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Importance of the organizational structure The following function of the organizing and that of organization are important in several ways, which are outlined as follows: 1. &
Features of the good organization structure 1. Simplicity: an organization structure should be basically simple. The concept of the simplicity implies that various
Organizational structure Organizational structure refers to the hierarchical arrangement of various positions in an enterprise. It also defines the relationship between various positions, departments
Wide or narrow span Often there is a controversy whether an organization should adopt the policy of narrow span or wide span of management. While most of the classical writers have suggested a narrow
Factors affecting span of management The basic idea behind limiting the span is to enable a manager to manage his subordinates effectively. As such, the important determinant for specifying the span
Fundamentals of Departmentation While establishing a departmentalized organization, the following guidelines should b kept in mind. Specialization: the total effort required to be undertaken by the
Departmentation by process or activity Departmentation by the process may be suitable for companies where production operationsflow in a sequence from one stage to another. For instance, in an oil co
Departmental by the customer or service If a company has distinctly different customer groups, it may create department on the basis of the customer differences. For example, railways have separate r
Departmental by products Under this method, for the each product manufactured by the enterprise, there is a separate department to look after its production, sales and also finance and the personnel
Departmentation by functions It is a proper method of the function of the grouping of an enterprise. Under it, activities are grouped on the basis of the functions intended to be performed by them. I
Departmentation by territory It is highly suitable for the enterprise whose activities are widely dispersed. For example, in the case of assembly plants or wholesaling, where identical activities are
Need or importance of Departmentation The basic need for Departmentation arises because of specialization of work and the limitation on the number of subordinates that can be directly controlled by a
Advantages of the specialization Probably the most important single principal in an analysis of the classical approach to organizational design is specialization to work. This principal affects every
Departmentation Departmentation is a part of the organizational process. It means dividing and grouping the activities and employees of an enterprise into various departments, division of the total w
Principles of Organizing In order to develop a sound and efficient organization structure there is need to follow certain principles. 1 unity of objective: it means that every part of the organizati
Importance of organization Organization is the back bone of the management is any enterprise. It establishes the relationship on the one hand between the manager and workers and on the other work and
Process of Organizing The process of organization may be described as the managerial function of organizing. It consists in making a rational division of work into groups of activities and tying toge
Types of Organization There are various types of organizations for the study of which an organization typology is constructed. Typology is a set of types of something being studied in this case organ
Contingency Approach Another approach of modern organization theory is contingency approach. As contingency approach is an extension of systems approach. Contingency approach of organizational design
System approach of organizational design There are various implications of systems approach in the management including organizational design. Systems approach of modern organizations theory has sugg
Subsystems in Organization Every system has subsystems which are interrelated to constitute system as entity. Since the organization is a system it contains various subsystems. Each subsystem is iden
Systems Approach Modern organization theory is a sophisticated and scientific way of explanting a complex organization. This theory is comparatively systematic and highly constructive. It is not an i
Characteristics or Nature of Organization The various characteristics of organization are: 1 Division of labour: division of labour leads to specialization which increases the efficiency of individu
ORGANIZING Meaning & definition: organization refers to the process of bringing together physical financial and human resources and establishing productive relations among them for the achievemen
Steps or process of decision making Step 1: definition of the problem: identifying the problem of choice and then describing it is the starting point of making decisions. As a part of description, al