2. Learning Objectives
Explain the Concept of Organizing
Describe the importance of Organizing
Explain the Element of Organizing
Process of Organizing
Explain the meaning, advantages and
disadvantages of formal and informal
Organization
Distinguish between formal and informal
Organization
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3. What is Organizing
The grouping of activities necessary for attaining
objective.
The process of creating an organization’s
Structure .
A Process that initiates implementation of plans by
clarifying jobs and working relationship and effectively
deploying resources for attainment of identified and
desired results
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4. Definition
Organizing is the process of identifying and
grouping the work to be performed, defining
and delegating responsibility and authority,
and establishing relationships for the
purpose of enabling people to work most
effectively together in accomplishing
objectives.
Louis Allen
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5. Importance of Organizing
Benefits of specialization
Clarity in working relationships
Optimum utilization of resources
Adaptation to change
Development of personnel
Expansion and growth
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6. Purposes of Organizing
Divide work to be done into specific jobs and
Departments
Assign tasks and responsibilities associated with
individual
Coordinates diverse organizational tasks.
Clusters job in to Units.
Establish relationship among individuals , group , and
departments .
Allocates and deploys organizational resources .
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7. Elements in Organizing process
Work Specialization
Departmentalization
Chain of command
Centralization and Decentralization
Formalization
Span of Control
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8. Departmentalization
The Basis by which jobs are grouped together
Five common form of Departmentalization
Functional
Geographical
Product
Process
Customer
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9. Principle of the Span of management
There is a limit to the number of persons
an individual can effectively manage .
Organization with Narrow Span
Organization with Wide Span
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11. Advantage Disadvantage
Close supervision Subordinates tend to get
Close control involved in Subordinates
Work
Fast communication
between subordinates Many Levels of
and superiors Management
High Costs due to many
levels
Excessive distance
between lowest level and
top level
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13. Advantages Disadvantage
Superior are forces to Tendency of
delegate overloaded
Clear polices must be Danger of superiors
made loss of control
Subordinate must be Requires exceptional
carefully selected quality of Managers
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14. Organizing Process
Identifying, analyzing and classifying the activities
necessary to accomplish the objectives
Grouping these activities in the light of human and
material resources available and the best way under
the circumstances , of using them
Delegation of authority (Assignment of duties )
Horizontal and vertical coordination of authority and
information relationship
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15. Organizing Process
Feasibility studies and feedback
IDENTIFICATION GROUPING HORIZONTAL
AND OF ACTIVITIES IN AND VERTICAL
CLASSIFICATION THE LIGHT OF DELEGATION COORDINATION OF
OF RESOURCES AND OF AUTHORITY AUTHORITY AND
REQUIREDS SITUATIONS INFORMATION
ACTIVITIES RELATIONSHIP
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16. Common Errors In Organizing
Unnecessary Lengthy Chain of Command
Unsatisfactory Work Division
Lack of parity between the Authority and
Responsibility
Lack of Coordination and Control
Failure to Classify Relationship
Confusion of authority and relationship with
Informal Organization
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18. Formal Organization
The Formal Organization is a system of
well-defined jobs, each bearing a definite
measure of authority, responsibility and
accountability.
Louis Allen
Formal Organization is a system of
consciously coordinated activities of two or
more persons toward a common objective.
Chester Barnard
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19. Features
It is deliberately designed by the top management
It places more emphasis on work to be performed than
interpersonal relationships among the employees.
It specifies the relationships among various job positions and
the nature of their inter-relationship.
It lays down rules and procedures essential for achievement of
objective
Efforts of various departments are coordinated, interlinked and
integrated through the formal organisation.
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21. Features
It is deliberately designed by the top management
It places more emphasis on work to be performed
than interpersonal relationships among the
employees.
It specifies the relationships among various job
positions and the nature of their inter-relationship.
It lays down rules and procedures essential for
achievement of objective
Efforts of various departments are coordinated,
interlinked and integrated through the formal
organisation.
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22. Advantages
Easier to fix Responsibility
No ambiguity in the role . This also helps
in avoiding duplication of effort.
Behavior of Employee fairly predicted
Unity of command through an established
chain of command
Stability to the organization
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23. Limitations
The formal communication may lead to procedural
delays
Do not provide adequate recognition to creative talent
More emphasis on Structure and Work, difficult to
understand all human relationships in an enterprise as
it places
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24. Informal Organization
An Informal organization is an aggregate of
interpersonal relationships without any
conscious purpose but which may contribute to
joint results.
Chester Barnard
Informal organization is a network of
interpersonal relationship that arise when people
associate with one another .
Keith Davis
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25. Features
Originates from within the formal organisation as a
result of personal interaction among employees.
The standards of behavior evolve from group norms.
Independent channels of communication without
specified direction of flow of information are
developed by group members.
Emerges spontaneously and is not deliberately
created by the management.
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26. A
B C C
D E F G H I
J K L M N 0 P Q R T U V
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27. Chess group
Cricket lovers Bowling Team
Morning coffeee regulars
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28. Advantages:
It helps to fulfill the social needs .
Sense of belongingness in the organisation
Faster spread of information as well as quick
feedback.
It contributes towards fulfillment of organizational
objectives. For example, employees reactions
towards plans and policies can be tested
through the informal network.
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29. Disadvantages:
It spreads rumors. This may work against the interest
of the formal organisation.
The management may not be successful in
implementing changes if the informal organisation
opposes them. Such resistance to change may delay
or restrict growth.
It pressurizes members to conform to group
expectations.
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30. Formal and Informal organisation: A
Comparative view
Meaning
Origin
Authority
Behavior
Flow of Communication
Nature
Leadership
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31. REFERENCES
Koontz,O’ Donnel & Weihrich
Management:A Global and Enterpreneurial
Perspective
Stephen P. Robbins and Mary Coulter
:Management,Pearson Education
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