.Mr.

.Mr. Charak Ray.

Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

1
EXIT
PAGE
NEXT

HOME
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)
 NEXT
Organizing
PREVIOUS

• Identifying And Grouping Various Activities

HOME
PAGE • Identifying And Grouping Various Activities
EXIT
PGDHI(III)

• Into Jobs And Then Sub Grouping These Jobs

ASSOCIATE((III), PGDHI(III)

• Into Jobs And Then Sub Grouping These Jobs

(FINANCE)
PROFESSOR (FINANCE)

Into Sections And Departments Into Single

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

Into Sections And Departments Into Single

MBA(BHU), ASSOCIATE((III),

Unit
Ray.
Charak Ray.

Unit
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

• For Achieving Specified Objectives.

• For Achieving Specified Objectives.

2
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

3
EXIT
PAGE
NEXT

HOME
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

Reporting
Establishing

Relationships
Process

Duties
Organizing
Of Work
And Division
Identification

Assignment Of
ation
Departmentaliz
 NEXT
Identification and division of work
PREVIOUS

HOME
PAGE
• One individual cannot do the entire
• One individual cannot do the entire
work.
work.
EXIT
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

• Therefore Work is divided into small

• Therefore Work is divided into small
parts called job
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

parts called job

purchase
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.

Sales
• And burden of work can be shared by
ASST. PROFESSOR
.Mr. Charak

• And burden of work can be shared by

many workers
BCM(BHSE),

many workers
.Mr.

MBA(BHU),
ASST.

Production
• Repetitiveness brings specialization
• Repetitiveness brings specialization

4
 NEXT
Departmentalization
• Similar nature activities are
• Similar nature activities are
PREVIOUS

HOME
PAGE

EXIT
• grouped together on the basis of their
• grouped together on the basis of their
interdependence called departmentalization
interdependence called departmentalization
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

• Can be created like Marketing

MBA(BHU), ASSOCIATE((III),

territories (north, south,

Ray.
Charak Ray.

• Can be created like territories

department (north, south,
west etc.)
ASST. PROFESSOR
.Mr. Charak

west etc.)
• Or products (appliances, clothes, cosmetics
BCM(BHSE),

• Or products (appliances, clothes, cosmetics

.Mr.

etc).
etc).
MBA(BHU),
ASST.

Sales Personal
Advestiement promotion selling

5
 NEXT
Assignment of duties
PREVIOUS
• Defining the work of different job positions
• Defining the work of different job positions
HOME
(defining responsibility and authority)
PAGE
(defining responsibility and authority)
EXIT
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),

• Jobs specification are prepared

Ray.
Charak Ray.

• Jobs specification are prepared

ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

• showing type of competence required.

MBA(BHU),
ASST.

• showing type of competence required.

(Age, experience, Education, Skills)
(Age, experience, Education, Skills)

6
 NEXT
Establishing Reporting Relationships
PREVIOUS

Establishment Reporting Relationships means

HOME

Establishment Reporting Relationships means

PAGE

EXIT

• Who will work under whom

• Who will work under whom
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

• Who will get order from whom

• Who will get order from whom
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

• Creation of superior-subordinate relationship

• Creation of superior-subordinate relationship
BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

7
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

8
EXIT
PAGE
NEXT

HOME
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

S Specialization

G Growth of personnel

A Adaptation to change
E Expansion and growth
Organizing

E Effective administration
Advantages of

O Optimum utilization of resources

 NEXT Specialization
PREVIOUS

•Every person performs a particular task.

HOME

•Every person performs a particular task.

PAGE

EXIT
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

•Repetitive performances of a particular task give

•Repetitive performances of a particular task give
MBA(BHU), ASSOCIATE((III),

experience
Ray.
Charak Ray.

experience
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

•ininthat
• that area and leads to specialization
MBA(BHU),
ASST.

area and leads to specialization

9
 Expansion and growth
NEXT

PREVIOUS

HOME
PAGE
Well defined structure helps in the growth
Well defined structure helps in the growth
and diversification of an enterprise by.
and diversification of an enterprise by.
EXIT
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

• Adding new departments,

• Adding new departments,
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

• Employees,
• Employees,
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

• And products
BCM(BHSE),

• And products
.Mr.

MBA(BHU),
ASST.

10
 NEXT

PREVIOUS
Effective administration
HOME

Provides a clear picture

PAGE

EXIT
Provides a clear picture
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

of jobs and related duties.

of jobs and related duties.
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)

Reduces
BCM(BHSE), SENIOR(ST.JA)

Reduces
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.

overlapping and confusion

overlapping and confusion
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),

And
And
.Mr.

MBA(BHU),
ASST.

brings effectiveness in administration

brings effectiveness in administration
11
 NEXT

PREVIOUS
Growth of personnel
Delegation
HOME
PAGE
Delegation
reduces the work load of managers by
reduces the work load of managers by
EXIT

assigning routine
assigning routine
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

jobs to their subordinates.

MBA(BHU), ASSOCIATE((III),

jobs to their subordinates.

Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),

Managers can
Managers can
.Mr.

MBA(BHU),
ASST.

concentrate on important task

concentrate on important task
12
 NEXT

PREVIOUS Optimum utilization of resources

HOME
PAGE

Well defined job helps

EXIT Well defined job helps
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

each employee to know

each employee to know
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.

their role and duties

ASST. PROFESSOR
.Mr. Charak

their role and duties

BCM(BHSE),
.Mr.

It reduces duplication of work and prevents

MBA(BHU),
ASST.

It reduces duplication of work and prevents

confusion
confusion

13
 NEXT
Adaptation to change
PREVIOUS

When any employee

HOME

When any employee

PAGE

EXIT
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

retires or quit
retires or quit
It is easy for a new employee
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

It is easy for a new employee

MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

to adjust quickly because job profile are

to adjust quickly because job profile are
MBA(BHU),

clearly defined
ASST.

clearly defined

14
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

15
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

structure
Functional
Formal
organization

Divisional
structure
Types of
organization

Informal
organziation
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

16
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

Formal Organization
 NEXT
Formal Organization
PREVIOUS
Deliberately Planned
HOME
Deliberately Planned
PAGE

EXIT
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

By The Top Management To Achieve The

By The Top Management To Achieve The
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

Specified Objectives
Specified Objectives
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),

Though The Network Of Authority

.Mr.

Though The Network Of Authority

Responsibility Relationship
MBA(BHU),
ASST.

Responsibility Relationship

17
 NEXT

PREVIOUS Features of formal organization

HOME
PAGE

C Created deliberately by management.

C
EXIT
Created deliberately by management.

R Results into the creation of a scalar chain

PGDHI(III)
ASSOCIATE((III), PGDHI(III)

Results into the creation of a scalar chain

(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

E Extra emphasis to work than social needs

MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.

Extra emphasis to work than social needs

ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),

Assigned a specific job to individual and fixed

AAssigned a specific job to individual and fixed
.Mr.

authority.
authority.
MBA(BHU),
ASST.

M Motives to organizational goals.

M
Motives to organizational goals.
18
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

19
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

E
R

S
A
Accomplishment of goals
Advantages

Responsibility can be fixed

Establish unity of command

Stability to the organisation

A Avoiding duplication of effort
 NEXT
Advantages
PREVIOUS A Avoiding Duplication Of Effort
A

Each member know their duties which are clearly

Each member know their duties which are clearly
HOME
PAGE

specified
EXIT specified
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

R Responsibility Can Be Fixed

R
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.

Due to well establish authority responsibility

Due to well establish authority responsibility
ASST. PROFESSOR

relationship
.Mr. Charak

relationship
BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

20
 NEXT

PREVIOUS
EE Establish Unity Of Command
HOME
Maintained through a chain of command
Maintained through a chain of command
PAGE

EXIT
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

.
(FINANCE)
PROFESSOR (FINANCE)

.
SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),

A Accomplishment Of Goals
Ray.
Charak Ray.

A
By providing a structure where each employee
ASST. PROFESSOR
.Mr. Charak

By providing a structure where each employee

knows their role
knows their role
BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

21
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

22
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)
SS Stability To The Organisation

By well defined job and ensure growth and survival

By well defined job and ensure growth and survival
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

23
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

P
I
R
T

Rigid structure

Procedural delays
Disadvantages

Talent and creativity reduces

Inter-personal relationship no scope

 NEXT
Disadvantages
PREVIOUS
TT Talent and creativity

Of worker is reduced due to rigid policies

HOME
PAGE

Of worker is reduced due to rigid policies

EXIT
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

R Rigid structure
MBA(BHU), ASSOCIATE((III),

R
Ray.
Charak Ray.

Do not allowed deviation due to fixed role assign

Do not allowed deviation due to fixed role assign
ASST. PROFESSOR
.Mr. Charak

to employees
to employees
BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

24
 NEXT

PREVIOUS
II Inter-personal relationship
HOME
Leaves Gaps between persons
PAGE
Leaves Gaps between persons
EXIT

issuing orders and subordinates

issuing orders and subordinates
PGDHI(III)

following orders
ASSOCIATE((III), PGDHI(III)

following orders
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.

Procedural delays
ASST. PROFESSOR

P
.Mr. Charak

P
Increase the time taken for urgent decision making
BCM(BHSE),

Increase the time taken for urgent decision making

.Mr.

MBA(BHU),
ASST.

.
25 .
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

26
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

Informal organization
 NEXT Informal organization
Complex network of
Complex network of
PREVIOUS

HOME
PAGE

EXIT
social relationships which emerges
social relationships which emerges
unexpectedly to
unexpectedly to
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

fulfill social and human needs

fulfill social and human needs
MBA(BHU),
ASST.

27
 NEXT

PREVIOUS
Features of Informal organization
HOME
PAGE

C Created automatically without any purposeful

Created automatically without any purposeful
EXIT
efforts by the management
efforts by the management
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

Originates from within formal organization as a

OOriginates from within formal organization as a
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)

result of personal interactions among employees

BCM(BHSE), SENIOR(ST.JA)

result of personal interactions among employees

MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

Does not follow any fixed path of authority

DDoes
D not follow any fixed path of authority
BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

Employees behavior is based on convenience

EEmployees behavior is based on convenience
with no definite structure
with no definite structure
28
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

29
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

T
S
A
Fast

Social needs
Add flexibility

Timely feedback
Advantages
 NEXT
Advantages
PREVIOUS FF Fast
Information travels
Information travels
HOME
PAGE

very fast as there

EXIT

very fast as there

is no procedural and language barrier
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

is no procedural and language barrier

(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.

A Add flexibility
A
ASST. PROFESSOR
.Mr. Charak

Serves the purpose not

Serves the purpose not
BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

fulfill by formal organization make it more

fulfill by formal organization make it more
effective
effective
30
 NEXT

PREVIOUS SS Social Needs

Of the members are
Of the members are
HOME
PAGE

EXIT
fulfill and gives them a
fulfill and gives them a
sense of belongingness in the organisation
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

sense of belongingness in the organisation

(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

TT Timely feedback
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.

Prescribed lines of communication

Prescribed lines of communication
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

are not followed and

are not followed and
MBA(BHU),
ASST.

quick feedback gets from informal channels

quick feedback gets from informal channels
31
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

32
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

S
O

Spread rumors
Promotes groups
Opposition by members
Disadvantages
 NEXT

O Opposition
PREVIOUS
O

The management may

HOME

The management may

PAGE

EXIT
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

not be successful in implementing

(FINANCE)
PROFESSOR (FINANCE)

not be successful in implementing

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

changes
changes
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

if the informal organisation opposes them.

MBA(BHU),
ASST.

if the informal organisation opposes them.

33
 NEXT

P Promotes Groups
PREVIOUS
P

Compels members to agree

HOME

Compels members to agree

PAGE

EXIT

with the group expectations.

with the group expectations.
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.

This can be harmful if the rule set by

ASST. PROFESSOR
.Mr. Charak

This can be harmful if the rule set by

BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

the group are against organizational interests

the group are against organizational interests
34
 NEXT

PREVIOUS SS Spread Rumors

Due to fast flow
Due to fast flow
HOME
PAGE

EXIT

of information it
of information it
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

can spreads rumors which

can spreads rumors which
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

may work against the goodwill of the formal

may work against the goodwill of the formal
organisation.
organisation.
35
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

36
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

Formal
vs
Informal
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

37
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA) Formal

management
management
and created by
and created by
Deliberately planned
Deliberately planned
vs

Meaning

Develops

interaction
naturally as a
result of social
Informal
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

38
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

goals
Achieve
goals
Achieve
organization
Formal

organization
vs

Purpose

needs
and human
Fulfill social
Informal
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

39
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

chart
Formal

chart
Shown in the
organizational
Shown in the
organizational
vs

Predictable

chart
organizational
No place in the
Informal
 NEXT

PREVIOUS Formal vs Informal

HOME

Authority
PAGE

EXIT

Rule, duties and Generally oral

PGDHI(III)

Rule, duties and

ASSOCIATE((III), PGDHI(III)

responsibilities and traditional

responsibilities
are clearly rules.
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

are clearly
defined and
defined and
MBA(BHU), ASSOCIATE((III),

written
Ray.
Charak Ray.

written
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

40
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

41
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

Rigid,
Formal

stable
Rigid,

stable
predictable and
predictable and
vs

Nature

Flexible,

and unstable
unpredictable
Informal
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

42
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA) Formal

of informal
Independent
of informal
Independent
vs

Dependent

.
formal
Dependent on
Informal
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

43
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

penalty
penalty
Formal

Violation of
rules imposes
Violation of
rules imposes
vs

Violation

No penalty
may if violation
Informal
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

44
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

In-force by
management
Formal

In-force by
management
vs

Behavior

members
among the
Develop by
mutual consent
Informal
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

45
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA) Formal

position
superior
leaders by

position
superior
Managers are
leaders by
virtue of their
Managers are

virtue of their
vs

Leadership

members
Leaders are
chosen among the
Informal
 NEXT Basis Formal organization Informal organization
PREVIOUS

HOME Meaning Deliberately planned Emerges naturally as a

PAGE and created by result of social
management interaction among people
EXIT

Achieve organization Fulfill social and human

Purpose needs
goals
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

Predictable Shown in the No place in the

organizational chart organizational chart
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

Rule, duties and generally oral and

Authority
BCM(BHSE),

responsibilities are clearly traditional rules.

.Mr.

defined and written

MBA(BHU),
ASST.

Nature Rigid, predictable and Flexible, unpredictable and

stable unstable

46
 NEXT Basis Formal organization Informal organization
PREVIOUS

Managers are leaders Leaders are chosen

HOME
Leadership
PAGE by virtue of their among the members
superior position
EXIT

Behavior In-force by Develop by mutual consent

management among the members
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

Violation of rules No penalty only

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

Violation imposes penalty disagreement

MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

Dependent Independent of informal Dependent on formal

BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

47
 NEXT Question to be discuss in the class
1. The employees of M ltd., A software company, have formed a
PREVIOUS
1. The employees of M ltd., A software company, have formed a
dramatic group for their recreation. Name the type of
dramatic group for their recreation. Name the type of
HOME
organization so formed and state its three features.
PAGE
organization so formed and state its three features.
EXIT
2. Informal organisation is considered better than formal
2. Informal organisation is considered better than formal
organisation.” Do you agree with this statement? Give reasons.
organisation.” Do you agree with this statement? Give reasons.
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

3. Formal organisation is impersonal while informal organisation is

3. Formal organisation is impersonal while informal organisation is
personal.” Clarify this statement.
personal.” Clarify this statement.
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

4. Informal organization is dependent on formal organization

4. Informal organization is dependent on formal organization
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

48
 NEXT
Organisation Structure

 Providesthe
theframework
frameworkwhichwhichenables
enablesthe
the
PREVIOUS

 Provides
enterprisetotocoordinate
coordinatethe the
HOME

enterprise
PAGE

EXIT
responsibilitiesofofindividuals
responsibilities individualsand
and
departments
departments
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

Types
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

Functional Divisional
Structure Structure
49
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

50
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

Job design

Departmentation

Span of management

Delegation of authority
Factor affecting organizational structure
 NEXT
Job design
•Total work is divided
•Total work is divided
PREVIOUS

HOME
PAGE

EXIT
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

• into various job like sales,

• into various job like sales,
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),

•finance, production etc and result expected

.Mr.

•finance, production etc and result expected

from it
MBA(BHU),

from it
ASST.

51
 NEXT

Departmentation
PREVIOUS

•Jobs are group

HOME
PAGE
•Jobs are group
EXIT

•together to form departments

•together to form departments
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

• ononthe
the basis of similar task like per unit cost,
•
basis of similar task like per unit cost,
MBA(BHU),
ASST.

quality control under purchase department

quality control under purchase department

52
 NEXT
Span of management
•No of employees that can be effectively
•No of employees that can be effectively
PREVIOUS

managed by superior
managed by superior
HOME
PAGE

EXIT

•Narrow span:- when the size of the organization

•Narrow span:- when the size of the organization
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

is large
is large
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),

•Wide span: - when the size of the organization

.Mr.

•Wide span: - when the size of the organization

is small
MBA(BHU),
ASST.

is small

53
 Delegation of authority
NEXT

•Sharingofofauthority
authority
PREVIOUS

HOME
PAGE
•Sharing
EXIT

•betweenthe
•between thesuperior
superiorand
andsubordinate
subordinateand
and
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

MBA(BHU),

•clearingspecifying
specifyingwho
whoisisresponsible
responsiblefor
for
ASST.

•clearing
whom
whom
54
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

55
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

North
East
Head
Marketing

West
Finance

South
Director
Managing

Production
Functional structure

Purchase
 NEXT Functional structure
•Formed by organizing the entire work to be
PREVIOUS
•Formed by organizing the entire work to be
done into functional departments.
HOME
PAGE done into functional departments.
EXIT
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

•All identical works are placed together under

(FINANCE)
PROFESSOR (FINANCE)

•All identical works are placed together under

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

one functional head.

one functional head.
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),

•Example production, marketing, finance and

.Mr.

•Example production, marketing, finance and

purchase
MBA(BHU),

purchase
ASST.

56
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

57
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

only
Responsible

Marketing Head
For Marketing

Finance
heads
heads

Managing Director
Departments

Production
Departments

Purchase
 NEXT
Suitability
When size of organisation is large, operations
PREVIOUS

When size of organisation is large, operations

HOME
require a high degree of specialization. Example
require a high degree of specialization. Example
PAGE

EXIT
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

58
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

59
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

C
S

Cost effective
Advantages

Improves Employee Tranning

Specialization (Occupational)

Promotes control and coordination

E Equal importance to all departments

 NEXT

S Occupational specialization
PREVIOUS
S
HOME
Employees perform similar tasks
Employees perform similar tasks
PAGE

EXIT

within a department and are

within a department and are
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.

able to get knowledge in specific field. Sales ,

ASST. PROFESSOR
.Mr. Charak

able to get knowledge in specific field. Sales ,

production etc
BCM(BHSE),

production etc
.Mr.

MBA(BHU),
ASST.

60
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

61
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)
P

in the tasks
in the tasks
because of similarity
Within a department

because of similarity
Within a department
P Promote control and coordination
 NEXT

PREVIOUS
II Improves Employee Training
Training of employees
HOME
PAGE
Training of employees
EXIT

is easier as the focus is only

is easier as the focus is only
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

on a limited range of skills.

on a limited range of skills.
BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

62
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

63
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA) C

Leads to
Leads to
C Cost effective

minimal duplication of effort

minimal duplication of effort

which results in economies of scale

which results in economies of scale
 NEXT

E Equal importance to all departments

E
Provides
PREVIOUS

HOME
PAGE
Provides
EXIT

equal attention and

equal attention and
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.

importance to different functions (department)

Charak Ray.

importance to different functions (department)

.
ASST. PROFESSOR
.Mr. Charak

.
BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

64
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

65
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

P
I
L
F

Limited Growth
Functional Empires
Disadvantages

Problem Of Repsonsibility
Inter-departmental Conflicts
 NEXT

PREVIOUS
F Functional Empires
Less importance on
Less importance on
HOME
PAGE

EXIT

overall enterprise
overall enterprise
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.

objectives than the objectives follow by a

objectives than the objectives follow by a
ASST. PROFESSOR
.Mr. Charak

functional head
functional head
BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

66
 NEXT

PREVIOUS
L Limited Growth

Functional heads do
Functional heads do
HOME
PAGE

EXIT
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

not get training for top management positions

not get training for top management positions
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

because
because
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

they are unable to gather experience in diverse

they are unable to gather experience in diverse
BCM(BHSE),

areas.
areas.
.Mr.

MBA(BHU),
ASST.

67
 NEXT

P Inter-departmental Conflicts
PREVIOUS

Can arise when the

HOME
PAGE
Can arise when the
EXIT

interests of
interests of
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.

two or more departments are not same or

two or more departments are not same or
ASST. PROFESSOR
.Mr. Charak

absence of clear separation

absence of clear separation
BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

of responsibility.
of responsibility.

68
 NEXT

II Problem Of Responsibility
Functional head are
PREVIOUS

HOME
PAGE
Functional head are
EXIT

responsible for a particulars function and if

responsible for a particulars function and if
some things go wrong
some things go wrong
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.

it become very difficult

Charak Ray.

it become very difficult

ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

to fix responsibility..
to fix responsibility..
69
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

70
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

Hotels
Garments
Managing Director
Divisional Structure

Food Product
 NEXT
Divisional Structure
PREVIOUS
•Organisation structure comprises of separate
•Organisation structure comprises of separate
HOME
business units or divisions.
PAGE
business units or divisions.
EXIT
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

•Each unit has a divisional manager responsible

•Each unit has a divisional manager responsible
for performance and who has authority over
MBA(BHU), ASSOCIATE((III),

for performance and who has authority over

Ray.
Charak Ray.

the unit.
the unit.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

71
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

72
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

Hotels
Hotel division
Responsible For

Garments
Managing Director
Heads
Heads
Divisional
Divisional

Food Product
 NEXT Suitability

Business enterprises where a large variety of

PREVIOUS

HOME Business enterprises where a large variety of

products are manufactured using different
PAGE

EXIT
products are manufactured using different
productive resources. Example
productive resources. Example
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

73
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

74
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

I
R

E
S
Responsibility fixing

Expansion and growth

Advantages

Specialization (Product)
Initiative and flexibility promotes
 R Fixation Of Responsibility
NEXT

PREVIOUS
Divisional heads are
HOME
Divisional heads are
PAGE
accountable for profits,
accountable for profits,
EXIT
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

Revenues and costs

Revenues and costs
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

related to different departments can be

related to different departments can be
easily identified.
easily identified.
75
 NEXT

PREVIOUS I Promotes Flexibility And Initiative

HOME
Because each
PAGE
Because each
division functions as an
division functions as an
EXIT
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

independent unit which

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

independent unit which

MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),

leads to faster decision making.

.Mr.

leads to faster decision making.

MBA(BHU),
ASST.

76
 S Product Specialization
NEXT

Helps in the development

Helps in the development
PREVIOUS

HOME
PAGE

of different skills in a
EXIT of different skills in a

divisional head and

PGDHI(III)
ASSOCIATE((III), PGDHI(III)

divisional head and

(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

this prepares him for higher positions

this prepares him for higher positions
BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

77
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

78
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

New divisions
can be added
New divisions
can be added
E Expansion And Growth

without interrupting
without interrupting

the existing operations..

the existing operations..
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

79
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

D
A
C Conflict

Add In Costs
Disdvantages

Difficulty In Employee Training

 NEXT

C Conflict
PREVIOUS

May arise among

HOME
PAGE
May arise among
EXIT

different divisions
different divisions
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

regarding allocation of funds

regarding allocation of funds
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.

A Add In Costs
ASST. PROFESSOR
.Mr. Charak

Since there
BCM(BHSE),

Since there
.Mr.

may be a duplication of
may be a duplication of
MBA(BHU),
ASST.

activities across products.

activities across products.
80
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

81
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

.
Due to
Due to

diverse products
diverse products
D Difficulty Is Employee Training

training of employees is quite difficult.

training of employees is quite difficult.
 NEXT
Basis Functional structure Divisional structure
PREVIOUS
S
S Specialization Functional specialization. Product specialization
HOME
PAGE

S
S Company having
EXIT Company having single
Suitability product (Maruti) multiple product
( I.T.C)
A
A Less, as each functional More, liberty and
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

Autonomy manager has to report to to perform multiple

the top management. functions
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

A
A Additional of Difficult Easy
MBA(BHU), ASSOCIATE((III),

new product
Ray.
Charak Ray.

F
F Based on product
ASST. PROFESSOR
.Mr. Charak

Formation Based on functions lines (textile,

(sales ,marketing etc)
BCM(BHSE),

cement , steel etc)

.Mr.

E
E Functions are not Duplication in various
Economy
MBA(BHU),

departments, hence
ASST.

duplicated hence
economical costly.

R
R Responsibility Difficult to fix on a Easy to fix
department responsibility
82
 NEXT Question to be discuss in the class
1. S Ltd. is manufacturing shirts and has production, marketing,
PREVIOUS
1. S Ltd. is manufacturing shirts and has production, marketing,
and personnel departments in the organisation. Name the type
and personnel departments in the organisation. Name the type
HOME
of organisational structure Sahil Ltd. is following. State any
PAGE
of organisational structure Sahil Ltd. is following. State any
three advantages of this organisation structure.
EXIT
three advantages of this organisation structure.
2. In an electrical goods manufacturing company, there are four
2. In an electrical goods manufacturing company, there are four
main activities- production, marketing, finance and personel.
main activities- production, marketing, finance and personel.
The general manager is planning to structure the organisation.
PGDHI(III)

The general manager is planning to structure the organisation.

ASSOCIATE((III), PGDHI(III)

Which type of organisation structure should he adopt and

Which type of organisation structure should he adopt and
why? Give two reasons.
(FINANCE)

why? Give two reasons.

PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

3. Rekha runs a shoe manufacturing factory. She wants to

3. Rekha runs a shoe manufacturing factory. She wants to
MBA(BHU), ASSOCIATE((III),

expand her business. For expansion she thinks to enter into

Ray.
Charak Ray.

expand her business. For expansion she thinks to enter into

the manufacturing of leather bags and western formal wear
the manufacturing of leather bags and western formal wear
ASST. PROFESSOR
.Mr. Charak

apart from the running business of shoes. By doing this her

apart from the running business of shoes. By doing this her
company will be able to provide many products to working
BCM(BHSE),

company will be able to provide many products to working

women under one roof.
.Mr.

women under one roof.

MBA(BHU),
ASST.

83
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

84
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

&
Delegation

decentralization
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

85
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA) So

what
Somuch
load.
load.

do.?????
do.?????
should
muchwork

what should I
work

I
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

86
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

you

your
Boss

your
yougive
Bosswhy

yourwork
givesome
workto
whydon’t

to
someof
don’t

yoursubordinate
of

subordinate
idea
Good
idea
Good
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

87
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

Mr
will

boss
Yess
boss
willgo

Yess
Mrkhan

delhi
delhi
meeting
gofor
meeting in
for
khanyou

in
you
Mr
you

finance
youwill
after
after
Mrbachan

financepart
willlook
bachan

part
look
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

88
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

It’s
Now

on
areas
areas
on other
It’sgreat.

other
Now IIcan
concentrate
great.
can
concentrate
 NEXT Delegation
PREVIOUS

HOME

•Superior-subordinaterelationship
relationshipwhere
where
PAGE

•Superior-subordinate
superiorgives
gives
EXIT

superior
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

•Someofofhis
•Some hisroutine
routinework
worktotohis
his
MBA(BHU), ASSOCIATE((III),

subordinate
Ray.
Charak Ray.

subordinate
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

•So that he/she can concentrate on

•So that he/she can concentrate on
MBA(BHU),
ASST.

importanttask
important taskwhich
whichrequires
requireshis/her
his/her
active role.
active role.
89
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

90
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

Authority
Elements
Elements of
of delegation
delegation

Responsibility
Accountability
 NEXT
Authority:
PREVIOUS

HOME
PAGE
• Right of an individual to command his
• Right of an individual to command his
subordinates and to take action within the
subordinates and to take action within the
EXIT

Scope Of His Position.

Scope Of His Position.
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

• Flows from Top To Bottom, i.e..

MBA(BHU), ASSOCIATE((III),

• Flows from Top To Bottom, i.e..

Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

• Higher level enjoys higher authority

91 • Higher level enjoys higher authority
 NEXT
Responsibility
PREVIOUS

HOME
PAGE
• Obligation of a subordinate to perform the
• Obligation of a subordinate to perform the
assigned duty.
assigned duty.
EXIT
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

• Flows Upwards i.e., a subordinate will always

• Flows Upwards i.e., a subordinate will always
be responsible to his superior
MBA(BHU), ASSOCIATE((III),

be responsible to his superior

Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

• Arises from a Superior–subordinate

MBA(BHU),
ASST.

• Arises from a Superior–subordinate

relationship
relationship

92
 Accountability (Answerability)
NEXT

PREVIOUS

HOME

• Being answerable for the final outcome.

PAGE

EXIT
• Being answerable for the final outcome.
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

• ItItcannot
cannot be delegated and flows upwards.
•
be delegated and flows upwards.
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

•Compulsory through regular feedback on the

•Compulsory through regular feedback on the
MBA(BHU),
ASST.

extent of work done.

extent of work done.

93
 NEXT
Difference
PREVIOUS
Basis Authority Responsibility Accountability

Obligation to Answerability
HOME
PAGE
Power to perform
Meaning perform an for the
EXIT
the task assigned task. assigned task.

Cannot be
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

Can be delegated Cannot be

Delegation entirely delegated at all
delegated
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

Arises from formal Arises from

MBA(BHU), ASSOCIATE((III),

Origin Arises from

Ray.

delegated
Charak Ray.

position responsibility.
authority
ASST. PROFESSOR
.Mr. Charak

Downward from Upward from Upward from

BCM(BHSE),

Flow superior to subordinate to subordinate to

.Mr.

subordinate. superior superior

MBA(BHU),
ASST.

Authority is delegated Responsibility Accountability

Nature is assumed is imposed

94
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

HOME

95
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

E
E
B

M
A
Coordination

Assist In Growth

Employee Development
Effective Management

Motivation Of Employees
Basis Of Management Hierarchy
Advantages of delegation
 Basis Of Management Hierarchy
NEXT

PREVIOUS

HOME Establishessuperior-subordinate
• •Establishes superior-subordinate
relationships,
PAGE

EXIT
relationships,
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

Whichare
• • Which arethe
thebasis
basisofofhierarchy
hierarchyofof
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

management
management
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

• Whichininlong
• Which longrun
runfacilitates
facilitates
decentralization
decentralization
96
 NEXT
Effective Management
Bydelegating
• •By delegating
PREVIOUS

HOME
PAGE

EXIT

Routinetask
• •Routine taskmanager
manager
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

Canconcentrate
• • Can concentrateononimportant
importanttask
taskand
and
MBA(BHU),
ASST.

excelininnew
excel newareas
areas

97
 NEXT
Coordination
PREVIOUS
Helptotodefine
Help define
HOME
PAGE

EXIT

thepowers,
the powers,duties
dutiesand
andanswerability
answerability
relatedtotothe
the
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

related
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.

variouspositions
positionsininan
anorganisation
organisation
ASST. PROFESSOR
.Mr. Charak

various
BCM(BHSE),

whichreduces
reducesduplication
duplicationofofeffort
effort
.Mr.

which
MBA(BHU),
ASST.

98
 NEXT
Assist in growth
Helps in the expansion of an organisation by
Helps in the expansion of an organisation by
PREVIOUS

HOME
PAGE

EXIT

Providing a ready workforce

Providing a ready workforce
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.

To take up leading positions in new ventures

ASST. PROFESSOR
.Mr. Charak

To take up leading positions in new ventures

BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

99
 NEXT Motivation Of Employees
Trust on the
Trust on the
PREVIOUS

HOME

part of superior and

PAGE

EXIT
part of superior and
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

commitment on the part of subordinate

commitment on the part of subordinate
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.

motivate the subordinate to perform better

ASST. PROFESSOR

motivate the subordinate to perform better

.Mr. Charak

and improves his confidence

and improves his confidence
BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

10
 NEXT
Employee Development
PREVIOUS Employeesgets
Employees gets
HOME
PAGE

EXIT

Moreopportunities
More opportunitiesuse
usetheir
theirskills,
skills,
gainexperience
experience
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

gain
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

Anddevelop
And developthem
themfor
forhigher
higherpositions
positions

10
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

10
HOME
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

Growth

Organization
Hierarchy

Superior
Subordinate
Relief

Decision
Advantages of delegation

Motivation

Development
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

10
HOME
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

Centralization
Types Of Decision Making

Decentralization
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

10
HOME
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA) Centralization

by higher management levels

• Decision-making authority is retained

• Generally exists in smaller organization

 Decentralization
NEXT

PREVIOUS

HOME • Process of giving authority at lowest

level of management to take decision
PAGE

within their powers

EXIT
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

• Managers enjoys more freedom of

(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

action
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

• Suitable for large organization and

MBA(BHU),
ASST.

complex organizaiton

10
 NEXT

PREVIOUS Difference
HOME Basis Centralization decentralization
PAGE

EXIT
Decision making power Distributing of power
Meaning at higher level at the lowest level
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

Suitable Smaller firms Large firm

MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),

Managers have less Managers enjoys more

.Mr.

Autonomy freedom of action

freedom of action
MBA(BHU),
ASST.

10
 NEXT

PREVIOUS Advantages Of Decentralization

HOME
PAGE

EXIT D
D Decision making becomes fast

R
PGDHI(III)

R Relief to top management

ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

A
A Assist in growth
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

E
E Enhance initiative among subordinates
BCM(BHSE),
.Mr.

M
M Managerial talent for the future develops
MBA(BHU),
ASST.

S
S Smooth control

10
 Decision making becomes fast
NEXT

Decisionsare
aretaken
takentotothe
thenearest
nearest
PREVIOUS

HOME Decisions
pointsofofaction
action
PAGE

EXIT
points
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

Andthere
And thereisisno
norequirement
requirementfor
for
(FINANCE)
PROFESSOR (FINANCE)

approval from many levels,

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

approval from many levels,

MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),

Informationdoesn’t
Information doesn’thave
havetotogo
gothrough
through
.Mr.

longchannels
long channels
MBA(BHU),
ASST.

10
 Relief To Top Management
NEXT

Reducesdirect
directsuper-vision
super-visionby
byaa
PREVIOUS

HOME Reduces
superior
PAGE

EXIT
superior
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

Topmanagement
Top managementcancanconcentrate
concentrate
(FINANCE)
PROFESSOR (FINANCE)

on major policy decisions rather

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

on major policy decisions rather

MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

thanday
than daytotoday
daydecisions.
decisions.
10
 NEXT
Enhance initiative among subordinates-
Promotesconfidence
confidenceamong
amongthe
the
PREVIOUS

HOME Promotes
subordinatesdue
duetoto
PAGE

EXIT
subordinates
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

freedomtototake
freedom taketheir
theirown
owndecisions
decisions
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

Bringsmore
Brings morecreativity
creativityand
andnew
newideas
ideasinin
MBA(BHU),
ASST.

theorganization.
the organization.

11
 Assist in growth
NEXT

Awardsgreater
greaterindependence
independencetoto
PREVIOUS

HOME Awards
divisionalorordepartmental
departmentalheads.
heads.
PAGE

EXIT
divisional
Manager develop
Manager developteam
teamspirit
spirit
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

and
and
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

senseofofcompetition
sense competitionbetween
betweenthe
the
departments
departments
11
 NEXT
Managerial talent for the future Develops
Givesemployee
employeechance
chancetoto
PREVIOUS

HOME
PAGE
Gives
EXIT

provetheir
prove theirabilities
abilitiestotoinintheir
theirown
own
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

working
working
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)
MBA(BHU), ASSOCIATE((III),
Ray.
Charak Ray.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

Helpstotodevelop
Helps developmulti
multiskills
skillstalents
talentsdue
due

11
totogreater
greaterautonomy
autonomy
 NEXT

Superior Control
PREVIOUS

HOME DecentralizationEvaluates
Decentralization EvaluatesPerformance
Performance
atateach
eachlevel
level
PAGE

EXIT
PGDHI(III)
ASSOCIATE((III), PGDHI(III)
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

andcan
canBe
BeAccountable
Accountablefor
fortheir
their
MBA(BHU), ASSOCIATE((III),

and
Ray.
Charak Ray.

results.
results.
ASST. PROFESSOR
.Mr. Charak

BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

Organizationgoals
Organization goalscan
canbe
beeffectively
effectively
achieved
achieved
11
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

11
HOME
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

tion
Control
Growth

Organiza
Superior
ate
Subordin
Relief
Decision
Talent
Initiative
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

11
HOME
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)
Decentralization
vs
Delegation
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

11
HOME
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

at lowest level
Increases role
of subordinates
at lowest level
Increases role
of subordinates
Decentralization
vs

Purpose

of manager
Reduce burden
Delegation
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

11
HOME
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

policy
Optional
policy
Optional
Decentralization
vs

Essential

Act
Compulsory
Delegation
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

11
HOME
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

freedom
freedom
enjoys more
Subordinates
enjoys more
Subordinates
Decentralization
vs

Autonomy

freedom
enjoy less
Subordinates
Delegation
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

11
HOME
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

easily
easily
Cannot be

withdrawn
Cannot be

withdrawn
Decentralization
vs

Authority
withdrawn

Can be
withdrawn
Delegation
 .Mr.
.Mr. Charak Ray.
Charak Ray.
ASST.
ASST. PROFESSOR (FINANCE)
PROFESSOR (FINANCE)

EXIT
PAGE
NEXT

12
HOME
MBA(BHU),
MBA(BHU), ASSOCIATE((III), PGDHI(III)
ASSOCIATE((III), PGDHI(III)
SENIOR(ST.JA) PREVIOUS
BCM(BHSE),
BCM(BHSE), SENIOR(ST.JA)

level
level
the lowest
Extension of
delegation to
the lowest
Decentralization

Extension of
delegation to
vs

Scope

Limited to
superior and

subordinate.
his immediate
Delegation
 NEXT Difference
PREVIOUS
Basis Delegation Decentralization
HOME
PAGE
P Increases the role of
Purpose Reduce burden of the subordinates to lowest
EXIT manager.
level

E Compulsory act because Optional. Done at the

PGDHI(III)
ASSOCIATE((III), PGDHI(III)

Essential no individual can perform option of the top

all tasks management.
(FINANCE)
PROFESSOR (FINANCE)

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

A
Subordinates enjoy Subordinates enjoys
MBA(BHU), ASSOCIATE((III),

Autonomy
Ray.
Charak Ray.

less freedom more freedom.

Of Action
ASST. PROFESSOR
.Mr. Charak

A
BCM(BHSE),

Authority can be Cannot be easily

Authority
.Mr.

withdrawn by delegator withdrawn

withdrawn
MBA(BHU),
ASST.

S
S Narrow scope limited to Wide scope. Extension
superior and his of delegation to the
Scope
immediate subordinate lowest level
12
 NEXT Question to be discuss in the class
1. Delegation of authority is based on the elementary principle of
PREVIOUS
1. Delegation of authority is based on the elementary principle of
division of labor.” Explain this statement.
HOME division of labor.” Explain this statement.
PAGE
2. Authority can be delegated but accountability cannot.” Explain
2. Authority can be delegated but accountability cannot.” Explain
this statement.
EXIT
this statement.
3. Can an overburdened manager take help from his subordinate?
3. Can an overburdened manager take help from his subordinate?
How? Explain three important things which he should keep in
How? Explain three important things which he should keep in
mind while taking such help.
PGDHI(III)
ASSOCIATE((III), PGDHI(III)

mind while taking such help.

4. Decentralization is an optional policy. Explain why an
(FINANCE)
PROFESSOR (FINANCE)

4. Decentralization is an optional policy. Explain why an

SENIOR(ST.JA)
BCM(BHSE), SENIOR(ST.JA)

organisation would choose to be decentralized?

organisation would choose to be decentralized?
MBA(BHU), ASSOCIATE((III),

5. If we delegate the authority, we multiply it by two, if we

Ray.
Charak Ray.

5. If we delegate the authority, we multiply it by two, if we

decentralize it, we multiply it by many.” How? Give an
decentralize it, we multiply it by many.” How? Give an
ASST. PROFESSOR
.Mr. Charak

example.
example.
BCM(BHSE),
.Mr.

MBA(BHU),
ASST.

12