Hence, the common features, we can identify are (characteristics of organization). It requires at least two or more persons. Because of existence of great varieties of organisations, there can be no standard principles which could be followed in all individual circumstances. Two bosses are not better than one. In the words of Terry “Organizing is the establishing of effective behavioural relationships among selected work persons, and work place in order for the group to work together effectively.”. Before publishing your Articles on this site, please read the following pages: 1. These aspects are widely discussed with stakeholders to understand the intensity of each attribute across the proposed set-up. 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. Employment requires shared values, analysing identical or typical situation, identifying commonsense solutions and defining common sense as value. The organization's tradition of management. An organisation is a social system. Image Credits © 401 Forester. All of these characteristics imply an organic structure of the organization. He can only proceed to do the work, when he is given adequate authority to proceed to do the work. The second group consists of the organizations with large-lot and mass production. In such situations, cost-benefit analysis can be independently made. It permits maximum use of its human resources and their talents. This establishes a structure of relationships in the organization which helps to ensure that the organization has clear relationships. For each class of activities, there will be a department and for each sub-class there will be section of the department and so on. 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. First the goals and objectives are understood and then divide the work into functional groups into practical units of similar activities. Co-ordination express the principles of organisation in toto; nothing less. It is a continuous chain of authority that links the most junior worker to the top brass. This approach assembles the activities of creating, producing, and marketing each product into one department. 1922 Max Weber. If many bosses give order to one individual, the situation leads to confusion and chaos. Effective organisation must include specialisation. Organization management enables the optimum use of resources through meticulous planning and control at the workplace. Each subordinates must have one superior, to whom he should be answerable. This means, he will not be able to produce satisfactory results, the concept of span of management has a significant influence on the overall performance of an enterprise and hence its importance has been recognised by modern management experts. Particularly in medium and large-sized business houses many levels of management prevail. 5. Making the rational division of work into groups of activities and tying together the positions representing grouping of activities for accomplishment of desired objectives is the function of management and this function is known as organizing. Koontz and O’Donnell defines organizing as- “The establishment of authority relationships with provision for coordination between them, both vertically and horizontally in the enterprise structure.”. “Decentralisation” means the transfer of authority and responsibility for smooth functioning of organisational activities. 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. 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. Forms of aggregating – The essence of aggregating in the process of organizational structuring is a result of the need to control, coordinate, and communicate, which implies linkages on vertical and horizontal bases. It is the process of establishing orderly uses for all resources within the management system of the organization. Various posts in different departments of the organisation are mostly permanent. Organizing, like planning, is a process which is to be carefully worked out and applied. The second approach is the geographic approach which groups the activities and responsibilities according to the geographical location. Organization management refers to the art of getting people together on a common platform to make them work towards a common predefined goal. Employees are given recognition and are motivated to work harder by encouraging their participation. If customers have a different set of demands, needs, and preferences then the following of this approach is appropriate. 6. Cost is governed by – (i) manager’s perceptions to look at their division and relegating back the overall objectives of the organisation, (ii) costly duplication of services and (iii) increase in cost to obtain information required by the submits. Share Your PPT File. Practices such as decentralisation, considering the span of management, chain of command, unity of command, delegation and empowerment, designing the structure and configuring it, establishing departments as per directions, formulating committees, preparing manuals have been the order in every enterprise. This organizational structure is to be responsive with the changes in the plan. Defining and determining responsibility and authority for each job position. Organizing is a function of management that arranges people and resources to work towards a goal, according to the Encyclopedia of Small Business. While the plans state where the organization is to go, organizing helps the organization how to get there. Responsibility to perform a task, is given to a subordinate by the supervisor and the subordinate commits mistake, in such situation the supervisor is answerable to his superiors. Organizing function follows the planning function. The basic elements of organising are as follows: It means dividing the work into specific tasks with deadlines to their completion. Grouping must ensure that each supervisor and manager is not over burdened with subordinates. In other words, many factors affect them and changes have to be introduced accordingly. Effective and efficient management of the organisations are expected throughout their life. Learn about: 1. It indicates the number of persons that a manager can manage effectively. Flexibility – The organizing process should be flexible so that any change can be incorporated as and when required. They have to be considered for organisational effectiveness. It is also called a chain of command. Organization embraces the duties of designating the departments and the personnel that are to carry on the work, defining their functions and specifying the relations that are to be exist between departments and individuals. Each part of work is to be performed by one person or a group of persons. It is a managerial function that aims to adjust and interlink activities of the business. Considering the relationship between technical complexity of the organization and its structural characteristics, there are three groups of the organizations. If the manager is made to supervise a large number of subordinates, not only will he have mental and physical strain; but also his supervision may become ineffective. Wide spans of management lead to flatter organizational structures with fewer layers of management, and are thus considered more efficient. Organising or Organizing in management refers to the relationship between people, work and resources used to achieve the common objectives (goals). d. Critical tasks should be discussed and should not be delegated to do in a routine way. If the competent people are not available, the task has to be delegated. Establishing relationship among various job positions. For instance, the initial work of production, marketing and finance, the authority of managers and the responsibilities of the workers and their relationships towards each other must be clearly described to all the employees working in the department. The organisation social system is dynamic, in the sense that inter-personal and group relationships within it, keep on changing and are not dormant. 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”. It should pass through the unit head of another unit except under permitted circumstances. More delegation and a large number of managers are required as his business grows from that of a small company, with its nucleus of a few key people. A good organisation involves precise and systematic distribution of work and responsibilities between managerial group and administrative group. 3. A limitation of this approach is the cost of employees and facilities. Strategy – Starting from its internal potentials, chances and threats of environment, the organization designs its strategy for the realization of the objectives. An efficient organisation structure operates without wasting its scarce resources. The first group consists of the organizations which are having individual or small-lot production. Once the functions are decided and allocated to group of people or an individual next is to see that all the activities of the groups or individuals must be directed towards the organizational goals. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. 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.”. The examples of configured charts are – (i) Business organisation chart, (ii) Photo organisation charts fixing photos of every individual working at different levels of organisational hierarchy, (iii) company organisation chart, (iv) city organisation chart showing different parts of a city with different hierarchical structure in each branch, (v) city organisation chart showing different branches of an enterprise functioning in different parts of a city with different hierarchical structure in each branch, (vi) Marketing organisation chart showing different sub-functions of marketing plan of a firm, (vii) Human Resources Development Chart, (viii) Financial operations chart, (ix) Team organisational chart, (x) Organisation charts for different activities with hierarchy like, police, school, Hospital, Hotel, IT company, consumer marts, etc. In fact, an organization structure is quite often defined as a structure of authority-responsibility relationships. Delegation of authority and decentralisation of authority mean the same process. There should be reasonable balance in the size of various departments, between standardisation of procedures and flexibility between centralisation and decentralisation. : Given by Stephen P. Robbins and Mary Coulter, Louis A. Allen. An organisation ensures co-operative relationship among the members of the group. The basic structures, viz., line staff and matrix can be configured according to the purpose, goals and objectives of the organisation. This approach is normally considered if each product of the organization needs a unique marketing strategy, production process, distribution system, or capital resources. Varieties of templates showing different structures have been designed. The activities which are similar in nature can be grouped as one and a separate department can be created. Principle of functional definition – The principle states that all the work in the organization is to be fully and clearly described to the managers and subordinates. Therefore, here under this concept more attention is paid to posts which are stable than to men. 7. These objectives must be clearly stated so as to understand the very purpose and existence of the business. It involves responsibility to achieve the objectives and to fulfill specific organizational purposes through economical and effective planning and regulation. In the organisational context, it means that the commands or orders flow from the top down the line to last worker of the organisation. The structure is usually represented by an organization chart, which provides a graphic representation of the chain of command within an organization. Geographic patterns work best when different laws, currencies, languages, and traditions exist, and have a direct impact on the ways in which the organizational activities are to be conducted. All activities related to the product or the service are placed under one manager. The term ‘span of management’ is also referred to as span of control, span of supervision, span of authority or span of responsibility. The organisation should be kept as simple as possible so that there should not be any confusion and misunderstanding among the superiors and subordinates. Attention is shifting to the need for employees to take personal responsibilities for the success of business and hence the empowerment. Concept # 2. Delegations may be vertical or horizontal. 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. – Henry Fayol, “In its broadest sense organising refers to relationship between various factors present in a giving endeavor or enterprise”. For a shoe company, the structure could be based on product lines like women’s footwear, children’s footwear and men’s footwear. Authority and responsibility should be delegated as far down in the organisation as possible i.e. This indicates the set of relationships as to who gives direction to whom and who reports to whom. Coordination of different personnel and departments are needed for ensuring higher efficiency and effectiveness. These are customized charts and are configured as per the needs of the organisation. – G. R. Terry. The line of authority offers a standing channel for downward and upward communication. Effective organizing depends on the mastery of several important concepts: work specialization, chain of command, authority, delegation, span of control, and centralization versus decentralization. According to Louis A. Allen, “Organisation is the process of identifying and grouping of the works to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most efficiently”. For example, in a manufacturing organization, production of the goods and their selling are the major activities in addition to the routine activities. One such template is shown here to understand the possible structures that can be drawn. This is a concept concerned with the division of labour and organisational effectiveness. Creation of organisational structure with suitable personnel, 2. According to this principle each person should be accountable to a single superior. Once the departmentalization and formation of sections is over, each section should be allocated to a subordinate and each department should be allocated to one executive. It is a function in which the synchronization and combination of human, physical and financial resources takes place. Welcome to EconomicsDiscussion.net! It, thus, leads to specialization and increasing employees’ efficiency. This person has the authority to coordinate all plans concerning that task. Each employee is trained to perform specific tasks related to their specialized function. 46 Organizing . For an efficient organizing function the following are the guiding principles. The principle of unity of direction which calls for the establishment of one authority figure for each designated task of the organization is achieved. As a structure of relationship organisation can be of two types – firstly formal organisation, and secondly, informal organisation. Various steps involved in this process are: Any business is established or started by entrepreneurs to achieve some objectives. The term “Organization” may be dealt in two contexts. This step consists of appointment of workers and defining their responsibility of each one of them. It is a logical approach. This process ties together the whole organisational structure for integrated and co-operative action. Scalar (step-by-step) principle – Authority is delegated from the upper level to the lower level and the responsibility flows from the lower level to the upper level of organizational hierarchy. All the above supports the definition of organization i.e. They should not be bothered by routine problems which can as well be managed by subordinates. Delegation comprises of the following aspects: a. Organisation is a system which helps in creating meaningful relationship among persons both vertical and horizontal. ORGANIZING 1/8/2012 Organizing is the process of arranging and allocating POM/Chapter 4 - Organizing work, authority, and resources among an organization’s members so that they can achieve organizational goal. He cannot escape responsibility by saying that mistake was committed by a particular worker. It should not be static, rigid or fixed. ... 3 levels of management in organizational hierarchy; (1) Top-level, (2) middle-level, (3) lower level. Coordination can be maintained among various related departments by making exchange of information on a regular basis. Organisation structure must encourage management development programmes and ensure optimum use of human resources. Authority specifies the discretion of employee over his work. However each area of specialisation must be interrelated to the total integrated system by means of co-ordination in all departments and activities. Hence the identification of the various activities of the organization is an important step in the organizing function. It is a complex multifaceted concept. The concepts like “change management” and “learning organisation” pervade all organisations and organisations established long back live today with totally a different structure. Organizing can be viewed as the activities to collect and configure resources in order to implement plans in a highly effective and efficient fashion. In decentralisation, decision-making process is dispersed or deregularised. Persons or line managers who receive the command from their immediate superior are accountable to them only and they do not normally have direct link with the top management. It can lead to communication difficulties and lack of cooperation between functional areas. The designer has to bear in mind the attributes such as – (i) cultural alignment, (ii) transparency and (iii) communication to have well laid structure. The structure of an organisation must be flexible so that adjustments necessitated by changed circumstances may be planned and incorporated in it. Once the work is divided, the tasks are distributed to different functional areas of the organisation as production, marketing, finance and personnel. Organizing is the function of management which follows planning. In this way, the division of work results in the creation of specialized persons. Many of these concepts are based on the principles developed by Henri Fayol. For example, the sales activities in the organisation can be broken down into three departments that serve retail, wholesale and government accounts. The organisation of business activities is a continuing process. This is one of the principles propounded by Henry Fayol. All the above are necessary to achieve the organizational goals. However, there are certain principles which have more or less universal application and which may be used as guidelines for organising business concern. The organizing process is an essential part of the management process. Organising is a continuous process: Hence, we can say that organizing involves the following four steps: (i) Identification and grouping of the work, (iii) Delegation of appropriate authority and. Today, revolution is taking place regarding organisational effectiveness. According to this concept, organising is treated as a structure of relationship. Elements 7. Organizing creates and maintains rational relationships between human, material, financial, and information resources by indicating which resources are to be used for the specified activities and also when, where, and how they are to be used. The span of management, often called the span of control, is the number of individuals who are directly responsible to a particular manager. Organizing is the function that managers undertake to design, structure, and arrange the components of an organization’s internal environment to facilitate attainment of organizational goals. In its absence, it is difficult to achieve success. 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 helps the management by providing information about the duties, responsibilities, authority, positions, and jobs. The groups are structured based on similar skills. Another possibility in this approach is the overspecialization. In fact, as objectives cannot be accomplished without an organisation, an organisation cannot exist for long without objectives and goals. The national sector could further be divided into north zone, south zone, east zone and west zone. This grouping process is called departmentation. Decision-making becomes easy at all levels, if authority flows downwards. The span of control should be limited to a reasonable number according to circumstances. The rule is right peg in a right hole. Vertical aggregating with formal authority and horizontal aggregating, as its complement, is a way of achieving internal and external efficiency of an integral totality. Each employee of an organization must know where his accountability lies. All the three resources are important to get results. Also called division of labor, work specialization is the degree to which organizational tasks are divided into separate jobs. It should be adaptable to changing circumstances. This chain of command allows the orderly progression up and down the hierarchy for decision making and decision-making communications. Through the ispatguru.com website I share my knowledge and experience gained through my association with the steel industry for over 54 years. Technology – It enables transformation of organizational inputs into outputs and it is an important determinant of the internal efficiency of the organization. The end result of the organizing process is an organization which is whole consisting of unified parts (a system) acting in harmony to execute tasks to achieve goals, both effectively and efficiently. 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 […] Division of work – The total work should be divided into many parts for effective performance of the work. 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. Meaning of Organising 2. Different persons are assigned for different functions and yet all these functions have only one aim i.e. Nature 5. Different types of decentralisation should be distinguished. Organization structure is the pattern of relationships among various components or parts of the organization which prescribes the relations among various activities and positions. It describes in operator terms what is to be done, how it is According to Chester Barnard, “Organizing is a function by which the concern is able to define the role positions, the jobs related and the co-ordination between authority and responsibility. This principle holds true for technical as well as managerial tasks. In hierarchical organisation, which is pyramidical in feature. The tasks are grouped into different departments on the basis of similarity of their features. It helps in developing a proper organization structure and the extent and nature of decentralisation can be determined. The organizational structure is to be designed for some concrete conditions and objective needs of the organization. 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. The organising function follows the function of planning and the other functions of management follow organising. Organizing is essential because it facilitates administration as well as operation of in the organization. Because the orders may be conflicting and may contradict each other. Its activities are governed by social and psychological laws. For some people, organizations are a system with inputs (such as men, materials, money and machines), and processes through which product or service is produced. Determining detailed rules and regulations of working for individuals and groups in organization. It means that instructions and directions to a subordinate must come from one person only. To organize is to harmonize, co-ordinate or arrange in a logical and orderly manner. – 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”. On the contrary, there are certain differences between both the concepts. 1. Organising can be defined as a process that initiates implementation of plans by clarifying jobs, working relationships and effectively deploying resources for attainment of identified and desired results (goals). to the lowest level of the organisation at which the particular responsibility can be efficiently discharged. ADVERTISEMENTS: After reading this article you will learn about:- 1. 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. 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