Defining inter-relationship among personnel for productive cooperation. Share Your Word File This helps in avoiding conflict in command and in fixing responsibility. This helps to make the work being carried out in a simpler and efficient manner. In case of organizing, it decides on ways and means through which it becomes easier to achieve what has been planned. 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. For example, the sales activities in the organisation can be broken down into three departments that serve retail, wholesale and government accounts. Challenges and constraints are also identified in drafting the structure. 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. Principle of Separation of Line and Staff Function: Line function should be separated from the staff functions. The national sector could further be divided into north zone, south zone, east zone and west zone. Supposing, two or more units are functioning and the command is to be given to both units from one unit officer. This is called departmentation. 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. For example, the applicants might need to go through several departments namely validation, licensing and treasury, before receiving the driver’s license. c. Time should be set to complete the task. To understand the functions of management, you must first examine what management is about. By repeating a small part of work the individual acquires speed and accuracy in its performance. The organizational structure is to be designed for some concrete conditions and objective needs of the organization. They have to be considered for organisational effectiveness. : Given by Stephen P. Robbins and Mary Coulter, Louis A. Allen. We need to challenge the assumption that someone is a good manager just because … Hence, organizing refers to the following process. Organisation involves division of work among people whose efforts must be co­ordinated to achieve common goals, Co-ordination of aims at higher efficiency and effectiveness. 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 management has to identify the activities necessary to reach the objectives and group these activities and assigned to the group of people, known as departments. and how it is to be done most efficiently? Thus, no one in the organisation should have more than one boss. (Fig 1), Fig 1 Five steps of the organizing function. The third group consists of the organizations with continually-process production. Say for example, marketing, financial, personnel and production, etc. In these organizations the working process is continual in a certain production cycle, the operations and procedures are synchronized, the production is highly automated, technical complexity is at the highest level, centralization is low, communicating is verbal, and formalization is on a low level. However, an environment which is turbulent and also the complex technology need horizontal coordination of activities. It clarifies authority – responsibility and relationship. Organizing function is effective only if the management follows some guiding principles in order to make important decisions and act upon them. The features of organizing are stated as here under: 1. Organisation as a function of management leads to: 1. Co-ordination express the principles of organisation in toto; nothing less. 2. Empowerment instills a sense of power in performer as he/she gets decision-making authority. 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. It should be short i.e. But empowered employees who get power in a previously powerless situation have the feeling of control and self-efficacy. It includes getting information about objectives, deciding various activities and grouping them, determining important activities, allowing authority and responsibility, etc. To organize is to harmonize, co-ordinate or arrange in a logical and orderly manner. This grouping process is called departmentation. Relationship lays down as to who is the superior and who is the subordinate. The flow of responsibilities from the higher levels of authority to the lower levels. This establishes a structure of relationships in the organization which helps to ensure that the organization has clear relationships. The facilities and employees may become so specialized to solve the needs of the customers that they cannot be used for any other purpose. Hence, the common features, we can identify are (characteristics of organization). In an organisational structure, if the managerial levels are more, decentralisation of authority will also be more. Meaning of Organising 2. Organizing facilitates development of the organizational structure which becomes a tool for the management to achieve plans. However, there are certain principles which have more or less universal application and which may be used as guidelines for organising business concern. 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. It should be adaptable to changing circumstances. 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. It requires the efficient use of resources combined with the guidance of people in order to reach a specific organizational objective. Principle of unity of command – As per this principle, one subordinate is accountable to only one superior at one time. iii. The basic elements of organising are as follows: It means dividing the work into specific tasks with deadlines to their completion. – Henry Fayol, “In its broadest sense organising refers to relationship between various factors present in a giving endeavor or enterprise”. Empowerment makes employees full partners in decision-making process and gives them the necessary tools and rewards. An individual will accomplish a task in a given period only when the responsibility for that task is fixed upon him. Thus, chain of command is the flow of authority from top to bottom in written form. Better management skills For any business, organizing information is all about keeping things in proper order such that the path from inquiry to result is clear and time-efficient. The authority flow from the executive of one unit cannot directly take place. (b) Secondly, it can be used in the sense, which refers to the structure of relationship among positions jobs, which is built-up for the attainment of common objectives or goals. 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. It may be applied to any type of organisation including the government. Identification of activities – Each organization exists for fulfilling a specific purpose. Total activities of an enterprise should be divided and grouped into departmental, sectional and individual activities to facilitate division of work. This approach is normally considered if each product of the organization needs a unique marketing strategy, production process, distribution system, or capital resources. 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. Once a plan has been created, a manager can begin to organize. In its absence, it is difficult to achieve success. The structure of an organisation must be flexible so that adjustments necessitated by changed circumstances may be planned and incorporated in it. Different persons are assigned for different functions and yet all these functions have only one aim i.e. Discipline is vitally important in all types of organisations. Co-ordination is a facilitative function helping the integration of the basic managerial functions – Planning, Organisation, Motivation and Control. The first group consists of the organizations which are having individual or small-lot production. The second group consists of the organizations with large-lot and mass production. Organizing is the function of management which follows planning. The following are the important factors which are to be taken into consideration in the process of designing of the organizational structure. For a shoe company, the structure could be based on product lines like women’s footwear, children’s footwear and men’s footwear. An efficient organisation structure operates without wasting its scarce resources. Who is to supervise it? Organising is a continuous process: Their understanding and concern for the specialty areas outside of their own is not easy to achieve. Organizing proposes that managers oversee small groups and reduction of management commands to minimal levels as possible. Organisation should emphasise on the law of specialisation. Authority cannot be centralised when the organisation is expanding authority should disperse to the lower levels for smooth functioning of the organisational activities. 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. The benefits of the organizing function are as follows. The structure of the organization is the framework within which effort is coordinated. Decisions made about the structure of an organization are generally referred to as "organi… 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. 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. He can only proceed to do the work, when he is given adequate authority to proceed to do the work. Coordination – Coordination ensures the unity of action in the realization of a common objective. Therefore, there are a wide variety of topics in organizing. Co-ordination is the orderly arrangement of group effort to provide unity of action in the pursuit of common purpose. Wide spans of management lead to flatter organizational structures with fewer layers of management, and are thus considered more efficient. All parts of the organisational system are inter-dependent. 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. Welcome to EconomicsDiscussion.net! In other words, there are two meanings of organisation: (2) Organising as a structure of relationship. Hence, organising as a process can also be described as dynamic element. Similarly, there should be balance between the principle of span of control and the short chain of command. The maximum number of employees or subordinates that can be supervised effectively by a person is known as the span of control. Delegation comprises of the following aspects: a. People working in an organisation are influenced in their actions and behaviour by their social and psychological needs. 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. Empowerment is a building block of progressive management. Authority specifies the discretion of employee over his work. It is a managerial function that aims to adjust and interlink activities of the business. Importance 4. The word “organizing” refers to a process of a managerial function. Organising or Organizing in management refers to the relationship between people, work and resources used to achieve the common objectives (goals). Personal innovations which deviate from the set rules, cannot be implemented without the approval of higher ups. 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. – Louis Allen, “To organise a business is to provide it with everything useful to its functioning: raw materials, machines and tools, capital and personnel”. Identifying and grouping of the work to be performed. In these organizations the activities are routine, the technological process is complex and not easy to change, there is a high level of standardization and specialization, and more hierarchy levels in the organization structure having a high level of formalization and routine distribution channels. The tasks and responsibilities of all individuals, departments, and major divisions gets clarified. According to the first concept of organising, it has been considered as a process. 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. 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. Organizing is the function of management that involves developing an organizational structure and allocating human resources to ensure the accomplishment of objectives. The process of dispersing the authority to the lower levels of administration is called “Decentralisation”. The relationship between different jobs is determined, and provision for their proper integration is made. accomplishment of the enterprise’s objectives. 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. The central point in unity of command is that “no subordinate should report to more than one boss”. It also helps to define authority and responsibility attached to each position/person. Each employee of an organization must know where his accountability lies. 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. To the organization as a structure or a network of specific relationships among individuals. For success in management, effective communication is vital. Content Guidelines 2. It is a function in which the synchronization and combination of human, physical and financial resources takes 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. When people are empowered, they will be able to take ownership of the task that they have to perform. The work of an industrial concern is divided into essential activities. All activities related to the product or the service are placed under one manager. To design various types of structures, certain influencing factors have to be considered. While designing the structure, certain other issues are considered. Elements 7. All the above are necessary to achieve the organizational goals. Creation of organisational structure with suitable personnel, 2. Image Credits © 401 Forester. Concept # 2. Decision-making becomes easy at all levels, if authority flows downwards. 2. But, difficulties can arise because employees get separated department wise and hence from each other. Today, revolution is taking place regarding organisational effectiveness. The delegation authority to take steps to complete the assigned part of the job is next step in organization. In fact, as objectives cannot be accomplished without an organisation, an organisation cannot exist for long without objectives and goals. It is also called a chain of command. 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. 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). Hierarchy acts as a line of communication, as well as command, and shows the pattern of relationships among people. Management Skills are important to lead a team and drive the organization in the right direction. Technology – It enables transformation of organizational inputs into outputs and it is an important determinant of the internal efficiency of the organization. receives command from the top and has to follow it implicitly. google_ad_height = 250; Organizing is the function of management which follows planning. It enables the division of activities into specialised groups to attain organisational objectives. Disclaimer Copyright, Share Your Knowledge may be sections. Organizing is the function of management which follows planning. Two concepts are prevalent about organisation. Efficiency means speed, accuracy and low cost. Organizing involves assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization. This is more concerned with giving someone more control over their own life or situation. In military hierarchy, the succession of commanding officers from a superior to a subordinate, commands are exercised. Employment requires shared values, analysing identical or typical situation, identifying commonsense solutions and defining common sense as value. According to this concept, organising is treated as a structure of relationship. Features 6. 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. It is a logical approach. It should pass through the unit head of another unit except under permitted circumstances. Organizing is a function of management that arranges people and resources to work towards a goal, according to the Encyclopedia of Small Business. Hence, the management is to decide the number of employees that a manager can handle and this decision can be chosen from either a wide or narrow span of employees. Before publishing your Articles on this site, please read the following pages: 1. A good communication network is essential for smooth flow of information and understanding and for effective business performance. Principle of Continuity of Operations: The form of an organisation should be such that it facilitates the continuous performance of all the activities necessary for the continuance and growth of the enterprise. Everyone in the organization knows what to do. Learn about: 1. Organizing also facilitates growth and diversification of activities through clear division of work. Authority and responsibility should be delegated as far down in the organisation as possible i.e. Hence the identification of the various activities of the organization is an important step in the organizing function. The activities which are similar in nature can be grouped as one and a separate department can be created. Employees should be encouraged to participate, as much as possible, in the decision making process. Some consider it as a network of relationships, a blueprint of how the management will like the various functions and activities to be assigned and connected together. Grouping of activities – Activities are needed to be grouped on certain well-defined basis such as function, product, customer, process, territory, etc. 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”. 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. Since the organizing follows planning it is closely related to it. Basics 10. This may well be the process of organizing. A classic principle of organizing suggests that there are definite limits to the number of subordinates one manager can supervise effectively. They should not be bothered by routine problems which can as well be managed by subordinates. As empowerment is emerging as the order of the day, managements should provide more tools and techniques to their employees to make them empowered. 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 […] Specialisation in organisational functions is necessary for the most effective attainment of objectives. 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. Through the ispatguru.com website I share my knowledge and experience gained through my association with the steel industry for over 54 years. A properly implemented organizing process results in a clarified work environment. Once the authority is given the concerned manager will have power to command his subordinates and get the work done by them. It involves responsibility to achieve the objectives and to fulfill specific organizational purposes through economical and effective planning and regulation. Because of this, empowerment has become slow. 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. Besides organizing also encourages creativity and enhances interaction among different levels of management which leads to unification of efforts of all. 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. 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. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. 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