.
Coordination
10. • The organization structure should be simple with minimum
number of levels.
Simplicity
• The organizational structure should be flexible enough to
permit slight alternations and expansions whenever needed,
due to changed circumstances
Flexibility
•Not only executive should pass down information to the
subordinates , there should be feedback i.e., replies should come
from those who receive information. For better results it should
have free two-way communications.
Communication
11. Formal Organization
It refers to the organization structure deliberately created by
management for achieving the objectives of enterprise. It is a
network of official authority responsibility relationships and
communication follows. It is an official and rational structure.
Definition :-
According to Chester Bernard , “Formal organization is a
system of consciously coordinated activities of two or more
persons towards a common objectives. The essence of formal
organization is conscious common purpose and formal
organization comes into existence when persons
• are able to communicate with each other
• are willing to act and
• share a purpose.”
12. Informal Organization
It refers to the pattern of activity interactions and human
relationship which emerge spontaneously due to social
and psychological forces operating at the work place. It
arises naturally on the basis of friendship or some
common interest which may or may not be related with
work.
Definition :
According to Chester Bernard , “ Informal organization
is joint personal activity with out conscious common
purpose though contributing to joint result.”
13. Difference Between Formal and Informal Organization
Basis Formal Organization Informal Organization
Origin It is created deliberately and
consciously by management.
It emerges spontaneously on
account of socio psychological
forces operating at the work place
Purpose It is created for achieving the
legitimate objective of the
organization
It is created by the members of the
organization for their social and
psychological satisfaction.
Size Formal group may be quite large
in size
Informal groups tent to be small.
Nature of group Formal groups are stable and may
continue for a very long period of
time
Informal groups were quite
unstable in nature
Authority It is bound together by a
hierarchical structure
In this all members are equal
Communication It normally flows through the
prescribed chain of command
The communications pass through
the informal channels
Behavior of
Members
It is governed by formal rules and
regulations
It is governed by norms beliefs and
value of the group.
14. What is Management?
Management is the process of
planning, organizing, leading, and
controlling an organization’s human,
financial, material, and other
resources to increase its
effectiveness.
15. 1-15
The Functions Of Management
Management
process of working with people and resources to
accomplish organizational goals
effective – “Doing things right”
achieve organizational goals
efficient – “Doing the right things”
achieve goals with minimum waste of resources
16.
17. What Managers Do
Managerial Activities
• Make decisions
• Allocate resources
• Direct activities of others to
attain goals
Managers (or administrators)
Individuals who achieve goals through other people.
Manager: Any person who supervises one or more
subordinates.
19. Managers’ Job
Management
Functions
Henry Fayol a French
Industrialist wrote that all
managers perform four
management functions
Planning
Organizing
Leading
Controlling
Planning
Organizing
Leading
controlling
Organizing
Determines what tasks are to
be done;
Who is to do them;
How the tasks are to be
grouped;
Who reports to whom; and
Where decisions are to be
made.
20. Management Functions
Henry Fayol a French Industrialist
wrote that all managers perform
four management functions
Planning
Organizing
Leading
Controlling
Planning
Organizing
Leading
controlling
Leading
Motivating employees;
Direct their activities;
Select the most effective
communication channels; or
Resolve conflicts among
members.
Managers’ Job
21. Management Functions
Henry Fayol a French Industrialist
wrote that all managers perform
four management functions
Planning
Organizing
Leading
Controlling
Planning
Organizing
Leading
Controlling
Controlling
Monitoring performance;
Comparing performance with
the set standard;
Making corrections, if
necessary.
Managers’ Job
22. Managerial Roles
Role: A set of behaviors or tasks a person is expected
to perform because of the position he or she holds in a
group or organization.
In 1960s, Mintzberg after studying 5 executives to
determine what those managers did on their jobs.
Mintzberg concluded that mangers perform 10
different, highly interrelated roles – or set of behaviors
– attributable to their jobs.
24. Mintzberg’s Managerial Roles
Role Description
Interpersonal
Figurehead Symbolic head, required to perform a
number of routine duties of a legal or social nature
Leader Responsible for the motivation & direction of
employees
Liaison Maintains a network of outside contacts who
provide favors & information
25. Mintzberg’s Managerial Roles
Role Description
Informational
Monitor Receives a wide variety of information; serves as
nerve centre of internal & external information of
the organization
Disseminator Transmits information received from outsiders or
from other employees to members of the
organization
Spokesperson Transmits information to outsiders on
organization's plans, policies, actions, & results;
serves as an expert on organization’s industry
26. Mintzberg’s Managerial Roles
Role Description
Decisional
Entrepreneur Searches organization & its environment for
opportunities & initiatives projects to bring
about change
Disturbance handler Responsible for corrective action when
organization faces important, unexpected
disturbances
Resource allocator Makes or approves significant organizational
decisions
Negotiator Responsible for representing the organization at
major negotiation
27. Managerial Skills
Conceptual Skills:
The ability to analyze and
diagnose a situation and
distinguish between cause
and effect.
Human Skills:
The ability to understand,
work with, lead, and
control the behavior of
other people and groups.
Technical Skills:
Job-specific knowledge
and techniques.
28. Skills Needed at Different Management
Levels
Top
Managers
Middle
Managers
Low er-level
Managers
Importance
Conceptual
Skills
Human
Skills
Technical
Skills
