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Principles of Management
BBA 1th Semester
Mashal Institute of Higher Education
Chapter No. 03
Organizing
Lecturer Kamran Khan
MIHE
2
Introduction to Organizing
Organizing is a management function. It is the second
function of all managers and all managers will organize
for the success of the business.
Lecturer Kamran Khan
MIHE
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Topic-1 Definitions of Organizing:
1. Organizing means “combining human and non-human
resources to achieve objectives”
2. The management function of organizing involves
identifying activities, making departments for these
activities, giving responsibility and authority to the
employees of the departments and creating a coordination among the departments to achieve the
objectives.
3. Arranging the resources to achieve objectives.
Lecturer Kamran Khan
MIHE
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Topic-2 Organization and types of organization:
Organization: Group of people working together towards
the achievement of goals.
Types of organization:
 Profit organization:
organizations established to earn profit are called profit
organizations.
Examples: Safi airlines, Kabul Bank, Kardan,…… etc.
 Nonprofit organization:
Opposed to profit organization there are nonprofit
organization, the main motive of which providing some
kind of services to the society like, providing education,
medical services, etc.
Examples: WHO, IRC, UNICEF etc…..
Lecturer Kamran Khan
MIHE
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Manufacturing organization:
The type of organization involve in manufacturing of
some product like cars, shirts, shoes, etc
For example: Uniliver, P & G, DELL, Sony, Nokia,…….

Lecturer Kamran Khan
MIHE
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Lecturer Kamran Khan
MIHE
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Topic-3 Characteristics of Planning:
Manufacturing organization:
the organizations who make some products like cars,
shirts, shoes, etc.
Examples: Peps
i Company, DELL, Sony, Nokia…….etc.

Lecturer Kamran Khan
MIHE
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Service organization:
The organization whose purpose is to provide services
to the society like banking, insurance, hospitals, are
called service organizations.
Examples: Safi Airlines, Azizi Bank, Kardan Institute of
Higher Education,………………………..
 Public organization:
Public generally means open to outsiders, like common
man can become a stake holder in the organization. On
the other side in most of the countries the organization
which are government owned are called public
organizations

Lecturer Kamran Khan
MIHE
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Private organization:
The organizations that are privately owned are
called private organization. Outsiders can not
become owner.
 Formal organization:
An organization having the following points is a formal.
a.
Combination of two or more people.
b.
Working to achieve some common goal.
c.
There are strict rules and all will follow
d.
There are duties and authorities.

Lecturer Kamran Khan
MIHE
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Informal organization:
These are the groups of people who have made the
group within a formal organization for social
activities.

Lecturer Kamran Khan
MIHE
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Topic: Organizational Structure
Organizational structure is a design which shows who is at
the top, middle, low and who are non-managers. This
design shows who is senior and who is junior and who
will repor
t to whom and who will receive from whom.
Lecturer Kamran Khan
MIHE
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Lecturer Kamran Khan
MIHE
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Topic: Span of control
Span of control is a span of supervision which depicts the
number of employees that can be handled and controlled
effectively by a single manager. There are two kinds
types of span of control:
 Wide Span: one employee is supervising many
Subordinates.
 Narrow Span: one employee is supervising few
subordinates.
Lecturer Kamran Khan
MIHE
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Lecturer Kamran Khan
MIHE
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Lecturer Kamran Khan
MIHE
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Advantages of wide span of control:
 Delegation of authority
 Few levels of management
 Strict rules
Disadvantages of wide span of control:
 Overloaded supervision
 Danger of control
 Requires high quality of management
Lecturer Kamran Khan
MIHE
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Advantages of narrow span of control:
 Close supervision
 Close control
 Fast communication
Disadvantages of narrow span of control:
o Superiors are too involved in the subordinates’ work
o Many levels of management
o High cost due to many levels of management
o Too
distance between low and top level of
management
Lecturer Kamran Khan
MIHE
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Departmentalization
The process of grouping the functions and activities in an
organization is known as departmentalization.
what is a department?
A department is a separate section, section or part of the
organization where a manager is given authority and
responsibility to carry out activities.
basis of departmentalization:
By: function, product, process, location, customers.
Lecturer Kamran Khan
MIHE
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1. Departmentalization by function:
Making departments on the basis of work to be done in
the organization is called departmentalization on
the basis of functions. For example, production
function, marketing function, finance function,
personnel/HR function, and research and
development function.
2. Departmentalization by product:
When an organization makes more than one product,
then making departments on the basis of products
to be made is called departmentalization on the
basis of product.
For example, Sony company.
Computers department, Mobile department, video
games department……….
Lecturer Kamran Khan
MIHE
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3. Departmentalization by process
Making departments on the basis of steps in which a
product is made. Like in Textile Company have
processes of receiving raw material, separating,
spinning, weaving, bleaching, dyeing, inspecting,
packages etc.
4. Departmentalization by location
Making departments on the basis of customers. Like
separate department for children, young, old, male
or female. Like in the clothes or shoes outlets.
Lecturer Kamran Khan
MIHE
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