Notes for BSc CSIT

IMPORTANCE OF ORGANIZING FUNCTION Organizing function is one of the most important basic management functions. It establishes responsibility and authority relationships in the organization to ensure the effective accomplishment of organizational goals. Correctly established organizing function in the organization encourages expansion, promotion, and diversification of business. The following points justify the importance of organizing functions. 1. Facilitates specialization:   Organizing divides complex work into simple pieces of activities and groups them into a job of homogeneous activities. This helps accomplish each job with similar skills and experience with minimum effort and greater efficiency. This facilitates employees to accomplish the job with acquired knowledge, skills, and experience. This helps to minimize the waste of time, effort, and resources. Organizing thus increases the productivity and profitability of the organization. 2. Defines responsibility-authority relatio

Organizing is grouping the elements of an organization in the best possible manger. It is a process of defining the essential relationships among people, tasks and activities in such a way that all the organization's resources are integrated and coordinated to accomplish its goals efficiently and effectively. Organizing is important for an organization in a number of ways. It provides work clarity by removing duplication and overlapping of efforts. It also ensures the effective allocation of resources and enhances communication among departments or units of an organization. The following are some of the influencing definitions of organizing.  Process of Organizing Organizing is a complex process. It demands thorough knowledge of organizational plans, policies and strategies. Organizing as a process involves the following steps:- 1. Determination of Objectives Every organization are established for achieving certain objectives. Hence, determination of short as well as long-term obje

  DELEGATION OF AUTHORITY Delegation means assigning something to other to act towards the attainment of the predetermined goals. Authority is the legitimate power of individual for making decision on their job responsibility. This is the formal right of superior to command and guide subordinates to accomplish the job more efficiently and effectively. With the combination of these ideas, delegation of authority can be understood as a philosophy in which managers (superiors) assign a portion of their authority to their immediate subordinates so that they can make required decisions while accomplishing assigned job to them. This is simply the act of allowing subordinates to use the authority of manager while doing their job. Delegation of authority facilitates decision making at right time so that the job can be accomplished at right time. Delegation of authority also provides the career advancement opportunity to the employees. Delegation of authority establishes a pattern of authority

 STAFFING Organizational goals cannot be achieved without personnel fit for each job to accomplish. This means the assurance of the right person for the right job can make the organization successful. Thus, planning and acquiring the best employees, motivating them for their best effort to the job, and retaining them is another important organizing function of management. It helps to fulfill various positions created by the organizational structure. This process of getting people right for a job position is called staffing. Staffing, the management function involves appointing appropriate personnel, developing them to meet organizational needs, and ensuring that they are a satisfied and happy workforce. It is defined as a managerial function of filling and keeping filled positions in the organizational structure. In modern organizations, staffing function is done by acquiring employees on a permanent basis, daily basis, for consultancy purposes, and with contract employees. Thus, staff

 CENTRALIZATION OF AUTHORITY Centralization is the process of systematically retaining decision-making power at the top level of management. In simple words, holding the decision-making power at the center i.e. top level of the organizational structure is called centralization. It is a philosophy in which top-level managers exercise all their rights in making decisions. In a relatively centralized organization, considerable authority and accountability remain at the top of the hierarchy. Top-level management makes all decisions without the consent of subordinates. The role of subordinates is only to implement the decisions made by top-level management. Centralization is the system of reserving authority in a few hands of the central or top level of line organization. Ricky W. Griffin - "Centralization is the process of systematically retaining power and authority in the hands of higher-level managers." Ivancevich, Donnelly, and Gibson-"Centralization refers to the locati

Advantages of authority delegation 1. Reducing workload:     Delegation of authority allows subordinates to make decisions in their responsibility area. Routine and operating functions can be performed by delegating authority to subordinates. Thus, a delegation of authority allows top-level management to be focused on strategic areas. 2. Improving efficiency:  Effective delegation increases the speed of decision-making. This facilitates increasing the rate of job accomplishment. Subordinates need not wait for their superior for decisions. Subordinates can complete more jobs within a limited time because which efficiency of employees, as well as an organization, can be improved. 3. Empowering employees:  Delegation of authority provides decision-making power to the subordinates which is the means of their empowerment. Delegation of authority makes employees more loyal, dedicated, creative, and efficient as they have to make effective decisions. It increases the mortality and motivation

   DELEGATION OF AUTHORITY Delegation means assigning something to others to act towards the attainment of predetermined goals. Authority is the legitimate power of individuals for making decisions on their job responsibility. This is the formal right of the superior to command and guide subordinates to accomplish the job more efficiently and effectively. With the combination of these ideas, a delegation of authority can be understood as a philosophy in which managers (superiors) assign a portion of their authority to their immediate subordinates so that they can make required decisions while accomplishing the assigned job to them.  This is simply the act of allowing subordinates to use the authority of the manager while doing their job. Delegation of authority facilitates decision-making at the right time so that the job can be accomplished at right time. Delegation of authority also provides career advancement opportunity to the employees. Delegation of authority establishes a patter

 The basic reason for delegating the authority is to enable the manager to get more works done through others. It helps reduce the work overload of manager as subordinates effectively make decision under the scope of positional responsibility. It also minimizes duplication of work, delay in completion of assigned task and problem of over staffing so that total cost can be reduced. It plays vital role in increasing employee job satisfaction as subordinates develop capacity of making decision to handle higher and complex responsibility. For our purpose, delegation of authority is the philosophy of granting work responsibility along with decision making rights by a manager to the subordinate at chain of command. Managers delegate a part of their respective authority to the trusted employee. Delegated authority can be restored at any time after completion of task or manager thinks the employee cannot accomplish the task as expected. Delegation of authority helps conduct activities more eff

 DEPARTMENTATION Departmentation is the process of logical grouping of similar nature of functions into manageable units for the purpose of overall coordination of organizational resources. It divides large and complex functions into smaller and flexible units to accomplish the jobs in effective and efficient manner. It facilitates maintaining communication, coordination and controlling activities among all mechanisms of organization so that overall organizational goals can be attained within predetermined schedule. In simple words, departmentation is the act of dividing responsibilities among the functional areas to create specialization. Departmentation creates some independent functional units i.e. departments in the organization. It facilitates for accomplishment of jobs with related skills and experience with more effective and efficient way. This process also creates accountability in each job position so that the managers and subordinates can coordinate their effort to reduce th

 Mechanistic perspective This is the most traditional view of the organization. Many classical theories of organizations represent a mechanistic view. Many management experts, economists,s, and scholars like F.W Taylor, Henry Fayol, Adam Smith, and Moony contributed to developing mechanistic theories of organizations and management. The mechanistic perspective has the following common features. This perspective views an organization as a machine that converts input into output with certain processes. It assumes that organizations operate in a predictable and stable environment. and The prime goal of the organization should be increasing efficiency through specialization standardization of work. It focuses on fixed working hours, fixed production and maintenance schedule, financial control system, and quality control system to make controlling functions more effective. This approach advocates for a tall organizational structure with a formal hierarchy of authority. It suggests different

  Matrix Structure: An organizational structure that facilitates the horizontal flow of skills and information is known as matrix organization. It is used mainly in the management of large projects or product development processes, drawing employees from different functional disciplines for assignment to a team without removing them from their respective positions. This means matrix organization is formed with the people from different skills and expertise from different departments. Features of Matrix Organization The peculiarities or characteristics or features of a matrix organization are described as below: Hybrid structure: Matrix organization is a hybrid structure; a combination of two or more organization structures. It combines functional organization with a project organization. Therefore, it has the merits and demerits of both of these organization structures. •   Functional manager: The Functional Manager has authority over the technical (functional) aspects of the project.

  Organic perspective view of Organization This is the modern view in organization. It emphasizes on socio-psychological aspects of human being in organization. Managers should analyze socio-psychological aspects to motivate the employees. Organic approach views organization as living, changing and constantly adapting to the environment. Main features of this approach are listed below: Human interactions in work place are important to satisfy employees. Socio-psychological study of people helps to achieve organizational effectiveness. Situational changes can be accepted and managed effectively.  Jobs are redesigned to empower workers. Organizational design is lean, flat and less hierarchical.

 Concept of Decentralization Decentralization may be defined as the dispersion (distribution) of functions and powers from a central authority to regional and local authorities. Under it, the decision making authority is delegated to lower levels. It distributes authority and responsibility to different levels of an organization. It is particularly effective where important knowledge is dispersed throughout the organization and responsiveness to the changing needs of different customer segments is important. Some of the major definitions of decentralization are given below. Koontz and Weihrich" Decentralization is the tendency to disperse decision making authority in an organized structure. Louis A. Allen" Decentralization is the systematic and consistent delegation of authority to the level where the work is performed. Dale S. Beach "Decentralization means placing the authority and decision making power as close as possible to the level at which the work is done. In sum

  DELEGATION OF AUTHORITY Delegation means assigning something to other to act towards the attainment of the predetermined goals. Authority is the legitimate power of individual for making decision on their job responsibility. This is the formal right of superior to command and guide subordinates to accomplish the job more efficiently and effectively. With the combination of these ideas, delegation of authority can be understood as a philosophy in which managers (superiors) assign a portion of their authority to their immediate subordinates so that they can make required decisions while accomplishing assigned job to them. This is simply the act of allowing subordinates to use the authority of manager while doing their job. Delegation of authority facilitates decision making at right time so that the job can be accomplished at right time. Delegation of authority also provides the career advancement opportunity to the employees. Delegation of authority establishes a pattern of authority

 Steps/PROCESS/ELEMENTS OF ORGANIZING Organizing is the process of deciding how best group the organizational elements i.e. functions, responsibilities and authorities. Organization structure gives the framework for creating specific pattern of job relationship in the organization. It consists of activities in which organizational works are divided, organized and coordinated. Organizing is a continuous process involving series of activities as basic elements. Generally, there are following six fundamental steps, as described below, in designing organizational structure: 1. Designing jobs: Job design is the process of dividing complex job into simple task or activities and grouping similar task into a job package. It is a process of defining individual's work-related responsibilities. For it, first of all, objectives of organization must be identified and clearly defined; and activities required to accomplish the objectives should be clearly identified. Job design is the act of cre

 Contingency approach: This approach is based on the reality of flexible job responsibilities on dynamic and complex business environment. This approach focuses on the uniqueness of each business environment and business organization. This approach believes that there may be a number of ways to solve problems and situational circumstances depending upon the situation, and environmental context. This is a situational approach in organizing which suggests that there cannot be unique solution of a problem throughout the world but organization should adapt different approach to solve such problems. Management should consider several contingency variables like size of organization, routineness of task technology, environmental uncertainty and individual differences while creating the organizational structure.

 Behavioral approach: Behavioral approach to organizing focuses on behavior of managers as well as employees at the working environment. It emphasizes on psychological and social aspects of employees while creating the organizational structure. It is the approach which concerns with scientific investigation, analysis, and understanding of human sentiment and behavior in organization. Behavioral approach is multidisciplinary in nature. It focuses on psychology, sociology and anthropology while organizing. This approach gives more emphasis on psychological wellbeing of employees at job. Hence this approach suggests that human sentiments must be addressed while creating organizational structure. This approach highlights on group behaviour and team work to accomplish the job efficiently and effectively. Elton Mayo, Dauglas McGregar, Mary Parker Follet, Abraham Maslow, Frederic Herzberg, etc. are the principal contributors of this approach. This approach assumes that successful management d

 Classical approach: Classical approach represents the traditionally accepted norms and systems in organizing. This approach provides universal prospective to organizing. It includes the ideas and principles of classical management experts F.W. Taylor, Henry Fayol, Max Weber, etc. Thus, classical approach of organizing is the combination of theory of scientific management, theory of administrative management and bureaucratic theory of management. This approach emphasizes on job specialization to increase the organizational efficiency. For motivating employees, this approach focuses on financial incentives on the basis of output of employees. This approach is rational and mechanistic. Classical approach suggests that organizing should start with division of work to make the jobs simple. Jobs must contain only the similar components i.e. tasks. This approach highlights on the formal chain of command, strict discipline, clearly defined rules and regulations, unity of command and direction

 P RINCIPLES OF ORGANIZING Principles are guidelines which are formulated with the findings of series of tests and practices. Management experts have propounded a number of principle guidelines for designing the organizational structure. Some basic principles of organizing are described below: 1. Principle of unity of objectives: This principle states that the goals and objectives of the entire organization must be clearly defined and be same for all the departments and units. This means that the objectives of departments and units should not contradict with the goals and objectives of the organization. Objectives of all the department and units must be directed to achieve organizational goals. This helps utilize the organizational resources at maximum extent in the direction of attaining organizational goals. 2 Principle of specialization: This principle states that responsibility to the employee should be assigned on the basis of their interest, qualification, knowledge, skills and