Principles of Management Essay

987 WordsMar 3, 20144 Pages
Principles of Management Chapter 4: Organizing Organizing is the function of management which follows planning. It is a function in which the synchronization and combination of human, physical and financial resources takes place. All the three resources are important to get results. Therefore, organizational function helps in achievement of results which in fact is important for the functioning of a concern. According to Chester Barnard, “Organizing is a function by which the concern is able to define the role positions, the jobs related and the co- ordination between authority and responsibility. Hence, a manager always has to organize in order to get results. Importance of Organizing Function 1. Specialization . 2. Well defined . 3. Clarifies authority 4. Co-ordination 5. Authority 6. Effective administration 7. Growth and diversification 8. Sense of security . 9. Scope for new changes Departmentalization refers to the process of grouping activities into departments. a. Functional departmentalization- the process of grouping jobs on the basis of the tasks involved. b. Geographic departmentalization - Grouping activities on the basis of territory. c. Product departmentalization - Grouping activities by product line. d. Process departmentalization - Grouping activities on the basis of product or service or customer flow. | CHAIN OF COMMAND * Authority- the right to inherit in a managerial position to give directions or tell people what to do and expect them to undertake it. * Responsibility- the obligation to perform duties assigned to an employee. * Unity of Command- managerial principle which emphasizes that each employee should report to only one superior. * Span of Control- refers to the number of employees a manager can effectively and efficiently manage.

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