Organizing & Staffing

Meaning of Organization
• Organization is the structural framework of duties
and responsibilities required of personnel in
performing various functions with a view to
achieve business goals through organization.
Management tries to combine various business
activities to accomplish predetermined goals.
• Organisation refers to a collection of people who
are working towards a common goal and
objective. In other words, it can be said that
organisation is a place where people assemble
together and perform different sets of duties and
responsibilities towards fulfilling the organisational
 Definition..
• Louis Allen, “Organization is the process of
identifying and grouping work to be performed,
defining and delegating responsibility and
authority and establishing relationships for the
purpose of enabling people to work most
effectively together in accomplishing objectives.”
 Characteristics of
Organisation:
1. Division of Work
2. Co-Ordination
3. Common Objectives
4. Co-operative Relationship
5. Well-Defined Authority-Responsibility
Relationships
 Types of Organisation
• There are two broad categories of organisation,
which are:
1. Formal Organisation
2. Informal Organisation

• Formal Organisation: Formal organisation is

that type of organisation structure where the
authority and responsibility are clearly defined.
The organisation structure has a defined
delegation of authority and roles and
responsibilities for the members.
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• The formal organisation has predefined policies,
rules, schedules, procedures and programs. The
decision making activity in a formal organisation
is mostly based on predefined policies.

• Informal Organisation: Informal organisations

are those types of organisations which do not
have a defined hierarchy of authority and
responsibility. In such organisations, the
relationship between employees is formed based
on common interests, preferences and
prejudices.
 Organization Structure
• Organizational structure is a system used to
define a hierarchy within an organization.
• It identifies each job, its function and where it
reports to within the organization
Types of Organizational structure
• Flat & Line structure

• Functional structure
• Divisional structure
• Matrix structure
• Hybrid structure
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• Project structure
• Committee/Task force organisational structure
• Mechanistic structure
• Organic
• Vertical/ Tall organisational structure
• Horizontal / Flat organisation
• No boundary structure
• Virtual structure
• Inverted pyramid
• Linking Pin structure
• Line organization is the simplest framework for the
whole administrative organization. Line organization
approaches the vertical flow of the relationship. In line
organization, authority flows from the top to the bottom.
It is also known as the chain of command or scalar
principle.
• Functional Structure Each department has a head
responsible for it.This helps the organization control
the quality & uniformity of their performance. These
employees are very skilled. They are experienced
in the same work and they perform excellently;
productivity is high in a functional structure.
• Divisional structure is usually followed by big
companies which manufacture more than one
products or having operations in wide
geographical area. The organization is classified
into different autonomous units.Managers create
a series of business units to produce a specific
kind of product for a specific kind of customer.

• Types of Divisional Structure:

A. Product Based Structure
B. Geographic based Structure
C. Customer Based Divisional Structure
• Matrix Organizational structure The search for
better and faster ways to develop products and
respond to customer needs has led some companies
to choose a matrix structure.An organizational design
that groups people and resources in two ways
simultaneously: by function and by product.
• A hybrid structure is a framework that employs
multiple reporting structures in the organisation.
A hybrid form of organization, for example, is
created by combining functional and product
structures. Employees are required to work on
many projects and report to multiple managers
under a hybrid organisational structure.
• Project organization structure is used to
complete a project or task. The project
manager has people from several functional
departments such as production, finance,
marketing and so on. Specialists are drawn to
perform their respective roles in the total project.
• What is a Task Force?
• A task force is a group of people who come
together from diverse branches, positions, and
points of view to facilitate the development of
ideas, create new opportunities, answer
questions, or solve a problem.
• Mechanistic organizational structure is
hierarchical and bureaucratic by nature. It’s
structure, processes and roles are considered as
a machine where each part of the organization
does what it is intended to do.Thus, a mechanistic
organizational structure has a clear, well-defined,
centralized, vertical hierarchy of command,
authority, and control.
• An organic organizational structure is characterized
by an extremely flat reporting structure within an
organization. In this organization, the span of control
of the typical manager encompasses a large number
of employees. Interactions among employees tend to
be horizontally across the organization, rather than
vertically between layers of managers and their direct
reports
• Horizontal structure-More commonly called a flat
structure, flat organization or even a “flatarchy,” the
horizontal organization is one where democracy tends
to rule the day. A CEO, president or founder will likely
head the company, and then she'll possibly have one
or a few managers under her or maybe no managers
at all.
• Vertical structure begins with the CEO or president
at the head of the company, and below him sits top-
level management, which includes vice presidents
and executive managers. Reporting to the top level
is the middle management team, which includes more
managers and maybe department heads. Below them
are the low-level managers and supervisors who are
directly in contact with average employees.
• A boundaryless organization breaks down the
traditions, locational constraints, and hierarchies
of more traditional company structures.
Employees at these types of organizations can
expect a flexible business environment and a
team of coworkers that transcend geographic
boundaries.

• A virtual organization is an organization where

all members of the organization work in different
geographic locations while appearing as a single
unit. They use computers, software, phones and
other technology to work together.
• Inverted pyramid also known as a "reverse
hierarchy", an organizational structure that inverts
the classical pyramid of hierarchical organisations
• Inverted pyramid (architecture), a structure in the
shape of an upside-down pyramid.

• The linking pin model is an idea developed by

Rensis Likert. It presents an organisation as a
number of overlapping work units in which a
member of a unit is the leader of another unit.
 Span of Management
The number of subordinates which a manager can
manage effectively.

Determining Span of Management

Earlier theories said 3 to 8 subordinates are
enough.
 Graicunas theory of Span of
Management
• Developed a mathematical theory
• There are three types of relationship-

1. Direct relationship
2. Direct group relationship
3. Cross Relationship
Factors affecting Span of
Management
• Capacity of Superior
• Capacity of Subordinates
• Nature of Work
• Degree of Planning
• Degree of Decentralisation
Narrow Span of Management
 Narrow Span of Management
• Tall Structure
• Easy to
Communicate
• Large number of
levels
• Decision making is
very slow
• High cost
• Too much control-
Centralised
 Wide Span of Management
• Flat Structure
• Difficult to
Communicate due
to large no of
employees
• Small number of
levels
• Faster Decision
making
• Lesser cost
involved
• Decentralised
 Line and Staff
Relationship
• Line and staff organization is a modification of
line organization and it is more complex than
line organization.
• According to this administrative organization,
specialized and supportive activities are
attached to the line of command by appointing
staff supervisors and staff specialists who are
attached to the line authority.
 Features of Organization
Line and Staff
• Line and Staff Organization is a compromise of line
organization. It is more complex than line concern.
• Division of work and specialization takes place in
line and staff organization.
• The whole organization is divided into different
functional areas to which staff specialists are
attached.
• Efficiency can be achieved through the features of
specialization.
• Power of command remains with the line executive
and staff serves only as counselors.
 Definitions
• Centralisation
The degree to which decision making is
concentrated in upper levels of the organisation.

• Decentralisation
The degree to which decision making is pushed to
the managers who are close to action.
 What should be our
organisation look like

Centralised or
Decentralised ?
Factors that influence the level of
Centralisation
or
Decentralisation
• More Centralisation is required when -

• Environment is stable
• Lower level managers are not capable or
experienced
• Decisions are relatively minor in nature.
• When the upper management don't trust lower
level managers.
• When the company is at risk or going through
losses
• More Dentralisation is required when

• Environment is uncertain and highly dynamic.

• Lower level managers are capable and
experienced
• The organisation has a democratic style of
leadership.
• Company is geographically diversified in nature.
• Decentralised structure empower employees
Delegation:Centralization and
Decentralization of
Authority
• Delegation of Authority means division of
authority and powers downwards to the
subordinate.
• Delegation is about entrusting someone else to
do parts of your job.
• Delegation of authority can be defined as
subdivision and sub-allocation of powers to the
subordinates in order to achieve effective
results.
Difference Between

Authority
&
Responsibility
 Recruitment & Selection
• Recruitment is a process of finding & attracting the
potential resources for filling up the vacant
positions in an organization.
• Any organization wants it future to be in good and
safe hands. Hence, hiring the right resource is a
very important task for any organization.
Activity
1. Sending communication message to HR with
request for initiating the recruitment process.
2. Manager-HR directs the hiring team to start the
recruitment process.
• Logging into the employment website and
contacting different recruiters.
• Sourcing, identifying, and collecting the resumes
of the candidates
• Receiving relevant resumes
• Shortlisting the resumes
• Sending the shortlisted resumes to the
department manager
• Schedule interview dates
• Calling the candidates for interview
• Interviewers complete the feedback form and the
feedback is shared with the HR
• This process repeats for many candidates till the
best candidates are finalized.
• The HR team negotiates the package and
compensation
• Final confirmation and agreements
• Send offer letter
• Offer accepted
The Selection is the process of choosing the most
suitable candidate for the vacant position in the
organization. In other words, selection means
weeding out unsuitable applicants and selecting
those individuals with prerequisite qualifications and
capabilities to fill the jobs in the organization.
 Placement
• Placement is a process of assigning a specific
job to each of the selected candidates. It
involves assigning a specific rank and
responsibility to an individual. It implies matching
the requirements of a job with the qualifications
of the candidate.
• Significance of placement
• It improves employee morale.
• It helps in reducing employee turnover.
• It helps in reducing absenteeism.
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• It avoids misfit between the candidate and the
job.
• It helps the candidate to work as per the
predetermined objectives of the organization.

Induction
• Once an employee is selected and placed on an
appropriate job, the process of familiarizing him
with the job and the organization is known as
induction.
 Objectives of induction

• To help the new comer to overcome his shyness

and overcome his shyness nervousness in
meeting new people in a new environment.
• To give new comer necessary information such
as location of a café, rest period etc.
• To build new employee confidence in the
organization.
• It helps in reducing labor turnover and
absenteeism.
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• It reduces confusion and develops healthy
relations in the organization.
• To ensure that the new comer do not form false
impression and negative attitude towards the
organization.
• To develop among the new comer a sense of
belonging and loyalty to the organization.
 Advantages of formal
induction
• Two-way communication
• Sense of belonging.
• Induction helps to develop good relation.
• Proper induction reduces employee grievances,
absenteeism and labor turnover.
• Induction is helpful in supplying information
concerning the organization, the job and
employee welfare facilities.
 Training and development
• Training and development initiatives are
educational activities within an organization that
are designed to improve the job performance of
an individual or group. These programs typically
involve advancing a worker’s knowledge and
skill sets and instilling greater motivation to
enhance job performance.
 Directing & Controlling
Directing is the heart of management function. All other
functions of management such as planning, organizing,
and staffing have no importance without
directing.Leadership, motivation, supervision,
communication are various aspects of directing.
Principles of Directing
• Harmony of objectives
• Maximizing Individual contribution
• Unity of command
• Unity of Directions
• Managerial communication
• Leadership. •Follow through
 Controlling
• The meaning of controlling function can be
defined as ensuring that activities in an
organization are performed as per the plans.
• Controlling also ensures that an organization's
resources are being used effectively & efficiently
for the achievement of predetermined goals.
 Coordination: The Essence of
Management
• Coordination brings unity of action and integrates
different activities of organisation. Coordination is
considered as the essence of management
because of following reasons:

• Coordination is needed to perform all the

function.
• Coordination is required at all the levels
• Coordination is the most important function of
an organization
 Types of Control

• Feed-Forward Controls
• Concurrent (Prevention) Control
• Feedback Controls
 Controlling Process in
Business Management
• Setting Performance Standards
• Measurement of Actual Performance
• Comparing Actual Performance with
Standards
• Analysing Deviations
• Taking Corrective Action
 Control Techniques:
Traditional and Modern
Traditional Techniques
• Personal Observation
• Statistical Reports.
• Breakeven Analvsis.
• Budgetary Control.
Modern Techniques
• Return on Investment.
• Ratio Analysis.
• Responsibility Accounting.
• PERT and CPM.
Management by
 Management by exception
• Management by exception is a workplace practice
that finance and business industries often use This
practice involve their managers on specific issues.
• This practice allows professionals to work
independently and creates time for managers to
handle more pressing issues than regular daily
operations.
• For example, an employee who monitors the
company's budget may only need to contaet their
manager if the account falls under a certain amount.
 How does management by
exception work?
• Set a standard for normal operations
• Establishing a hierarchy
• Assessing employee performance
• Investigating and solving exceptions
The principles of management by exception
• Delegation
• Organization
• Professional improvement
• Productivity
• Common goal
 Pros of management by
exception
• Efficient practices
• Sets clear priorities
• Motivates employees

Cons of management by exception

• Less preventive
• Requires close monitoring
Thank You..😊