The most important characteristics of environment that determine organization structure are complexity (determined by the number of elements affecting the organization, their variety and intensity of influence on the operations), stability (measured by the rate of changes in time, similarity of changes, and possibility of their foresight and comprehension), and uncertainty (related to availability of relevant information for rational decision-making). The leader need not be present during the course of performing the task as in case of delegation. Organization management gives a sense of direction to the employees. Two aspects of an organisational social system are the formal or official and the informal or unofficial. There are two types of span of control namely (i) wide span of control in which a manager can easily supervise and effectively handle a big group of subordinates independently, and (ii) narrow span of control in which a manager does not have to supervise and control a large group of employees as the work and authority is shared among many subordinates. It describes in operator terms what is to be done, how it is Environment – The environment is relevant for behaviour and the organization structure. Hierarchy acts as a line of communication, as well as command, and shows the pattern of relationships among people. When the organization makes the decision to expand geographically it automatically incurs cost through duplication of employee’s positions and additional building sites. 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”. It creates opportunities to those who have competencies to take independent decisions. Another possibility in this approach is the overspecialization. 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. But empowered employees who get power in a previously powerless situation have the feeling of control and self-efficacy. This will facilitate the designer to come up with best structure. Relationship lays down as to who is the superior and who is the subordinate. Because each type has its own features, policy implications and conditions for success. The tasks and responsibilities of all individuals, departments, and major divisions gets clarified. In case of organizing, it decides on ways and means through which it becomes easier to achieve what has been planned. If the decision is made to use this approach with only some of the organizational customers then there will be difficulty in coordinating the customer-based departments with departments organized in other patterns. This process involves determining what work is needed, assigning those tasks, and arranging them in a decision-making framework (organizational structure). – G. R. Terry. Organizing explained with notes, articles, videos, and slideshows for MBA, BBA, higher Business studies courses and training programs. It may be applied to any type of organisation including the government. The nature of organising is discussed below: According to Fayol, work of all kinds must be sub-divided and assigned to a number of persons. It is also called a chain of command. The third approach is the production line approach. Organisation structure must encourage management development programmes and ensure optimum use of human resources. Namely, when the organization grows up, its organization structure becomes more complex, and vice versa. It permits maximum use of its human resources and their talents. Introduction to Organizing 2. Product Departmentation (Grouping Activities by Product Line): Tasks are grouped according to a specific product or service. The third group consists of the organizations with continually-process production. This is a structure concerning decision-making which shows. What is organizing in Management According to Louis Allen, “Organization is that the method of distinguishing and grouping work to be performed, shaping and delegation responsibility and authority and establishing relationships for the aim of facultative individuals to figure most effectively along in accomplishing objectives.” Empowerment is a building block of progressive management. No planning can succeed unless a framework of activities (necessary for the accomplishment of objectives) is constructed. Functional departmentalization can be used in all types of organisations. Organizing function follows the planning function. This manager will look after the work of that particular department, by maintaining organizational relationships with other department managers to work toward the goal or objective of the enterprise. In a formally designed organisation structure, employees’ behaviour is bound by rules, regulations and policies but in a comparatively less formal organisation structure, they have a great deal of freedom in deciding how they perform their work. Coordination is the act of organising, making different people or things work together for a goal or effort to fulfil desired goals in the organisations. For carrying out the organizing function usually four approaches are followed for designing the organization structure of the organization. Attention is shifting to the need for employees to take personal responsibilities for the success of business and hence the empowerment. Organisation should emphasise on the law of specialisation. Efficiency means speed, accuracy and low cost. People constitute an organisation. Organizing also facilitates growth and diversification of activities through clear division of work. While designing the structure, certain other issues are considered. Organizing creates the framework needed to reach a company's objectives and goals. A manager’s ability to manage a large number of subordinates is limited by his time and energy. When people are empowered, they will be able to take ownership of the task that they have to perform. People working in an organisation are influenced in their actions and behaviour by their social and psychological needs. An individual will accomplish a task in a given period only when the responsibility for that task is fixed upon him. Employees should be encouraged to participate, as much as possible, in the decision making process. Each major product area in the company is under the authority of a senior manager who is specialist in, and is responsible for everything related to the product line. 2. 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. Empowering is a “Mentor-Mentee” process. The organizing begins after the plans are prepared and is governed by the prepared plans. Effective organizing depends on the mastery of several important concepts: work specialization, chain of command, authority, delegation, span of control, and centralization versus decentralization. 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. Authoritarian managers do not like to give more power to their employees. 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. ii. Once the authority is given the concerned manager will have power to command his subordinates and get the work done by them. Each part affects and is influenced by any other part and also in turn by the system as a whole. The leaders or managers of these levels should have authority responsibility and accountability to carry out the tasks assigned to them. 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. Organizing is a broad set of activities, and often considered one of the major functions of management. It involves responsibility to achieve the objectives and to fulfill specific organizational purposes through economical and effective planning and regulation. 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. The organisation is a mechanism to achieve the goals. Now suitable persons are fitted in their respective jobs and made responsible to accomplish the job. Organising is related to human beings and human conduct is deeply affected by the conditions of work, their competency and capability, changes in the internal and external environment of the organisation. “Authority is the legitimate power of the supervisor to direct subordinates to take action within the scope of the supervisor’s positions.”. Employment requires shared values, analysing identical or typical situation, identifying commonsense solutions and defining common sense as value. The term ‘span of management’ is also referred to as span of control, span of supervision, span of authority or span of responsibility. 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. 21. The organisation structure should enable the enterprise to attain objectives with the lowest possible cost. Organizing function shows the management how the organization is to be built or how the existing one is modified to ensure that the goals set in the plans are achieved. All Rights Reserved © 2019, Design & Developed By: Star Web Maker. For example, the sales activities in the organisation can be broken down into three departments that serve retail, wholesale and government accounts. Since the organizing follows planning it is closely related to it. Organizing involves assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization. On the contrary, there are certain differences between both the concepts. The process of dispersing the authority to the lower levels of administration is called “Decentralisation”. 1. This may well be the process of organizing. Share Your PPT File. This means establishment of correct and adequate relationships between an employee and his work; one employee with another; and one department or sub-department with another. A classic principle of organizing suggests that there are definite limits to the number of subordinates one manager can supervise effectively. Hence, organizing refers to the following process. 5. Meaning and Definitions of Organizing 3. Image Credits © 401 Forester. Organising is a very important function of management. 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. All the above are necessary to achieve the organizational goals. These aspects are operational ones and have greater impact one organisational flow and cost of operations. This is a concept concerned with the division of labour and organisational effectiveness. This concept was originated from defence operations. 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. All parts of the organisational system are inter-dependent. Mrs Aust's Grade 12 Business management class.By Kyle Taylor Under this various posts are created or established and the mutual relationship of employees working on various posts, their authorities and responsibilities are defined. As a structure of relationship organisation can be of two types – firstly formal organisation, and secondly, informal organisation. It should not be rigid or inelastic. 2. Hence, organising as a process can also be described as dynamic element. It is a function in which the synchronization and combination of human, physical and financial resources takes place. Therefore, organisation as a structure of relationship is called static element. Principles. It should pass through the unit head of another unit except under permitted circumstances. Organizing is the function of management that involves developing an organizational structure and allocating human resources to ensure the accomplishment of objectives. 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. 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. Flexibility – The organizing process should be flexible so that any change can be incorporated as and when required. GE, The Hindu and many such organisations who are still functioning with force and recognition bear testimony to this. 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”. Besides these three basic attributes, (i) talent retention and (ii) well-defined goals of the organisation and vision have to be considered in designing. Particularly in medium and large-sized business houses many levels of management prevail. Provision is to be made for the accountability of the assigned duties. Once a plan has been created, a manager can begin to organize. The delegation authority to take steps to complete the assigned part of the job is next step in organization. Organizing is the function of management which follows planning. A formal decision-making structure gets established in the organization. The organisation is expected to provide build-in devices to facilitate growth and expansion without dislocation. The basic elements of organising are as follows: It means dividing the work into specific tasks with deadlines to their completion. 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. Good organisation is based upon a careful planning of – what is to be done? Activity necessary for the dele­gation of authority and responsibility basic structures, certain other issues are considered divided! 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