 Introduction

 Nature and Importance and purpose of organization

 Principles of Organization
 Types of Organization
 Departmentation
 Committees
 Centralization and Decentralization of authority and
responsibility
 Span of control-MBO and MBE
 Nature and importance of staffing
 Process of selection and recruitment
Mr. J V Gorabal Assoc Prof & HOD
MCA SCEM,MLR
 An organization It is a social group which distributes
tasks for a collective goal. The word itself is derived from
the Greek word organon, itself derived from the better-
known word ergon - as we know `organ` - and it means a
compartment for a particular job.

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Organization is a system of cooperated activities of two
or more persons-Chester Bernard
 Organization is form of human association for the
attainment of a common purpose-Mooney and Reily
 “Organization is a structural relationship by which an
enterprise is bound together and the framework in which
individual effort are coordinated” -Koontz and
O’Donnell

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Organization is like a musical store. It is not the sound
from each instrument which matters but the harmony
between them and overall effect
-Peter Drucker

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Made of people
 Common goals and personal goals
 Both vertical and horizantal relationships
 Establishes authority or chain of command
 Dynamics of organization

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Facilitates administration
 Help optimum utilization of resources
 Coordination and direction
 Facilitates growth and diversification
 Stimulates creativity
 Enlarge abilities of employees

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Co-ordination:
 Authority and Responsibility:
 Unity of Objectives
 Span of Control: [ 2-20 persons] ;Time, knowledge
 Dividing and grouping of activities
 Delegation[ Authorizing some body to work]
 Communication
 Balance[ between authority and responsibility],standard
procedures and flexible procedures
 Flexibility
 Simplicity
 Primary line and supportive staff

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Productivity
Productivity=Value of goods and services produced
Value of resources utilized for this
production

 Line and Staff relationship

• Coordination

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
• It is an organization which clearly defines the authority,
responsibility and inter relations of people working
therein
• To facilitate the co-ordination of various activities: The authority,
responsibility and accountability of individuals in the organization is very
well defined.
• Hence, facilitating the co-ordination of various activities of the organisation
very effectively.
•

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
• An informal organization is one which is not reliant on a hierarchical
structure, typical of large-scale companies. It is not typical for an entire
organization to be informal, as this could cause problems which are
discussed in a moment, but formal organizations do tend to have informal
ones within them.
• Informal originations have very loose structures. People can become
members freely and sometimes spontaneously; relationships are
undefined and the sharing of responsibility and involvement of members
will vary considerably.
•

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Size of the Organization
 Nature of the product being manufactured
 Complexity of the problems being faced

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Structure of an Organization Depends on the following
facts

Type of the
Product
Complexity
Size of the of the
organization Problem

Factors

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Line , Military types of organizations
 Functional Organization
 Line and staff organization
 Product/Project Organization
 Matrix or Grid Organization
 Committee Organization

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Simplest and earliest type of organization
 Clear cut hierarchy of positions
 Authority flows directly from top to bottom
 GM level to worker level
 At all level immediate boss gives orders to his
subordinates


Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Mr. J V Gorabal Assoc Prof & HOD
MCA SCEM,MLR
 Simple
 Flexible
 Clear-Cut division authority
 Strong Discipline

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Overload of work
 Lack of Specialization
 Dictatorial way
 Scope for favoritism
 Lack of growth
 Unstable for large concern

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Small Enterprises: Restaurants
 Automatic and continues process industries such as paper sugar,
textiles industries
 Government Offices

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
• Organized based on their activity or function

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Mr. J V Gorabal Assoc Prof & HOD
MCA SCEM,MLR
 Specialization
 Cost reduction
 Mass Production
 No need for all round executives
• Functional Design encourages narrow specialization rather than
general management skills so that functional managers are not well
prepared for top executive position

• Functional Units may be so concerned with their own areas that they
may be less responsive to overall organizational needs

• Kills the initiative of workers

• No allround executives
 Educational Institutes
 Transport Systems

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Line and Staff Organization
 The line-and-staff organization combines the line organization with
staff departments that support and advise line departments. Most
medium and large-sized firms exhibit line-and-staff organizational
structures.
 The distinguishing characteristic between simple line organizations
and line-and-staff organizations is the multiple layers of management
within line-and-staff organizations.
 The following sections refer primarily to line-and-staff structures,
although the advantages and disadvantages discussed apply to both
types of organizational structures.

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Examples of line organizations are small businesses
in which the top manager, often the owner, is
positioned at the top of the organizational structure
and has clear "lines" of distinction between him and
his subordinates.

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 The line-and-staff organization combines the line organization with
staff departments that support and advise line departments.
 Most medium and large-sized firms exhibit line-and-staff
organizational structures. The distinguishing characteristic between
simple line organizations and line-and-staff organizations is the
multiple layers of management within line-and-staff organizations.

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Mr. J V Gorabal Assoc Prof & HOD
MCA SCEM,MLR
• Decision Efficiency
• Staff managers generally perform their job functions
without managerial guidance or approval
• Company Oversight
• Line managers are vital to the success of any growing business.
Line managers compose the chain of command, and are
responsible for directing, motivating and supervising employees
at all levels of an organization.
• Line managers make formal decisions within their sphere of
authority that directly influence the way a company does
business, including production goals, organizational policies and
compensation decisions
Mr. J V Gorabal Assoc Prof & HOD
MCA SCEM,MLR
• Expert Advice
• According to referenceforbusiness.com, staff managers
often play a support role to line managers.
• Since staff managers are generally very knowledgeable in
their field, line managers have the advantage of being
able to tap into the knowledge and resources of staff
managers to solve complex problems.
• Having specialized staff managers on board can help to
bring clarity to extraneous legal, tax and other issues.

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Line managers can work more efficiently
with staff managers handling specialized
functions. By providing staff managers
with total authority in particular areas, line
managers have more free time to focus on
their main task

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Authority
The different levels of authority
can cause confusion among
employees who are not sure
whether to follow the in-line
executive or the relevant staff
specialist.

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Decision Making
Whenever a decision results in higher
returns, the staff specialists are
rewarded. While this reward may be
justified, the line officials involved can
become dissatisfied or begin to feel
unappreciated, which leads to low
productivity.

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Conflict
Sometimes, the two authorities,
line and staff, disagree, which
causes conflict that hurts the
efficiency and the productivity
of the company

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Departmentalization
The basis by which jobs are grouped together.

Grouping Activities By:

• Product
• Geography
• Process

© 2007 Prentice Hall Inc. All rights

reserved.
Product Organization

• All jobs associated with producing and selling a product

or product line will be placed under the direction of one
manager
• Product becomes the preferred basis as a firm grows by
increasing the number of products it markets
• Concentrating authority, responsibility, and accountability
in a specific product department allows top management
to coordinate actions

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 OBM Company

Small Large Building Lawn and

Commercial Automotive
Household Household -Materials and Garden
Appliances
Maruti Ertiga Video YouTube.flv
Products
Appliances Appliances Products Products
Project Organization

In the company activities are grouped based on

the project;
Example: Fly over Project, Metro Project, Airport
Road

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Project Organization

CEO

GM1
GM2
Adhar Card
Health Card
Project

Urban Rural Rural Urban

Project Project Project Project

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Process Organization

Departmentization is done on the basis of particular

process

For Example:
In a Car Manufacturing Unit: Painting and Denting, Interior ,
Wiring department
In Textile: Dyeing section,Printing Section,Packing section

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 OBM
Company

Northeast Midwest Southeast Southwest Pacific

In this departmentization is
done based on the different
location as shown above.
Advantages of Departmentization

•Specilalization
•Increase in efficiency
•No Interface
•Competitive Spirit
•Initiative to manager
•Easy evaluation
•Ease of Budgeting
•Flexibity

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Dis Advantages

•Duplication of work
• Inadequate Centralization
• Glamour for the same department
• Narrow Thinking
• Under Utilization
Mr. J V Gorabal Assoc Prof & HOD
MCA SCEM,MLR
Matrix organization

• Attempts to maximize the strengths and minimize the

weaknesses of both the functional and product bases
• Superimpose a horizontal structure of authority, influence,
and communication on the vertical structure
• Facilitates the utilization of highly specialized staff and
equipment

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Functions

Projects, products Manufacturing Marketing Engineering Finance

Project or product A

Project or product B

Project or product C

Project or product D

Project or product E
Advantages

Flexible and versatile

Result Oriented
Responsibility is clearly defined
Cost is reduced due to sharing of manpower
Better Professional Identification is maintained

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
It is a smaller group within a larger organization
consisting of a fewer individuals and having its
own objectives
Committee is formed when a group of individuals
come together to discuss decide and recommend
solutions to certain issues of the organization
 It is compose to solve an issue of the
organization

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Adhoc
 Standing or Permanent
 Advisory Committee
 Educational Committee

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Numbers in a committee should be minimum
 Agenda should prepared by the chairman
 Duties an responsibilities should be clearly specified
 Chairman must have enough authority to conduct
 meeting
 Members from all the department
 Meeting should begin and end on fixed time

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Decisions are taken based on the collective
wisdom
 Platform to integrate the ideas
Different departments put their thoughts to
safeguard their interests
New Ideas, innovations and new schemes

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
These five: the life-span,
the type of work, wealth,
learning and the time of
one's death are
determined while one is
in the womb.

Wok is worship
May take more time to come to conclusion
No individual can be held responsible for anything
Final decision may not be acceptable to everyone on the
committee
 Aggressive members can influence the decision
 Overhead costs in conducting meetings
Postponement of the meeting when key members are absent

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Mr. J V Gorabal Assoc Prof & HOD
MCA SCEM,MLR
 Henri Fayol defines
authority
” The right to give orders
and the power to
demand obedience”
Authority will be given
based on position in the
hierarchy
Mr. J V Gorabal Assoc Prof & HOD
MCA SCEM,MLR
It demands and ensures obedience from the
subordinates
Helps in implementation of decisions
Helps in coordination and maintaining
uniformity

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Authority and
responsibility are the two
sides of the same coin
Authority is used to give
instruction to his or her
subordinates.
Responsibility refers to
the accountability of ones
action

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Authority Responsibility
 Power to command  Accountability for actions
 It comes with the position in the  Matches the authority
organization conferred on any position
 Cannot be delegated
 It can be delegated
 Obligation to perform
 Right to give orders and power
assigned duties
to extract obedience
 Make a person
 Authority tends to make a accommodative, humble and
person corrupt, demanding, democratic
arrogant and autocratic.

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Centralization is said to be a process where the concentration of
decision making is in a few hands. All the important decision and
actions at the lower level, all subjects and actions at the lower level
are subject to the approval of top management. According to Allen,
“Centralization” is the systematic and consistent reservation of
authority at central points in the organization. The implication of
centralization can be :-
 Reservation of decision making power at top level.
 Reservation of operating authority with the middle level managers.
 Reservation of operation at lower level at the directions of the top
level.
Mr. J V Gorabal Assoc Prof & HOD
MCA SCEM,MLR
 Decentralization is a systematic delegation of authority at all levels of
management and in all of the organization. In a decentralization concern,
authority in retained by the top management for taking major decisions
and framing policies concerning the whole concern. Rest of the authority
may be delegated to the middle level and lower level of management.

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Centralization Decentralization
 Preferred if education and  Education and experience
experience is are spread over the
concentrated at the top hierarchy
 Suitable for simple and  Suitable for complex
stable organization organizations
 Suitable when lower level  Suitable when lower level

managers are not managers are enough

competent enough to take competent to take certain
decisions deciosion

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Centralization
 It is worth to go for  It is worth to go for
Decentralization

centralization if the decentralization if the

decisions to be taken are
significant and far
reaching
 Useful if environment is
threatening and distrustful
 It is better in vertical
decisions to be taken are
insignificant and low
profile.
 Useful if the environment
is free and friendly.
 It is Better in horizontal

organization structure


Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 By
Exception

By
Objectives
Management Of change

Of conflict

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Proposed by Peter Drucker in 1954
 Mentioned that to achieve good results management must have clear
cut objectives
 Objectives are the targets or end results of the organization
 Performance is measured interms of end results against employees
 MBO identify the common goals
 Defines each individuals responsibility and the expected results
 Assess the results with respect to contributions of the employees

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Short-term objectives:
 Long term objectives
 Tangible objectives
 Intangible objectives

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Mr. J V Gorabal Assoc Prof & HOD
MCA SCEM,MLR
 Objectives of the whole organization are established
 Organization structure is selected
 Goals are set for each department
 In each department superiors and subordinates discuss and set
goals to each subordinate and his juniors
 The points at which every performance is checked and compared
are established
 The performance of each individual is appraised by his immediate
boss
 Corrective measures are taken in case of any deviations at any
level
 End Results
 Better Relationships
 Coordination
 Direction
 Weak Links[ Able to Identify weak links]
 Short term and long term goals
 Reduces wastage
 No flexibility
 Difficulty in setting objectives
 Lack of skills
 MBO Philosophy
 Insecurity Evaluation about their work]
 Proposed by F W Taylor in 1919
“ According to this principle ,only
unusual and exceptional deviation in the
daily routines of the factory should be
brought to the management notice”
 Easier identification of problem areas in the organization
 It increases span of control
 Critical and complex problems or issues are seperated from non-
critical problems
 Helps their subordinate to use their talents to solve less critical
problems
 It prevents managements from over managing their workers
 Misuse of authority
 Lack of proper supervision from
superior may lead to poor productivity
 There is chance of ignorance about
small issues, which will lead to create
big issues at the later stage
 “Change is permanent thing in this world”
 Change is common feature in any
organization which haa to keep in tune with
technological changes, advancement in the
technology
 “ Organization
may be considered to be in a state of
equilibrium with forces pushing for change on one
hand and the forces ressisting the change on other
hand
 An Equilibrium in the organization is therefore
maintained by driving forces and restricting forces
 “ Known Devil is better than unknown angel”
 Effect of on job
 Not Knowing the changes it also causes resistance
 Change may lead to loss in terms of power and money
 Because of religious and superstitious or psychological or emotional
reasons

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Motivation

Bringing Stabilizing
Change The
itself change

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Education and Communication
 Participation and involvement
 Training and Support
 Negotiation and Agreement
 Manipulation
 Coercion

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
External
- Economic
- Social
-Governmental
-Location
-Technological
-Environmental or Ecological

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Managerial
 Operational
 Design and development
 Methods and process
 Work area

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Conflict may be
defined as a struggle
or contest between
people with opposing
needs, ideas, beliefs,
values, or goals.
Conflict is part of life
Mr. J V Gorabal Assoc Prof & HOD
MCA SCEM,MLR
 Functional Conflict: It occurs when
there is a healthy competition
between individuals groups.
 Dysfunctional Conflicts: These are
Destructive forms of conflicts
which have to be resolved or
vented for the smooth functioning
of the organization.

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 The number of employees who directly report to an executive is called
span of control
 Normally it will be 2 to 20 persons
 Deciding fact on Span of Control
- Time
- Place
-Knowledge
-Personality

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Staffing is the process
of attracting and
developing human
resources to work for
an organization and
also to evaluate them in
their work
Mr. J V Gorabal Assoc Prof & HOD
MCA SCEM,MLR
 Human Resource Planning
 Recruitment of employees
 Selection and placement
 Training and development
 Decision on remuneration packages
 Performance appraisal
 Promotion and transfer

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 It is continuous process
 Involves people
 Development oriented
 Involves multidisciplinary
knowledge
 It is step by step process

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Biggest factor for success of
an organization
 It helps in identifying and
nurturing talent
 Staffing helps in building sound
organization
 Helps in optimal utilization of
resources

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Recruitment is a
process of searching
for prospective
employees and
stimulating them to
apply for jobs in the
organization

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Recruitment enables
management to
select suitable
employees for its
different jobs

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Internal External
Sources Sources

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 People working in the
organization are promoted for
higher positions or transferred to
different department.
 Which helps to existing employees
to enjoy the benefits and
responsibilities of higher posts.

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Employ develops good will towards management.
 It provides them a chance to develop financially
and socially
 They will adjust with the new positions
immediately
 This method is less time consuming and less
expensive
 It encourages employees to work harder in order
to attract promotions and generates higher
motivation levels
Mr. J V Gorabal Assoc Prof & HOD
MCA SCEM,MLR
 Some time it is difficult to get the
required talent and skillful person
for the post
 There may be limited choice for
promotion
 No chance for new ideas and talents
 Discrimination and favoritism

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 Former employees
 Recommendations
 Employment exchange
 Campus interviews
 Advertisements
 Voluntary or walkin applications
 Employment agencies or HR Consultants
 Labor Unions

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
 You Can attract talented
people
 You can attract
experienced people
 You can avoid prejudice
and favoritism.

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Corruption
Difficult to
judge the
attitude
Mr. J V Gorabal Assoc Prof & HOD
MCA SCEM,MLR
 After completion of the recruitment
process
 It looks to be negative process
 Done through screening process

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Mr. J V Gorabal Assoc Prof & HOD
MCA SCEM,MLR
 3
Employment
Tests
4
2 Preliminary
Tests
Group
Discussions

Receipt of Job Final

5
Selection
1 Application Interview

Checking
Placement
Reference

8 Medical 6
Examination

7 Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR
Proficiency test

Aptitude tests
 - Intelligence test
 - Attitude test
 -Interest test
 - Movement Test
Mr. J V Gorabal Assoc Prof & HOD
MCA SCEM,MLR
Mr. J V Gorabal Assoc Prof & HOD
MCA SCEM,MLR
Mr. J V Gorabal Assoc Prof & HOD
MCA SCEM,MLR
jvgorabal@gmail.com

Mr. J V Gorabal Assoc Prof & HOD

MCA SCEM,MLR