Organizing

Subject: MNG400- Principles of Management

Class: VII Semester- B.Tech- Mechanical
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Objectives
1. Understand the nature of authority, power, and
empowerment

2. Distinguish between line, staff, and functional authority

3. Discuss the nature of decentralization, centralization, and

delegation of authority

4. Recognize the importance of obtaining balance in the

centralization and decentralization of authority
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AUTHORITY AND POWER

Power is the ability of individuals
or groups to induce or influence the
beliefs or actions of other persons
or groups

Authority is the right in a position

to exercise discretion in making
decisions affecting others
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Different Bases of Power

Legitimate power normally arises from
position and derives from our cultural
system of rights, obligations, and duties
whereby a "position" is accepted by
people as being "legitimate"

Expert power is the power of knowledge

Referent power is influence that people

or groups may exercise because people
believe in them and their ideas
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Different Bases of Power

-continued

Reward power is the power to grant or

withhold rewards such as high grades by a
university professor

Coercive power is closely related to reward

power and normally arising from legitimate
power, it is the power to punish
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What is Empowerment?

Empowerment means that employees,

managers, or teams at all levels in the
organization have the power to make
decisions without asking their
superiors for permission.
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Scalar Principle in Organization

The clearer the line of authority from

the ultimate management position in
an enterprise to every subordinate
position, the clearer will be the
responsibility for decision making and
the more effective will be
organization communication.
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LINE, STAFF, AND FUNCTIONAL

AUTHORITY

Line authority is the relationship in which

a superior exercises direct supervision
over a subordinate
Staff relationship is advisory

Functional authority is the right that is

delegated to an individual or a
department to control specified
processes, practices, policies, or other
matters relating to activities undertaken
by persons in other departments
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DECENTRALIZATION OF
AUTHORITY

Decentralization is the tendency to

disperse decision-making authority
in an organized structure.
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Different Kinds of Centralization

The term "centralization" has several meanings:
1. Centralization of performance pertains to
geographic concentration; it characterizes,
for example, a company operating in a single
location
2. Departmental centralization refers to
concentration of specialized activities,
generally in one department. For example,
maintenance for a whole plant may be carried
out by a single department
3. Centralization as an aspect of management is
the tendency to restrict delegation of decision
making. A high degree of authority is held at or
near the top by managers in the organizational
hierarchy
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DELEGATION OF AUTHORITY
The process of delegation involves:

Determining the results expected from a

position

Assigning tasks to the position

Delegating authority for accomplishing

these tasks

Holding the person in that position

responsible for the accomplishment of
the tasks
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THE ART OF DELEGATION

Personal Attitudes towards Delegation:
Receptiveness
Willingness to let go
Willingness to let others make
mistakes
Willingness to trust subordinates
Willingness to establish and use
broad controls
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Guides for Overcoming Weak

Delegation

1. Define assignments and delegate

authority in light of results expected
2. Select the person in light of the job
to be done
3. Maintain open lines of
communication situations
4. Establish proper controls
5. Reward effective delegation and
successful assumption of authority
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RECENTRALIZATION OF
AUTHORITY

At times an enterprise can be said to

recentralize authority-to centralize
authority that was once
decentralized.
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Objectives

1. Avoid mistakes in organizing by planning

2. Show how organizing can be improved by maintaining

flexibility and by making staff more effective

3. Avoid conflict by clarifying the organization structure and

ensuring an understanding of organizing

4. Promote and develop an appropriate organization culture

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AVOIDING MISTAKES IN
ORGANIZING BY PLANNING
In organizing there is no one best way; it
depends on the specific situation

Establishment of objectives and orderly

planning are necessary for good
organization

The search for an ideal organization to

reflect enterprise goals under given
circumstances is the impetus to planning
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Modification for the Human

Factor
If available personnel dont fit into the
ideal structure and cannot or should
not be pushed aside, the only choice is
to modify the structure to fit individual
capabilities, attitudes, or limitations.
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What Are the Advantages of

Organization Planning?

Planning the organization

structure helps determine future
personnel needs and required
training programs.
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AVOIDING ORGANIZATIONAL
INFLEXIBILITY

Through reorganization

Through readjustment and change

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MAKING STAFF WORK

EFFECTIVE
Understanding authority relationships

Making line listen to staff

Keeping staff informed

Requiring complete staff work

Making staff work a way of

organizational life
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AVOIDING CONFLICT BY
CLARIFICATION
Organization Charts
An organization chart indicates how
departments are tied together along
the principal lines of authority
Advantages and limitations

Position Descriptions
A good position description informs
everyone of the incumbent's
responsibilities
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Position Descriptions
Every managerial position should be
defined. A good position description
informs every one of the incumbent's
responsibilities.
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ENSURING UNDERSTANDING OF
ORGANIZING

By teaching the nature of

organizing

By recognizing the importance of

informal organization and the
grapevine
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PROMOTING AN APPROPRIATE
ORGANIZATION CULTURE
Defining organization culture
Culture is the general pattern of behavior,
shared beliefs, and values that members
have in common

The influence of the leader on

organization culture

What is a value?
A value is a fairly permanent belief about
what is appropriate and what is not that
guides the actions and behavior of
employees in fulfilling the organization's
aims
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Influence of the Leader on

Organization Culture

Top managers create the climate

for the enterprise. Their values
influence the direction of the firm.