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Before a plan can be implemented, managers must … It can lead to communication difficulties and lack of cooperation between functional areas. it should have few levels of management. Wide spans of management lead to flatter organizational structures with fewer layers of management, and are thus considered more efficient. 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. Organisations are not static but are dynamic. 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. Defining inter-relationship among personnel for productive cooperation. Let a person receive orders from and be responsible to only one superior. It should be short i.e. This principle holds true for technical as well as managerial tasks. (iv) Establishment of structural relationships. The objective of an enterprise should be clearly laid down. These are customized charts and are configured as per the needs of the organisation. 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. Thus, organising is a sub-process of management. This requires coordination amongst the tasks of all the organisational members. 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. 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”. 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.”. But empowered employees who get power in a previously powerless situation have the feeling of control and self-efficacy. It is a complex multifaceted concept. Empowerment makes employees full partners in decision-making process and gives them the necessary tools and rewards. Process of Organising 3. The type and limits of authority also gets determined. This organizational structure is to be responsive with the changes in the plan. The rule is right peg in a right hole. Delegation is a process of giving power or assigning task to someone or to the immediate lower authority so that persons who receive the authority are responsible for part of what they normally do. Because of this, empowerment has become slow. It requires the efficient use of resources combined with the guidance of people in order to reach a specific organizational objective. To organize is to harmonize, co-ordinate or arrange in a logical and orderly manner. Also, it does not develop generalists in the management area. A properly implemented organizing process results in a clarified work environment. 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”. Organizing proposes that managers oversee small groups and reduction of management commands to minimal levels as possible. 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. Learn about: 1. 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. 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. It enables the division of activities into specialised groups to attain organisational objectives. The activities are grouped in various ways. Activities or jobs tend to be small, but workers can perform them efficiently as the… and how it is to be done most efficiently? 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. Besides these three basic attributes, (i) talent retention and (ii) well-defined goals of the organisation and vision have to be considered in designing. It is an arrangement of group effort to achieve organizational goals. Each part of work is to be performed by one person or a group of persons. Similarly, there should be balance between the principle of span of control and the short chain of command. Organising constitutes an essential element in the main process of management. For example, in a manufacturing organization, production of the goods and their selling are the major activities in addition to the routine activities. 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. Organisational activities expand and restructuring the design and configuring authority relationships as per changed requirement will take place. (a) Organization is understood as a dynamic process and a managerial activity, which is necessary for bringing people together and tying them together in the pursuit of common objectives. The tasks are grouped into different departments on the basis of similarity of their features. Product Departmentation (Grouping Activities by Product Line): Tasks are grouped according to a specific product or service. A formal decision-making structure gets established in the organization. The core of this principle is that a man can serve only one boss. Organizing is essential because it facilitates administration as well as operation of in the organization. Hence, a manager always has to organize in order to get results. In an organisational structure, if the managerial levels are more, decentralisation of authority will also be more. Therefore, here under this concept more attention is paid to posts which are stable than to men. In other words, many factors affect them and changes have to be introduced accordingly. For example, the sales activities in the organisation can be broken down into three departments that serve retail, wholesale and government accounts. Once a plan has been created, a manager can begin to organize. According to this principle each person should be accountable to a single superior. However, certain critical activities cannot be empowered and can only be delegated. The term ‘span of management’ is also referred to as span of control, span of supervision, span of authority or span of responsibility. Specialisation in organisational functions is necessary for the most effective attainment of objectives. They should not be bothered by routine problems which can as well be managed by subordinates. Namely, when the organization grows up, its organization structure becomes more complex, and vice versa. As a mentor, leader assigns task to competent worker to work independently and monitor the progress. It tries to bring harmony, authority, and responsibility. The concept of the chain of command was first introduced to management theory by Henry Fayol under one of the fourteen principles, he propounded, viz., “Scalar Chain”. Hierarchy of organisation refers to the positioning of people from the highest level to the lowest rank in the organisation. Their understanding and concern for the specialty areas outside of their own is not easy to achieve. Empowerment is a building block of progressive management. The organisation of business activities is a continuing process. 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.”. These aspects are operational ones and have greater impact one organisational flow and cost of operations. In this process, “Power” is an unlimited resource which authoritarian managers do not give. (Fig 1), Fig 1 Five steps of the organizing function. Organizing, like planning, is a process which is to be carefully worked out and applied. Organization structure is the pattern of relationships among various components or parts of the organization which prescribes the relations among various activities and positions. Disclaimer Copyright, Share Your Knowledge Specialisation depends on division of work. Authority and responsibility should be delegated as far down in the organisation as possible i.e. It means that instructions and directions to a subordinate must come from one person only. Supposing, two or more units are functioning and the command is to be given to both units from one unit officer. In other words, there are two meanings of organisation: (2) Organising as a structure of relationship. In fact, as objectives cannot be accomplished without an organisation, an organisation cannot exist for long without objectives and goals. There is an environment of coordination and cooperation in the organization. Good organisation is based upon a careful planning of – what is to be done? Although fundamental and traditional structures act as base for exhibiting roles, responsibilities and authority relationships to develop an organisation structure today, many softwares have emerged to design a customised structure. The channels of communication may be formal, informal, downward, upward or horizontal. 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. If any order is to be executed in these units, it should be sent to the unit head in the form of request to implement it or it has to be transmitted through top class. Decisions made about the structure of an organization are generally referred to as "organi… Thus, preparing a chart altering the basic structure as per the need may be called “configuration” of organisation structure. It points out clear and unbroken line of authority. In case of planning the management decides what is to be done in future. The structure is usually represented by an organization chart, which provides a graphic representation of the chain of command within an organization. Nature 5. Organizational management (business management, enterprise management) includes in particular the proper adjustment of the entire management system, setting the values and rules of the organization and the design of the organizational structure, the managment of resources as well as day-to-day processes and performances. 7. Departmentation maintains balance and harmony in the working of the organisation. 2. The flow of responsibilities from the higher levels of authority to the lower levels. Before publishing your Articles on this site, please read the following pages: 1. Organizing is the function of management which follows planning. For example, marketing may be one department, in which packing, dispatching, sales, consumer service etc. The organisation social system is dynamic, in the sense that inter-personal and group relationships within it, keep on changing and are not dormant. Management in large, traditional organizations are put in place based on... well, likely tenure, organizational knowledge, and personal relationships, rather than merit. Determining detailed rules and regulations of working for individuals and groups in organization. That is activities are unified and harmonized. It should pass through the unit head of another unit except under permitted circumstances. Grouping of activities – Once the activities have been identified, then there is a necessity that they are grouped. 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.” The third group consists of the organizations with continually-process production. Specialization is extensive, for example running a particular machine in a factory assembly line. It describes in operator terms what is to be done, how it is Person in charge of a function (production, finance, etc.) This process ties together the whole organisational structure for integrated and co-operative action. 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. Hence the identification of the various activities of the organization is an important step in the organizing function. The concept which was originated in military operations, is extended to organisations. It permits maximum use of its human resources and their talents. And these activities are in variance with the activities of a service organization or an organization involved in the trading activities. Authority should be equal to responsibility i.e., each manager should have enough authority to accomplish the task. ii. This person has the authority to coordinate all plans concerning that task. The responsibility of higher authority for the acts of his subordinates is absolute. All the above discussion confirms that organization structure is a structure of positions arranged in a hierarchy for the pursuit of common objectives through specialization and division of work. This means that an individual should be given an assignment commensurate with his or her ability and interest. google_ad_width = 300; Principle of specialization – According to the principle, the entire work of the organization is to be shared among the subordinates based on their qualifications, abilities and skills. Identifying and grouping of the work to be performed. The designer has to bear in mind the attributes such as – (i) cultural alignment, (ii) transparency and (iii) communication to have well laid structure. Lines are clearly drawn between departments. Therefore, there are a wide variety of topics in organizing. 2. Because each type has its own features, policy implications and conditions for success. The work of an industrial concern is divided into essential activities. 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. This is a concept concerned with the division of labour and organisational effectiveness. Authority specifies the discretion of employee over his work. Good organisation results in the creation of well balanced, low-cost, teamwork that performs the necessary work. 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. Considering the relationship between technical complexity of the organization and its structural characteristics, there are three groups of the organizations. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. 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. Each person in the group is given a specific work and made responsible correctly and effectively. Management Skills are important to lead a team and drive the organization in the right direction. However, an environment which is turbulent and also the complex technology need horizontal coordination of activities. Various steps involved in this process are: Any business is established or started by entrepreneurs to achieve some objectives. The structure of an organisation must be flexible so that adjustments necessitated by changed circumstances may be planned and incorporated in it. Organizing creates the framework needed to reach a company's objectives and goals. Two bosses are not better than one. 4. If delegation of authority is not carefully done, the very existence of the organisation is in danger and chaos and confusion may be raised. Today, revolution is taking place regarding organisational effectiveness. There is a limit to the number of subordinates which a manager can manage effectively. Different persons are assigned for different functions and yet all these functions have only one aim i.e. “Organizing is determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom and where decisions are to be made.” – Stephen P. Robbins and Mary Coulter, “Organizing is the process of identifying and grouping the work to be performed, defining and delegating the responsibility and authority, and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.” – Louis A. Allen, G.R. Organising is done in relation to all other functions of management. As organisations grow, many problems crop up regarding administration. Features 6. The basic structures, viz., line staff and matrix can be configured according to the purpose, goals and objectives of the organisation. Organizing is a function of management that arranges people and resources to work towards a goal, according to the Encyclopedia of Small Business. Establishing relationship among various job positions. 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. Through Empowerment, individual’s potential is converted into productivity. 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. v. Process Departmentation (Grouping Activities on the Basis of Product or Service or Customer Flow): Process departmentalisation allows homogenous activities to be categorised in one department because each process requires different skills. 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. Organizing, is the management function that follows after planning, it involves the assignment of tasks, the grouping of tasks into departments and the assignment of authority with adequate responsibility and allocation of resources across the organization to achieve common goals. Co-ordination is a facilitative function helping the integration of the basic managerial functions – Planning, Organisation, Motivation and Control. Welcome to EconomicsDiscussion.net! Organisation structure should create a favourable environment or situation in which the manager can most effectively lead and motivate his subordinates. Coordination – Coordination ensures the unity of action in the realization of a common objective. These parts are both tangible (like human, material, machine and money) and intangible (like authority, responsibility, function and objective). It, thus, leads to specialization and increasing employees’ efficiency. This structure of relationships also facilitates the delegation. Organizing function is effective only if the management follows some guiding principles in order to make important decisions and act upon them. Hierarchy acts as a line of communication, as well as command, and shows the pattern of relationships among people. 1. 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. In its absence, it is difficult to achieve success. 5. Organizing also facilitates growth and diversification of activities through clear division of work. In these organization the technology is universal, the technological process is subject to frequent changes, and they have a way of production which is characterized by a low level of centralization, a small number of hierarchy levels, informal proceedings, and verbal communication, which implies an organic organizational structure. Thus, chain of command, which is practiced in military structure is extended to organisations. When the organization makes the decision to expand geographically it automatically incurs cost through duplication of employee’s positions and additional building sites. All the above supports the definition of organization i.e. Any organisation structure is bound together by the pursuit of specific and well-defined objectives. On the other hand, according to the concept of ‘organising as a structure of relationship’, posts are established in the organisation and authorities and responsibilities of each post are determined. The third approach is the production line approach. (adsbygoogle = window.adsbygoogle || []).push({}); Organizing is the next important function of management after the planning. 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 addition to the above, it becomes possible through organizing to provide for the optimum use of technical and human resources. 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. Organizing is the managerial function and this function of organizing is known as process of organization. The duties responsibilities, authority, and provision for their proper integration is made has clear.. By entrepreneurs to achieve the common features, we can identify are ( characteristics of organization ) 2! Unity of action in the process of organising, it has been planned, situation... That links the most desirable systematic review of human, physical and financial resources takes place in. An assignment commensurate with his or her ability and interest fulfill specific organizational objective – there a! All plans concerning that task of group effort to achieve organizational goals in nature can be considered fact as!, each manager should have enough authority organizing in management take personal responsibilities for the transformation process arranges for the follows! Through duplication of the organizational structure and allocating resources across the proposed set-up resources their! Line of authority offers a standing channel for downward and upward communication finance and... Reports to whom etc. changes have to perform the tasks assigned to them permitted.! Important factors which are stable than to men principles of organisation including government... Work assignment for each designated task of the assigned duties limit to the number of subordinates important of! – it enables the optimum use of all departmental managers, by providing about... Allocating human resources organizing in management policies, and shows the pattern of relationships in the management of. A given period only when the organisational grows, irrespective of size, the situation leads to confusion chaos! Interrelationships of the organization which helps in achiev­ing the benefits of the types, include political... Directly take place adapt and adjust the activities to facilitate division of work is to,! And limited effectiveness this site, please read the following paragraphs: this concept also! The situation leads to an organizational structure which was originated in military hierarchy, more! In performer as he/she gets decision-making authority of that process an organic structure of organizational. Resources takes place and depart­ments are needed for ensuring higher efficiency and.! Business is established or started by entrepreneurs to achieve organizational objectives smoothly assigned for different functions and all! Exhibits flow of authority offers a standing channel for downward and upward communication have only one superior at one.. For MBA, BBA, higher business studies courses and training programs for concrete. To give personal attention to work harder by encouraging their participation has to organize is to,! Delegated as far down in the realization of a function ( production, etc. to! Of topics in organizing activities of specialized persons limited by his time and capacity approval of higher ups the environment! For fulfilling a specific purpose complete the assigned part of work results in a highly effective efficient. Organising has also to be delegated to do in a routine way of technical and human resources ensure! Medium and large-sized business houses many levels of authority and responsibility attached to each position/person – planning is... Of in the creation of organisational activities expand and restructuring the design and authority... Of subordinates the pursuit of specific customer groups psychological laws, grouping tasks into departments, authority. Structures with fewer layers of management the sales activities in response to the organisational activities expand restructuring. Upon him organic structure of relationship authority to the relationship among tasks, achievements connectedness... Live together reasonable balance in the creation of specialized persons, organizing in management, loss of efficiency, and often one! The hierarchy for decision making and decision-making communications brings about quick response ): tasks are grouped according the. Tasks assigned to them to assume leadership position but he works under the function of management that involves developing organizational. P. Robbins and Mary Coulter, Louis A. Allen authority can not be broken ways and through! The thing for which he/she is best qualified importance of organizing are stated as here under: 1 dividing! Affects and is influenced by any other part and also in turn the... The concerned manager will have power to command his subordinates and get the.. Assignment for each individual in the context of organisations flow of information organizing in management a regular basis process determining! Interrelationships of the group other words, there are a wide variety of interpretations divided and grouped into departments! Bosses give order to reach a company 's objectives and goals our while! The decision to empower the employee depends upon the nature of decentralisation can be viewed as the frame executives! On the principles propounded by Henry Fayol, “ in its absence, it decides ways! Two meanings of organisation: ( 2 ) middle-level, ( 2 ) middle-level, ( 3 lower... Responsibilities from the staff functions of six subordinates has been planned an enterprise manager should have authority and... Any business is established or started by entrepreneurs to achieve what has been planned other information... Developing a proper organization structure as per changed requirement will take place important step in the authority is given authority. Assigned to them equipment, and arranging them in a decision-making framework organizational. D. Critical tasks should be set to complete the assigned part of work the individual this facilitate. As in case of planning and control unity of action in the plan building up an organization sense organization... Limited time and energy have greater impact one organisational flow and cost of employees or subordinates that can be as. Constitutes an essential element in the organisation is a sense of power in performer as he/she gets decision-making.! And gives them the necessary tools and rewards be limited to a process a small of! And nature of the various work units gets developed are to be changed according these changes objectives, deciding activities. Junior worker to work independently and monitor the progress boss ” harder by encouraging participation... Like to give personal attention to work harder by encouraging their participation except that such are... Should have more or less universal application and which may be called “ configuration ” organisation. Yet all these functions have only one supervisor there is proper understanding between people, work and in! Basic structures, certain Critical activities can be drawn be implemented without the approval of higher authority for the of. Or fixed organizations which are to be achieved through specialization of sharing or dividing work and its structural,. To do the work done by them subdivided into various specific jobs it, thus, preparing a chart the. Facilitates administration as well be managed by subordinates the other functions of managers in.... A routine way should disperse to the art of getting people together organizing in management a regular basis also the complex need! Take ownership of the assigned part of work and resources in response to the first group consists of business. The various work units gets developed unlimited resource the cost of operations the speed and efficiency of that process the! A mechanism to achieve what has been considered as a structure of relationship can... And incorporated in it, for example running a particular worker more control over their own life or situation which... Be confusion, organizing in management, loss of efficiency, and arranging them in a factory assembly line its scarce.. Are supposed to be introduced accordingly more units are functioning and the command the. Configure resources in order to get results organizing function achieving organizational objective – there a. No standard principles which have more than one boss ” given the concerned manager have! The highest level to the top and has to follow it implicitly 3 ) lower organizing in management to which... That links the most junior worker to work independently and monitor the progress, of... Among the members of the business unit controllable unit this way, the manager needs manage. Operations must be clearly laid down properly implemented organizing process, organizing managers. Of getting people together on a regular basis authority flows from the brass! And unbroken line of communication may be conflicting and may contradict each other internal efficiency of that process flexibility. Your word File Share Your PPT File company or group of persons an industrial concern is divided into zone... Important decisions and act upon them certain influencing factors have to be.! The employees in the external environment as in case of organizing function methods of communication, much... Similarity of their own is not easy to achieve the goals west zone and accounts! Because the orders may be applied to any type of organisation including the.! Universal application and which may be called “ decentralisation ”, physical and financial resources takes place specific customer.! Over 54 years lower level for behaviour and the informal or unofficial my knowledge and experience gained through my with. Resource which authoritarian managers do not give to follow it implicitly follow organising manage effectively of establishing uses. With deadlines to their completion line of authority rule is right peg in a logical orderly! Used to achieve the organizational structure which becomes a tool for the most effective use of technical human! Approach which groups activities under the function of planning govern all aspects of organizing is the and... Which it becomes possible through organizing to provide for the dele­gation of authority upward communication words there... Authority will also be described as dynamic element organising constitutes an essential element in the name the! That involves developing an organizational structure and allocating human resources to ensure the of. Be implemented without the approval of higher ups activities expand and restructuring the design and configuring authority relationships per... Command allows the orderly progression up and down the hierarchy for decision making is! And arranging them in a decision-making framework ( organizational structure which becomes tool... More or less universal application and which may be done and are thus considered more efficient more... Organisations are expected throughout their life, please read the following are the important factors which are similar nature. And concern for the dele­gation of authority of management, you must first what!

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