Module Code: FAD501/FMPS501: Session - 03: Organising

Module Code: FAD501/FMPS501
Module:
Principles of Management and Soft Skills Development
Session_03: Organising
Session Delivered By:
Ms. Sudha Rani

Email: sudharani.co.mc@msruas.ac.in
1
Faculty of Management and Commerce Ramaiah University of Applied Sciences
Session Objectives
At the end of this session, students will be able to:

• Discuss the management function of organising
• Differentiate between responsibility, authority,
and delegation
• Discuss human resource management and
strategic human resource management
• Discuss the concepts of organisational change,
climate and culture
2
Session Contents
• Concept of organising
• Responsibility, authority, delegation
• HRM and strategic HRM
• Organisational change
• Organisational climate
• Organisational culture
3
An Organisation
4
Organising
Organising is the function of management that

involves developing an organizational structure and
allocating human resources to ensure the
accomplishment of objectives
5
Organisation
Organisation is a purposeful system with several

subsystems where individual and activities are
organized to achieve certain predetermined goals
through division of labor and co-ordination of
activities
6
An Open System and Its Subsystems
Environment
• Raw
Materials
• People Transformation Products
• Information Process and
resources Services
• Financial Input Output
resources
• Production,
• Maintenance Boundary
Subsystems Boundary
• Adaptation, Spanning
Spanning
• Management
7
• Preserve peace & stability
Institutions • Seek global long-term solutions
• Power to rule, incite, tax
• Demand more transparency, information and ethics;
Investors • Include social & environmental performance in
business notation power to provide funds
• Demand to be consulted and associated

NGOs • Power to inform and denounce
• (media, internet, justice, …)
• Seek quality of life and security

Individuals • Demand free choice
• Power to vote, denounce, boycott
• Contribute services, products and technology to

Businesses
society.
• Balance economic profits with the long term
sustainability of the business
8
Organisation Structure
• Formal system of task and authority relationships
• Facilitates effective response to problem of coordination

and motivation
• People co-ordinate actions and resources for goals
• It can be changed and managed through organization

design
9
Organisation Design
• Process a structure and manage elements of structure
• It controls the activities necessary to achieve its goals
10
Evolution of Organisational Structures
11
Faculty of Management and Commerce ©M.
Ramaiah
S. Ramaiah
University
University
of Applied
of Applied
Sciences
Sciences
Importance of Structure
• It facilitates management
• Encourages growth and diversification
• Optimum use of technological improvement
• Encourages proper use of human resources
• Stimulates creativity
12
Importance of Organisation Design
• Deal with contingencies
• Effectively manage diversity and increase efficiency
• Gaining competitive advantage
• Value creation activity
• Efficiency and innovation
13
Factors Affecting Organisation Design
Organizational Structure and Design
14
Consequences of Incorrect Organisation Design
• Decline of the organisation
• Talented employees quit the organisation
• Resource become harder and harder to acquire
• Whole process of value creation slows down
• It influence structural change
• Derails company's s strategy
15
Role of Top Management
External Environment
Organization
Opportunities Design
Threats Structural Form –
Uncertainty learning vs.
efficiency
Effectiveness
Resource Availability Outcomes
Strategic Direction Information and
control systems Resources
Define Select Production Efficiency
CEO, Top mission, operational technology
official Goal attainment
Management goals, Human resource
goals Competing values
Team competitive policies,
strategies incentives
Organizational
Internal Situation culture
Strengths
Inter-
Weaknesses organizational
Distinctive Competence linkages
Leadership Style
Past Performance
16
Fundamentals of Organising
17
Responsibility
• Being dependable and making good choices

• Responsibility comes with privileges
• Responsible people are accountable, pursue
excellence, and exercise self-control
• An accountable person thinks before acting, and
accepts responsibility for the consequences of
his/her choices
18
Accountability
• Accepting the blame or credit for one’s choices or

behaviors
• An accountable person doesn’t make excuses, or blame
others for mistakes personally made
• An accountable person sets a good example for others to
look up to
19
Span of Management
• It is also called span of control and span of supervision

• It is the number of subordinates that a manager directs
and supervises
• The number of subordinates varies
• The smaller or narrower the span, the more levels of
management will be required
• Some managers are able to supervise more
subordinates than are others
20
Factors Determining the Span
• Competence of the supervisor/ Manager

• Competence and makeup of the subordinates
• Amount and availability of help from staff specialists
• Nature and importance of the activities performed
• The dynamics and complexity of the activity to be
performed
21
Factors Determining the Span
• The degree to which a comprehensive set of

standards and procedures are available to guide
subordinates
• Availability of self-directed teams
22
Authority
• It is the key to the managerial job
• It is the lifeblood of the managerial position
• It gives legitimate power to the manager or

supervisor to give directives to subordinates
• It is limited in scope by both internal and

external factors
23
Authority
Authority :
• Is the right to make decisions, to direct the work of

others, and to give orders.
Line Managers:
• A manager who is authorised to direct the work of

subordinates and is responsible for accomplishing
the organisation’s jobs
24
Authority
Staff Manager:
• Are authorised to assist and advise line managers in

accomplishing the organisation’s jobs.
• They may advise on – recruiting, hiring, and

compensation
25
Line Authority
• Authority is based on superior-subordinate

relationships and is managerial in nature
• Authority to give orders to subordinates
• The authority to direct subordinates and require them
to comply to decisions, policies, plans, and objectives
• Generally follows the principle of unity of command
26
Staff Authority
• Authority is based on expertise in specialty areas

• Provides information, counsel, advice, and guidance
in specialty areas and is not managerial in nature
• The authority to make recommendations to line
organization
• The recommendations can be accepted, rejected, or
altered by the line organization
27
Functional Authority
• The CEO or administrator gives a staff member

special limited right to command
• The right is based on expertise in a specialized area
• It allows maximum effective use of staff specialists
• It violates the principle of unity of command
28
Delegation of Authority
Successful organisations exhibit characteristics of
structural clarity through formal and informal accountabilities
Informational accountabilities - (Underpinned by leadership style,

culture, trust, operating principle/values etc)
Formal accountabilities
Clearly defined and documented
Assigned to expertise with ability to act
Congruent across multiple dimensions
Open and robust communication
Constant learning and educating from failure
29
Ramaiah
S. Ramaiah
University
University
of Applied
of Applied
Sciences
Sciences
Benefits of Delegation
• Empowers employees
• Provides or builds on internal structure
• Protects assets from undue risks or liabilities
• Provides alignment of resources to decision making
• Embeds risk appetite and tolerance throughout the
organisation
• Provides greater clarity on what is truly important to
an organisation
30
Ramaiah
S. Ramaiah
University
University
of Applied
of Applied
Sciences
Sciences
Challenges of Delegation
• Complexity of DoA
• Misalignment of DoA and business processes
• DoA not aligned with organisational structure /
decision making
• Ineffective decision making structures
• Lack of staff awareness and inappropriate training
• Failure to enforce (e.g. code of conduct breach)
• Poorly managed when staff in temporary roles
31
Ramaiah
S. Ramaiah
University
University
of Applied
of Applied
Sciences
Sciences
The Process of Delegation
1. Assignment of duties and defining the results

expected
2. Granting of permission (authority)
3. Creation of an obligation (responsibility)
• In order to make delegation of authority a success,

these three steps must blend together
32
Centralization v/s. Decentralization
Centralization – decision authority is located near the

top of the organization
Decentralization – authority is pushed downward to

lower organizational levels
33
Ramaiah
S. Ramaiah
University
University
of Applied
of Applied
Sciences
Sciences
Managers
• Managers get things done through other people
• They Plan, Organise, Lead and Control
• Firms, Industries, Schools, Hospitals, Churches,

Temples, Police dept, etc, are ALL Organisations and
Managers have to work in an organisation
34
Ramaiah
S. Ramaiah
University
University
of Applied
of Applied
Sciences
Sciences
Role of Managers
1. Plan: defining goals & strategies
2. Organising: who does what task, how they are

grouped, who reports to whom etc
3. Leading: motivating, resolving conflicts, directing

activities of others etc
4. Controlling: monitoring, comparing, correcting,.
35
Ramaiah
S. Ramaiah
University
University
of Applied
of Applied
Sciences
Sciences
Role of Manager
1. Traditional management
• Decision making, planning, and controlling
2. Communications
• Exchanging routine information and processing paperwork
3. Human resource management
• Motivating, disciplining, managing conflict, staffing, and training
4. Networking
• Socializing, politicking, and interacting with others
36
Human Resource Management
(HRM) and Strategic Human
Resource Management (SHRM)
37
Organisational Change
 Organizational change is the process by which

organization move from their present state to some
desired future state to increase effectiveness
 When an organization system is disturbed by some
internal or external forces change frequently occur or
any alteration which occur in the overall work
environment of an organisation
38
Ramaiah
S. Ramaiah
University
University
of Applied
of Applied
Sciences
Sciences
Organisational Change
 Change can be due to internal and/or external forces

in the organization
 Change in any part of the organization affect the
whole organization
 Change may affect people, structure, technology, and
other element of the organization
 Change also affect the rate of speed and degree of
significance of the organization
 Change may be reactive or proactive
39
Change Forces
External Forces
INTETRNAL FORCES
 Work force  Technology
 Managerial personnel  Marketing conditions
  Social changes
Management structure Change
forces  Political forces
 Avoid developing
inertia
40
Resistance to Change
Effort to block new ways of

doing things
Individual
Resistance
Group
Resistance Organizational
Resistance
41
Organisational Behaviour
• Organization: A structured social system consisting of

groups and individuals working together to meet some
agreed upon objectives
• Organisational Behaviour investigates the impact that
individuals, groups, and structure have on behaviour
within organisations, for the purpose of applying such
knowledge towards improving an organisation’s
effectiveness
42
The field of OB has Four Main characteristics:
i. OB is firmly grounded in scientific method
ii. OB studies individuals, groups and organizations
iii. OB is interdisciplinary in nature
iv. OB is used for enhancing organizational effectiveness

and individual well being
43
 Is based on Behavioural Science
 Seeks to develop knowledge by using an empirical

research based methodology
 It is based on systematic observation and measurement

of the Behaviour or phenomenon of interest
44
OB researchers have shed light on:
• How can goals be set to enhance people’s job

performance?
• How can leaders enhance their team effectiveness?
• What can be done to improve organisational

communication?
45
Organisational Culture and
Climate
46
Organisational Culture
• Organisational culture describes the psychology,

attitudes, experiences, beliefs and values (personal
and cultural values) of an Organisation.
• “The specific collection of values and norms that are

shared by people and groups in an Organisation and
that control the way they interact with each other and
with stakeholders outside the Organisation”
47
“Beliefs and ideas about what kinds of goals

members of an Organisation should pursue and
ideas about the appropriate kinds or standards of
behavior Organisational members should use to
achieve these goals”.
48
• Organisational values develop into Organisational

norms, guidelines or expectations that prescribe
appropriate kinds of behavior by employees in
particular situations and control the behavior of
Organisational members towards one another
49
Organisational Climate
The shared perceptions organisation members have

about their organisation and work environment
50
Summary
• Organisation is a
• Consciously coordinated social entity
• Purposeful system with several subsystems
• Organisation structure is a formal system of task and

authority relationships
• Organisation design controls the activities necessary to

achieve its goals
51
Summary
• Factors affecting organization design are- technology,

strategy, environment, size, life cycle, culture…
• Role of top management is to provide strategic direction-

define mission, official goals, ..
• Responsibility is being dependable and making good

choices and accountable
• Accountability is accepting the blame or credit for one’s

choices or behaviors
52
Summary
• Span of management is the number of subordinates that

a manager directs and supervises
• Authority is the right to make decisions, to direct the

work of others, and to give orders
– Line authority
– Staff authority
• Delegation: empowering employees to make business

decisions
53
Summary
• Managers get things done through other people
• They plan, organise, lead and control
• HR functions are:
– Conducting job analysis
– Planning labour needs and recruiting job candidates
– Selecting job candidates
– Orienting and training new employees
– Managing wages & salaries (Compensating)

54
Summary
• SHR Planning: Plan of an organisation to match its

interior strengths and weaknesses with external threats
and opportunities in order to maintain a competitive
strategy
• SHRM Activities are
– Formulating and Executing HR systems
– Formulating HR Policies and Activities
– Assess Employee competencies and behaviors
55
Summary
 Organisational change is the process by which

organisations move from their present state to some
desired future state to increase effectiveness
– Either due to internal or external forces
• Process of planned change – unfreezing,
transition/moving and refreezing
56
Summary
 Resistance to change is ‘Effort to block new ways of

doing things’
1. Individual resistance
2. Group resistance
3. Organisational resistance
57
Summary
 Organisational Behaviour investigates the impact that

individuals, groups, and structure have on behaviour
within organisations
 Three levels of analysis are carried out- individual, group
and organisational
 OB draws upon a wide variety of social sciences –
psychology, sociology, social psychology, anthropology
and economics
58
Summary
• OB helps Managers to:

a) Motivate employees
b) Keep them satisfied and productive
c) Communicate effectively
d) Make teams work effectively
e) Design jobs
59
Summary
• Organisational culture describes the psychology,
attitudes, experiences, beliefs and values (personal and
cultural values) of an Organisation To understand why
people behave as they do
• Organisational Climate refers to the shared perceptions

organisation members have about their organisation and
work environment
60

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Module Code: FAD501/FMPS501

Session Delivered By:

Ms. Sudha Rani

At the end of this session, students will be able to:

• Responsibility, authority, delegation

• HRM and strategic HRM

Organising is the function of management that

Organisation is a purposeful system with several

• Demand to be consulted and associated

• Seek quality of life and security

• Contribute services, products and technology to

• Formal system of task and authority relationships

• Facilitates effective response to problem of coordination

• People co-ordinate actions and resources for goals

• It can be changed and managed through organization

• Process a structure and manage elements of structure

• It controls the activities necessary to achieve its goals

• Encourages growth and diversification

• Optimum use of technological improvement

• Encourages proper use of human resources

• Deal with contingencies

• Effectively manage diversity and increase efficiency

• Gaining competitive advantage

• Value creation activity

• Efficiency and innovation

Organizational Structure and Design

• Decline of the organisation

• Talented employees quit the organisation

• Resource become harder and harder to acquire

• Whole process of value creation slows down

• It influence structural change

• Derails company's s strategy

• Being dependable and making good choices

• Accepting the blame or credit for one’s choices or

• It is also called span of control and span of supervision

• Competence of the supervisor/ Manager

• The degree to which a comprehensive set of

• It is the key to the managerial job

• It is the lifeblood of the managerial position

• It gives legitimate power to the manager or

• It is limited in scope by both internal and

• Is the right to make decisions, to direct the work of

• A manager who is authorised to direct the work of

• Are authorised to assist and advise line managers in

• They may advise on – recruiting, hiring, and

• Authority is based on superior-subordinate

• Authority is based on expertise in specialty areas

• The CEO or administrator gives a staff member

Informational accountabilities - (Underpinned by leadership style,

Clearly defined and documented

Assigned to expertise with ability to act

Congruent across multiple dimensions

Open and robust communication

Constant learning and educating from failure

1. Assignment of duties and defining the results

• In order to make delegation of authority a success,

Centralization – decision authority is located near the

Decentralization – authority is pushed downward to

• Managers get things done through other people

• They Plan, Organise, Lead and Control

• Firms, Industries, Schools, Hospitals, Churches,

1. Plan: defining goals & strategies

2. Organising: who does what task, how they are