Organizing
What is organizing ?
According to Theo Haimann " Organizing is the process and grouping the activities of enterprise and establishing the authority relationships among them ".
While according to Louis Allen " Organizing is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work more effectively together in accomplishing objectives " .
Steps in the process of organizing
(source:google image)
While organizing, the top managers carry out following
important tasks:-
1. In this general eight-stepped process, the top management
first fixes the common objectives of the organisation.
2. In the second step, they (top management) identify all the
activities (i.e. works or jobs) which are required to achieve these predefined
objectives.
3. In the third step, they group similar (related) activities
and make their individual departments.
4. In the fourth step, they define the responsibilities
(duties) of all the staff members (employees and managers).
5. In the fifth step, they delegate authority to staff members.
6. In the sixth step, the authority relationships between
superiors and subordinates are established.
7. In the seventh step, they provide the staff members with all
the essential requirements like money, machines, materials, etc., which are
used for achieving the objectives.
8. In the eighth final step, they co-ordinate the efforts of
all staff members and direct it towards achieving the common objectives of the
organisation.
Importance of Organisation in Building Management Structure
(source: UNCHR)
1. Facilitates Efficient Management
A good organisation avoids confusion, delays and duplication
of work. It increases the promptness and efficiency, and it motivates the
employees to do their best. All this results in efficient management. Thus, we
can say, good organisation facilitates efficient management.
2. Optimum Utilization of Human Resources
A good organisation facilitates division of labor and
specialization. It helps in selecting the "Right person for the right
Job." It clearly defines the authority and responsibility of each
employee. It also motivates them to do their best. All this results in optimum
utilization of human resources.
3. Helps in Growth of Enterprise
A good organisation helps in the growth, diversification and
expansion of the enterprise. Today's big and giant enterprises are the results
of their best organisation.
4. Utilizes Science and Technology
A good organisation utilizes the benefits of science and technology.
It provides the industries with the latest machines. It provides the consumers
with the latest products. This results in cost reduction and maximum
satisfaction.
5. Facilitates Co-ordination
A good organisation co-ordinates the activities of different
individual, groups and departments in order to achieve the objectives of the
business.
6. Encourages Creativity, Initiative and Innovation
A good organisation encourages creativity in the enterprise.
This results in brings new ideas, imaginations, visions, methods, etc. It also
encourages initiative and innovations.
7. Motivates the Employees
A good organisation provides the employees with a better
working environment, good remuneration, reasonable freedom, etc. All this
results in job satisfaction for the employees. So a good organisation motivates
the employees to give good results.
8. Facilitates Delegation of Authority
A good organisation facilitates delegation of authority.
That is, the top executives can keep the important work for themselves, and
they can delegate (surrender or give) the less important work to their
subordinates. This encourages the subordinates to develop leadership qualities
and to achieve the objectives of the business.
Principles of Organisation in Management
(source:UNCHR)
A principle is a rule which is generally accepted by all. It
is a guideline for solving problems and difficulties. The principles of
organisation are called as "Classical Principles" because they are
old and some of them are adopted from Henry Fayol's principles of management.
The most common principles of organisation are Objectives, Specialization,
Co-ordination, Authority and Responsibility.
Some Principles of Organisation used for Designing an
Organisation are:-
1. Objectives
The objectives of the organisation should be clearly
defined. Every single individual in the organisation should understand these
objectives. This will enable them to work efficiently and help the organisation
to achieve its objectives.
2. Specialization
Every single individual in the organisation should be asked
to perform only one type of function (work). This function should be related to
his educational background, training, work-experience, ability, etc., in other
words, there should be a division of work and specialization in the
organisation. This will increase the efficiency, productivity and profitability
of the organisation.
3. Co-ordination
The efforts of all the individuals, departments, levels,
etc. should be co-coordinated towards the common objectives of the
organisation. Therefore, managers must try to achieve co-ordination.
4. Authority
Every individual should be given authority (power) to
perform his responsibilities (duties). This authority should be clearly
defined. Authority should be maximum at the top level and it should decrease as
we come to the lower levels. There should be a clear line of authority which
joins all the members of the organisation from top to bottom. This line of
authority should not be broken. It should be short, i.e. there should be few
levels of management.
5. Responsibility
The responsibility (duties) of every individual should be
clearly defined. This responsibility is absolute, i.e. it cannot be delegated.
The responsibility given to an individual should be equal to the authority
given to him.
6. Span of Control
Span of control means the maximum number of subordinates
which one superior can manage effectively. The span of control should be as
small as possible. Generally, at the top level, the span of control should be
1:6, while at the lower level, it should be 1:20. Span of control depends on
many factors such as nature of job, ability of superior, skill of subordinate,
etc.
7. Balance
There should be a proper balance between the different
levels, functions and departments of the organisation. Similarly, there should be
a proper balance between centralization and decentralization, authority and
responsibility, etc. If there is no balance between these factors then the
organisation will not function smoothly.
8. Chain of Command
The chain of command should be very short. That is, there
should be very few levels of management. If not, there will be many
communication problems and delays in execution of workflow.
9. Delegation
Authority and responsibility should be delegated to the
lowest levels of the organisation. Therefore, the decisions can be made at the
lowest competent level. The authority delegated to an individual should be
equal to his responsibility.
10. Continuity
The organisation structure should have continuity. That is,
the enterprise should be able to use the organisation structure for a long
period of time. The organisation structure should be able to achieve not only
present objectives but also future objectives of the enterprise.
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