Organization structure and Personnel Management.pptx
- 1. UNIT 2 Organization structure and Personnel Management
- 2. LINE AND STAFF AUTHORITY LINE AUTHORITY: It is that authority which a superior exercises over his subordinates to accomplish primary objectives of the organization.The superior issues orders and instructions to his sub ordinates to complete the tasks. This authority is delegated to those positions or elements of the organization which have direct responsibility for accomplishing the primary enterprise objectives. The flow of authority is always in the downward direction from the superior to the subordinate and such relationship is called LINE RELATIONSHIP that exists in all departments of an organization.
- 3. Line relationship helps the organization to work properly by Providing the decisions required for functioning Furnishing reference points for the approval of proposals Serving as a means of control by setting the limits of authority Establishing authentic communication channels to make leadership process effective
- 4. STAFF AUTHORITY: Literally staff implies a stick carried in the hand for support. In the context of management, it implies to those elements that help the line authorities to function effectively in accomplishing the primary objectives of the enterprise. Staff provides advice assistance and information to line managers and they are distinguished into three categories namely, personal, specialized and general staff. They reduce the burden of line authorities and they too have the right to command and extract work from their subordinates. According to Henri Fayol “staff is an adjunct, reinforcement and a sort of extension of line manager’s personality.”
- 5. What was Centralization? When the power, authority and all other decisions lie in the hand of one or a few, who are solely responsible for all the decisions, planning and executions, this type of governance is called centralized government. For example- if the monarch of any country controls everything, he has complete authority.
- 6. What is Decentralization? The transfer of power, authority and decision making to a group of people in a devised hierarchical system or organized levels are called decentralization. For example: Distribution of power to local gram panchayats, which were earlier governed by the state government itself.
- 8. What is the span of control? The span of control or span of management is the number of employees each manager in an organization is responsible for managing.Typically, the modern model of control span's average employees per manager is about 15 to 20 individuals, while the traditional model states about five to six employees for each manager. Modern companies may adhere to a wider control span to help manage costs, employees, and company tasks and goals more effectively and efficiently. Here are common factors affecting the control span:
- 9. Organization size: An organization's size can affect the control span because it determines how many employees a manager handles. For example, a large company may have a wider control span compared to a smaller one because it's based on the number of professionals working in an organization. Organization culture: An organization with a flexible culture may indicate the control span is wider compared to a hierarchal company that may have a narrow control span.To determine a company's control span, it's helpful to determine the type of culture of a company. Work type: The type of work a company produces can help you determine the control span. For example, a company with more routine work and less complexity in tasks can have a wider control span, while companies with more complex tasks and frequent decisions can have a narrow control span.
- 10. Employee's skills and competencies: An employee's skills and competencies can determine the type of supervisor they may require. For example, an inexperienced employee may require more training and supervision, which is a narrow control span, while supervisors with more experienced employees can delegate more and train less for a wider control span. Interaction type: The interaction type between managers and employees can determine the company's control span. For example, more frequent interactions between the parties is a more narrow control span, while fewer interactions between the professionals which comprise asking and answering questions is a wider control span.
- 11. Formal and Informal Organisation Types of Organisation Organisations are a network of relationships amongst people working together so as to get the best output in an enterprise.The two types of the organisation formed on the basis of relationships are: Formal organisation Informal organisation
- 12. Formal Organisation Formal organisation refers to the official structure of well-defined jobs, each being a measure of authority and responsibility. This organisational structure is designed by the management to accomplish a particular task. In formal organisation positions and authority of each level are clearly defined. It is deliberately designed to enable people to work together for achieving common objectives. It is a deliberate determination by which people accomplish goals by adhering to the norms laid by the structure. In this kind of organisation, each person is responsible for their performance. It has a formal setup of superior-subordinate relationships to achieve a predetermined goal.The structure of a formal organisation can be functional or divisional.
- 13. Informal Organisation Informal organisation refers to a network of social relations, which emerges on its own due to formal roles and relationships amongst people. Informal organisations emerge from within the formal organisation when people interact beyond their official defined roles.When people have frequent contact, they cannot be forced into a rigid formal structure. It means the informal organisation is not pre-planned. It arises automatically due to frequent contact of people with each other. It arises to fill the social and personal needs of an individual, which cannot be satisfied through a formal organisation. Informal organisations have no prescribed rules and policies, but it comes into existence through social relations.