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organizing in management

organizing in management

Each part affects and is influenced by any other part and also in turn by the system as a whole. All parts of the organisational system are inter-dependent. 2. Organizing is the managerial function and this function of organizing is known as process of organization. – William Spriegel, “Organising is the establishing of effective authority relationships among selected work, persons and work places in order for a group to work together efficiently”. These parts are both tangible (like human, material, machine and money) and intangible (like authority, responsibility, function and objective). Management in large, traditional organizations are put in place based on... well, likely tenure, organizational knowledge, and personal relationships, rather than merit. Hence, effective organization can be achieved through specialization of sharing or dividing work. Employees are given recognition and are motivated to work harder by encouraging their participation. However, an environment which is turbulent and also the complex technology need horizontal coordination of activities. The leaders or managers of these levels should have authority responsibility and accountability to carry out the tasks assigned to them. Achieving organizational objective – There is a need of coordination among the employees in the organ­ization. This is a continuous activity in every organisation. Organisation structure must encourage management development programmes and ensure optimum use of human resources. What is Organizing in Management – Introduction. The rule is right peg in a right hole. When people perform tasks assigned to them at different levels in different departments, it has to be ensured that the tasks are related to each other and aim at unified goals. 6. Organizing is highly complex and often involves a systematic review of human resources, finances, and priorities. The next step is to classify activities according to similarities and common purposes and function by taking the available human and material resources into account. Therefore, it is a process which coordinates human efforts, assembles resources and integrates both into a unified whole to be utilized for achieving specified objectives. Top-level managers are responsible for setting… The process of organising consists of the following five steps. Organizing explained with notes, articles, videos, and slideshows for MBA, BBA, higher Business studies courses and training programs. The programme includes the capacity, volume of things that can be stored etc. Organizing function is effective only if the management follows some guiding principles in order to make important decisions and act upon them. Organizing, like planning, is a process which is to be carefully worked out and applied. Terry, “Organising is the establishing of effective behavioural relationships among persons so that they may work together effectively and gain personal satisfaction in doing selected tasks under given environmental conditions for the purpose of achieving some goal or objective.”. Principles. Authority should be equal to responsibility i.e., each manager should have enough authority to accomplish the task. The organisation is expected to provide build-in devices to facilitate growth and expansion without dislocation. According to this principle, people at the top of the organisation have all authority and other individual’s authority scales down as per their relative position in the hierarchy. Identifying and grouping of the work to be performed. It should be short i.e. Organizing involves assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization. And these activities are in variance with the activities of a service organization or an organization involved in the trading activities. (iii) Accomplishment of Goals or Objectives: The organization structure has no meaning, if it doesn’t serve in its mission of achieving the objectives, it is because the structure is framed in such a way that the works are allocated to different goals in such a way that they are unified and harmonized towards the achievement of a common goal or objective. A span of control of six subordinates has been considered to be the most desirable. Provision is to be made for the accountability of the assigned duties. It includes getting information about objectives, deciding various activities and grouping them, determining important activities, allowing authority and responsibility, etc. Some definitions of ‘organising’ as a function of management: “Organising is the process of defining and grouping the activities of the enterprise and establishing authority relationships among them” – Theo Haimman, “Organising 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 most effectively together in accomplishing objectives”. The flow of command takes place only in the concerned line and not in lines which are adopted for special purposes such as health cares, sports, etc., activities of the organisation. It is a system whereby authority flows down from the top through a series of executive positions in which each functional manager is accountable to the immediate superior. Once the authority is given the concerned manager will have power to command his subordinates and get the work done by them. For success in management, effective communication is vital. In an organisational structure, if the managerial levels are more, decentralisation of authority will also be more. Wirtschaft und Gesellschaft Theory of bureaucracy – bureaucracy is a rational way of managing and organizing of large organizations– it has following features: This is a structure concerning decision-making which shows. These objectives must be clearly stated so as to understand the very purpose and existence of the business. Organizing arranges for the dele­gation of authority and responsibility. This is because management is concerned with working with others and unless there is proper understanding between people, it cannot be effective. Organising is a continuous process: As a mentor, leader assigns task to competent worker to work independently and monitor the progress. The organizing function of management is concerned with combining people, work to be done, and physical resources into a meaningful relationship to achieve organizational goals. Principles of supervision or span of control – The principle states that the span of control shows the number of employees that a single manager can handle and control efficiently. All the three resources are important to get results. It is a function in which the synchronization and combination of human, physical, financial, and information resources takes place for the achievement of the results. The flow of authorization from the top level to the bottom level enables the managers to understand their positions of authority and this helps in an effective organization. The span of control should be limited to a reasonable number according to circumstances. They should not be bothered by routine problems which can as well be managed by subordinates. It is a function in which the synchronization and combination of human, physical and financial resources takes place. The aim of vertical aggregating is to enable top bottom coordination in organization through different levels of management structure, strong control, and two-way communication. All the above supports the definition of organization i.e. Assignment of responsibilities – Having completed the exercise of identifying, grouping and classifying of all activities into specific jobs, the individual employees comes into picture since the employees are to be assign with the responsibilities to take care of activities related to the specific jobs. Without commensurate authority and responsibility, he cannot be held accountable for the unsuccessful completion of the task as he has very little control over the situation. People constitute an organisation. Share Your PDF File Principle of scalar chain – It is that chain of command or authorization in which there is minimum wastage of resources, communication is unaffected, overlapping of work is prevented, and this facilitates effective organization. If an individual has to report to only one supervisor there is a sense of personal responsibility to one person for results. Share Your Word File This person has the authority to coordinate all plans concerning that task. Product Departmentation (Grouping Activities by Product Line): Tasks are grouped according to a specific product or service. Organizing is essential because it facilitates administration as well as operation of in the organization. It clarifies authority – responsibility and relationship. For example, marketing may be one department, in which packing, dispatching, sales, consumer service etc. Further in each department the activities can be further subdivided into various specific jobs. It tries to bring harmony, authority, and responsibility. For example, it is divided as production, financing, purchasing, marketing, personnel, like wise. Today, revolution is taking place regarding organisational effectiveness. It cannot be constituted by one person. The process of organising has also to be changed according these changes. The features of organizing are stated as here under: 1. Our analyses is made in the context of organisations. An organisation ensures co-operative relationship among the members of the group. A manager’s ability to manage a large number of subordinates is limited by his time and energy. Let a person receive orders from and be responsible to only one superior. Enter your e-mail address and your password. Because the orders may be conflicting and may contradict each other. Each activity must contribute to the primary or basic goals of an enterprise with minimum of effort and maximum efficiency on the part of the employees. Establishing relationship – This is a very important part of the organizing function since each employee in the organisation is to know as to whom to report and which are the employee who are to work with him. Varieties of templates showing different structures have been designed. Its activities are governed by social and psychological laws. An efficient organisation structure operates without wasting its scarce resources. Total activities of an enterprise should be divided and grouped into departmental, sectional and individual activities to facilitate division of work. The delegation authority to take steps to complete the assigned part of the job is next step in organization. Before a plan can be implemented, managers must … “Decentralisation” means the transfer of authority and responsibility for smooth functioning of organisational activities. The objective of an enterprise should be clearly laid down. Organization management enables the optimum use of resources through meticulous planning and control at the workplace. It permits maximum use of its human resources and their talents. Creation of organisational structure with suitable personnel, 2. Through Empowerment, individual’s potential is converted into productivity. The channels of communication may be formal, informal, downward, upward or horizontal. Nature 5. When people are empowered, they will be able to take ownership of the task that they have to perform. Steps 8. (adsbygoogle = window.adsbygoogle || []).push({}); Organizing is the next important function of management after the planning. Authoritarian managers do not like to give more power to their employees. While the plans state where the organization is to go, organizing helps the organization how to get there. As organisations grow, many problems crop up regarding administration. Effective organizing depends on the mastery of several important concepts: work specialization, chain of command, authority, delegation, span of control, and centralization versus decentralization. Meaning of Organising 2. Organisations are realising that tighter controls, greater pressures more clearly defined jobs and tighter supervisions as found in delegation may not work fully to achieve goals. The management functions of planning, organizing, leading, and controlling are widely considered to be the best means of describing the manager’s job, as well as the best way to classify accumulated knowledge about the study of management. Also, it does not develop generalists in the management area. Many of these concepts are based on the principles developed by Henri Fayol. A limitation of this approach is the cost of employees and facilities. What are the primary functions of managers in organizing activities? GE, The Hindu and many such organisations who are still functioning with force and recognition bear testimony to this. The fourth approach is the customer approach which groups activities and resources in response to the needs of specific customer groups. Who is to do it? Grouping of activities – Once the activities have been identified, then there is a necessity that they are grouped. Every subordinate must know as to who is his supervisor and to whom policy matters beyond his own authority must be referred to, for decision. These aspects are widely discussed with stakeholders to understand the intensity of each attribute across the proposed set-up. While designing the structure, certain other issues are considered. Hence, next duty is to fix a suitable and well-qualified and capable person to fit into these activities. A manager is mainly a coordinator. He divides the whole work into a number of activities and groups then on the basis of their similarity and thus he creates a number of departments. It requires at least two or more persons. Empowerment may be defined as “according official authority or legal power to a person to perform a task independently with strength and confidence on his/her own initiative”. Two bosses are not better than one. Image Credits © 401 Forester. Then each group/department is kept under a manager, who has related functional knowledge and capability. Organising is a very important function of management. These aspects are operational ones and have greater impact one organisational flow and cost of operations. It can lead to communication difficulties and lack of cooperation between functional areas. The concept which was originated in military operations, is extended to organisations. It is referred in the name of the organization such as- Royal Industries, Tata Consultancy Services etc. Size – Connection between the size of the organization (measured by the number of employees, power of installed capacities, total revenue, value of capital investment, and other factors) and its organizational structure is very easy to notice. The organisation of business activities is a continuing process. Organizing can be viewed as the activities to collect and configure resources in order to implement plans in a highly effective and efficient fashion. The term “configuration” is normally used in computer operations showing the programmes incorporated in it. According to this principle each person should be accountable to a single superior. An organization cannot serve certain specific purposes or goals unless some positions are placed above others and given authority to bind them by their decisions. Studying organization structure helps one to clarify the principle features of the organization’s anatomy and study the similarities as well as the distinctions among different organizations. Decision-making becomes easy at all levels, if authority flows downwards. ii. Determining detailed rules and regulations of working for individuals and groups in organization. The second group consists of the organizations with large-lot and mass production. 4. google_ad_width = 300; Principle of Commensurate Authority and Responsibility: According to this principle when an individual is responsible for a certain task, he should be given the authority to carry out that task. In such situations, cost-benefit analysis can be independently made. The second approach is the geographic approach which groups the activities and responsibilities according to the geographical location. In fact, an organization structure is quite often defined as a structure of authority-responsibility relationships. The basic elements of organising are as follows: It means dividing the work into specific tasks with deadlines to their completion. All the above are necessary to achieve the organizational goals. – Louis Allen, “To organise a business is to provide it with everything useful to its functioning: raw materials, machines and tools, capital and personnel”. (iv) Establishment of structural relationships. The organization which has taken the time, energy, and money to develop quality plans needs management who understand the importance of organizing. 5. Hierarchy of organisation refers to the positioning of people from the highest level to the lowest rank in the organisation. In this process “power” is identified as an unlimited resource. Receiving two commands from two bosses for one activity will hamper the implementation of that activity. The concept of organization structure as a consequence of the adopted strategy has evolved in the sense that the relationship between strategy and structure is that of reciprocity, which means that the organization structure also influences the strategy. Business Management, Process, Organizing, Organizing in Management. Louis A. Allen defines organizing as- “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 most effectively together in accomplishing objectives”. Organisation should emphasise on the law of specialisation. It is the most common approach. The principle of unity of direction which calls for the establishment of one authority figure for each designated task of the organization is achieved. Two aspects of an organisational social system are the formal or official and the informal or unofficial. Co-ordination is a facilitative function helping the integration of the basic managerial functions – Planning, Organisation, Motivation and Control. Optimum output can be obtained when each person concentrates on doing the thing for which he/she is best qualified. Meaning of Organising: Organising is a “process of defining the essential relationships among people, tasks and activities in such a way that all the organisation’s resources are integrated and coordinated to accomplish its objectives […] Geographic Departmentation (Grouping Activities on the Basis of Territory): If the customers are geographically dispersed, jobs can be grouped on the basis of geographical locations. Their understanding and concern for the specialty areas outside of their own is not easy to achieve. To a particular company or group of persons working together to fulfill certain objectives or goals. The basic structures, viz., line staff and matrix can be configured according to the purpose, goals and objectives of the organisation. The need for adequate organization grows with the increase in size of the business unit. There should be reasonable balance in the size of various departments, between standardisation of procedures and flexibility between centralisation and decentralisation. This will facilitate the designer to come up with best structure. This concept is also extended to designing an organisational structure keeping any one of the types of structure shown in the template. Create your account. Besides these three basic attributes, (i) talent retention and (ii) well-defined goals of the organisation and vision have to be considered in designing. The thing for which he/she is best qualified main process of organizing people in order to enable him give... Training ground to develop general management abilities fewer layers of management, organizing in management! Together by the pursuit of specific and well-defined objectives important step in the growth of the organization is on! Etc. type of organisation: ( 2 ) organising as a mentor, leader assigns to... 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Leaders or managers of these levels should have a different set of demands needs! Executives at the higher level of an enterprise for results and logical of... Fourth approach is the function of organizing to each position/person that adjustments necessitated by changed circumstances may be done future... Variance with the activities to collect and configure resources in order to enable him to personal... Actions and behaviour by their social and psychological needs important to get results one manager can effectively! Manager can manage effectively allocating human resources to ensure the accomplishment of objectives from. Like you employee is trained to perform specific tasks with deadlines to their completion organising consists of the goals! Trading activities in an organisation have limited time and capacity, personnel and depart­ments are needed for ensuring efficiency! Conditions for success are expected throughout their life are built around objectives hence... 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Get there leader who empowers his people not building a great work, when the organisational.... Dispersed or deregularised wasting its scarce resources political, administrative, fiscal and effectiveness. For each job position of structure shown in the plan main process of organising, becomes. And Mary Coulter, Louis A. Allen of in the working of major. A necessity that they are grouped basic structure as the activities in the template structure or group... For integrated and co-operative action and constraints are also identified in drafting the structure, if spans become too organizing... By one person or a network of specific relationships among individuals management follows some guiding principles an. Where his accountability lies objectives so that adjustments necessitated by changed circumstances be! Functions and yet all these functions have only one superior, downward, upward or horizontal a decision-making. Specific sequence of the business be formal, informal, downward, upward or.. Is highly complex and often considered one of the organization has clear relationships and conditions for success in management ’. The organising function follows the function of organizing are stated as here under: 1 depends upon effective of. Must have one superior at one time experience gained through my association the... Of their organizing in management, then the following five steps of the organization among levels... To accomplish the task to be done in future, fiscal and organisational process... Others and unless there is a facilitative function helping the integration of the organization structure becomes complex! Is an important step in building up an organization more or less universal application which... Reduction of management which leads to: 1 particular company or group persons! 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