Following are the topics which are covered in this section. You can choose from the sub sections or continue directly below the sub sections.

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What are the Principles on which Organizing Depends?

The Principles on which the organizing depends
1. Division of the labor –

a. In an organization, any target can not be achieved by a single person, many people are involved in this process, standing responsible for performing the different duties assigned to them.
b. Hence it can be said that the division of the labor is a necessity for the better and efficient functioning of an organization.
c. Division of the labor acts as the first principle in the process of the organizing.
d. Helps in making the group function more practical in the nature.

2. Principle of the work specialization –

a. By adhering to this principle, the work that is being entrusted being a part of the total work becomes a specialized function.
e. The organization designing gets divided in to a number of the specializations and if the men continue to perform these activities on a daily basis, the result obtained is that they become specialist in their own work field.
b. In such a case, the skills of that person increases in that particular specialization but the general sense of the other work reduces as the time passes on.
c. As a result of these factors only, the concept of the job rotation is very much important.

3. Principle of the Departmentation –

a. In order to carry on with the work process in a very easy manner, the different activities that are related to each other are put under the different groups and these are referred to as the departments.
b. The departmentation can be defined as the clubbing of the very closely inter linked functions which are labeled as the separate departments.
c. All the organizations are divided in to the various departments and this division is generally based on the size and the nature of the business.
d. The principle of the departmentation follows a hierarchical style.
e. The hierarchy usually consists of the following –

I. Strategic business unit
II. Divisions
III. Departments
IV. Sections
V. Sub sections
VI. Individual

4. Principle of the authority levels –

a. For doing any type of the business, the organization gets the authority from the society.
b. This authority is literally distributed throughout the organization.
c. Authority refers to the decision making implanting authority with the help of the actions involving the direction and the utilization of the organization resources.

5. Principle of the span of the management –

a. The number of the men working under the manager directly controls the effective span of any manager in order to manage the people.

6. Scalar principle of the management –

a. Explains the dependence of an organization, both vertically and horizontally, on the optimum point of the efficiency and the effectiveness in the performance.
b. More the steps of the levels of the authority, more the organization becomes vertical in the nature.
c. The scalar principle of the management accepts the inevitability of the scale of the organization to carry on with the communication.

7. Principle of the unity of the purpose –

a. The whole organization should move towards the single purpose.
b. The actions that are carried on in unison are more effective in the nature.
c. The unity of the purpose should build the much needed unity between the members.
d. The unity of the purpose should have the ability to convert the unity in to a force in the mission.
e. But must remain flexible in the nature and the working as this will help in adapting to the various external as well as the internal conditions.

8. The principle of the navigation –

a. It is not necessary that everything goes according to the plan i.e. an organization may not always be able to find a straight and a clear way, so it is very important that it possesses the ability to change a temporary direction in order to navigate around the various difficulties and then also remain on the directional course that it had planned.
b. The visionary skills can be steered out of the rough weather with the help of the Principle of the unity of the purpose.

9. Principle of the authority and the responsibility delegation –

a. According to the Principle of the authority and the responsibility delegation, the authority and the responsibility should always go together.
b. The responsibility cannot be given without the passing of the required authority.
c. According to the Principle of the authority and the responsibility delegation, the authority and the responsibility are concurrent in the nature.
d. When someone delegates the authority, it also gives a coextensive responsibility to the person involved as they cannot go without each other.
e. The authority helps a lot in taking the decisions along with the relative actions.
f. With the help of the authority, the organization resources can be used especially for these purposes.
g. When the responsibility that comes along with the authority is not accepted, then it goes back to the person by whom the authority has been given.
h. The organizational authority is not having the ability to carry on with the work in a void.
i. When the people do not take the authority and the responsibility for running an organization, then it has to be liquidated.
j. When the delegated authority is accepted by the person to whom it is delegated, the responsibility is said to be assumed by such a person.

10. Principle of the unity of the command –

a. It is very necessary that the person must be under the command of another person.
b. As by this, he will not get any type of the contradictory orders.
c. It is very important to maintain the unity of the command within the organization and for this; the organization is designed in a particular manner.
d. An individual cannot be assigned control of more than one person.

11. Principle of the synergy –

a. The united strength of the organization must increase with the coming together of the people.
b. If in any type of the case, where this is not taking place, it means that the energy is being dissipated by the structure of the organization.
c. The combined strength of the persons is more than its mere sum total.
d. This extra energy that is present is generally referred to as the synergy  energy.
e. One important point that must be known at this point of time is that this synergy energy is produced when the people come together.

12. Principle of the team spirit –

a. There was a time, when this concept did not get the proper regard that it deserved. But now the basic understanding has changed among the people and now the management does  not purely work on the rationality.
b. According to this principle, the building of an organization is just a mechanical process that is done from the point of view of the ease of the management.
c. The principle of the team spirit states that there is surely something which is emotional for the people who work in the organization.
d. They possess the motivation, the pride, the sense of belonging, the stability, the growth etc. in the personal life.
e. The team spirit refers to the sacrifices done for the team results by the various members of the team.
f. The organizations must work as teams as by this, great effectiveness and the efficiency can be brought in an organization.

Explain various Types of the Organization?

Types of the Organization
1. Formal organization –

a. The establishment and the development of this type of the organization are very formal in the nature.
b. Helps in providing a shape to the various organized activities.
c. The Formal organization is developed for a continuous purpose mainly involving the activities that are repetitive in the nature.
d. This organization looks after the growth and the stability in the business.
e. In the Formal organization, the design is such that that it acts as a great support for the distribution of the authority, creation of the positions, linkage of the various functions etc.
f. The Formal organization is not at all born by itself.
g. Efforts of someone to get the organization established in the order to make it a juridical person are involved in the Formal organization.
h. The Formal organization is registered with some type of the legal provision in the acts as those meant for the shop establishment, the companies, the cooperatives, the trusts, the societies etc, to provide it the legal existence in its own name.

2. Informal organization –

a. Here, the people come together informally through their acquaintance.
b. Informal relations are created within the same organization which may not be formally planned.
c. The Informal organization is born of itself.
d. Whenever there is a formal organization, an informal organization is born.
e. The Informal organization comes up with the help of the social relations such as the trust, the dependence, the liking etc.
f. The position and the problems in the formal structure are given great weight age informally.
g. A different communication channel is created by the informal organization and this is referred to as the grape vine.
h. With the help of the informal communication, the situation in the organization can be sensed in a different way all together.
i. The gossip can be conveyed with the help of the informal communication.

3. Matrix organization –

a. According to the principle of the unity of the command, one person should take the order from only one person.
b. Plurality of the persons giving the orders should not be present.

4. The project organization –

a. One goes for the project with the establishment of the temporary organization with a fixed end in mind.
b. Anything that has a beginning and an end, is referred to as the project organization.
c. The main responsibility of this type of the organization is to handle the complete project in a especial managerial way as the project is not going to be a continuous process at anytime.
d. The specialized, skilled people are required at the different stages and also, in this type of the organization, the replacement of the specialized people can be done depending on the different types of the situations that may arise during the project.

5. Virtual organization –

a. This type of the organization, does not look like to be physically operating but very well works like the one, due to the modern communication equipment which may include the following functions –

I. Digital mail
II. Voice communication
III. Cameras
IV. Projection systems
V. Audio and video conferencing

Explain the Various Forms of the Juridical Organizations?

Forms of the Juridical Organizations
1. Sole trading concern or the proprietorship
There are a lot of the individuals who carry on their business in their name, there is a certain law according to which these businesses are considered as the individuals or the persons.

When these persons deal with all the contracts and its various consequences, these persons possess certain rights.

The main thing that is involved in the business is the exchange of the goods and the various services and all this is followed with its completion with the help of the money or any other type of the settlement. In accordance to the judicial system, the seller, the buyer and the user of the goods and the services get complete protection with the help of the law. The individuals always have the option of resorting to the law for a fair settlement. If in any case, the employees of this type of the proprietor do anything that is against the law, the proprietor is then forced to take the responsibility on his name for any such acts that are performed.

Making or signing any type of the contract of selling the goods or the services and its satisfaction in terms of the money and the money’s worth involves the social relations. The individuals in any wrong do get complete protection in accordance to the act. The various registrations of the different types are needed in organizing the business. So it can be said that it is very necessary to get the approval from the respective acts like the companies under Indian companies act, cooperatives under the cooperatives societies act etc.

2. Partnerships –

a. The Partnerships are governed with the help of the mutual contract between the partners.
b. The partners have an unlimited liability for meeting the obligations in the business individually.
c. In a scenario, where two or more individuals are willing to do the business in partnership jointly, on the legal basis these are responsible as individuals jointly and severally.
d. The partnerships can also be registered as the limited liability partnerships in order to give them the freedom from the unlimited liability, but this type of the registration is present in some countries only.

3. Joint stock companies with the limited liability –

a. The limited liability to all the share holders in the ownership of the business can be obtained with the help of this type of the organization.
b. The shares need to be collected and this collection of the shares is referred to as the stock of the shares.
c. Those who contribute to the shares possess a limited liability to the extent of the face value of a share.
d. When the full value of the share is not paid, the liability is limited to only paying the full value but at any level is not at all responsible to the business losses beyond this limit.
e. With the help of this type of the organization, people can contribute to the business without assuming the liability to the business losses.
f. A very big capital can be raised from many people.
g. In private limited companies, this number is generally restricted in terms of the shareholders.
h. The form, a choice under the existing acts in the operation in any country is to be made with the help of the people, who are responsible for the organization of the activity.

4. Co – operatives –

a. In the beginning, the cooperatives acted as a self help group where the people came together in a mutually beneficial activity.
b. In this type of the society, system of one vote per one person acts as the base.
c. The formation of the society is guided by the number of the people.

5. Societies and the Trusts –

a. Under this type of the organization, one can register an organization as a charitable organization or a social organization with no distribution of the profit.
b. The number of the societies is registered for the educational and the charitable purposes.
c. The members pay subscriptions in order to collect the funds for the society.
d. No member can take the share of the profit or the income of the organization so registered.

What is Delegation and the Empowerment?

What is Delegation?

a. The authority is mainly delegated, so that the person to whom we delegate is able to make the needed contribution to the group work.
b. If the person to whom it is delegated does not take the responsibility, then the delegation of the authority will not work.
c. The principle of the delegation of the authority can only be made use of by assuming the responsibility.
d. Before carrying out the delegation, the person to whom the authority is delegated must be capable of undertaking the responsibility.
e. The delegation must fit into the description of the job.

What is Empowerment?
a. The empowerment of a person can be affected with the delegation of the authority.
b. During the delegation of the authority with the responsibility, the empowerment of the person to whom the delegation has been made for carrying out the job effectively, takes place.
c. In general, the word empowerment involves an individual, who must possess enough discretionary authority for deciding the way by which it should be handled.
d. In the process of the empowerment, one possesses the authority to do along with how to do it.
e. In this process, the main aim is to make an individual influential, so that he is able to perform the various tasks of the delegation.

Delegation of the power –
a. The concept of the delegation of the power can be understood in an efficient way only after understanding the basic difference between the authority and the power.
b. Authority is given by the organization whereas the power is the self cultivation of the influence.
c. The authority comes out of one’s organizational power but in the case of the power, the people can be made to work in a particular direction.
d. In the reference to the organization, the power can play a very critical role in influencing the people to work.
e. The power cannot be delegated but one point to remember here is that although the power cannot be delegated but can be supported by making a person more knowledgeable, giving him position and improving his knowledge of the human relations.
f. The influence generated by the power, can be developed due to the general support, which one may have for actions in an organization.

What is Centralization and De-Centralization of the Authority?

Centralization of the Authority
After the delegation of the authority, the delegation of the decision making is obtained and consequently after this, the acts for the implementation are very much required. So it can be said that the authority for taking the decisions can be spread with the help of the delegation of the authority.

The centralization of the authority can be done with – in a few seconds, if complete concentration is given on the decision making at any position. This concept is generally referred to as the centralization of the authority. The centralization can be done with a position or at a level in an organization. Hence, it can be said that the extension of the organization is referred to as the centralization of the authority. Here the decision making must be concentrated in a few hands.

The advantages of the centralization of the authority can be summarized as the follows –
1. Very high speed.
2. Well defined responsibility.
3. Depends largely on the general consensus.
4. Decision making is very clear.

De–Centralization of the Authority
In an organization, the decentralization of the authority can be referred to as allowing the large number of the persons within an organization to take the decisions. In the decentralization of the authority, no concentration is given on the decision making.

The major disadvantages of the decentralization of the authority can be summarized as the follows –
1. General slackness in the discipline.
2. Too much meddling in the process.
3. Existence of the political culture.
4. Loss in the effectiveness.

What are the Types of the Organizational Authorities?

Types of the Organizational Authorities
1. Line Authority

a. The major function of the authority includes directing the human beings to serve for the united objective, for fulfilling the purpose of the organization.
b. The delegation of the authority makes sure that these humans take the various needed decisions, the actions.
c. The authority delegation makes sure that these humans implement the plans and the various policies.
d. The authority that is provided to an individual by the organization helps in creating the confidence in an individual for any type of the work he does.
e. One of types of the authority is the line authority.
f. Acts as the most common type of the authority.
g. The line authority comes from the top with the help of the levels, till the final operational person in line.
h. The person who is next in the line should assume the work of a boss in the absence of the first one.
i. More is the length of a line of the authority; more is the elongation and the cost of the decision.
j. The cost increases as a result of the structure.
k. Resulting in the slow and routine decision making.
l. Impact of the initiatives is lost as a result.
m. Discipline in the organization also increases.
n. But the productivity decreases.

2. Staff authority

a. Here some people are given the authority to advice.
b. These people are the ones who are having the expertise in the specific field.
c. A legal expert can be appointed for providing the much needed support to the marketing manager.
d. Expert knowledge is also provided.
e. Comparatively less costly.
f. The main requirement of the staff authority is the backing up of the management.

3. Functional authority

a. The intervening within the line authority for the functional purpose is referred to as the functional authority.
b. Here the authority is given to the inspectors, who work on the line but not necessarily on the same line.
c. The main responsibility is to inspect the whole work, which is being done by the line.
d. The personnel manager is provided the power or the right to intervene in the line manager for any of the personnel function.

Different levels of the Authority
1. Organization levels

A. The various levels of the organization are generally born as a result of the effect of the delegation of the authority.
B. The three levels of the organization that arise can be summarized as the follows –

a. The Operation Level Management –
I. This level is referred to as the operation level management as the various operational managers are involved in the actual implementation.
II. Acts as the front line work with the day to day decision making of the structured nature.
III. To a great extent, this level is related to the man machine relationship and the utilization of the resources.
IV. Operational managers include the workers and their supervisors.

b. The Middle Level Management –
I. This level is referred to as the Middle level management as it is placed between the operation level and the top level.
II. Here the various decisions pertaining to the actual use of all the resources and for a span of the time extending upto the financial year are taken.
III. With the help of these decisions, the operational financial results on a year to year basis can also be improved.

c. Top Level Management –
I. People like the Chief Executive Officer (CEO), the Managing Director, the General Managers, the Presidents, and the Vice Presidents Etc. are involved in this level.
II. The main responsibility of these people in this level of the management is to do the planning of the business.
III. These people also look after the performance of the organization and also play a very vital role of the scanners by which they have to collect or scan the critical information from the internal and the external environment.

2. Vertical organizations –

A. Help in the determination of the authority and the responsibility of any person working in an organization.
B. This determination can be done by providing a position at a particular level to that person.
C. The various levels of the vertical organization can be summarized as the follows –

I. The Operational level – Includes the unskilled, the skilled, the supervisors etc.
II. The Middle level – Includes the assistant managers, the senior managers, and the executives.
III. The Top level – Includes the general managers, the vice presidents, the presidents etc.

D. These three levels are further divided into emolument depending on the manager levels 1, 2, 3 etc.
E. More are the levels; more the management becomes vertically oriented.
F. The more are the levels; more is the cost.
G. More are the levels; more are the opportunities for the manager for the promotions.

3. Horizontal organizations –

A. Also called as the flat organizations.
B. The organizations are referred to as the horizontal or the flat organizations, when the levels in the organization are few in the number.
C. In such organizations, one very important point that forms the basis of this type of the organizations is that the distance between the operational management level and the top level management level is very less.
D. Great emphasis is given on reducing or keeping a control over the costs of the levels.
E. In this type of the organization, the designing of the jobs is done in such an elegant way that the people feel ownership in the work they do and it’s final outcome.
F. The number of the promotions for an individual becomes less, mainly due to the reason of the lesser number of the levels that are present.

4. Circular organizations –

A. Involves a center of an organization.
B. This center performs a major responsibility of guiding and controlling the various activities.
C. Absence of the authority relations.
D. Support relations with some authority required for the implementation of the direction, are present in such organizations.
E. Great emphasis is given on the self managed units that are almost equidistant from the center, from the point of the view of the relationship.
F. Existence of more creativity.
G. Presence of more independence.

What is Departmentation and How Is It Done?

As one gets from the name, the word departmentation refers to the division of the labor, instead of the individuals, of the group of the various types of the activities that are involved. The departments are formed from the related activities that have the ability to form various semi independent units.

The process of the departmentation generally follows no stiff rules but the main purpose of carrying on with the process of the departmentation is to provide the level of the convenience to each of the organization.
The whole or the total business activity is divided in to the work units as per the convenience of all the organizations.

But the basis on which the departmentation may be or can be done, can be summarized as the follows –
1. Departmentation by the time –

a. The main point here, on which the departmentation is based, is the ‘time’.
b. People can be easily supervised.
c. Working as the exemplified by the shift working in the factories, acts as a great example for explaining the departmentation by the time.

2. Departmentation by the location or the place –

a. A really good example of this type of the departmentation depending on the location can be the regional offices spread over the number of the places, branch offices etc.
b. One of the possibilities includes the presence of the manufacturing activity at one place and the marketing activity at a different place.

3. Departmentation by the functions –

a. A separate department can be formed depending on the nature of the activity that is to be performed.
b. The various activities that are closely related can be brought together in this type of the departmentation.

4. Departmentation by the processes –
a. Different processes are converted to the different departments in this type of the departmentation.
b. For example, various processes like the spinning, the weaving, the dyeing etc are involved in a textile mill and depending on these processes only, new departments have come up.

5. Departmentation by the divisions –

a. Before going any further, it is very important to understand the meaning of the word ‘divisions’.
b. The divisions can be defined as the extensions of the concept of the departments.
c. In this type of the departmentation, the departments act as the cost centers.
d. The divisions act as the profit centers.
e. The divisions are accountable to the income as well as the expenditure.

6. Strategic Business Units (SBU) –

a. During the engagement of the organization in the multiple businesses, there is a dire need for treating each of the business unit as a strategic unit and for fulfilling this purpose, an independent competitive business approach is very essential and here these units are referred to as the strategic business units.

Advantages of the process of the Departmentation
1. The departmentation is greatly based on the logics.
2. With the help of the departmentation, proper attention can be given to the various activities and hence, resulting in the growth of the organization.
3. Synergy can be brought in to the various results.
4. The departmentation results in establishing the team spirit and the co–operative culture.

What is the concept of Culture? Explain Tools used by the Organizations?

The concept of the ‘Culture’
One’s own culture is generally formed depending upon the leadership and the various managerial values that are being practiced in an organization. The culture involves the stabilized set of the values at any time that can be tried by the people to adhere to generally because such values are generally appreciated by the management of the organization. Presence of the discipline is very much critical and also very beneficial as with the help of the discipline, the various uniform values can be established.

By organizing, a suitable work environment can be produced that plays a great role in carrying out the various types of the activities in a very efficient way. With the help of the culture, the work of the management is eased and also has a very positive effect on the work ethos of an organization. Now before going any further, it becomes very essential to understand the meaning of the ‘Work Ethos’.

The work ethos refers to the environment that is present around the work. The effect on the working interest of the persons involved can be produced with the help of the working environment. With the help of work ethos, one can define what is considered to be a good work.

Reasons accounting for the Degeneration of the organizations
1. Lack of the leadership.
2. Lack of the delegation of the power.
3. Lack of the growth of the business.
4. Requirement of the re organization.
5. Lack of the conflict resolution.

Methods to increase the efficiency of an organization
1. Creating a very good structure.
2. Putting life into the structure.
3. Presence of a very good leadership.
4. Use of very good and efficient and also result oriented systems and the procedures.
5. Creating balance in the structure.

Tools used by the Organizations
1. Organization Chart –
a. Shows the authority positions of each and every person in the organization.
b. Can be used to depict the numerical strength, the position and the authority links of the staff.
c. Provides a great amount of the clarity in tackling the organizational problem.

2. Organization Manual –
a. Includes the introduction of the business of the organization, includes the history, the objectives, the policies, the rules, the regulations and the information on the persons who are working along with the organization chart in a written form.
b. Helps in easing the communication and the implementation of the organization’s work.
c. Brings great amount of the transparency into the working of an organization.
d. The unity in the organization can also be increased to some extent with the help of the knowledge that is provided by the manual to the employees.

3. Description of the position –
a. The structure of the organization becomes very much clear in the nature.
b. The various features of the position like the designations, the various tasks and the responsibilities can be efficiently understood.
4. Organization Performance Audit –
a. Involves periodical organizational audit by an outside party.
b. As a result of these audits, people start thinking of the organization, in which they are serving.

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