Organization and Management: Nature, Purpose, Types, Departments, and Committees, Lecture notes of Project Management

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Organizing and Staffing

Suhaib Mohammed Asst.Prof, Dept. of EEE SECAB.I.E.T, Vijayapura

Organizing and Staffing

**1. Nature and purpose of organization

2. Principles of organization
3. Types of organization
4. Departmentation
5. Committees
6. Centralization vs Decentralization
7. Span of control
8. Management by objectives (Meaning only)
9. Management by exception (Meaning only)
10. Nature and importance of staffing
11. Process of Selection & Recruitment (in brief).**

Organizing

Staffing

• Purpose of organization a) Allocation of duties b) Delegation and Demarcation of authority. c) Specialization and division of labour d) Adequate communication e) Coordination f) To set hierarchy of authorities.

2. Principles of organization a. Objectives b. Specialization c. Span of control d. Exception e. Scalar principle f. Unity of command g. Delegation h. Responsibility

i. Authority j. Efficiency k. Simplicity l. Flexibility m. Balance n. Unity of direction o. Personal ability

a. Line organization

• It is a vertical structure where authority flows from top to the lower levels.
• Here one person delegates authority to his subordinate and who in turn delegates to his subordinate and so on, as shown in figure.
• It is also known as chain of commands or scalar principle.
• This form of organization is followed in military, paper industry, sugar industry, textile industry etc.

Advantages

• Simple
• Flexible
• Clear division of authority
• Clear channel of communication
• Quick decisions and speedy actions
• Strong in discipline
• Economical

Disadvantages

• Lack of specialization
• Overloads executives
• Requires high type of supervisory personal
• Encourages dictatorial way of working
• Wastage of material and man hours.
• Favoritism

b. Functional Organization

• The concept of functional organization is suggested by F.W.Taylor, who recommended the appointment of specialist at important positions.
• It is a structure, where functional department are created to deal with the problems of business as shown in figure.
• Here the subordinate receives from several superiors.
• This form of organization is employed in educational institutes, government organizations etc

• While dividing work in such organizations, care must me taken such that,

1. No activity should remain not allotted or every activity should be allotted to one department.
2. There should not be duplication of activity amongst departments.
3. The activities allotted to one department should relate with each other.

Advantages

• Greater division of work and labour through specialization.
• Improved quality
• Improved efficiency
• Mass production
• Simplifies training
• Increased economy

Disadvantages

• Difficulty in coordination between functional departments.
• Lack of coordination
• Confusion among workers
• Difficulty in fixing responsibility.
• Costly specialized labour

Advantages

• Expert advice
• Relief to line executives
• Improved quality
• Facilitates training
• Facilitates effective decisions
• It has advantages of both line and functional organization.

Disadvantages

• Increases product cost.
• Confusion if function are not clear.
• Conflicts between staff and line executives.
• Costly staff supervisors
• Loss of important of line executive.

Advantages

• Facilitates valuable decisions.
• Encourage participation.
• Facilitates coordination.
• Effective communication.
• Faster implementation.
• Wide acceptation of decisions.
• Utilization of vast experience.

Disadvantages

• Delay in decisions.
• Expensive.
• Secrecy cannot be maintained
• Compromised decisions
• Leads to heated argument
• Decisions influenced by dominated people