IIPMB, ABMS

1. ORGANISING

2. Content
• Introduction
• Importance
• Process
• Span of Management

3. Introduction
• Organising is the process of defining and
grouping the activities of the enterprise and
establishing the authority relationships
among them.

4. Importance
• Effective Administration
• Growth and diversification
• Adaptation of New Technology
• Optimum Use of Human Resources
• Specialization
• Security and support
• Coordination and communication
• Training and development

5. Process of Organising
Organisation used in two different senses.
First sense - process of organising.
• defining and grouping the activities of the
enterprise and establishing the authority
relationship among them
• manager differentiates (departmentalization)
and integrates (achieving unity of effort) the
activities of his organisation
Second sense - result of that process, namely
organisation structure

6. Differentiation and Integration
• Consideration of objectives
• Grouping of activities into Departments
• Deciding the key department
• Determining levels at which various types of
decisions are to be made
• Determining the span of Management
• Setting up a coordination mechanism

7. Consideration of objectives
• Know the objectives of the enterprise.
• Objectives determine the various activities
which need to be performed and the type of
organisation which need to be built for this
purpose.

8. Grouping of activities
• Identify the activities necessary to achieve them
• Group the closely related similar activities into divisions
and departments.
• For example, the activities of a manufacturing concern
may be grouped into such departments as production,
marketing, financing and personnel.

9. Deciding the key department
• Which are rendering key activities, i.e activities
essential for the fulfillment of goals.
• Others exist merely to serve them.
• Which department needs to be emphasised
how much will depend on the company’s
objectives
• Eg: Advertising department / Advertising
section in sales dept

10. Determining levels
• Determine the level at which various major and
minor decisions are to be made.
• Decide for itself as to how much decentralization
of authority and responsibility it wants to have.
• Extreme decentralization - loss of control and
effective coordination
• Extreme centralization - wrong decisions at
wrong times and complete breakdown of the
morale of employees.

11. Determining the span of Management
• Determine the number of subordinates who
should report directly to each executive.
• The narrow span, the taller would be the
structure with several level of management
• Flat structure is generally desirable.

12. Setting up a coordination mechanism
• Emphasizing the importance of coordination in an
organisation
• As individuals and departments carry out their
specialised activities, the overall goals of the
organisation.

13. Span of Management
• Referred to as span of control, span of
supervision, span of authority or span of
responsibility
• Indicates number of managers who report
directly to a manager.

14. Determination of appropriate span
• Affects the efficient utilisation of managers and
the effective performance of their subordinates
• Too wide a span - managers - overstraining their
subordinates - too little guidance or control.
• Too narrow a span - managers are underutilized
and that their subordinates are over controlled
• There is a relationship between span of
management and organizational structure.

15. Factors Governing the Span of Management
• Ability of the Manager
• Ability of the Employees
• Type of the work
• Well-defined Authority and Responsibility
• Geographic Location
• Sophisticated Information and Control System
• Level of Management
• Economic Consideration