Organizing in Principles of Management

UNIT III – ORGANIZING
R.ArunKumar,AP/Mech,RIT

SYLLABUS
Nature and purpose – Formal and informal organization –
organization chart – organization structure – types – Line and staff
authority – departmentalization – delegation of authority –
centralization and decentralization – Job Design - Human Resource
Management – HR Planning, Recruitment, selection, Training and
Development, Performance Management , Career planning and
management.

Objective:
 To understand the different types of organization and the concept of
human resource management.

Outcome:
 The student will be able to elaborate different organization
structures and functions of human resources manager.

ORGANIZING:
 Organizing is the process of arranging and structuring work
to accomplish an organization’s goal.
 Organizing is the process of identifying and grouping the
activities required to attain the objectives, delegating authority,
creating responsibilities and establishing relationship for people to
work effectively.

ORGANIZING:
 According to Haimann, “Organizing is the process of defining
and grouping the activities of the enterprise and
establishing the authority relationships among them”.

ORGANIZING:
 According to Chester Bernard, “Organization is the system of
consciously coordinated activities or forces of two or more
persons”.

NATURE AND PURPOSE OF ORGANIZING:
NATURE OF ORGANIZING:
1. Common objectives:
 Every organization exists to achieve some common goals or
targets of the organization.

2. Division of labour:
 Overall function of an organization is sub – divided into number
of sub – functions (various departments).
 Each department is headed by a manager, who is sole
responsible for function of the department.

3. Authority structure:
 Graded series of arrangement in an organization, creates a series
of superior and subordinate relationships called chain of
command.
 Responsibility associated with various positions are defined.

4. Group of persons:
 Work force of an organization constitute active environment in
an organization.

5. Communication:
 Every organization have free flow of communication.
 These channels of communication are necessary for mutual
understanding and cooperation among members of an
organization.

6. Co-ordination:
 Diverse efforts of various functional departments are integrated
towards the common goal through the process of coordination.

7. Environment:
 No organization works in a vacuum. Social, political, economic
and legal factors exert influence on the environment.
 Beside it is influenced by internal factors like materials,
machines, level of technology, economic measures, HR, etc.

8. Rules and regulations:
 Every organization is governed by a set of rules and regulations
for orderly functioning of people.

NATURE AND PURPOSE OF ORGANIZING:
PURPOSE OF ORGANIZING:
1. To facilitate organization:
 Helps to earn highest profit.
 A properly designed organization facilitates both management
and operation of enterprise.

2. Increase efficiency of management:
 A good organization will extract efficient work from an
organization.
 Eliminates redundancy and motivates every employee.

3. To facilitate growth and diversification:
 Growth deals with expanding the scale of operation.
 Diversification means start of production of new type of
products.

4. Optimistic use of resources:
 Detailed job specifications are prepared in order to match the job
with the men.
 Right persons are placed in right job.

5. Facilitate coordination and communication:
 Grouping of activity.

6. Permit optimum use of technological innovations:
 Modifying authority relationship in wake of new
developments.
 Provides adequate scope for innovation.

7. Stimulate creativity and initiative:
 Provides the opportunity for the employees to show their hidden
talent

8. Facilitate the development of managerial ability:
 Trained to acquire a wide and variety experience in diverse
activities through job rotation.

FORMAL AND INFORMAL
ORGANIZATION

ORGANIZATION:
 Organization is defined as the place where, process of arranging
and structuring work to accomplish a goal happens.

FORMAL ORGANIZATION:
 The formal organization refers to the structure of jobs and
positions with clearly defined functions and relationships
as prescribed by the top management.

 It can also be defined as system of well defined jobs with a
prescribed pattern of communication, coordination and delegation
of authority.
 According to Louis Allen, Formal organization is a system of
well – defined jobs, each bearing a definite measure of
authority, responsibility and accountability.

 In formal organization everybody is assigned a certain
responsibility for the performance of the given task and
given the required amount of authority for carrying it out.

CHARACTERISTICS OF FORMAL ORGANIZATION:
1. Flexible and properly planned.
2. It is based on principle of division of labour and efficiency in
operation.
3. Concentrates more on the performance of jobs but not on the
individuals performing the jobs.
4. Flow of organization structure is usually framed.
5. Coordination and control among members of organization are
well specified.
6. Responsibility and accountability are clearly defined.
7. Unity of command is normally maintained.

ADVANTAGES OF FORMAL ORGANIZATION:
1. Conflicts among workers is eliminated.
2. Overlapping of responsibility is avoided.
3. More stability is ensured in organization.
4. A sense of security arises from classification of the task.
5.Motivates every employee for their personal as well as
organization goal.

INFORMAL ORGANIZATION:
 An informal organization is an organization which is not
established by any formal authority, but arises from the
personal and social relations of the people.

 Informal organization refers to the relationship between
people in the organization based on personal attitudes,
emotions, prejudices, likes, dislikes etc.

 It arises naturally on the basis of friendship or some common
interest which may or may not be related with work.

 Generally large formal groups give rise to small informal or
social groups. These groups may be based on same taste,
language, culture or some other factor.
 E.g. People of common language forming group, association of
people.

CHARACTERISTICS OF INFORMAL ORGANIZATION:
1. Arises voluntarily.
2. Created based on the similarity among the members (age,
native, etc.)
3. Has no place in organization structure.
4. A person may become a member of several informal
organizations at same time.
5. Rules and regulations are not written, but are followed.

ADVANTAGES OF INFORMAL ORGANIZATION:
1. As it gives satisfaction, motivates the workers and maintains
the stability of the work.
2. Fills up the gap in an organization.
3. Effective channel of communication.

DISADVANTAGES OF INFORMAL ORGANIZATION:
1. May be a hurdle in achieving the objective of an organization.
2. Indirectly reduces effort of management to promote greater
productivity.
3. Easily spreads rumor.

ORGANIZATION CHART,
ORGANIZATION STRUCTURE
TYPES

WORK SPECIALIZATION:
 Dividing work activities into separate job tasks.
 Individual employees specialize in doing part of activity
rather than the entire activity in order to increase work output.

ORGANIZATION CHART:
 Organization chart is the visual representation of an
organization’s structure.
 It shows the organizational relationships and activities
within an organization.

PURPOSE OF ORGANIZATION CHART:
 Divides work to be done into specific jobs and departments.
 Assigns task and responsibilities associated with individual
jobs.
 Coordinates jobs into units.
 Establishes relationship among individuals, groups and
departments.
 Establishes formal line of authority.
 Allocates and deploys organizational resources.

TYPES OF ORGANIZATION CHART:
1. Top – down chart / Vertical chart:
 Structure will be in form of pyramid.

2. Left to right / Horizontal chart:
 Lines of command flows horizontally.

3. Circular / Concentric chart:
 Top executive of organization is located at centre of the chart.
 Subordinates are located outside.

ADVANTAGES OF ORGANIZATION CHART:
 Defines relationship.
 Dual reporting relationship and overlapping positions come to
light.
 Helps to identify the limit of authority.
 Improves communication.
 Provides clue to lines of promotions.
 Outsiders can easily identify and understand the structure of
organization.
 Guides every new employee in understanding how their
positions fit to the organization.

DISADVANTAGES OF ORGANIZATION CHART:
 Avoids informal relationships.
 If not clearly defined, may lead to misleading inferences.
 Fails to show how much authority an individual can exercise
and how far he is responsible.

ORGANIZATION STRUCUTRE:
 Organization structure is a flow chart which defines, the formal
arrangement of jobs within and organization.
 An organization structure is designed both from mechanistic
and humanistic point of view.

TYPES OF ORGANIZATION STRUCUTRE:
1. Based on the flow of power
 Bureaucratic structure
 Adaptive structure

1.1 Bureaucratic structure:
 Structures are formed based on the formal authority.
 Includes hierarchy of authority, promotion based competency.
 College / university environment.

Characteristics of Bureaucratic structure:
 Uses division of labour principle.
 Ensures coordination among employees.
 Organization is governed by clearly defined rules.
 Defines the hierarchy of the organization.
 States the rights of every employee.

Drawbacks of Bureaucratic structure:
 Lack of flexibility
 Lack of humanity.
 May lead to conflict.

1.2 Adaptive structure:
 Maintains high degree of openness to input from internal and
external environment.
 Framed based on knowledge based authority and cooperation.
 More flexible.

Characteristics of Adaptive structure:
 Roles are not highly defined.tin
 Tasks are continuously redefined.
 Decentralization of control.
 Quick decision making.
 Little reliance on formal authority.

2. Based on formation of group:
2.1 Functional structure:
 Groups the people / employee based on similarity in work
nature.

Advantages of Functional structure:
 High degree of control and communication o functions.
 Makes employee to feel comfort.
 Helps to improve productivity.
Disadvantages of Functional structure:
 Isolation leads to narrowed perspectives.
 Inter – departmental contradiction.
 Lack of proper communication with other departments.

2.2 Divisional structure:
 Divisions are based on the output of the organization.
 Each division has its own functional departments.

Advantages of Divisional structure:
 Size of organization can be increased without problem.
 Improves ability of organization to respond to customer.
 Enhances the efficiency of organization.
Disadvantages of Divisional structure:
 Competition may lead to conflicts.
 Formulation is expensive.
 Control system is complicated.

2.3 Matrix structure:
 It is the combination of both functional and divisional
structure.
 Resources will be directed to other project when one is completed.

Advantages of Matrix structure:
 Facilitates better planning.
 More flexible.
 Ensures better use of resources, enhances skills of an employee.
Disadvantages of Matrix structure:
 Multiple projects at a time will lead to complex control.
 Relationship is complicated.
 Decisions are usually delayed.

2.4 Team structure:
 Comprises members of various departments who work together.
 E.g. Shift employees.

Advantages of Team structure:
 Reduces interdepartmental conflicts.
 Administrative cost is low.
 Employee learns the function of various departments.
Disadvantages of Team structure:
 Conflict in loyalties.
 Increased time spent in meetings.

2.5 Network structure:
 Relies on other organization.
 Permits outsourcing.

Advantages of Team structure:
 Provides flexibility.
 Improves quality.
 Reduces cost.
Disadvantages of Team structure:
 Unpredictability in supply.

LINE AND STAFF AUTHORITY,
DEPARTMENTALIZATION

LINE AND STAFF AUTHORITY:
LINE AUTHORITY:
 Line authority is directly related with attainment of the
organizational objectives.

LINE AUTHORITY:
 In line authority, the superior will be exercising the authority
directly over the subordinates to carry out orders and
instructions.

LINE AUTHORITY:
Advantages:
 Simple and easy to understand.
 Delegation of authority is clear.
 Channel of communication is clear.
 Ensures discipline in an organization.
Disadvantages:
 Inflexible.
 Neglects advices from experts.
 Limited to small organization.

STAFF AUTHORITY:
 Staff authority is authority that helps line authority in
attaining the objectives of the organization.
 Staff authority involves giving advice to the line managers to
carry out the operation.

STAFF AUTHORITY:
Staff authority can be classified in following forms:
1. Advisory staff authority:
 Provides advice and assistance to line manager.
2. Compulsory staff consultation:
 Line authority must compulsorily consult with staff authority
while taking decision.
3. Concurring authority:
 Staff will be given complete authority to take decisions.

STAFF AUTHORITY:
Advantages:
 Improves the quality of decision.
 Reduces complexity to line authority.
 Leads to innovations.
Disadvantages:
 Managerial problem.
 Weakens line authority.

DEPARTMENTATION:
 Departmentation is a process of dividing the large monolithic
functional organization into small and flexible
administrative group.

IMPORTANCE OF DEPARTMENTATION:
 Provides autonomous.
 Increases operating efficiency.
 Helps in fixing the responsibilities to various executives.
 Easier for appraisal identification.
 Facilitates budget preparation, control over expenditure.

DEPARTMENTATION TYPES:
1. Departmentation by numbers:
 Departments are created on the basis of strength of employees.
 Same activities will be performed by small groups.
 e.g.: Military

2. Departmentation by time:
 Departments are formed on the basis of time of performance.
 e.g.: Shift work

2. Departmentation by time:
Advantages:
 24 × 7 service.
 May provide part time work.
Disadvantages:
 Night time supervision.
 Lack of coordination.

3. Departmentation by function:
 Departments are formed on the basis of work nature.
 Large scale enterprise follows this method.

3. Departmentation by function:
Advantages:
 Ensures performance control.
 Facilitates delegation of authority.
 Ensures coordination.
Disadvantages:
 Lack of interdepartmental communication.

4. Departmentation by territory:
 Departments are formed on the basis of geographical function
of organization.

4. Departmentation by territory:
Advantages:
 Helps the organization to improve sales.
 Reduces operation cost.
 Expands business.
Disadvantages:
 Lack of communication among branch organization.
 Friction between regional managers.

5. Departmentation by customers:
 Departments are formed on the basis of needs of customer.
 Each expert will serve a specific group of customer.

5. Departmentation by customers:
Advantages:
 Facilitates concentration on customer satisfaction.
 Helps to analyze the market requirement.
Disadvantages:
 Need experts in specific problems.
 Production activities cannot be organized effectively.

6. Departmentation by process:
 Departments are formed on the basis of equipments and
process.
 e.g. Ginning, spinning, weaving, etc. in a textile industry.

6. Departmentation by process:
Advantages:
 Focuses on optimistic technology.
 Effective utilization of resources.
Disadvantages:
 Lack of coordination.
 Experts are required.
 Conflicts.

7. Departmentation by product:
 Departments are formed on the basis of type of service and
product.
 Each department will have individual functional
departments.
 e.g. Kirloskar, Honda

8. Matrix organization
9. Strategic Business Unit.

DELEGATION OF AUTHORITY,
CENTRALIZATION AND
DECENTRALIZATION

SPAN OF CONTROL:
 Span of control is defined as the number of employees a
manager can effectively manage.
 If span of control increases, it reduces the operational cost of an
organization.
 But sometimes, wider the span lesser will be the effectiveness
of control.

DELEGATION OF AUTHORITY:
 Delegation is the process of granting authority or right to
decision making in certain defined areas and charging the
subordinate with responsibility for carrying through assigned
task.

DELEGATION OF AUTHORITY:
 It is common knowledge that there is a limit to the number of
subordinates a superior can effectively manage, however
talented he may be.
 Once a man’s job grows beyond his personal ability, he succeeds
when he delegates his authority.

Process of Delegation:

1. Sizing up the work:
 Superior has to assess his/her workload in terms of activities
and task to be assigned to him/her and result expected of him.
 He/she should analyze which part of work has to be
delegated.

2. Assignment of duties to subordinates:
 Subordinates must explained about the nature of work,
limitation of authority, target expected.

3. Granting of authority to perform duty:
 In this process official authority will be given to the
subordinate.
 Work force below the delegate will be instructed to follow the
commands of delegate.

4. Creation of obligation:
 Delegate will be taking in charge.
 He/she will be responsible for all the activities performed.

Advantages of Delegation:
 Reduction of executive burden.
 Facility of expansion / multiplicity of skill.
 Efficient running of branch organizations.
 Identification of talents.
Disadvantages of delegation:
 Dependence on managers.
 Failure in completion of duty, due to lack of skill.
 Conflict among workers.

CENTRALIZATION:
 Centralization is the reservation of authority at a central point
within the organization.
 Role of subordinates becomes insignificant in this case.

Advantages of Centralization:
 Facilitates greater uniformity.
 Lowers operating cost.
 Enhances coordination.
Disadvantages of Centralization:
 Individual initiative destroyed.
 Overburden with routine functions.
 Communication gap with lower units.
 Keeps the customer away.

DECENTRALIZATION:
 Dispersal of decision making authority down to the level
where work is to be performed.

Characteristics of decentralization:
 Reflects the management’s attitude and philosophy.
 Managerial skills need to be developed among employees.
 Number of decisions must be made by lower level of management.

Advantages of decentralization:
 Facilitates diversification.
 Higher motivation for employees.
 Ensures effective control.
 Minimizes risk.
 Development of management.
Disadvantages of decentralization:
 May increase operational cost.
 Conflict among same level of employees.
 Lack of communication.

DECENTRALIZATION vs DELEGATION:
1. Definition:
 Delegation is entrustment of authority from one to another.
 Decentralization is organization wide delegation between top
managements and departments.

2. Essentiality:
 Delegation is mandatory for an organization.
 Decentralization is optional.

3. Range of control:
 In delegation of authority, top authority will expose maximum
control over delegates in delegation.
 In decentralization, top authority may exercise minimum
control.

SELECTION, TRAINING AND
DEVELOPMENT

SELECTION:
 Selection is the process of choosing the most suitable persons
out of all applicants.
 According to O’Donnell, selection is the process of choosing
candidates within or outside the organization, for the current
position or for the future position.

SELECTION:
 In this process, relevant information about the applicant is
collected and deserving candidates are provided with job
opportunity.

SELECTION PROCESS:
1. Scrutinizing the application / Initial screening:
 A large number of applications are scrutinized and unqualified
applicants are filtered.
 This stage reduces unwanted work load and cost.

SELECTION PROCESS:
2. Selection tests:
 Tests are being conducted in this process to evaluate qualities
of scrutinized applicants.
 It is the systematic procedure for comparing the behavior of
applicants.
 e.g.: Ability test, Personality test.

SELECTION PROCESS:
3. Interview process:
 Interview is face to face interaction between interviewer and
the candidate.
 Types: Preliminary, Structured, Unstructured, Stress, Panel,
Telephonic, Online.

SELECTION PROCESS:
4. Physical examination:
 Stage where the medical fitness of the candidates is examined.

SELECTION PROCESS:
5. Reference check:
 Getting feedback from the referees.

SELECTION PROCESS:
6. Final Selection:
 Offering formal appointment order for the shortlisted
candidate.

TRAINING AND DEVELOPMENT:
 Training is a set of activities that provide opportunity to
acquire and improve job – related skills.
 Development means all round improvement on the
performance, personality growth in proficiency, advancement
and progress in all other traits.

NEEDS:
 Orientation to new hires.
 Orientation to potential promotes.
 Refreshing knowledge of existing employees.
 Awareness against risk factors.
 Human relations.
 Complexity in organization.
 Upgrading the knowledge.

IMPORTANCE:
 A trained worker can contribute more towards output of the
organization.
 Trained employees will make better use of resources.
 Helps the employees to be loyal to the organization.
 Helps to attain promotions.
 Eliminates risk and accidents.
 Helps in standardizing the system.
 Reduces the time to learn the system.

TRAINING METHODS:
 Employee training and development should be guided by
principles of motivation, progressive information, practice,
individual ability enhancement.
 The types of training are:
1. On job training
2. Off job training

ON JOB TRAINING:
1. Apprenticeship training:
 Individuals those learns trade skills like plumbing, carpentry,
machining, etc are imparted theoretical knowledge.
 Then they have to go for hands on training practice.

ON JOB TRAINING:
2. Job rotation:
 Movement of employee from one job to another.

ON JOB TRAINING:
3. Coaching / under study:
 Newly hired employees are trained under the section head /
divisional manager.

ON JOB TRAINING:
4. Syndicate training:
 Newly hired employees are divided into small groups and are
trained under various trainers.

ON JOB TRAINING:
5. Temporary promotion:
 In absence of manager, his subordinate will be taking charge.

OFF JOB TRAINING:
1. Lecture method:
 Trainees are exposed to concepts, theories, etc.

OFF JOB TRAINING:
2. Simulation training:
 Duplication of organization training environment.

OFF JOB TRAINING:
3. Role playing:
 Trainees must play their role without rehearsal and prepared
dialogues.

OFF JOB TRAINING:
4. Case studies:
 Real time problem will be given to the trainees. They must come
up with solution for those problems.

STEPS IN TRAINING:
 Identification of needs.
 Establish objectives of the training process.
 Methodology selection.
 Preparation of schedule and resources.
 Implementation.
 Evaluation.
 Feedback.

EVALUATION TECHNIQUES OF TRAINING:
 Productivity of the organization.
 Quality of the product and process.
 Feedback from supervisor.
 Evaluation test.
 Behavioral test.

PERFORMANCE MANAGEMENT

PEFORMANCE MANAGEMENT:
 Performance management is defined as the process of
evaluating employee performance on the job in terms of job
requirements.

PEFORMANCE APPRAISAL:
 Performance appraisal is the systematic evaluation of the
individual with regard to his or her performance on the job
and his potential for development.

OBJECTIVE OF PERFORMANCE APPRAISAL:
 To improve employee’s performance.
 To review the performance of the employees over a given
period of time.
 To judge the gap between the actual and desired performance.

 To help management in exercising organizational control.
 Helps to strengthen the relationship and communication
between superior – subordinates and management – employees.
 To diagnose the strengths and weaknesses of the
individuals so as to identify the training and development needs
of the future.

 To improve employee’s performance.
 To provide feedback to the employees regarding their past
performance.
 Provide information to assist in the other personal decisions
in the organization.

 Provide clarity of the expectations and responsibilities of the
functions to be performed by the employees.
 To judge the effectiveness of the other human resource
functions of the organization such as recruitment, selection,
training and development.
 To reduce the grievances of the employees.

PROCESS OF PERFORMANCE APPRAISAL:

PERFORMANCE APPRAISAL METHODS:
1. Written Essay:
 An evaluator writes out a description of an employee's
strengths and weaknesses, past performance, and potential.
 The evaluator would also make suggestions for improvement.

PERFORMANCE APPRAISAL METHODS:
2. Critical incidents:
 An evaluator will be considering only specific behaviours, not
vaguely defined personality traits, are cited.

PEFORMANCE APPRAISAL METHODS:
3. Graphic Rating Scales:
 Employee will be evaluated on various criteria (especially on
his quality in all kind of job) on scale basis.

4. Behaviorally Anchored Rating Scales:
 The appraiser rates an employee according to items along a
numerical scale, but the items are examples of actual behaviour
on a single job rather than general descriptions or traits.

5. Multi person comparison:
 Employees are compared with work output of other fellow
employees.
 The three most popular approaches to multi person comparisons
includes:
1. Group order ranking
2. Individual ranking
3. Paired comparison.

6. MBO:
 Employees are evaluated by how well they contribute to the
organization.

7. 360° Appraisal:
 Feedback will be received from supervisors, employees and co-
workers, etc. peer

CAREER PLANNING AND
MANAGEMENT

CAREER:
 Career is defined as a series of properly sequenced role
experienced leading to an increased level of responsibility, status,
power and rewards.

CAREER TYPES:
1. Individual career:
 An individual career is a sequence of work related experiences
in which a person participates during span of work life.

CAREER TYPES:
2. Organization career:
 Standard set of roles to be performed which interacts with flow of
individuals within the organization.

CAREER MANAGEMENT:
 Career management is the process for enabling employees to
better understand and develop their career skills.
 Helps to use these skills effectively both within the organization
and after they leave the organization.

CAREER MANAGEMENT:
Career management = Career planning + Career development

CAREER MANAGEMENT:
1. Career planning:
 Career planning is the process by which a person fixes his / her
goals and path to attain.
 It can also be defined as the process of systematically matching
career goals and individual capabilities with opportunities
for their fulfillment.

CAREER MANAGEMENT:
2. Career development:
 Career development is defined as the ongoing process by which
individual progress through a series of stages each of which
is characterized by a unique set of activities.

CAREER MANAGEMENT:
2. Career development:
 Career development must focuses on,
i. correlate individual abilities with organization’s need.
ii. develop employee for long term attainments of an
organization.

CAREER MANAGEMENT:
Importance of career development:
1. Talent identification
 Identifies the talent to meet the changing staffing requirements.

CAREER MANAGEMENT:
2. Enhancement of employee skills
 Helps to improve the skill ability of deserving employee.

CAREER MANAGEMENT:
3. Loyalty
 Improves the loyalty of an employee towards the organization.

CAREER MANAGEMENT:
4. Retains employee
 If an employee ensures his career growth along with the growth of
the organization, he will be retained by the organization.

CAREER MANAGEMENT:
5. Elimination of growth hindrance
 Helps an employee to overcome the hindrance in growth.

CAREER MANAGEMENT:
6. Reduces vagueness and frustration
 Satisfies the actual need of both organization and individual. Thus
it reduces frustration.

CAREER MANAGEMENT:
7. Healthy workforce environment
 Improves cultural diversity and workforce environment.

CAREER MANAGEMENT:
8. Organization growth
 Organization grows along with individuals.

CAREER STAGES:
1. Exploration stage:
 15 – 25 years.
 A person will be exploring various field of opportunities and
identifies his / her area of interest.
 Relies more on family and close circles.

CAREER STAGES:
2. Establishment stage:
 25 – 35 years.
 After identifying the field of interest, person will begin his / her
career.
 Focuses more on how to fit to the working environment.

CAREER STAGES:
3. Advancement stage:
 35 – 45 years.
 Focuses on career growth in organization.
 In this stage successful persons will have the feel of job
satisfaction.

CAREER STAGES:
4. Late career stage:
 45 – 65 years.
 Person will almost attain the saturation level of his career.
 Level of competence will start to decline.
 Engaged in bringing up young talents.

CAREER STAGES:
5. Disengaging stage:
 Above 65 years.
 Retires from his career.
 Few may continue their profession as an advisor to the
organization.

Organizing in Principles of Management

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