Management Subject Oraganising topic.

1. MODULE 3:- ORGANIZING
MBAH 401:
MODERN ORGANISATION AND MANAGEMENT

2. Submitted By: Group NO 6 “Golden Gang”
Context:
Organizing: Organization, Organizational Structures, Principles of Work Specialization,
Departmentalization, Chain of Command, Span of Control, Centralization and Decentralization,
Formalization.
Mechanistic and Organic Structures, Factors Affecting Structural Choice - Strategy, Size,
Technology, Environmental Uncertainty.
Traditional Organizational Designs - Simple Structure, Functional Structure, Divisional Structure,
Matrix Structure, Team Structures, Project Structure,
Adaptive Organizations - Boundary less Organization, Virtual Organizations, Learning
Organization, Flexi Work, Tele-working, Global Organizations.

3. • Organization is any collection of person
• Material, procedures, Ideas or Facts
• Arranged and ordered
• Combination of these parts
• That works towards achieving
• Organizational objectives
Murali

4. According to Theo Haimann, “ Organization is the process of
defining and grouping the activities of the enterprise and establishing
the authority relationship among them.”

5. 1. Group of persons
2. Common Objectives
3. Division of work
4. Cooperative Efforts
5. Communication
6. Rules and regulations
7. Central Authority

6. 1. Formal Organization
A formal organization is an organization with a
fixed set of rules of intra-organization procedures and
structures.
2. Informal Organization
An informal organization is a group of people who
share a common identity and are committed to achieving a
common purpose.

7. An organizational structure is a system that outlines
how certain activities are directed in order to achieve the
goals of an Organization.
These activities can include rules, roles, and responsibilities.
The organizational structure also determines how information
flows between levels within the company.

9. When manager develop or change an Organizational structure, they
are engaged in Organization designs, a process that involves decisions about
six key elements :
1. Work Specialization
2. Departmentalization
3. Chain of command
4. Span of control
5. Centralisation and Decentralization
6. Formalization

10. It is also called as division of labour. The degree to
which an Organization divides individual task into separate
jobs.
Every worker is trained specifically on how to
perform a small, particular task in the best way. That
worker becomes extremely efficient at doing the task.

12. DEPARTMENTALIZATION
The basis on which jobs are grouped together is called
departmentalization.
1. Functional
2. Product
3. Geographical
4. Process
5. customer
Five common forms of departmentalization

13. Functional Departmentalization
Functional Departmentalization- Group Jobs According
to Function
Advantages:
1. Specialization
2. Optimum Utilization of Resources
Disadvantages:
1. Slow Decision Making
2. Lack of Innovation And Creativity

14. Product Departmentalization
Product Departmentalization- Groups Jobs by Product
Line
Advantages:
1. Control organization of production
2. Ensures quality products
Disadvantages:
1. Duplicate efforts or tasks
2. Not as suitable for smaller organization

15. Geographical Departmentalization
Geographical Departmentalization-Groups Jobs
According to Geographical Region
Advantages:
1. Leadership Opportunities
2. Better efficiency for division
Disadvantages:
1. More expensive
2. Competition for resources

16. Process Departmentalization
Process Departmentalization-Group Jobs on the Basis of Product or
customer Flow
Advantages:
1. Uses specialized technology
2. Utilizes special skills
Disadvantages:
1. It is hard to maintain
unity of command

17. Customer Departmentalization
Customer Departmentalization-Groups Jobs on the basis of specific and unique
customers who have common needs
Advantages:
1. Possible to know the likes and dislikes of customer
2. Ensures full attention to customer
Disadvantages
1. May create duplication of resources
2. May face heavy overheads

18. Chain of command refers to an
organisational structure that indicates
how each member of the company or
organisation reports to one another
- ANANTHAKRISHNA
S

19. Responsibility: Everyone has their own separate duties, and their own
supervisor to keep them accountable.
Efficiency: A functional chain of command helps improve efficiency
when communicating with workers.
Clarity: This lets everyone know which decisions they are allowed to
make and which ones to present to their supervisors.
Employee Morale: It improves the morale of workers leading to high
productivity and low employee turnover.
Specialization: Making employees focus on narrow functional areas can
create groups of specialists that heavily impact the functions of the
company.
ADVANTAGES

20. Span of control defines how many subordinates
each manager or supervisor is responsible for in an
organization

21. Centralization means concentration of authority at the top level of the
administrative system.
Centralized organizations have all decisions coming from the same place.
Decentralization means dispersal of authority among the lower levels of the
administrative system.
Decentralized organizations have decisions coming from all levels of
management towards the same goal.

22. The advantage of such a structure is, it allows employees to have a
well-defined framework within which all work needs to carried out.
The disadvantage of such a structure is that it increases the time
taken to arrive at a decision. As decision-making authority lies with
selected people from top management, it may result in biased
decision making.

23. The Advantage of decentralization is that the employees are
empowered to make their own decisions that will benefit the
organization, which results in a high level of employee satisfaction
and boosts the productivity of an organization.
Decentralization enables low-level employees to gain leadership
skills, which can contribute to the growth of the organization in the
long run.

24. Formalization is the extent to which an organization's policies,
procedures, job descriptions, and rules are written and explicitly
articulated.
These structures control employee behavior using written rules, so that
employees have little autonomy to decide on a case-by-case basis.

26. An advantage of formalization is that it makes employee behavior
more predictable. Whenever a problem at work arises, employees
know to turn to a handbook or a procedure guideline. Therefore,
employees respond to problems in a similar way across the
organization; this leads to consistency of behavior.
 A high degree of formalization may actually lead to reduced
innovativeness because employees are used to behaving in a certain
manner.
Formalization reduces ambiguity and provides direction to
employees.

27. Formalization is a process occurring in three stages:
Stage 1. Creating legal documents for the company, to define its mission, goals, course
of action and principles of operation. The result of the first stage is the development of such
documents as the statute, procedures and organizational chart.
Stage 2. Development of a detailed description of units describing behavioural patterns in
specific organizational situations, decision rules, etc.,
Stage 3.Continuous improvement of organizational documentation, adapting it to
changing internal and external conditions.

28. Mechanistic and Organic Structure
What is a mechanistic organization?
A mechanistic organization is an organizational structure with centralized authority,
divisions between departments and specialized roles that work independently of each
other.
Companies that have mechanistic structures run similarly to bureaucracies in which
an established chain of command manages business operations. Types of
businesses that often implement this type of structure include:
When represented visually, mechanistic organizations have a triangular or pyramid
structure, and the higher your position on the triangle, the more authority you have.
Typically, most company roles comprise entry-level and non-supervisory positions,
which make up the bottom section of the triangle.
The next, smaller section of the triangle includes their immediate supervisors,
followed by senior supervisors. This pattern continues to the top of the pyramid, which
includes executives such as the chief executive officer and chief financial officer.

29. CONTINGENCY FACTORS:
Top managers of most organizations typically
put a great deal of thought into designing an
appropriate structure. What that appropriate
structure is depends on four contingency
variables: the organization's strategy, size,
technology, and degree of environmental
uncertainty.
Organic Organizational Structure
An organic organizational structure is a flat
organization that allows for horizontal
communications and interactions and is
more suited to creative businesses. This
type of organizational structure is
decentralized, giving employees at all
levels a chance to participate in business-
related decision making.
Businesses with an organic structure often
encourage group participation and the
sharing of work responsibilities.
Communication channels are open to
employees, managers and business
owners and contact between all levels of
employees usually occurs on a regular
basis. Lower-level employees tend to have
more face-time with executives than in a
mechanistic organization. The type of
communication most often used in organic
structures is verbal.

30. Factorsors Affecting Organization Structure
1. Strategy:
Strategy determines a course of action to direct various organizational activities.
It makes plans to co-ordinate human and physical resources to work towards a
common objective. Strategy is pre-requisite to organization structure and also
follows it. The relationship between strategy and organization structure is
depicted as follows:

31. Strategies to diversify product lines or markets require decentralized transition as decision-
making is done at wider level and strategies fororganizations working in stable environment.
Where managers do not diversify their operations, require a centralized organization.
2. Technology : The technology for manufacturing goods and services also affects the
organization stricture.
In case of mass production technology, mechanistic organization structure is more
appropriate, while in case of continuous production orsmall scale production technology, the
appropriate from is organic structure. This is because mass production technologies involve
standardization and specialization of work activities and continuous or

32. unit production technologies require low levels of standardization and
specialization.
3. People: Organization structure defines work, groups it into departments and
appoints people to run those departments. People at different jobs must
possess the skill, knowledge and efficiency to accomplish the related
tasks.
4.Task: Activities performed by people who transform organizational plans into
reality are known as tasks.
5 .Decisions: Questions like who makes decisions-top managers or lower
level managers, how information flows in the organization so that decision-
making is facilitated, affect the organization structure.
Centralized decision-making powers give rise to mechanistic structures and
decentralized decision-making processed give rise to organic or

33. behavioral structures.
6.Informal organization: Informal organizations are and outgrowth of
formal organizations. Social and cultural values, religious beliefs and
personal likes and dislikes of members which form informal groups cannot
be overlooked by management.
7.Size: A group known as Aston Group conducted research on firms of
different sizes and concluded that as firms increase in size, the need for job
specialization, standardization and decentralization also increases and
organizations are structured accordingly.
8.Environment: Organization structure cannot ignore the effects of
environment. Organizations must adapt to the environment, respond to
incremental opportunities and satisfy various external parties such as
customers, suppliers, layout unions etc.

34. In case of stable environment where people perform routine and specialized
jobs, which do not change frequently, a closed or mechanistic organization
structure is appropriate.
9. Managerial perceptions: Organizations where top managers perceive
their subordinated as active, dynamic and talented entrepreneurs, prefer
organic form of structure, If they hold negative opinion about their
subordinates, they prefer mechanistic organization structure.

35. Traditional organization structure is a strategy for
organizing a business or other entity in what is
known as a hierarchy or a top-down structure.
With this approach, the processes of task
allocation and management focus on a vertical
structure that strictly defines a chain of command.
TRADITIONAL ORGANISATIONAL STRUCTURE:

36. 1. SIMPLE STRUCTURE:
Simple structure consists of owners and employees.
A simple structure is an organizational design with low
departmentalization ,wide span of control ,authority centralized in a
single person and little formulization .
Employees often work in several operational areas, and their departmental structure
and area of expertise may not be well-defined.

37. 2.FUNCTIONAL STRUCTURE:
 The functional organization is designed on the typical hierarchy
system where position and job requirement of every employee is
defined.
 Employees are grouped based on their specific skills ansd
knowledge.
 Functional organization structure is suitable for small as well as
those entities that offer one type of services or
products regularly; for example, medical clinics, car-repairing
shops, hotels, and restaurants.

38. 3.DIVITIONAL STRUCTURE :
A divisional organizational structure is a system in which a company segments
its employees based on products or markets, as opposed to their job roles.
 It promotes flexibility and initiative as each division functions as an autonomous unit and it
leads to further decision making.
The divisional organizational structure allows each division of a firm to be accounted for in
isolation.
Leads to more focused and higher responsiveness.
.

39. Contemporary Organizational Designs
Managers in contemporary organisations are finding that these
traditional hierarchical designs often aren't appropriate for the
increasingly dynamic and complex environments they face .
Managers are finding creative ways to structure and
organize work and to make their organizations more
responsive to the needs of customers, employees, and
other organizational constituents
- ANUSHA T

40. Team-Based Structures
The entire organization is made up of work groups or teams that perform the
organization's work.
There is no chain of command.
Employee teams are free to design work in the way they want to.
To improve productivity at the operating level, for instance, companies such as Saturn,
Motorola, and Xerox extensively use self-managed teams.

41. Matrix Structure
Specialists from different functional departments work on one or more projects being led by
project managers
It creates a dual chain of command
It explicitly violates the classical organizing principle of unity of command.
An example of the matrix structure used in an aerospace firm.
-

42. Project Structure
Employees continuously work on projects
Employees take their specific skills, abilities, and experiences to other work projects
Project structures tend to be very fluid and flexible organizational designs.
Managers serve as facilitators,
mentors, and coaches

43. Adaptive organization is an organization or a
company that is able to successfully adapt to the rapid
and unexpected changes that occur in its
environment.
Such businesses are
flexible
able to develop fast
tend to entrust more powers (in terms of making
decisions) to the employees.

44. The Boundaryless Organization
It is an organization whose design is not defined by, or limited to, the
horizontal, vertical, or external boundaries imposed by a predefined
structure
In a boundaryless organization, the boundaries that divide employees
such as hierarchy, job function, and geography as well as those that
distance companies from suppliers and customers are broken down.
The goal in a boundaryless organization :
To develop greater flexibility and responsiveness to change and
To enable the free exchange of information and ideas.
Boundaryless organizations are able to achieve greater integration and
coordination. It shows in integration of resources and human capital.
They are able to adapt to environmental and technological changes
faster.

45. Virtual Organizations
In a virtual organization an alliance of independent companies
share skills, costs, and access to one another’s markets. It consists
of a network of continually evolving independent companies.
Each partner in a virtual organization contributes only in its area
of core competencies.

46. The Learning Organization
Learning Organizations is an organization that has a developed the
capacity to continuously adopt and change because all members take an
active role in identifying and resolving work related issues.
In a Learning Organizations, employees are practicing knowledge
management continually acquiring and sharing new knowledge and are
willing to apply that knowledge in making decisions or performing
works.
In learning organizations, employees feel free to openly communicate,
share, experiment, and learn without fear of criticism or punishment.

47. Tele-Working
• Tele working is also known as
remote working, future of
work, tele work, tele working,
work from home, mobile
work, remote job, work from
anywhere, and flexible
workplace.
• It is an arrangement in which
employees do not commute
or travel to a central place of
work, such as an office
building, warehouse or store

48. Advantages/Benefits of Tele-Working
• Work-life Balance and flexible
working hours.
• Saves Time and Money
• Pollution Reduction
• Reduces Conflicts in Companies
• Improves Concentration

49. Disadvantages of Tele-Working
• Elimination of a good working
environment
• Emotional Disengagement
• Not being able to control the
time and work of employees.
• Lack of Collaborations b/w work
teams
• Reduction of Learning

50. How to Improve Tele-Working?
1. Keep a regular routine
2. Use the right tools
3. Find a workspace at home
4. Set a work schedule
5. Have little breaks when
necessary
6. Eat healthy and at regular
times
7. Set goals and deadlines and
meet them

51. Flexi Work
• Flexible working is a way of
working that suits an
employee's needs, for example
having flexible start and finish
times, or working from home.
• Flexible working, employees can
work from anywhere, from
home, from cafes, or during
their commute.

52. Advantages of Flexible Working
• Efficiency
• Adaptability
• Taking control over the schedule
• Reduce employee stress
• Employee satisfaction
• Less cost
• Reduced absenteeism
• Reduced overtime

53. Disadvantages of Flexible Working
• Communication Difficulties
• It can be Harder for Managers
and Employers to Keep Track
of what Their Employees are
Doing
• Can Lead to Less Productivity
• Unsuitable for some
employee roles
• Availability issues

54. How to improve flexibility at Work?
• Step outside of your comfort
zone
• Have a Strong Support
Network
• Encourage Creativity
• Lead With Purpose
• Plan ahead.