1. Heading 1 How do the functions of planning and organizing relate to each othe

ID: 2550529 • Letter: 1

Question

1. Heading 1 How do the functions of planning and organizing relate to each other (a) in the initial development of a company, and (b) during the modification of the company's structure? Headng 2 Tite Subrne 2. Identify and explain three important benefits of the organizing process. 3. List the five steps in the organizing process. Draft a one-sentence description of each I 4. Identify the four popular approaches to departmentalizing, Specify which approach you would recommend for cach of the following organizations and defend your choices: A) A retail hardware store B) A company that manufactures and markets one product C) A company with sales offices in forty states D) A retail department store 5. Identify and explain the three types of authority 6. What is power? What are its sources? How does it differ from authority? 7. Explain the importance to managers of each of these organizing concepts or principles: A) Unity of direction B) Chain of command C) Line and staff departments D) Unity of command E) Delegation of authority F) Responsibility G) Accountability H) Span of control I) Centralization/decentralization

Explanation / Answer

1. Planning.

planning is deciding in advance what is to be done how it is to be done and when it is to be done. It is the first step in the process of management. The rest steps in management are done based on planes prepared. So it is treated as the most important and preliminary step in management.

Organizing.

Organizing is the function of management that deals with the development of organizational structure and allocation of human resources to ensure accomplishment of the objective. It also involves the designing of individual jobs.

Planning differs from organizing in such a manner organizing tries to create a structure and allocate resources to achieve the planned objective. So planning is the basis of organizing function and organizing function can only be performed after the complete planning process.

2.Benefits of the organizing process.

a. organizing result in specialization.

organizing function will divide the over alacrity to different jobs and put the best human resource into such job. By continuingly doing a specific job that person will become specialist in that job which will give an effective result to the company.

B. Maximum utilization of available recourses.

organizing function will divide the over alacrity to different jobs and put the best human resource in to such job. That will avoid duplication and there so know wastage of resource that will result in is optimum utilization.

C. Can adopt changes.

as there is an effective organizational structure its easy to adopt changes. For example the scalar chain result from a organization structure, that means if a manager position get vacant its easy to fill it up because the subordinate knows what his superior was doing,.

Steps in organizing

Description.

Considering the plan or objective to be achieved.

It is necessary to be through with plan because if the plan is through the management what structure should be designed to achieve the plan and what all activities have to be performed.

Determining the activity to be performed to achieve the planned objective.

It is important to decide what all activities have to be performed to achieve the plan. Only then it can be allocated.

Classifying and grouping activity.

The activities determined in the last step have to be grouped based on similarities to assign the similar activity to the same person to achieve the benefit of specialization.

Assigning work and giving authority

In simple it’s the process of assigning responsibilities to employees and giving authority them to perform the responsibility

Designing hierarchy

It simply means giving instruction on who have authority against whom and who should report to whom.

Situation

Departmentalization.

Customer departmentalization

Functional departmentalization

Geographical departmentalization

Product departmentalization

There are three types of authorities in management.

Line authority.

It’s the authority of line manager who is directly responsible for the achievement of the departmental or organizational objective. The are represented by standard chain of commend

Staff authority.

Staff authority is is the authority of the functional managers who are expert in the respective function the provide advice to the department heads. Basically they will be the decision makers of the company.

Functional authority.

The authority of human resource department members to control the performance of the staff in every department. They occupied the midway position in between the line authority and staff authority.

6.What power

power means the potential of an individual to get others to do what he or she want to do .it also include the right to avoid being forced by others to do what she or he want to do which is actually not in their job responsibility.

The source of power may any of the following..

The difference between power and authority is that power is achieved by a person through his capability whereas authority is provided by the top management.

Term

Meaning

Unity of direction

as per this principle every firm should have on common plan to be archived and on common leader to direct the whole firm.

Chain of command

it simply means who instruct whom. In other words on reporting manager for one employee.

Line and staff departments

If a function directly help in achievement of organizational goal it is treated as line function and if a function is supportive in nature it is staff function.

Unity of command

that means one supervisor for one employee. Or on employee should receive command from one supervisor only.

Delegation of authority

division of authority by superior with his subordinate. In other words when a superior entrust his part of job to his subordinate he also have to entrust the subordinate with the authority to perform such jobs.

Responsibility

It is the duty of a employee to do task or activity assigned by his manager as part of his job.

Accountability

It means an employee will be evaluated against his responsibility. In other words the employee is answerable on what everything he had done as part of his responsibility.

Span of control

The maximum number of people that a manager can effectively manage.

Centralization/decentralization

if decision making authority is keep with top management only its called centralization and if decision-making power transfer to lower and middle level managers its called decentralization.