3 Organ Is Ing

Organising

M Thenmozhi Associate Professor Industrial Management Division Department of Humanities & Social Sciences Indian Institute of Technology Madras Chennai 600 036 e-mail< [email protected] >

ORGANISATION • ORGANISATION THEORY: • The main features of administrative management theories can be analyzed under four broad categories: • Division of Work, Departmentalization, coordination and human behavior in the Organization. • These is known as pillars of classical organization theory.

DIVISION OF WORK • The division of work implies that work must be divided to obtain a clear cut specialization with a view to improving the performance of the organization . • The division of labour as described by Adam smith in his wealth of nations was the basic ingredients of work in his approach. • The approach rests firmly on the assumption that the more particular job broken down into its simplest components parts the more specified the worker can becomes in fulfilling his particular job, the more efficient the whole organization will be.

DIVISION OF WORK • For division of work, it is necessary to be accomplished. • Fayol has Identified six such functions Technical, Financial,commercial, security and managerial

DEPARTMENTATION • Division of work followed by assignment to the individuals responsible for its performance. •

Though problems of assignment of jobs among individuals have received Attention from mathematicians in terms of optimum assignment, administrative theorists have viewed this problem differently.

• They are concerned primarily with the way in which the work is assigned to the individuals so that their specialization can be used effectively.

DEPARTMENTATION • Putting it in to the another way, the problem is to find out the way in which to group that tasks as individual jobs, to group into administrative units, to group in to larger units, and finally to establish the departments at the top level so that costs involved in carrying out these organizational work are minimum. • Gullick and urwick have suggested five alternative bases for groups: • Purpose, process, clientele, place and time most of others contributors who have studied this problem agree with this except with Substitution of product for purpose.

COORDINATION • Coordination is the orderly arrangement of group’s efforts to provide unity of action in pursuit of common purpose. • Each individuals in an organization is related with others and his function affects others. • Thus all the person in the organization contribute the organizational efficiency and this efficiency will maximum when each individuals efficiency is maximized and integrated. •

If this is not integrated the efficiency of some individuals may be counter productive.

COORDINATION • According to administrative Theorists, in its formalized model of departmetation problems of coordination are eliminated because whole set of activities to be performed is decide in advance and once these activities are assigned to organizational or individuals the problem is solved.

HUMAN BEHAVIOR ORGANIZATION • The theorist treats the human beings in the organization as an inert instrument performing the task assigned to them. • Further there is a tendency to view as personnel as given rather than as a variable in the organization? • The employees put maximum work if they are satisfied monetarily as such as the remuneration and methods of payment should be fair and provide maximum satisfaction to employees and employers. •

Thus physiology satisfaction is the basis of work performance and efficiency.

DESIGNING OF ORGANIZATION STRUCTURE • The concept of organization structure is some what abstract and illusive. • The organization structure can be viewed as established pattern of relationship among the components of the organization . • According to March and Simon’s organization structures Consist simply of those aspects of pattern of behavior in the organization that are relatively stable and change only slowly.

BASIC STRUCTURES AND OPERATING, MECHANISM • It is useful to make decision between basic structures and operating mechanism while taking about organizing. • Design of basic structure involves such central issues as how the work of the organization will be divide and assigned among positions, groups, division and department etc, • And how the coordination, necessary to accomplish total organizational objectives will be achieved such an exercise record in the form of organization charts and manuals operating mechanism on the other hand includes ,as control procedures, information systems, and reward and punishment standardized rules and procedures and so on.

BASIC STRUCTURES AND OPERATING, MECHANISM

• These structural variables both basic structures and operating mechanism, can be used to identify what is required of organizational members • To motivate them to do their assigned part of the organizational goals and to encourage them to take collaborative activities.

IDENTIFICATION OF ACTIVITIES •

In designing the structures managers must identify the various necessary activities that must be performed to achieve the organizational objectives.

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While identifying the various activities the deductive method is followed in order to achieve a particular goal which steps and functions should be undertaken.

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The major activities is classified into number of sub activities: While classifying and reclassifying the activities it should be borne in mind that all necessary activities are performed ,there is no duplication in performing unnecessary activities.

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The various activities are performed in synchronized or coordinated way.

GROUPING OF ACTIVITIES

• Closely related all similar activities are related together to form department, division or section because coordination of numerous activities are best by achieve by grouping activities. •

Them into basic and derivate departments.

• Grouping may be done on several bases depending on the situation requirements. • Group activities are in the form of department, division and sections are assigned to various positions these positions are occupied by various individuals also .

GROUPING OF ACTIVITIES • The assignment of activities are creates responsibility and ensures the certainty of work performance. • These job assignments are made to different management members who in turn distribute the job to their subordinates. • This process goes on still last level of the organization.

DELEGATION OF AUTHORITY

• Since the assignment on the individual creates the responsibility on his part. • He must have a corresponding authority to discharge his obligation. • Authority and responsibility are taken are correlated and taken to be constant companions.

DELEGATION OF AUTHORITY • Because authority without responsibility is dangerous thing and responsibility without authority is an empty vessel. • Through the process of delegation authority structure in an organization is created defining whom with interact with whom in a official way.

FEATURES OF GOOD ORGANIZATION STRUCTURES • Though a good organizing process meets the demands of various factors affecting organizing structure namely , environment,technology,size ,and people, as discussed in the previous chapter ,it should be more specifically deal with to find out how an organization structure meets such demands . • Like the engineer who designs the bridge to meet special needs ,the organization planner, in designing the organization structure, applies certain principles in order to meet the various needs. • Thus if certain basic consideration are taken in to account the result would be good organization structure.

FEATURES OF GOOD ORGANIZATION STRUCTURES • CLEAR LINES OF AUTHORITY: There must be clear lines of authority running from the top to the bottom of the organization. • ADEQUATE DELIGATION OF AUTHORITY: Every person in that organization must have adequate authority deal with the situation.

FEATURES OF GOOD ORGANIZATION STRUCTURES • APPLICATION OF ULTIMATE RESPONSIBILITY: The responsibility of higher level for the acts of its subordinates is absolute. • MINIMUM MANAGERIAL LEVELS: • As far as possible the number of managerial levels should be kept minimum. • UNITY OF DIRECTION: • Every person in the organization should be confined as far as possible to a single major function .This is based on principles of specialization and unity of direction.

PROPER EMPHASIS ON STAFF ACTION • Whenever possible line function should be separated from staff function ,and adequate emphasis should be placed on • Important staff activities. • SPAN OF CONTROL: • Span of control reefers the numbers of peoples one manager can directly supervise. •

There is limit on this number How ever it cannot be prescribed universally.

PROPER EMPHASIS ON STAFF ACTION • The span of managers is depend upon several factors, such as nature of superior, nature of subordinate ,nature of work degree of decentralization ,type of planning use of staff assistance, communication techniques and supervision from Others. • The span of control in an organization should be decided taking into account these factors. • Thus arbitrary decision of span of control may be misleading and ineffective.,

PROPER EMPHASIS ON STAFF ACTION • PROVISION FOR TOP MANAGEMENT: In a corporate from of organization, which is artificial person created by law and existing only in contemplation of law, it is imperative to provide some means by which shareholders and members of board of directors participate in management process. • Moreover a link should be provided between theses group and regular management team.

PROPER EMPHASIS ON STAFF ACTION • PROVISION FOR TOP MANAGEMENT: • In a corporate form of organization, this is artificial person created by law and existing only in contemplation of law, it is imperative to provide some means by which shareholders and members of board of directors participate in management process.

PROPER EMPHASIS ON STAFF ACTION • SIMPLICITY: The organization structure is kept as simple as possible. • FLEXIBILITY: The organization structure should be flexible enough so that it can be adjusted to the changing condition.

DEPARTMENTATION • Departmentation is a process of dividing the work of organization in to various units of departments . • The terms used to denote the department that result from departmentation vary a great deal . • In business organizations, such terms as division, and section are used. In government organizations , bureau, And section and in military, regiment, battalion, group, and company are used. • BASES OF DEPARTMENTATION : • The bases more commonly used are 1.Functions, 2.Products, 3.Territory 4. Customers 5.Process 6.Time.

FUNCTIONS Functional departmentation is the most widely used basis for organinsing activities and is present in almost every organization in some level . • Functional Departmentation may begin at different levels of the management hierarchy . • The various function of an organization may be classified as basic and secondary. Board Of Directors Managing Director

Production

Marketing

Market Research Newspaper magazine

Finance Advertising

Personnel Sales

Radio and T.V

PRODUCT • In Product Depatmentation, Different types of product or services becomes the basis for creating departments. • Product Department is preferred when product expansion and • Diversification, manufacturing and marketing characteristics of the products are primary concern. Managing Director

Car Division

Production

Truck Division

Marketing

Finance

Bus Division

Personnel

TERRITORY • Territorial departmentation is specifically useful to large scale enterprise or enterprises whose activities are physically or geographically spread such as banking, insurance,transportation, and distribution network throughout a territory etc. • Here all the activities in a given area of operations is divided into zones,divisions,sections and branches. Head Office (Bombay)

Eastern (Calcutta)

Central (Kanpur)

New Delhi (Division) Branch

Northern New Delhi

Jullundur

Branch

Southern Madras

Chandigrah

Branch

Branch

Western Bombay

Ajmer

Branch

CUSTOMERS • This basis of departmentation follows the division and sub division of activities of marketing to give attention to various types of customers. • Thus the customers are key to the way the activities are grouped.

Production

Wholesale

Marketing

Retail

Instalment

Finance

Export

PROCESS In this method various manufacturing process are taken as basis for dividing the activities. GENERAL MANAGER

PRODUCTION MANAGER

SPINNING

DYEING

WEAVING

TIME • In some organization, where work is performed thought the day and night the work is divided into shifts.