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You are here:Open notes-->VTU-->MANAGEMENT-AND-ENTREPRENEURSHIP-Unit-3



Organization involves identification and grouping of activities to be performed and dividing them among individuals and creating authority and responsibility relationship among them for the accomplishment of organizational objectives. An organization structure shows the authority and responsibility relationship between the various positions in the organization. In order to facilitate the achievement of objectives, management thinkers have laid down certain principles of organization which provide guidelines for planning organization structure. The horizontal differentiation of tasks into discrete segments is known as Departmentation. There are various methods of Departmentation namely Departmentation by functions, Departmentation by products, Departmentation by process, Departmentation by customers and Departmentation by territory. Deferent types of organization are Line organization, Functional organization and Line, Staff organization and Committee organization. The span of control indicates the number of subordinates who can be successfully directed by a superior. The ability of manager, ability of employee, type of work, geographical location and level of management affects the span of control. The authority is the institutionalized right of a superior to command and compel the subordinates to perform a certain act. The power is defined as the capacity or the ability of an individual to influence the behaviour others. The downward pushing of authority to subordinates to make decisions is known as delegation of authority. Centralization refers to systematic reservation of authority at few key managerial positions. Decentralization means the disposal of decision making power to the lower level of organization. MBO is defined as dynamic system which integrates the companyĺs need to achieve its goals for profit and growth with which managers need to contribute and develop him self. Filling and keeping various positions of organization with right people is known as staffing. The staffing function performs many sub functions namely manpower planning, recruitment, selection, training and development, performance appraisal and compensation. Recruitment is the process of identifying the sources of prospective candidates and to stimulate them to apply for the jobs. The sources of recruitment are divided into internal and external sources. The basic purpose of selection process is choosing right type of candidates to man various positions in the organization.