VGE

Organizing & Organization 1

Prof Sunil Doke

VGE
Introduction
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• An organization is
– A collection of people.
– Working together.
– For common objectives.
• Organizing is a process by which management
pursues its objectives by combining the efforts
of people under supervision.
Organizing Involves
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• Identifying necessary tasks.

• Allocating the task among members.
• Integrating efforts to achieve its goals.
It is largely done by designing a structure that
can as far as possible run itself.
 Why do people form
organizations? VGE

• To enable each other to accomplish things which

as individuals would be difficult or impossible to
achieve.
• To help overcome our limitations as individuals.
• To facilitate the dissemination of knowledge.
• To offer a career source.
• To allow gains in productivity.
• To create synergy.
 Organization structure
Formal
• A creation of Management.
• Has clearly defined roles.
• Specifies reporting
relationship & structure of
authority.
• Defined Chain of command.
• Formal plan for departments.
• Consists of formal groups.
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Informal
• The network of people.
• Not formally planned.
• Developed spontaneously.
• Loosely organized, flexible,
ill defined.
• An unofficial channel of
communication (grapevine).
Organization Charts
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• Features:
– A pictorial representation of internal structures.
– Portrays formal relationship among members.
– Illustrates functions, departments, or positions.
– Indicates reporting relationships.
– Shows main lines of communications and flow
of authority.
Organization Charts
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• Can be used for:

– Orienting new employees.
– Considering business expansion.
– Source of informal information for general
public.
Can not be used to give perfect explanation of
working of an organization.
Limitations of organization
Charts VGE

• Job specifications, Titles and duties are not

provided.
• Does not indicate formal relationship and
channel of communication.
• Does not reflect the power and status at each
management level.
• Outside specialists are not included.
Types of Organizations
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• Bureaucratic Organization.
• Line Organization.
• Line & staff Organization.
• Committee Organization.
Bureaucratic Organization
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• Bureaucratic structures are intended to
provide:
– Equal treatment to all employees.
– A reliance upon the expertise, skills and
experience relevant to all jobs.
– Maintenance of records of work and outputs.
– The setting up and enforcement of rules and
regulations that serve the interests of
organizations.
Characteristics of Bureaucratic
Organizations VGE

• Specialization.
• Hierarchy.
• Rules.
• Impartiality.
• Hiring on the basis of qualifications and
promotion by Merit.
• Written records.
Advantages of Bureaucracy
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• Allows equal treatment to employees.

• Maintains records of work and output.
• Sets up rules and regulations to serve the
interests of the organizations.
• Establishes a framework of rules and systems
within which decision making can be
delegated with reasonably practical results.
Disadvantages of Bureaucracy.
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• Rigid not easy to change.

• Reduces motivation.
• Reduces individual discretion.
• Stifles upward communication.
• Stifles individual growth.
Line Organization
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• The organization is divided into many

departments with departmental heads.
• Advantages:
– Simple and easily understood.
– Prompt decision.
– Co-ordination within department.
– Effective delegation.
– Easy staff discipline.
– Authority, responsibility & duties are clearly
defined.
Disadvantages of Line
organization VGE

• It is potentially rigid and inflexible.

• Effectiveness is depending on ability of
head of the department.
• Expansion is difficult.
• Co-operation and coordination between
departments is difficult.
Line & Staff Organization
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• Combining earlier two forms.

• Functional experts (staff) offer advice the
executive ( Line).
Advantages of Line & Staff
organization VGE

• Direct lines of responsibility & authority are

maintained.
• Control of department remains with department
heads.
• Promotes departmental efficiency.
• Departmental coordination is facilitated.
 Disadvantages of Line & Staff
organization VGE

• Lead to inefficiency and waste of experts skills.

• Can also lead to bad feelings.
• Form can be confusing.
• May boost line & staff conflicts
Prevention of conflicts
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• Line & Staff responsibilities should be clearly

spelled out.
• Integrate line & staff activity.
• Educate line managers to staff properly.
• Hold staff accountable for results.
• Ensure that there are prospectus of promotion
for staff.
Committee Organization.
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• Management decisions are formulated by

group instead of being made by an individual.
• Members may be either elected or appointed.
• Its not possible for an organization to be
entirely managed by committees.
Advantages of Committee
Organization VGE

• More than one point of view on any

problem can be considered.
• The advice of expert on particular matter
can be taken.
• Full discussion and due consideration to the
issue can be given.
• Co ordination with other departments is
enhanced.
Disadvantages of committee
organization. VGE

• Slow in reaching decisions.

• No individual responsibility for failures.
• Lead to less positive actions.
• Decisions may be postponed.
• Do not have authority for urgent action.
Task
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• Describe various structures of organizations.

State the advantages and disadvantages of
each structures with suitable examples.