Organizing

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

Importance of Organisation
(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 

Principles of Organisation
(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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