Effective Organizing in Management

What's up everyone, welcome back to the channel. So guys, today we have come almost in the mid of our series. And a lot of kids' motivation has started to decrease. I am seeing that a lot of kids' classes have been left in between. A lot of kids were mailing me because of my pre-boards. Because of practical, it was left. But the kids who are busy, you will go a lot ahead. Day 10 has come, just 11 days left. Remember, you wrote the first day, 20 more days to go. Now only 11 more days to go. You have worked so hard, keep doing it like this. Things will continue to happen with perfection. Let's start quickly. And today we start organizing. Let's begin. So the first topic we have to learn today is the second function of management that is organizing. Sir, the first function is planning. We have planned things, made different types of plans. We have already decided about the future that what to do, how to do, when to do. We have seen all this. Now what to do next? Now you have to do grouping of activities. Sir, what does grouping of activities mean? It means kids, the similar nature activities, It means that which can be done together. Put similar nature activities in one department. Like all the people who do good purchase, Whose negotiation skills are good, put them in the purchase department. All the people who are experts in sales, make a sales department for them. All the people who are experts in production, put them in the production department. What will happen with this? One thing that comes to the person, he will do the same work. The second will do it well, there will be no wastage. What will be the third most important thing? The third most important thing will be that specialization will come. Because he is an expert in production, he is an expert in purchase, he is an expert in sales. So the person who is an expert in something, he will do the same work. So you will get specialization. So what is organizing? It is a process of defining. First define what is the work. And grouping the activities of the enterprise. Then group the activities. And establish authority relationships among them. What does authority relationship mean? Define clearly who will be superior and who will be subordinate. How many people will be working under which superior? Define the head of every department very clearly. This is organizing. Everything should be well established, everything should be well communicated. The scalar chain should be properly defined. Did you understand scalar chain? It was in the principle, scalar chain. That is, the line of communication, line of command should be very clear. This is organizing. What comes next in organizing? What is the process of organizing? How to organize? So the process is very easy. Planning process was S dies if. Remember, S dies if. Organizing process is IDEAE. Just like IDEA, IDEAE. So what is the first work? What is the first step? The first step is identification and division of work. First of all, you identify the work. After that, you divide the work. Okay. That is, you see what your work is first. After that, put similar things of similar nature in similar departments and divide them. Into manageable activities so that duplication can be avoided. So that a person does not do any work twice. There should be no duplication. If two people do not do any work, then it will be saved from duplication. When everything will be well defined, it will be clear. Okay. What to do next? Departmentalization. Departmentalization means, kids, make a department. First you identify the work. Grouping. Now make departments. Like I told you, make it separate for production. Make it separate for sales. Make it separate for purchase. Make it separate for finance. Make it separate for marketing. Make it separate for human resource. Make departments of everything. Make departments. Right. Activities of similar nature are grouped together. It facilitates specialization. What will come from this? This is very important. Specialization will come. So organizing leads to specialization. Next, now just making a department is sufficient. Or define the work there. Which department will do what work? Define it. So what is written in the third thing? Assignment of duties. Assigning duties to job positions. Whoever is a particular job position, assign duties very well. According to their skills. According to their competencies. And effective performances. Assign duties well. Give work. Who will do what work? How will he do it? Mention it very clearly. After that, develop reporting relationships. Developing reporting relationships means children, tell me who is superior? Who is subordinate? How many people must be working under one superior? Define this very clearly. This is what we call hierarchy of management. Sir, what does hierarchy mean? Who is above? Levels are made. Who is above everyone? Who is below? How it must be going on? This is hierarchy. This is proper system. Authority responsibility relationships are clearly established. It is defined very clearly. Who will be the boss? Who will give orders? Who will receive orders? So that every individual knows Who he has to take orders from? And who is accountable to him? Who has to answer him? So first of all, identification and division of work. Then make departments. Departmentalization. Then assign duties. Then assignment of duties. And then establishment of reporting relationships. So all these steps come, children. In which? In the organizing process. Perfect, sir. Sir, why is organizing important? Why organizing is important? What will be the benefits of doing this? So first of all, it is written that we get specialization. Brother, the one who gets the job, when he will be made to do the same job, then what can be a better thing than that for an organization? If I am an expert in sales, then I have been put in the sales department. If I am an expert in production, then I have been put in the production department. This will give specialization. The work that he knows to do, he is being made to do the same work. Specialization. Second, there will be clarity. How will the clarity be? Everything is well defined. Superior subordinate relationships are very well made. So there will be clarity, there will be no confusion, there will be no chaos, there will be no duplication, vestige will be saved. What is written third? Effective administration. Administration will be very effective, it will be very good. There will be clarity in working relationships. This will make it easy for you, administration. Means it will be easy to control. It will be easy to catch where the mistake is happening. Number four, optimum utilization of resources. There will be no wastage, there will be no duplication, then the proper utilization of resources will be done. Fifth, growth and expansion of business. When specialization happens, there is no wastage, then you can make more profit than less money. You can use that profit for growth, for expansion. And when the work is divided, then there is no burden on the top level. If there is no burden, then he can think, can apply creativity. Right? So growth and expansion of business can add more job positions, departments and product lines. That's why we say that it is very important to organize, to frame departments. This is very important. Okay? Importance is done, guys. Steps are done. The meaning of organizing is done. After this, we come to organizational structure. Sir, what is an organizational structure? What is the meaning of organizational structure? First you tell this. See. Guys, organizational structure means organization's framework. See, before building any house, before building any shop, before building any hotel, before doing any construction project, its blueprint is made. Its framework is made. What all pillars will be there? How many roofs will be put? How will all the work be done? It is very clearly defined on paper. In the same way, it is being said here that when you make departments in an organization, then first define on paper that how many departments should be there? How should it be? How many people should be in that department? So you first make a blueprint of every organization. In which everything is very well defined. In which everything is written that how many departments will be there? Which all departments will be there? All this should be very clearly. This blueprint is what we call organizational structure. So what is organizational structure? It refers to the framework. Framework means blueprint within which all the managerial tasks are performed. In which all the managerial as well as operational. What is the difference between both? This is for managers and employees. A framework of all the work should be there from the beginning. The need for organizational structure is felt when organization grows in size. See, as your organization grows, then you will need a proper structure. You will have to make departments. You will have to divide things. Right? Because coordination becomes difficult due to new functions or increase in the number of products. Right? Now, what are the types of structures? Before that, you should know what is the span of management? This has come in number 1 many times. What do you understand by the term span of management? Span of management means how many people are working or say a superior is able to manage how many subordinates easily. We call it span of management. See, structure is defined by span of management. How will the structure work? How many people will be in a department? Because what did Fayol say? There should be one boss. Right? So, how many people can a boss manage? All this is known by span of management. So, span of management refers to the number of subordinates that can be effectively managed by a superior. Now, there are two types of structures. One is functional and one is divisional. Right? Sir, what is functional and what is divisional? Functional structure is when departments are made in an organization or when organizations are divided on the basis of functions. Like, all the examples I have given you are all functional. Purchase is a function in itself. Sale is a function. Marketing is a function. HR is a function. Finance is a function. So, whenever I am making such departments on the basis of work, it is called functional structure. It is written, It is an organization structure formed by grouping of jobs of similar nature according to the functions. Right? And make a separate department for every function. Like a company may have separate departments for production, marketing, finance. Where does this work? Where there is only one type of product. Suppose I am there, I am just teaching. So, I don't sell clothes separately, I don't sell makeup, I don't sell many products. I am just teaching. So, in my organization, all the departments can be on the basis of functions. Right? I am a single product company. After that, what will be the benefits? What will be the advantages? Number one, Occupational specialization will come. Sir, what does occupational specialization mean? Occupational specialization means that one department is made on the basis of functions. Now, the production department is only doing production. So, they will become experts in production. So, I will be doing production very well. Similarly, the sales department is expert in sales. So, sales will be going very well. So, occupational specialization will be coming there. Second, control and coordination will be easy. Now, in the department of purchase, all the purchase people are there. They understand all the purchases well. So, it is easy for them to explain everything. They have knowledge. If I will use any technical words there, then there is no such person there who does not know the purchase. All are purchase people. So, they know all the purchases well. So, there, kids, it will be easy for us to do what? It will be easy to make control and coordination. Efficiency will increase. When a particular work is done by a single person, then the cost will come less. If specialization will come, then wastage will be less. So, it is obvious that efficiency will come. Fourth, lowers the cost. There will be no duplication of effort. Cost will be less. Makes training of employees easier. See, there is only one skill in a department. Only production people are there in production. Only sales people are there in sales. Only finance people are there in finance. So, how easy it is to train in this scenario. If multiple people are doing different work in a department, then it is equally difficult to train them. It will be equally expensive. So, what will we say? It is easy to train because there are only one type of people in a department. Okay. What comes next? Its disadvantages. Disadvantages number one. Functional empires. Functional empires means, we get so busy in our own function that we don't remember the overall organizational goal. We get so busy in our own departments that we don't remember the overall organizational goal. Sometimes, the purchase is so busy that he is only focusing on the purchase. He didn't think about the organization as a whole. Sometimes, such things happen. This is written. Number two, inter-departmental conflicts. Sometimes, there are conflicts between departments. Because every department thinks that if I don't work, then the work will stop. So, inter-departmental conflicts happen sometimes. Next, it is written. Problems in coordination between departments. This is related to this. Coordination becomes difficult sometimes due to mismanagement. This happens when there is mismanagement, lack of communication. But, in every organization, where there are different departments, there is absence in coordination. Miscommunication happens somewhere. So, this is a normal disadvantage which is seen everywhere. Next, we have divisional structure. Sir, what is a divisional structure? In organizational structure, the functional structure was made on the basis of functions. Divisional is made on the basis of products. If I am a company which makes three products, I make garments, footwear, and beauty products. So, my organization will be divided into these three parts. Garment, footwear, and beauty products. Then, in garments, there will be production, sale, and marketing finance. Similarly, in footwear, there will be production, sale, and marketing finance. Similarly, in cosmetics, there will be production, sale, and marketing HR finance. So, this means that it will be done on the basis of functions. But, if we see the prima facie, then the first department which will be made will be made on the basis of products. If you run multiple products, that this is our department of garments, this is our department of footwear, this is our department of cosmetics. So, when there is a single product company, then it can be made on the basis of functions. But, if it is a multi-product company, then the first department which will be made will be made on the basis of products. Then, functional structure is seen inside it. See what is written. It is an organizational structure in which departments are created on the basis of products. Example, a large company may have two divisions, footwear and garments. Each division is multifunctional because in every department, there will be further production, marketing, and finance. Divisional structure is run by those who have a large variety of products. In general, if you are not able to understand that in the study, multi-product and single product is not written, then usually 95% of the companies have functional structure. Divisional structure is run in very few companies. It is run in those which are very big companies and which are multi-product companies. What is next? What are the advantages of this? In this, product specialization will come. Occupational specialization was there. In this, product specialization will come because only people related to that will be working in one product. Those who know garments, they will be working related to garments. Now, further divisions are there inside garments. That's why functional specialization is not there. Only product specialization comes there. Here, we get to see product specialization. Second is flexibility initiative. Flexibility initiative means that every department is working on its own. Means one department has no relation with another. Functional was still interrelated. There is nothing like this in divisional. Every department has its own finance. Every department has its own marketing, its own HR. So, there is no need to ask anyone else. So, there is a lot of flexibility. Decision making is very easy. Divisional heads are accountable for profits. Now, accountability is also easy here. If goals are not fulfilled, then you can see the P&L balance sheet of all three. Which department is not making profits? Is that department garments? Is that department footwear? Is that department cosmetics? Which department is not making profits? You can see. Next is expansion and growth. Expansion and growth is done. When you are making such big products, you are a multi-product company, then expansion and growth is bound to happen. Next is limitations. What are the limitations? Again, the same limitations. Conflicts can occur. Cost can increase. Why will the cost increase? Because every department has its own marketing, every department has its own finance. Now, instead of one manager, we need 3-4 managers. So, cost will increase. Supersede organizational interest in divisional interest. It is possible that the department thinks only about itself, and does not think about the organization. So, it comes there and here too. This is common. So, this is organizational structure. What do we study after structure? After structure, we study a small topic which we call how many types can an organization be? So, an organization can be of two types. Which are formal and informal. We can divide an organization into two parts. Either formal organization or informal organization. Sir, what is the difference between formal and informal? First of all, understand this, kids. No one makes informal organization. What is the meaning of informal? What is the meaning of informal? Informal means where there is no rule, regulations, where there is no boss, where there is no authority, responsibility, where there is no superior, subordinate relationship. Anyone is talking to anyone, anywhere, this is informal. Informal is parties, informal is functions, informal is events. These are informal. Organizations are always formal. From formal, informal groups are formed. Like, when I will go to work in an organization, there will be a discipline. There will be a fixed time to come, fixed time to go. There will be some rules and regulations. There will be someone my boss, someone's boss will be me. I will do everything over the mail communication there. There will be some rules and regulations of communication. So, these are the signs of a formal. Now, when we go to an organization, we meet friends there. We meet 2-4 people. We get to know each other. And then we are having lunch together somewhere, sitting together and discussing something. Now, that has become informal. So, from inside the formal, informal comes out. Understood? What is formal? It refers to the structure which is designed by the management. Management makes it to achieve its objectives. No one makes informal management. Okay? What will be there? What will be the features of formal? It will be made deliberately. Means, rules and regulations will be made deliberately. They are not made by themselves. Everything is very clearly specified here. Who has to report to whom? Here, focus is on work and not on interpersonal relationships. Your and my friendship, it doesn't matter to them. They want work. Okay? What is next? When you will do this, what will be the advantages? See, everything is clearly defined. So, it is easy to fix the responsibility. Whose fault is it? Who did a good job? Who did a bad job? It is very easy to find because everything is well defined. There is no duplication because there is clarity. Unity of command is made. You have made a chain. Superior is already defined. So, orders will come from one place. After that, accomplishment of goals. Your goals are achieved because a framework is very well defined. There is no duplication of anything. Cost will be less. Growth will be easy. So, goals will be achieved. After that, stability will be there in the organization. Sir, what kind of stability? Because, see, specific rules of behavior have been given. That how you have to behave, how to talk to whom. So, there will be stability. Right? What is next, kids? What are its limitations? Number one, sometimes procedural delay happens. Procedural delay means, see, there is a chain of communication. A will talk to B, B will talk to C, C will talk to D. Sometimes, in this chain, a very important opportunity is missed. So, many times, procedural delay becomes a limitation. Fails to recognize the creative talent of employees. Many times, you are not able to see the talent of the employees because major decisions, again, it is the same thing that will take top level, will take superior. So, the talent of the people below is being wasted. After that, non-fulfillment of social needs. Now, every employee has a social need that I should go to the organization and do some friendship. I should talk to people, there should be some fun in the organization. If that will not happen, then we will say that non-fulfillment of social needs is happening. The needs of the society are not being taken care of. Right? Next comes informal, kids. Informal, now I have told you, no one makes it. Informal becomes by itself. You have never tried to go to school to make friends separately. You sat together, you got up, you did fun, you got people like you, friendship happened. So, it is a network of personal and social relations. Now, see, there is no formal here. Nothing is related to work here. Everything is personal and social relations. When people associate with each other, then they become. Like, playing cricket matches, right? All this works. After that, kids, what are its features? It comes out of the formal only. It becomes spontaneously. It is not made deliberately. Just randomly, friendship happens with anyone at any time. There is no fixed line of communication. There are no standards of behavior. How will anyone behave in it? Nothing is fixed. Friends have fun with each other. Its advantages, whatever you have to spread, it will spread quickly from here. Faster information spread. If you don't have to tell anything, then you will say it in the group. I am telling you one thing, don't tell anyone. Just understand, it has reached everyone. Social needs are fulfilled, people become happy, share joys and sorrows. And the objectives of the organization are also fulfilled sometimes. That, brother, people are often demotivated in formal. So, they become happy in informal. They keep working. What will be its disadvantages, sir? Sometimes rumors spread. Wrong things spread. Resistance to change. Sometimes people talk to each other and make so many groups. They become against the organization. So, sometimes such things happen. After that, members sometimes keep focusing on group norms. They bring the same behavior in formal too. So, these things are not good for the organization. This is written here. Okay? After this, formal and informal became. Done, sir. What is left in the chapter, sir? One last topic is left, kids. What is that? Last topic is delegation. Sir, what is delegation? Kids, delegation means very simple. Let me tell you. Whenever your organization will grow, if you try to do everything alone, then you will not be able to do anything. You will have to join people with you. You will have to make a team. When you will make a team, then you will distribute your work to people. When you distribute your work to people, then you become a little burdenless. If the burden on you reduces, then you can think creatively. So, no matter how capable a manager is, he cannot do all the works on his own. He needs to transfer some work to his immediate subordinate. A manager has to transfer work to his immediate subordinate. This is called delegation. What does it mean? It is the transfer of authority from a superior to subordinate. Keep this in mind. There are only two people involved in delegation. One is me, who is the boss. And the other is my immediate subordinate. I will just transfer that. Entrustment of responsibility. I also give responsibility. And I also make accountability. Accountability means you will have to answer if you did not perform well. Okay. However, delegation does not mean abdication. It does not mean that I will run away from my work. Okay. I will have to answer. If someone trusts me and gives me some work, and I have done that work, then it does not mean that I will put everything on him. I will have to answer. Delegation does not mean work theft. Delegation means that you can reduce your burden. You can give work to people whom you trust to do a good job. But you cannot run away from accountability. Okay. The manager shall still be accountable for the assigned task. The manager will still be accountable. What is next? Elements of delegation. Sir, what all comes in delegation? There are three elements in delegation. First is authority. Sir, what is authority? Authority is the power to take decisions. When you go to an organization, then you will be given a post. You will also get powers related to that post. That is called authority. So what does authority mean? Right of an individual to command his subordinates. Where does it come from? It comes from your position. The job you are working in, the position you are in, you will get related powers from that. What is flow? It flows from top to bottom. How does top to bottom work? Superior can say that do something to the subordinate. So the one who is above can explain to the one below. So this works from top to bottom. Can delegation happen? Can you give your powers to the one below? You can definitely give. When a superior is on leave, then his subordinate only takes over that position. Right? So this is how it works. So what does authority mean? The power to take decisions. It can be delegated. Next is responsibility. Responsibility means responsibility. Now the job position you have been given, you also got responsibility along with it. So it is the obligation to perform the assigned duty. How does this responsibility come? From delegated authority. Means if A gave any work to B, delegated authority, then B got the responsibility. Only work doesn't come. It was read in the principles. Then A told that only authority won't come. Responsibility will also come. Right? It is written ahead that the flow goes up. Why does it go up? Because the one below will be responsible to the one above. He will tell him that yes, brother, it is my responsibility. After that, you cannot do delegation completely. You cannot run away from the responsibility. You can transfer to some extent. What comes last, children? Accountability. Sir, what is accountability? Accountability is giving answers. That if the result doesn't come, then who will answer it? Who will do the final answer? Accountability means being answerable for the final outcome. Where does it come from? It comes from responsibility. When you got the responsibility, then you will have to answer it. This also goes up. If A gave any work to B, then brother B will have to answer that why didn't he do it? Right? And delegation cannot be done. The one who has been given the answer, he cannot transfer further. If I have told you that I will get your syllabus done in 21 days, then I will have to do it. I cannot run away. If I run away, then it is wrong for me. Right? Whatever it is. This is delegation. This cannot be delegated. You cannot delegate accountability. Did you understand delegation, children? The last topic comes, son. We have decentralization. Okay, keep one thing in mind. We have importance of delegation and importance of decentralization. They are almost similar. Means they are almost same. I will teach you this now. First of all, you learn decentralization. What is decentralization? So children, decentralization means, see in delegation, a superior trusted a subordinate and gave him power. Superior gave power to subordinate. Right? Decentralization means that you made the organization in such a way that you have given power to every level. Top level is also making decision of its limit. Middle level is also making decision according to the power it has. Lower level is also making decision according to the power it has. This means the power is distributed to all the levels. Right? You also read this in the principles of FIOL. What was centralization? When decision making is done only at the top level. What was decentralization? When decision making is divided into every level. So delegation is only between two people. If that delegation is divided into the whole organization, that means extended version of delegation, that is called decentralization. It refers to the systematic delegation of authority through all the levels, all the departments. Decentralization implies selective dispersal of authority and believes that people are competent. When it is seen that people in your organization are competent, capable, resourceful, then you distribute the powers a little further This is called decentralization. So delegation, kids, there should be no confusion. Delegation is only between two people. Every organization has to do it. Decentralization, distributing powers to all the levels, all the organizations is not necessary. Every organization will do it. It is your wish. This is your wish whether you want to do it or not. Delegation has to be done. It is a deliberate process. Okay? After this, kids, there is a difference between the two. It will give you more clarity. Nature, see this is compulsory. This is optional. Whether you do it or not. Its purpose is to reduce the burden of the manager. Its purpose is to increase the role of subordinates. Freedom, here the superior has more control. There is less control, so there is more freedom. Third scope, it is limited. It is quite wide. It is only between two people. It is in the middle of the whole organization. Clarity has come, ok. Now see the merits of delegation first. When I will give work to my subordinate, then what will happen? Number one, effective management, I will be able to do good management. Because now I will get time, I am a manager I have given a little work to my lower level person. So I can work well, I will be able to do good management. Number two, the employee who has been given will get more opportunity, his development will be there. Third, he will feel quite motivated that yes, he has shown trust on me, it means I am doing a good job. There are many employees, why was I chosen? So his motivation increases. After that, there is growth, why is there growth? Because you are already getting the future managers ready. The person you gave responsibility to, if he did well, it means he is ready to take your position. So you can see growth. Management hierarchy, a very clearly superior subordinate relationship is seen here. So management hierarchy develops better coordination, there is no overlapping, everything is perfect. So coordination is made well. These kids come in the importance of delegation. Decentralization is the extended version of this, almost the same importance. See, relief to the top management, why is there relief? Because decision making is divided at every level. So top management can easily do its work. Initiative among subordinates, the subordinate gets the opportunity to take initiative, gets the opportunity to show his creativity. With that confidence develops in them. What are you preparing? You are preparing managerial talent for the future because you distribute powers. So you can see who is doing a good job and who is doing a bad job. Next, there is growth, a lot of growth is seen, the productivity of the organization increases. Decision making is quick, why? Because now you don't have to take approval. Every level can do its own decision making, no approval is required. What happens last, better control. You can do evaluation of performance well. So it will be easy to make control of every level. So this was decentralization. The question of delegation decentralization comes up. So please read it very well from NCERT. And with this, ladies and gentlemen, our organizing also ends So we have done 5 chapters of part A also. 1, 2, 3, planning, organizing. Today you will have a lot of work. You have to learn the whole chapter. You have to write and see. You have to write all these headings. Don't walk without writing. It won't be fun until you write. So keep writing, things will keep getting better. Alright, so for today guys, the work of business studies is over. Do put everyone in the comment section so that good motivation is made. You will also feel good that yes, studying is happening daily. I will meet you in the accounts video after a while. Till then see ya, take care, bye bye.

What's up everyone, welcome back to the channel. So guys, today we have come almost in the mid of our series. And a lot of kids' motivation has started to decrease. I am seeing that a lot of kids' classes have been left in between. A lot of kids were mailing me because of my pre-boards. Because of practical, it was left. But the kids who are busy, you will go a lot ahead. Day 10 has come, just 11 days left. Remember, you wrote the first day, 20 more days to go. Now only 11 more days to go. You have worked so hard, keep doing it like this. Things will continue to happen with perfection. Let's start quickly. And today we start organizing. Let's begin. So the first topic we have to learn today is the second function of management that is organizing. Sir, the first function is planning. We have planned things, made different types of plans. We have already decided about the future that what to do, how to do, when to do. We have seen all this. Now what to do next? Now you have to do grouping of activities. Sir, what does grouping of activities mean? It means kids, the similar nature activities, It means that which can be done together. Put similar nature activities in one department. Like all the people who do good purchase, Whose negotiation skills are good, put them in the purchase department. All the people who are experts in sales, make a sales department for them. All the people who are experts in production, put them in the production department. What will happen with this? One thing that comes to the person, he will do the same work. The second will do it well, there will be no wastage. What will be the third most important thing? The third most important thing will be that specialization will come. Because he is an expert in production, he is an expert in purchase, he is an expert in sales. So the person who is an expert in something, he will do the same work. So you will get specialization. So what is organizing? It is a process of defining. First define what is the work. And grouping the activities of the enterprise. Then group the activities. And establish authority relationships among them. What does authority relationship mean? Define clearly who will be superior and who will be subordinate. How many people will be working under which superior? Define the head of every department very clearly. This is organizing. Everything should be well established, everything should be well communicated. The scalar chain should be properly defined. Did you understand scalar chain? It was in the principle, scalar chain. That is, the line of communication, line of command should be very clear. This is organizing. What comes next in organizing? What is the process of organizing? How to organize? So the process is very easy. Planning process was S dies if. Remember, S dies if. Organizing process is IDEAE. Just like IDEA, IDEAE. So what is the first work? What is the first step? The first step is identification and division of work. First of all, you identify the work. After that, you divide the work. Okay. That is, you see what your work is first. After that, put similar things of similar nature in similar departments and divide them. Into manageable activities so that duplication can be avoided. So that a person does not do any work twice. There should be no duplication. If two people do not do any work, then it will be saved from duplication. When everything will be well defined, it will be clear. Okay. What to do next? Departmentalization. Departmentalization means, kids, make a department. First you identify the work. Grouping. Now make departments. Like I told you, make it separate for production. Make it separate for sales. Make it separate for purchase. Make it separate for finance. Make it separate for marketing. Make it separate for human resource. Make departments of everything. Make departments. Right. Activities of similar nature are grouped together. It facilitates specialization. What will come from this? This is very important. Specialization will come. So organizing leads to specialization. Next, now just making a department is sufficient. Or define the work there. Which department will do what work? Define it. So what is written in the third thing? Assignment of duties. Assigning duties to job positions. Whoever is a particular job position, assign duties very well. According to their skills. According to their competencies. And effective performances. Assign duties well. Give work. Who will do what work? How will he do it? Mention it very clearly. After that, develop reporting relationships. Developing reporting relationships means children, tell me who is superior? Who is subordinate? How many people must be working under one superior? Define this very clearly. This is what we call hierarchy of management. Sir, what does hierarchy mean? Who is above? Levels are made. Who is above everyone? Who is below? How it must be going on? This is hierarchy. This is proper system. Authority responsibility relationships are clearly established. It is defined very clearly. Who will be the boss? Who will give orders? Who will receive orders? So that every individual knows Who he has to take orders from? And who is accountable to him? Who has to answer him? So first of all, identification and division of work. Then make departments. Departmentalization. Then assign duties. Then assignment of duties. And then establishment of reporting relationships. So all these steps come, children. In which? In the organizing process. Perfect, sir. Sir, why is organizing important? Why organizing is important? What will be the benefits of doing this? So first of all, it is written that we get specialization. Brother, the one who gets the job, when he will be made to do the same job, then what can be a better thing than that for an organization? If I am an expert in sales, then I have been put in the sales department. If I am an expert in production, then I have been put in the production department. This will give specialization. The work that he knows to do, he is being made to do the same work. Specialization. Second, there will be clarity. How will the clarity be? Everything is well defined. Superior subordinate relationships are very well made. So there will be clarity, there will be no confusion, there will be no chaos, there will be no duplication, vestige will be saved. What is written third? Effective administration. Administration will be very effective, it will be very good. There will be clarity in working relationships. This will make it easy for you, administration. Means it will be easy to control. It will be easy to catch where the mistake is happening. Number four, optimum utilization of resources. There will be no wastage, there will be no duplication, then the proper utilization of resources will be done. Fifth, growth and expansion of business. When specialization happens, there is no wastage, then you can make more profit than less money. You can use that profit for growth, for expansion. And when the work is divided, then there is no burden on the top level. If there is no burden, then he can think, can apply creativity. Right? So growth and expansion of business can add more job positions, departments and product lines. That's why we say that it is very important to organize, to frame departments. This is very important. Okay? Importance is done, guys. Steps are done. The meaning of organizing is done. After this, we come to organizational structure. Sir, what is an organizational structure? What is the meaning of organizational structure? First you tell this. See. Guys, organizational structure means organization's framework. See, before building any house, before building any shop, before building any hotel, before doing any construction project, its blueprint is made. Its framework is made. What all pillars will be there? How many roofs will be put? How will all the work be done? It is very clearly defined on paper. In the same way, it is being said here that when you make departments in an organization, then first define on paper that how many departments should be there? How should it be? How many people should be in that department? So you first make a blueprint of every organization. In which everything is very well defined. In which everything is written that how many departments will be there? Which all departments will be there? All this should be very clearly. This blueprint is what we call organizational structure. So what is organizational structure? It refers to the framework. Framework means blueprint within which all the managerial tasks are performed. In which all the managerial as well as operational. What is the difference between both? This is for managers and employees. A framework of all the work should be there from the beginning. The need for organizational structure is felt when organization grows in size. See, as your organization grows, then you will need a proper structure. You will have to make departments. You will have to divide things. Right? Because coordination becomes difficult due to new functions or increase in the number of products. Right? Now, what are the types of structures? Before that, you should know what is the span of management? This has come in number 1 many times. What do you understand by the term span of management? Span of management means how many people are working or say a superior is able to manage how many subordinates easily. We call it span of management. See, structure is defined by span of management. How will the structure work? How many people will be in a department? Because what did Fayol say? There should be one boss. Right? So, how many people can a boss manage? All this is known by span of management. So, span of management refers to the number of subordinates that can be effectively managed by a superior. Now, there are two types of structures. One is functional and one is divisional. Right? Sir, what is functional and what is divisional? Functional structure is when departments are made in an organization or when organizations are divided on the basis of functions. Like, all the examples I have given you are all functional. Purchase is a function in itself. Sale is a function. Marketing is a function. HR is a function. Finance is a function. So, whenever I am making such departments on the basis of work, it is called functional structure. It is written, It is an organization structure formed by grouping of jobs of similar nature according to the functions. Right? And make a separate department for every function. Like a company may have separate departments for production, marketing, finance. Where does this work? Where there is only one type of product. Suppose I am there, I am just teaching. So, I don't sell clothes separately, I don't sell makeup, I don't sell many products. I am just teaching. So, in my organization, all the departments can be on the basis of functions. Right? I am a single product company. After that, what will be the benefits? What will be the advantages? Number one, Occupational specialization will come. Sir, what does occupational specialization mean? Occupational specialization means that one department is made on the basis of functions. Now, the production department is only doing production. So, they will become experts in production. So, I will be doing production very well. Similarly, the sales department is expert in sales. So, sales will be going very well. So, occupational specialization will be coming there. Second, control and coordination will be easy. Now, in the department of purchase, all the purchase people are there. They understand all the purchases well. So, it is easy for them to explain everything. They have knowledge. If I will use any technical words there, then there is no such person there who does not know the purchase. All are purchase people. So, they know all the purchases well. So, there, kids, it will be easy for us to do what? It will be easy to make control and coordination. Efficiency will increase. When a particular work is done by a single person, then the cost will come less. If specialization will come, then wastage will be less. So, it is obvious that efficiency will come. Fourth, lowers the cost. There will be no duplication of effort. Cost will be less. Makes training of employees easier. See, there is only one skill in a department. Only production people are there in production. Only sales people are there in sales. Only finance people are there in finance. So, how easy it is to train in this scenario. If multiple people are doing different work in a department, then it is equally difficult to train them. It will be equally expensive. So, what will we say? It is easy to train because there are only one type of people in a department. Okay. What comes next? Its disadvantages. Disadvantages number one. Functional empires. Functional empires means, we get so busy in our own function that we don't remember the overall organizational goal. We get so busy in our own departments that we don't remember the overall organizational goal. Sometimes, the purchase is so busy that he is only focusing on the purchase. He didn't think about the organization as a whole. Sometimes, such things happen. This is written. Number two, inter-departmental conflicts. Sometimes, there are conflicts between departments. Because every department thinks that if I don't work, then the work will stop. So, inter-departmental conflicts happen sometimes. Next, it is written. Problems in coordination between departments. This is related to this. Coordination becomes difficult sometimes due to mismanagement. This happens when there is mismanagement, lack of communication. But, in every organization, where there are different departments, there is absence in coordination. Miscommunication happens somewhere. So, this is a normal disadvantage which is seen everywhere. Next, we have divisional structure. Sir, what is a divisional structure? In organizational structure, the functional structure was made on the basis of functions. Divisional is made on the basis of products. If I am a company which makes three products, I make garments, footwear, and beauty products. So, my organization will be divided into these three parts. Garment, footwear, and beauty products. Then, in garments, there will be production, sale, and marketing finance. Similarly, in footwear, there will be production, sale, and marketing finance. Similarly, in cosmetics, there will be production, sale, and marketing HR finance. So, this means that it will be done on the basis of functions. But, if we see the prima facie, then the first department which will be made will be made on the basis of products. If you run multiple products, that this is our department of garments, this is our department of footwear, this is our department of cosmetics. So, when there is a single product company, then it can be made on the basis of functions. But, if it is a multi-product company, then the first department which will be made will be made on the basis of products. Then, functional structure is seen inside it. See what is written. It is an organizational structure in which departments are created on the basis of products. Example, a large company may have two divisions, footwear and garments. Each division is multifunctional because in every department, there will be further production, marketing, and finance. Divisional structure is run by those who have a large variety of products. In general, if you are not able to understand that in the study, multi-product and single product is not written, then usually 95% of the companies have functional structure. Divisional structure is run in very few companies. It is run in those which are very big companies and which are multi-product companies. What is next? What are the advantages of this? In this, product specialization will come. Occupational specialization was there. In this, product specialization will come because only people related to that will be working in one product. Those who know garments, they will be working related to garments. Now, further divisions are there inside garments. That's why functional specialization is not there. Only product specialization comes there. Here, we get to see product specialization. Second is flexibility initiative. Flexibility initiative means that every department is working on its own. Means one department has no relation with another. Functional was still interrelated. There is nothing like this in divisional. Every department has its own finance. Every department has its own marketing, its own HR. So, there is no need to ask anyone else. So, there is a lot of flexibility. Decision making is very easy. Divisional heads are accountable for profits. Now, accountability is also easy here. If goals are not fulfilled, then you can see the P&L balance sheet of all three. Which department is not making profits? Is that department garments? Is that department footwear? Is that department cosmetics? Which department is not making profits? You can see. Next is expansion and growth. Expansion and growth is done. When you are making such big products, you are a multi-product company, then expansion and growth is bound to happen. Next is limitations. What are the limitations? Again, the same limitations. Conflicts can occur. Cost can increase. Why will the cost increase? Because every department has its own marketing, every department has its own finance. Now, instead of one manager, we need 3-4 managers. So, cost will increase. Supersede organizational interest in divisional interest. It is possible that the department thinks only about itself, and does not think about the organization. So, it comes there and here too. This is common. So, this is organizational structure. What do we study after structure? After structure, we study a small topic which we call how many types can an organization be? So, an organization can be of two types. Which are formal and informal. We can divide an organization into two parts. Either formal organization or informal organization. Sir, what is the difference between formal and informal? First of all, understand this, kids. No one makes informal organization. What is the meaning of informal? What is the meaning of informal? Informal means where there is no rule, regulations, where there is no boss, where there is no authority, responsibility, where there is no superior, subordinate relationship. Anyone is talking to anyone, anywhere, this is informal. Informal is parties, informal is functions, informal is events. These are informal. Organizations are always formal. From formal, informal groups are formed. Like, when I will go to work in an organization, there will be a discipline. There will be a fixed time to come, fixed time to go. There will be some rules and regulations. There will be someone my boss, someone's boss will be me. I will do everything over the mail communication there. There will be some rules and regulations of communication. So, these are the signs of a formal. Now, when we go to an organization, we meet friends there. We meet 2-4 people. We get to know each other. And then we are having lunch together somewhere, sitting together and discussing something. Now, that has become informal. So, from inside the formal, informal comes out. Understood? What is formal? It refers to the structure which is designed by the management. Management makes it to achieve its objectives. No one makes informal management. Okay? What will be there? What will be the features of formal? It will be made deliberately. Means, rules and regulations will be made deliberately. They are not made by themselves. Everything is very clearly specified here. Who has to report to whom? Here, focus is on work and not on interpersonal relationships. Your and my friendship, it doesn't matter to them. They want work. Okay? What is next? When you will do this, what will be the advantages? See, everything is clearly defined. So, it is easy to fix the responsibility. Whose fault is it? Who did a good job? Who did a bad job? It is very easy to find because everything is well defined. There is no duplication because there is clarity. Unity of command is made. You have made a chain. Superior is already defined. So, orders will come from one place. After that, accomplishment of goals. Your goals are achieved because a framework is very well defined. There is no duplication of anything. Cost will be less. Growth will be easy. So, goals will be achieved. After that, stability will be there in the organization. Sir, what kind of stability? Because, see, specific rules of behavior have been given. That how you have to behave, how to talk to whom. So, there will be stability. Right? What is next, kids? What are its limitations? Number one, sometimes procedural delay happens. Procedural delay means, see, there is a chain of communication. A will talk to B, B will talk to C, C will talk to D. Sometimes, in this chain, a very important opportunity is missed. So, many times, procedural delay becomes a limitation. Fails to recognize the creative talent of employees. Many times, you are not able to see the talent of the employees because major decisions, again, it is the same thing that will take top level, will take superior. So, the talent of the people below is being wasted. After that, non-fulfillment of social needs. Now, every employee has a social need that I should go to the organization and do some friendship. I should talk to people, there should be some fun in the organization. If that will not happen, then we will say that non-fulfillment of social needs is happening. The needs of the society are not being taken care of. Right? Next comes informal, kids. Informal, now I have told you, no one makes it. Informal becomes by itself. You have never tried to go to school to make friends separately. You sat together, you got up, you did fun, you got people like you, friendship happened. So, it is a network of personal and social relations. Now, see, there is no formal here. Nothing is related to work here. Everything is personal and social relations. When people associate with each other, then they become. Like, playing cricket matches, right? All this works. After that, kids, what are its features? It comes out of the formal only. It becomes spontaneously. It is not made deliberately. Just randomly, friendship happens with anyone at any time. There is no fixed line of communication. There are no standards of behavior. How will anyone behave in it? Nothing is fixed. Friends have fun with each other. Its advantages, whatever you have to spread, it will spread quickly from here. Faster information spread. If you don't have to tell anything, then you will say it in the group. I am telling you one thing, don't tell anyone. Just understand, it has reached everyone. Social needs are fulfilled, people become happy, share joys and sorrows. And the objectives of the organization are also fulfilled sometimes. That, brother, people are often demotivated in formal. So, they become happy in informal. They keep working. What will be its disadvantages, sir? Sometimes rumors spread. Wrong things spread. Resistance to change. Sometimes people talk to each other and make so many groups. They become against the organization. So, sometimes such things happen. After that, members sometimes keep focusing on group norms. They bring the same behavior in formal too. So, these things are not good for the organization. This is written here. Okay? After this, formal and informal became. Done, sir. What is left in the chapter, sir? One last topic is left, kids. What is that? Last topic is delegation. Sir, what is delegation? Kids, delegation means very simple. Let me tell you. Whenever your organization will grow, if you try to do everything alone, then you will not be able to do anything. You will have to join people with you. You will have to make a team. When you will make a team, then you will distribute your work to people. When you distribute your work to people, then you become a little burdenless. If the burden on you reduces, then you can think creatively. So, no matter how capable a manager is, he cannot do all the works on his own. He needs to transfer some work to his immediate subordinate. A manager has to transfer work to his immediate subordinate. This is called delegation. What does it mean? It is the transfer of authority from a superior to subordinate. Keep this in mind. There are only two people involved in delegation. One is me, who is the boss. And the other is my immediate subordinate. I will just transfer that. Entrustment of responsibility. I also give responsibility. And I also make accountability. Accountability means you will have to answer if you did not perform well. Okay. However, delegation does not mean abdication. It does not mean that I will run away from my work. Okay. I will have to answer. If someone trusts me and gives me some work, and I have done that work, then it does not mean that I will put everything on him. I will have to answer. Delegation does not mean work theft. Delegation means that you can reduce your burden. You can give work to people whom you trust to do a good job. But you cannot run away from accountability. Okay. The manager shall still be accountable for the assigned task. The manager will still be accountable. What is next? Elements of delegation. Sir, what all comes in delegation? There are three elements in delegation. First is authority. Sir, what is authority? Authority is the power to take decisions. When you go to an organization, then you will be given a post. You will also get powers related to that post. That is called authority. So what does authority mean? Right of an individual to command his subordinates. Where does it come from? It comes from your position. The job you are working in, the position you are in, you will get related powers from that. What is flow? It flows from top to bottom. How does top to bottom work? Superior can say that do something to the subordinate. So the one who is above can explain to the one below. So this works from top to bottom. Can delegation happen? Can you give your powers to the one below? You can definitely give. When a superior is on leave, then his subordinate only takes over that position. Right? So this is how it works. So what does authority mean? The power to take decisions. It can be delegated. Next is responsibility. Responsibility means responsibility. Now the job position you have been given, you also got responsibility along with it. So it is the obligation to perform the assigned duty. How does this responsibility come? From delegated authority. Means if A gave any work to B, delegated authority, then B got the responsibility. Only work doesn't come. It was read in the principles. Then A told that only authority won't come. Responsibility will also come. Right? It is written ahead that the flow goes up. Why does it go up? Because the one below will be responsible to the one above. He will tell him that yes, brother, it is my responsibility. After that, you cannot do delegation completely. You cannot run away from the responsibility. You can transfer to some extent. What comes last, children? Accountability. Sir, what is accountability? Accountability is giving answers. That if the result doesn't come, then who will answer it? Who will do the final answer? Accountability means being answerable for the final outcome. Where does it come from? It comes from responsibility. When you got the responsibility, then you will have to answer it. This also goes up. If A gave any work to B, then brother B will have to answer that why didn't he do it? Right? And delegation cannot be done. The one who has been given the answer, he cannot transfer further. If I have told you that I will get your syllabus done in 21 days, then I will have to do it. I cannot run away. If I run away, then it is wrong for me. Right? Whatever it is. This is delegation. This cannot be delegated. You cannot delegate accountability. Did you understand delegation, children? The last topic comes, son. We have decentralization. Okay, keep one thing in mind. We have importance of delegation and importance of decentralization. They are almost similar. Means they are almost same. I will teach you this now. First of all, you learn decentralization. What is decentralization? So children, decentralization means, see in delegation, a superior trusted a subordinate and gave him power. Superior gave power to subordinate. Right? Decentralization means that you made the organization in such a way that you have given power to every level. Top level is also making decision of its limit. Middle level is also making decision according to the power it has. Lower level is also making decision according to the power it has. This means the power is distributed to all the levels. Right? You also read this in the principles of FIOL. What was centralization? When decision making is done only at the top level. What was decentralization? When decision making is divided into every level. So delegation is only between two people. If that delegation is divided into the whole organization, that means extended version of delegation, that is called decentralization. It refers to the systematic delegation of authority through all the levels, all the departments. Decentralization implies selective dispersal of authority and believes that people are competent. When it is seen that people in your organization are competent, capable, resourceful, then you distribute the powers a little further This is called decentralization. So delegation, kids, there should be no confusion. Delegation is only between two people. Every organization has to do it. Decentralization, distributing powers to all the levels, all the organizations is not necessary. Every organization will do it. It is your wish. This is your wish whether you want to do it or not. Delegation has to be done. It is a deliberate process. Okay? After this, kids, there is a difference between the two. It will give you more clarity. Nature, see this is compulsory. This is optional. Whether you do it or not. Its purpose is to reduce the burden of the manager. Its purpose is to increase the role of subordinates. Freedom, here the superior has more control. There is less control, so there is more freedom. Third scope, it is limited. It is quite wide. It is only between two people. It is in the middle of the whole organization. Clarity has come, ok. Now see the merits of delegation first. When I will give work to my subordinate, then what will happen? Number one, effective management, I will be able to do good management. Because now I will get time, I am a manager I have given a little work to my lower level person. So I can work well, I will be able to do good management. Number two, the employee who has been given will get more opportunity, his development will be there. Third, he will feel quite motivated that yes, he has shown trust on me, it means I am doing a good job. There are many employees, why was I chosen?  So his motivation increases. After that, there is growth, why is there growth? Because you are already getting the future managers ready.  The person you gave responsibility to, if he did well, it means he is ready to take your position. So you can see growth.  Management hierarchy, a very clearly superior subordinate relationship is seen here. So management hierarchy develops better coordination, there is no overlapping, everything is perfect. So coordination is made well.  These kids come in the importance of delegation. Decentralization is the extended version of this, almost the same importance. See, relief to the top management, why is there relief? Because decision making is divided at every level. So top management can easily do its work. Initiative among subordinates, the subordinate gets the opportunity to take initiative, gets the opportunity to show his creativity. With that confidence develops in them.  What are you preparing? You are preparing managerial talent for the future because you distribute powers. So you can see who is doing a good job and who is doing a bad job. Next, there is growth, a lot of growth is seen, the productivity of the organization increases. Decision making is quick, why? Because now you don't have to take approval.  Every level can do its own decision making, no approval is required. What happens last, better control.  You can do evaluation of performance well. So it will be easy to make control of every level. So this was decentralization. The question of delegation decentralization comes up. So please read it very well from NCERT. And with this, ladies and gentlemen, our organizing also ends So we have done 5 chapters of part A also. 1, 2, 3, planning, organizing. Today you will have a lot of work.  You have to learn the whole chapter. You have to write and see. You have to write all these headings. Don't walk without writing. It won't be fun until you write. So keep writing, things will keep getting better. Alright, so for today guys, the work of business studies is over. Do put everyone in the comment section so that good motivation is made. You will also feel good that yes, studying is happening daily. I will meet you in the accounts video after a while. Till then see ya, take care, bye bye.

Transcript for:Effective Organizing in Management

Transcript for:
Effective Organizing in Management