1 ORGANIZING 24/8/2016
2 Organizing People know that they must cooperate with each other to get things done. This requires understanding of what role each one plays in the organization, and how their roles are interrelated with others Designing and maintaining these systems of roles is the managerial function of organizing
3 Organizing For an organizational role to exist, it must haveVerifiable objectives A clear idea of what major activities or duties involved; and An understood area of discretion or authority, so that the person filling the role can effectively carryout the workx
4 Organizing - DefinitionOrganizing is the grouping of activities necessary to attain objectives, the assignment of each grouping to a manager with authority necessary to supervise it, and the provision for coordination horizontally and vertically in the enterprise structure
5 Organization StructureAn organization structure should be designed To clarify who is to do what and who is responsible for what results; To remove obstacles to performance caused by confusion and uncertainty of assignments; and To furnish decision-making and communication networks reflecting and supporting enterprise objectives
6 Spans and Organization levelNarrow span Wide span
7 Narrow span Close supervision Close controlFast communication between superiors and subordinates Superiors tend to get too involved in subordinates work Many levels of management High costs due to many levels Excessive distance between lowest and top level
8 Wide span Superiors are forced to delegate Clear policies must be madeSubordinates must be carefully selected Tendency of overloaded superiors to become decision bottlenecks Danger of superiors loss of control Requires exception quality of managers
9 Factors influencing the span of managementNarrow span Wide span No or little training Inadequate or unclear authority delegation Unclear plans for non repetitive operations Non verifiable objectives and standards Fast changes in external and internal environment Complex task Greater number of specialties at lower and middle levels Thorough training Clear delegation to undertake well defined tasks
10 Organization Process Enterprise objectives Supporting objectivesIdentification and classification of required activities Grouping of activities in light of resources and situations Delegation of authority Horizontal and vertical coordination of authority
11 What could be the size of an organization?
12 Basic DepartmentationThe limitation on the number of subordinates that can be directly managed would restrict the size of enterprise if it were not for the device of departmentation Grouping activities and people into departments make it possible to expand organizations to an infinite degree Departments differ with respect to the basic patterns used to group activities
13 Types of departmentationDepartmentation by time Departmentation by Enterprise function Departmentation by territory or Geography Departmentation by product Departmentation by customer Departmentation by market-orientation Matrix organization
14 Framework for discussionFactors Topic of discussion Need for Responsibility of profits (Where the responsibility lies) Development of personnel Opportunity for development/training Coordination of functions Where the coordination should be Economy of scale of operations Possibility of central services / local services Organization control Easy or difficult Planning Simple/more coordination/at which level Capabilities of personnel High/level of skills Communication with market/customer Facilitation of communication
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19 Matrix organization
20 Types of structure Line structure Staff structure Functional structureProject structure
21 Directing Directing is the process of integrating people with the organization so as to obtain their willing and zealous cooperation for the achievement of its goals This requires integration of organizational goals with the individual and group goals
22 Direction Strategies Rational Economic Man and Directing strategyBased on Theory X Social Man and Directing strategy Based on Hawthorne studies Self-actualizing Man and Directing strategy Based on Theory Y Complex man and Directing strategy
23 Rational Economic Man and Directing strategyTheory X Man’s primary motivation is economic gain and he does all that which maximizes it Economic incentives are under the control of the organisation, and people are passive agents to be manipulated and controlled by the organisation People tend to have irrational feelings and such feelings must be prevented from interfering in his calculations of maximization of his economic gains Man is inherently lazy and avoids work. He must be motivated by external incentives Individual goals run counter to organizational goals. He must be controlled by external forces to get him to direct his efforts towards organizationally desired channels Directing strategy: Find the “one best way” of performing job Select right person for right job Motivate through an incentive scheme
24 Social Man and Directing StrategyEmployees are motivated by social needs and gain a sense of identity through social relationships Employees are more responsive to the social forces of their peer group than to the control and incentives provided by management Paying more attention to the social needs of employees Accepting informal groups as a reality of organisational like and focusing on group incentives
25 Self actualizing man and directing strategyPeople seek to mature on the job and are capable of doing so. People wanted to created autonomy in their work People tend to integrate self goals with that of organization’s Making work challenging and meaningful Acting as a catalyst and a facilitator Delegating adequate authority
26 Complex man and directing strategyMan is complex and variable. He requires variety of needs, which keep on changing from time to time People are capable of learning new motives through their experiences People in different organizations and different sub parts of the same organisation differ in their motivational pattern Manager must understand the needs, motives and attitudes of his employees Strategy has to be on individual basis The manager must have flexibility and resources to vary his strategy
27 Delegation Delegation is about is giving a subordinate “discretion to make decisions” by the seniors The process of delegation involves Determination of results expected from a position Assignment of task to a position Delegation of authority for accomplishing these tasks Holding of people in positions responsible for accomplishment of tasks
28 Principle of delegationPrinciple of delegation by results expected Authority delegated should be adequate to ensure the results expected Principle of functional definition The more clearer the results expected, informational relationships with other positions, more adequately the individual can contribute to the organisational goal Scalar principle Clearer the line of authority, clearer will be the responsibility to decision making Authority level principle Decisions made by the individual need not be referred upward in the organisation structure
29 Principle of delegationPrinciple of unity of command More clearer the reporting relationship to a single superior, less is the problem of conflicting instructions and greater the feeling of personal responsibility for results Principle of absoluteness of responsibility The superiors cannot escape the responsibility for the organisation activities of the subordinates Principle of parity of authority and responsibility The responsibility for actions cannot be greater than the authority delegated nor should it be lesser
30 Principles of organizationThe purpose of organizing Aid in making objectives meaningful and to contribute to organizational efficiency Principle of unity of objective Organisation structure is effective if individuals could contribute to enterprise objectives Principle of organizational efficiency The structure should ensure minimum costs in accomplishing enterprise objectives The cause of organizing The basic cause of organization structure is the limitation of the span of management What if there is no such limitation? Span-of-management principle There is a limit to the number of person an individual can effectively manage
31 Principles of organizationThe structure of organization: Authority Scalar principles Principle of delegation by results expected Principle of absoluteness of responsibility Principle of parity of authority and responsibility Principle of unity of command The authority-level principle
32 Principles of OrganisingProcess of organising Principle of balance Principle of flexibility Principle of leadership facilitation
33 Motivational Theory Maslow’s Hierarchy TheoryHerzberg’s Two-factor theory Expectancy theory Vroom theory Porter and Lawler Model
34 Maslow’s and Two factor theorySelf actualization Esteem or status Affiliation or acceptance Security or Safety Physiological needs Interpersonal relations Company policy and administration Quality of supervision Working conditions Job security Salary Personal life Challenging work Achievement Growth in the job Responsibility Advancement Recognition Status
35 Expectancy theory (Vroom Theory)Motivation is a product of the anticipated worth than an individual places on a goal and the chances he or she sees of achieving these goals Force = Valence x Expectancy Force is the strength of a persons motivation Valence is the individual preference for an outcome Expectancy is the probability that a particular action will lead to a desire outcome
36 Porter and Lawler theoryValue of rewards Perceived equitable rewards Ability to do a specified task Intrinsic reward Performance accomplishment Satisfaction Effort Extrinsic reward Perception of task required Perceived effort – reward probability