 Well friends, I am Dr. Prakash Sarunke from Mechanical Engineering Department of Valshan Institute of Technology, Solapur. In this series of industrial management subject, we shall discuss principles of organizing. In principles of organizing, one of the first lecture, it is expected that students will explain meaning importance and role of organizing in an industrial unit. Further, students will be able to describe few basic principles of organizing. Let us first try to understand what do we mean by the word organization. Can you tell? Just think, we are using this word very often, organization. But what does it signifies? Yes, can you tell? Yes, it is group of people, no doubt. But is it just a crowd of people gathered somewhere or gone on some tour or like that? No, though it is group of people, say it is formally bound in some structure. Truly speaking, if we wish to go for some definition inverse of the famous author's coons and where each organization implies a formalized intentional structure of roles or positions. So if we try to understand, I mean meaning of this, basically it says that it is a formalized. So formalized means formal, say with some designation, with some authority, with some kind of registration. So it is a formal organization, formal group or a formal structure and with intention, intentional means with some objective, some well-defined objectives, structure, so it is a kind of structure of roles or position. So people in that particular group or in the organization occupy these roles or positions, so which are defined in that particular, I mean organization structure. So people may come and go, but structure will remain there, roles will remain there. For example, the sales manager. So it may be Mr. Despande or Mr. Kulkarni or anybody else for that matter, but the post of sales manager will be there in the organization, so that is the meaning of structure of roles or positions. Now, organizing. Organizing means designing the organization structure to achieve the objectives. Organization structure, we have seen it is a structure of roles and position. So how to, I mean design that, so that designing process means organizing. So organization process involves different steps, let us see one by one. Identification and classification of required activities means, say for that particular organization, say what are the goals, what are the functions, so that way to study, where to identify, what are the different activities, classify them in different groups, similar activities are like that. Then second step will be grouping of the similar activities to achieve the goal, achieve the goal. Goal that is defined, say by that particular company, that particular enterprise, say that particular organization, so that goal has to be achieved. Assigning, now these groups, we have formed the groups, now these groups are to be assigned to the managers or say group leaders for accomplishment of these goals. So each group, so that activities will be headed by some group leader, some manager you can call by different names that we shall be studying later on. Then the next step is delegate the necessary authority to the manager. So to carry out the activities, to accomplish the goals, so what are the necessary authority that are, say I mean given, delegated to the manager. And then we have to coordinate among different groups on horizontal as well as vertical level or diagonal level in the organization structure. So all this, this is the entire process of organizing. Now if we see there are normally formal and informal organizations, so these two words are very commonly used say in industrial enterprises. Say formal means the intentional structure of roles in a formally organized enterprise just now what the definition that we have seen, so that is for the formal areas. It has clearly defined position, task and goals. And it is bound together with formal authority and reporting relationships. So there are formal, I mean relationships, authorities are given and like that. While there is informal organization, it is a group that arise when people in the organization associate with each other informally. In any organization, it will be any organization for example say companies say Tata Motors. So it is a big company, there are some thousands of employees working, but few of them may be coming to form say cricket club, some tea club like that. So there may be some groups, so which are formed informally. So there is no formal recognition by the authorities to them, but say they will come together form a group. So that kind of groups within the organization that is known as informal group or informal organization. Now for forming the organization structure or that is that organizing there are certain basic principles that are followed as a guidelines, so that it becomes easy to develop or build the organization structure. So one of the basic principle is division of labor. So division of labor or so it leads to different departments or different sections in within the organization. So for division of labor, what we do grouping of similar activities, similar activities are grouped together. For example some kind of machining activities, so they will be grouped together. Then sailing activities, they will be grouped together. Likewise, so we will be grouping the similar activities and that leads to specialization. Selling people will be doing only sales activities, so they will get specialized in say that say knowing the customer, how to talk with the customer, product knowledge, whatever that is required for carrying out their activity effectively, so they become specialized. So specialization is the advantage as well as the feature of this division of labor. And now since different departments are there, so we have to coordinate among different departments, so that becomes naturally necessary. Now one more principle that we have to remember is span of management. Now span of management, let us try to understand the word span. There is a limit to the number of persons a manager can supervise effectively. So limit, so one manager, how many persons he can supervise under him, some 5 people, 10 people, 15 people, 20 people, so that number, so that is limited, it is limited. So one cannot say I mean just I mean supervise immediate subordinates to him say I mean infinite number, so there will be some limitation. Now because of which what happens, say organization levels are created. Now a top for example is top MD say we will be managing suppose 4 to 5 say general managers, then managers will again general manager will again go for some deputy managers or section manager below them, section manager like below them supervises like that, so there will be different levels and finally there may be workers working under them, so there will be different levels. So they are created due to this limitation or due to the span. Now as the number of organization levels increase say vertical level, I mean figure say what will happen, so it will lead to rising cost naturally different organization levels are there, so different post say they are different salaries and all these things. Secondly it will lead to communication barrier, now as the level changes say there will be that free flow of commission, so there will be one same in barrier say that will be there and say as a result say planning and control becomes more complicated as number of organization levels increase, so that is naturally because there will be a barrier to communication, there will be so many other aspects of authority, responsibility, their relationships and like that, so all that so I mean complete is the planning and control. However it is essential for this we have taken the references from Essentials of Management by Harold Koons and hence Verich the book from McGraw Hill Education Private Limited. Do you have any doubts or questions? Okay thank you.