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					 CONCEPT OF
MANAGEMENT
                PRESENTING TEAM
   ORGANISING
                ANIRUDH
                AKSHAY
                LALITH
                PRAJWAL
                ROHAN
                RAJDEEP
                TUSHER
         INTRODUCTION

 It is the process of identifying and grouping
the work to be performed and establishing
relationships for the purpose of enabling people
to work more effectively in accomplishing
objectives .
 Act of rearranging elements following one or
more rules.
          DEFINITION

organizing can also be defined as to
place different objects in logical
arrangement for better searching.
  I M P O RTA N C E O F O RG A N I Z I N G I N
            A N O RG A N I S AT I O N

 Specialization - Organizational structure is a network of
relationships in which the work is divided into units and
departments.

 Co-ordination - Organization is a means of creating co-
ordination among different departments of the enterprise.

 Effective administration - The organization structure is
helpful in defining the jobs positions.
                    NATURE OF
                  ORGANIZATION
 Organization as a process : organization is a continues process
through which work is allotted among the employees in order to
achieve goals of the organisation

 organisation as a group : organisation is a group of recognised
persons who contribute their efforts for the attainment of goals .

 organisation as a structure of relationships : organisation is
also interpreted by some writers as a structure of relationships among
positions and jobs for the purpose of achieving organisational
objectives.
        NATURE OF ORGANIZATION (contd)

 Organization as a creative ideology : it gives new
thoughts new ideas with combination of skilled and
unskilled employees .

 Organization as a function : Organization is one of
the important function of management , the person
behind this fact is that Organization combines other
activities of business .
             PURPOSE OF
            ORGANIZATION

 Determination of activities for the
accomplishment of objectives
 Grouping and classifying all the activities
 Assigning all the activities to the right person at
right place .
 Establishing effective coordination among the
employees
                     PRINCIPLES
 Principle of responsibility : this principle explains that the
responsibility in consideration to the delegated authority must
be absolute and clear .

 Principle of authority : authority that is given to the manager
enables him to accomplish the objectives of the enterprise .

 Principle of efficiency : the structure that is formulated should
enable the business concern to function efficiently and achieve
its objective .
                     PROCESS OF
                    ORGANIZATION
 Establishing objectives : organization is a means to achieve objectives
hence establishing the objectives is the first step involved in the organization
process.

 Determining activities : all the work should be classified into its nature
size objectives and responsibility .

 Grouping activities : in this step closely related and similar type of
activities must be grouped in sections on the basis of certain criteria .

 Allocating responsibility : job assigned should be according to the
principle of right man for the right job
TYPES OF ORGANIZATION
  FORMAL ORGANIZATION

 Meaning :

Organization is formal when the activities of two
or more persons are consciously coordinated
towards a given objectives
INFORMAL ORGANISATION

Meaning :

Informal organization exists in every
Organization and at all levels of
managerial hierarchy
                    DIFFERENCE
 Within any company, there are two types of organization – Formal
Structure and Informal Structure. Both effect the organization and
relationships between staffs.

 The formal Organization refers to the formal relationships of
authority and subordinates withing a company. While theinformal
organization refers to the network of personal and social relations that
is developed spontaneously between people associated with each other.

 The primary focus of the formal organization is the position of the
employee/manager holds. While the primary focus of theinformal
organization is the employee as an individual person.
      DIFFERENCE (CONTD)

 Power is delegated from the top levels of the management down to
the organization. In an informal organization power is derived from
the membership of the informal groups within the organization.
 In formal Organization, each position has rules governing what
can be done or what cannot be done. There are rewards and penalties
for complying with these rules and performing duties as well. While in
an informal organization, the conduct of individuals within
organization is governed by norms that is social rules of behavior.
         TYPES OF FORMAL
          ORGANIZATION


                          Formal
                        organization


    Line       Line and staff    Functional    Committee
organization    organization    organization   organization
  LINE ORGANIZATION

 Line organization is the most oldest and
simplest method of administrative organization.
According to this type of organization, the
authority flows from top to bottom in a concern.
The line of command is carried out from top to
bottom.
        FEATURES OF LINE
         ORGANIZATION

 It is the most simplest form of organization.

 Line of authority flows from top to bottom.

 Specialized and supportive services do not take place in these
organization.

 Unified control by the line officers can be maintained since
they can independently take decisions in their areas and spheres.

 This kind of organization always helps in bringing efficiency in
communication and bringing stability to a concern.
         LINE AND STAFF
         ORGANIZATION

According to this organization, specialized
and supportive activities are attached to
the line of command by appointing staff
supervisors and staff specialists who are
attached to the line authority.
      FEATURES OF LINE AND
       STAFF ORGANIZATION
 There are two types of staff :
     • Staff Assistants- P.A. to Managing Director, Secretary to Marketing
       Manager.
     • Staff Supervisor- Operation Control Manager, Quality Controller, PRO
 Line and Staff Organization is a compromise of line organization. It is
more complex than line concern.
 Division of work and specialization takes place in line and staff
organization.
 The whole organization is divided into different functional areas to
which staff specialists are attached.
          FUNCTIONAL
         ORGANIZATION

 Functional organization is a type
of organizational structure that uses the
principle of specialization based on function or
role.
FEATURES OF FUNCTIONAL
     ORGANIZATION
 The entire organizational activities are divided into specific
functions such as operations, finance, marketing and personal
relations.

 Complex form of administrative organization compared to the
other two.

 Three authorities exist- Line, staff and function.

 Each functional area is put under the charge of functional
specialists and he has got the authority to give all decisions
regarding the function whenever the function is performed
throughout the enterprise.
            COMMITTEE
           ORGANIZATION

 A committee as a group of people who meet by
plan to discuss or make a decision for a particular
subject.
Advisor committee examples : sales & finance
committee .
Executive committee examples : board of directors
of a company.
       ORGANIZATIONAL
           CHARTS

 An organization chart is a diagrammatic
representation of the framework or structure of
an organization.

There are three types :

 From top to down

 From left to right

 circular
    FROM TOP TO DOWN
        METHOD

                    C.E.O

Production   Marketing   personnel   Finance
 manager     manager     manager     manager
   TOP TO DOWN LEVEL
ORGANISATIONAL STRUCTURE

  A "top–down" approach is one where an
 executive, decision maker, or other person or body
 makes a decision. This approach is disseminated
 under their authority to lower levels in the hierarchy,
 who are, to a greater or lesser extent, bound by
 them.
                 ADVANTAGES AND
                  DISADVANTAGES
             Advantages                          Disadvantages

Greater efficiency and superb         The solution provides limited
overview of higher levels             coverage in the first phases

You can replace many manual           The implementation cost is likely to
processes with early identification   be higher

Organization broadens identity        The organizational structure you
management skills and understanding   establish might have to be changed in
during the first phase                a later roll-out phase
CIRCULAR METHOD
                Finance
                manager




   Production               Personal
    manager     C.E.O       manager




                Marketing
                manager
    CIRCULAR METHOD

 This is often called the hub-and-spoke pattern of
staff organization. It has the advantage of allowing
the president access to a variety of staffers whom he
can task with specific projects, receive information
directly and ensure that he remains in control of his
flow of information
         ADVANTAGE AND
          DISADVANTAGE

 The advantage is that it allows the president to
remain as the "decider".

 The disadvantage of this approach is that it is very
time consuming and can be wearing on the staff.
             Matrix Design
The matrix structure groups employees by both function
and product. This structure can combine the best of both
separate structures.
   Functional and divisional chains of command
    simultaneously
   Dual lines of authority
   Functional hierarchy of authority runs
    vertically
   Divisional hierarchy runs laterally
   Violates the unity of command concept.


                                                           30
Matrix, Team and Network




                           31
                              TYPES
 Weak/Functional Matrix: A project manager with only limited authority
is assigned to oversee the cross- functional aspects of the project. The
functional managers maintain control over their resources and project areas.
 Balanced/Functional Matrix: A project manager is assigned to oversee
the project. Power is shared equally between the project manager and the
functional managers. It brings the best aspects of functional and projectized
organizations. However, this is the most difficult system to maintain as the
sharing power is delicate proposition.
 Strong/Project Matrix: A project manager is primarily responsible for
the project. Functional managers provide technical expertise and assign
resources as needed.
             A MATRIX ORGANIZATION
              IN AN AEROSPACE FIRM




© Prentice Hall, 2002                10-33

				
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