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Assignment # 2

1. Describe Major Principles of Organizing?

2. What do you understand by Matrix organization?


Mention Advantages and Disadvantages of Matrix
Organization.

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1. Describe Major Principles of Organizing?

Major Principles of Organizing:


There is considerable agreement among management scholars and practitioners
about a number of principles underlying the science of organizing. These
principles are truths of general applicability and are more in the nature of
essential criteria for effective organizing. The most essential guiding principles
of organizing are summarized below:
1. Principle of Unity of Objectives:
An organization structure is effective is it enables individuals to contribute to
enterprise objectives.
2. Principle of Organizational Efficiency
An organization is efficient if it is structured to aid the accomplishment of
enterprise objectives with a minimum of unsought consequences or costs.
3. Span of Management Principle
In each managerial position, there is a limit to the number of persons an
individual can effectively manage, but the exact number will depend on the
impact of underlying variables.
4. Scalar Principle
The clearer the line of authority from the ultimate management position in an
enterprise to every subordinate position, the clearer will be the responsibility for
decision making and the more effective will be organizational communication.
5. Principle of Delegation By Results Expected
Authority delegated to all individual managers should be adequate to ensure
their ability to accomplish results expected.
6. Principle of Absoluteness of Responsibility
The responsibility of subordinates to their superiors for performance is absolute
and superiors cannot escape responsibility for the organization activities of their
subordinates.
7. Principle of Parity of Authority and Responsibility
The responsibility for actions cannot be greater than that implied by the
authority delegated, nor should it be less.
8. Principle of Unity of Command
The more complete an individual’s reporting relationships to a single superior,
the smaller the problem of conflicting instructions and the greater the feeling of
personal responsibility for results.
9. Authority Level Principle
Maintenance of intended delegation requires that decisions within the authority
of individual managers should be made by them and not be referred upward in
the organization structure.
10. Principle of Balance
The application of principles must be balanced to ensure the overall
effectiveness of the structure in meeting enterprise objectives.

2. What do you understand by Matrix Organization? Mention


advantages and Disadvantages of Matrix Organization.

In a matrix organization, the functional and project of product patterns of


departmentation are combined in the same organization structure.
This kind of organization occurs frequently in marketing (for example,
planning and executing an advertising campaign for a major new product) in the
installation of an electronic data processing system, etc.
Functional departments are permanent fixture of the matrix organization;
they retain authority for the overall operation of their respective units. Product
departments or project teams are created as the need arises for them, that is,
when a specific programme requires a high degree of technical skill in a
concentrated period of time. Members of a project team are assembled from the
functional departments and are placed under the direction of a project team are
assembled from the functional departments and are placed under the direction of
a project manager. The manager for each project is responsible and accountable
for its success and has authority over the other team members for the duration of
the project. On the completion of the project, the members of the team, including
the project manager revert back to their respective departments until the next
assignment to a project.
Advantages: The problem of coordination is minimized because the
project manager acts as an integrator to relate personnel from diverse disciplines.
• There is a reservoir of specialists which ensures availability of expertise to
all projects on the basis of their need.
• There is economy in the cost. Each project is assigned only the number of
people it needs, avoiding unnecessary surplus.
• There is an effective information decision system which enables members
to respond quickly to the change in product needs.
• Is oriented towards end results.
• Professional identification is maintained.
• Pinpoints product – profit responsibility.
Disadvantages:
• A state of conflict exists between functional and project managers, as both
compete for limited resources.
• Role conflict, role ambiguity, and role overload may result in stress for
the functional and project managers as well as for the team members.
• An imbalance of authority and power, as well as horizontal and vertical
influence of the project and functional managers, can also lead to
problems in matrix organization.
• Because of the potential conflicts, managers may want to protect
themselves against blame by putting everything in writing, which
increases administration cost.
• Matrix organization requires many time consuming meetings.

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