From the Book of Business for the 21st Century by Skinner Ivancevich...Chapter-9...The student of Uttara University.

1. Chapter
Eight
ORGANIZINGTHE BUSINESS
786

2. Submitted By:
Md. Jahid Hussain.
Marjeya Akter Mousume.
Jahid Hasan Shuvo.
Maisha Preety.
Submitted To :
Md.Tariqul Islam.
Uttara University.
(Senior Teacher)

3. Generally we can see two types organizations influence a company’s
employees
The formal organization is the one put together
by management, created by those who have
authority, responsibility and accountability
designed, office structure of the business.
Informal organization exist in every business.
Not planned or shown on an organization chart,
the informal organization is network of personnel
and social relationship that emerges when
people work together.
Formal
Organization
Informal
Organization
What is Organizing
Organizing in a general sense ,the systematic arrangement of activities.

4. Line Authority
Line authority are those people in the organization who are directly responsible for achieving
organizational goals. who can make any decision &take action.
Everything kept smile.
Close to employees so decisions can
be made quickly.
Clear authority & Responsibility
Easy to Understand
Authority relationships graphically
illustrated by hierarchy
Neglects advisers.
Inflexible.
Long line of Communication.
Too many decision to make in shor
time period.
Requires very skilled line managers
Advantages of Line
authority
Disadvantages of line
authority

5. Staff
authority
Staff authority an advisory authority in which a person
studies a situation & makes recommendations but has no
authority to take action .
Advantages of staff authority
Uses the best experts.
Frees line managers for day to day
activities.
Can be used as screening & training
arena for future line managers.
Disadvantages of staff authority
Confusing to some employees.
Creates line-staff conflicts.
Places staff in subservient role.

6. Centralization
An organization in which all or nearly all authority to make decision is retained by
a small group of managers.
Advantages of Centralization
Increases uniformity of policies,
rules & procedures.
Gives individual decision makers
more responsibility for their action.
Helps develop managers for the
future.
Disadvantages of
Centralization
Places demand & pressure on a few
managers.
Reduces sense of involvement
Gives large amount of power to a few
managers

7. Decentralization
Decentralization Business an organization in which a significant amount of
the authority to make decision is delegated to lower-level managers.
Advantage of Decentralization
Disadvantages of
Decentralization
Helps develop managers for the
future.
Places decision making closer to the
action.
Gives individual decision makers
more responsibility for there action.
Makes coordination more difficult.
Limits ability of capable managers.
Lacks uniform policies.

8. Lines of authority
Worker
Middle Manager
District Director
Worker Worker Worker
Middle Manager
District Director
President
Top Manager
Chart of Line Authority

9. Legal
Counsel
Middle Manager
director of
Engineering
Line Manager
with direct line
authority
Project C
Engineer
Super visor
Project B
Engineer
Super visor
Project A
Engineer
Super visor
Teams of
Three
Engineers
Teams of
Three
Engineers
Teams of
Three
Engineers
President
Top Manager
Staff position
expert in law
staff authority
Chart of Line & Staff Authority

10. Functional Structure
Functional structure in which each unit or department has a different set of
activities & responsibilities
Advantages of Functional
Structure
Disadvantages of Functional
Structure
Specialization Each department focuses
on its own work.
Reinforces Specialized Skills &
resources.
Accountability –Someone is responsible
for the section.
Clear definition of responsibility.
Facilities communication with in
department.
Clarity-Know your & others role.
Focus on department vs organizational
issues.
Department can become resistant to
change.
Gap between top & bottom.
Communication with other department
reduced.
Coordination may take too long.
Senior managers neglect strategic
issues.

11. Product Structure
Product Structure an organization structure in which a manager a placed in charge
of & has responsibility for a product or product line.
Advantage of product
Structure
Its places responsibility For a product or
product line with managers.
Disadvantage of product
Structure
The product managers told that they are
like precedent in product area but in fact
they are usually only referees & low
level
Coordinators.
The product structure encourages
creativity
Its more flexible enough to cope with
changing environment
The price of product structure can be
high.
Its more successful in creating & selling
new
product
People can cooperate so that product will
perform well.
Less time for Planning .
The production manager are not given
enough authority to carry out
responsibility.Employees production structure are more
insecure & anxious about
unemployment.

12. The End
Thanks to all…