Principle of Separation of Line and Staff Function: Line function should be separated from the staff functions. Let a person receive orders from and be responsible to only one superior. This concept was originated from defence operations. and how it is to be done most efficiently? The geographic structure furnishes a training ground to develop general management abilities. Good organisation is based upon a careful planning of – what is to be done? Its activities are governed by social and psychological laws. Management Skills are important to lead a team and drive the organization in the right direction. Installing sound communication system – The success of management depends upon effective system of communication. Depending on the objectives the work to be done is decided and it is divided into groups and they are organized in an orderly way. The designer has to bear in mind the attributes such as – (i) cultural alignment, (ii) transparency and (iii) communication to have well laid structure. (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. Empowerment is a building block of progressive management. Organizing function is effective only if the management follows some guiding principles in order to make important decisions and act upon them. If many bosses give order to one individual, the situation leads to confusion and chaos. 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). The third group consists of the organizations with continually-process production. The organisation is a mechanism to achieve the goals. 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. Under this various posts are created or established and the mutual relationship of employees working on various posts, their authorities and responsibilities are defined. 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. All activities related to the product or the service are placed under one manager. Coordination can be maintained among various related departments by making exchange of information on a regular basis. There should be reasonable balance in the size of various departments, between standardisation of procedures and flexibility between centralisation and decentralisation. Coordination of different personnel and depart­ments are needed for ensuring higher efficiency and effectiveness. 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. Hence the identification of the various activities of the organization is an important step in the organizing function. Each person in the group is given a specific work and made responsible correctly and effectively. Organization management gives a sense of direction to the employees. These are customized charts and are configured as per the needs of the organisation. Organizing is the managerial function and this function of organizing is known as process of organization. The duties responsibilities, authority and relations of everyone in the organisational structure should be clearly and completely defined preferably in writing. This concept is also extended to designing an organisational structure keeping any one of the types of structure shown in the template. Defining inter-relationship among personnel for productive cooperation. In an organisational structure, if the managerial levels are more, decentralisation of authority will also be more. The process of organising consists of the following five steps. 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. 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. So far as the similarity between both the concepts is concerned, business organisation is looked upon as a group of different parts under both the concepts. google_ad_height = 250; Organizing is the function of management which follows planning. The organization which has taken the time, energy, and money to develop quality plans needs management who understand the importance of organizing. This process involves determining what work is needed, assigning those tasks, and arranging them in a decision-making framework (organizational structure). 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. All the above are necessary to achieve the organizational goals. Various steps involved in this process are: Any business is established or started by entrepreneurs to achieve some objectives. Because of this, empowerment has become slow. The span of control should be limited to a reasonable number according to circumstances. Organising is a management process by which people, functions and physical factors are brought together to form a controllable unit. These aspects are operational ones and have greater impact one organisational flow and cost of operations. It can serve to re-energise recollective spirit and focuses on out performing our competitors while looking for better to live together. 2. The tasks are grouped into different departments on the basis of similarity of their features. 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). A second key function of managers is organizing, which is the process of coordinating and allocating a firm’s resources in order to carry out its plans.Organizing includes developing a structure for the people, positions, departments, and activities within the firm. ADVERTISEMENTS: After reading this article you will learn about:- 1. 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. Empowerment instills a sense of power in performer as he/she gets decision-making authority. The chain of authority must be clearly defined for sound organisational purposes. 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). If delegation of authority is not carefully done, the very existence of the organisation is in danger and chaos and confusion may be raised. It defines the system of relations between elements, factors, and activities within the organization. However, certain critical activities cannot be empowered and can only be delegated. The rule is right peg in a right hole. Thus, chain of command, which is practiced in military structure is extended to organisations. 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. The major disadvantage is similar to the geographic approach which is the additional cost through duplication of the functions within each product line. The tasks and responsibilities of all individuals, departments, and major divisions gets clarified. it should have few levels of management. 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. 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. (iv) Establishment of structural relationships. 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. Organisation is a system which helps in creating meaningful relationship among persons both vertical and horizontal. The flow of authorization from the top level to the bottom level enables the managers to understand their positions of authority and this helps in an effective organization. In fact, as objectives cannot be accomplished without an organisation, an organisation cannot exist for long without objectives and goals. The second approach is the geographic approach which groups the activities and responsibilities according to the geographical location. The following are the important factors which are to be taken into consideration in the process of designing of the organizational structure. Organising as a Structure of Relationship: Steps: Determination of Objectives, Enumeration of Activities, Classification of Activities and a Few Others, What is Organizing in Management? It points out clear and unbroken line of authority. Elements 7. It indicates the number of persons that a manager can manage effectively. Not only the objectives be stated in clear terms, the method of achieving them too, should be indicated in detail and in precise terms so that the organisers may know the type of organisation that is needed. It describes in operator terms what is to be done, how it is It should not be static, rigid or fixed. 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.”. In fact, an organization structure is quite often defined as a structure of authority-responsibility relationships. 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. 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. The types, include, political, administrative, fiscal and organisational. The executives at the higher level of an organisation have limited time and capacity. The word “organizing” refers to a process of a managerial function. A span of control of six subordinates has been considered to be the most desirable. It also helps to define authority and responsibility attached to each position/person. How do you define management?Management is a process with a social element. People working in an organisation are influenced in their actions and behaviour by their social and psychological needs. Product Departmentation (Grouping Activities by Product Line): Tasks are grouped according to a specific product or service. Learn about: 1. This approach assembles the activities of creating, producing, and marketing each product into one department. A manager’s ability to manage a large number of subordinates is limited by his time and energy. It permits maximum use of its human resources and their talents. In decentralisation, decision-making process is dispersed or deregularised. 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. A manager is mainly a coordinator. 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”. When total work involved in achievement of goals and objectives are divided into activities and functions and allocated to an individual or a group of people, as whole work may be too heavy for and individual or a group of people, the organization structure comes into existence. Attention is shifting to the need for employees to take personal responsibilities for the success of business and hence the empowerment. Any structure shown in the templates can be adopted suiting to be the adopted suiting to the organisational needs. The organizational structure is to be designed for some concrete conditions and objective needs of the organization. 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 involves responsibility to achieve the objectives and to fulfill specific organizational purposes through economical and effective planning and regulation. The organisation is expected to provide build-in devices to facilitate growth and expansion without dislocation. Departmentation maintains balance and harmony in the working of the organisation. Authority and responsibility should be delegated as far down in the organisation as possible i.e. The organising function follows the function of planning and the other functions of management follow organising. The relationship between different jobs is determined, and provision for their proper integration is made. 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. The need for adequate organization grows with the increase in size of the business unit. 2. Hence, the principle of unity of command leads to effectively combine both physical and financial resources which in turn aids in effective coordination and organization. Two aspects of an organisational social system are the formal or official and the informal or unofficial. Organization structure is considered in different views. The groups are structured based on similar skills. The division of work is done keeping in view the overall objectives of the organization. Who is to supervise it? Two bosses are not better than one. 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. In this process “power” is identified as an unlimited resource. This is called departmentation. Hence, effective organization can be achieved through specialization of sharing or dividing work. Information, in the business’ world, comes from various sources and takes lots of forms: employee records, news, internal meetings minutes or political context. 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. Strategy – Starting from its internal potentials, chances and threats of environment, the organization designs its strategy for the realization of the objectives. It, thus, leads to specialization and increasing employees’ efficiency. Organization management enables the optimum use of resources through meticulous planning and control at the workplace. Each department looks after specific sequence of the process which increases the speed and efficiency of that process. Thus, organising is a sub-process of management. 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”. Some others look upon it as a social system, consisting of the human relationships existing among people performing different types of activities. The structure of the organization is the framework within which effort is coordinated. 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. “Delegation” refers to this. But it is a matter of degree. 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. – Louis Allen, “To organise a business is to provide it with everything useful to its functioning: raw materials, machines and tools, capital and personnel”. 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. google_ad_width = 300; Activities or jobs tend to be small, but workers can perform them efficiently as the… 22. Plans prepared under the function of planning govern all aspects of organizing function. Organizing function is essential because it facilitates administration as well as the functioning of the organization. A manager performs organizing function with the help of following steps:- 1. The term “configuration” is normally used in computer operations showing the programmes incorporated in it. Principles 9. And to be a good manager it is important to have skills like Planning and creating an effective strategy, good communication skills, decision making, leadership skills, problem-solving skills, time management, conceptual-skills, controlling, motivating, and leading the team, etc. Both the concepts lay stress upon the establishment of relationship between these two parts. A good organisation involves precise and systematic distribution of work and responsibilities between managerial group and administrative group. As a structure of relationship organisation can be of two types – firstly formal organisation, and secondly, informal organisation. When the authority is delegated to any person to do certain tasks, that person has to strictly follow the set of rules or protocol to perform the tasks. Empowerment makes employees full partners in decision-making process and gives them the necessary tools and rewards. “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. This helps to make the work being carried out in a simpler and efficient manner. – G. R. Terry. That is activities are unified and harmonized. One such template is shown here to understand the possible structures that can be drawn. Advancements in technology have been very helpful in implementation of this aspect because it has enhanced speedy execution of information processes and communication within the structure of the organization. The responsibility of higher authority for the acts of his subordinates is absolute. (Fig 1), Fig 1 Five steps of the organizing function. 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. Functional departmentalization can be used in all types of organisations. Assignment of rights and duties to the right people. This is a structure concerning decision-making which shows. Hierarchy acts as a line of communication, as well as command, and shows the pattern of relationships among people. Welcome to EconomicsDiscussion.net! Content Guidelines 2. It requires the efficient use of resources combined with the guidance of people in order to reach a specific organizational objective. Those persons cannot take any independent decision, except that such decisions are well within the approved and delegated framework of authority. (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 word Organization is given a variety of interpretations. And these activities are in variance with the activities of a service organization or an organization involved in the trading activities. Thus, no one in the organisation should have more than one boss. Total activities of an enterprise should be divided and grouped into departmental, sectional and individual activities to facilitate division of work. Environment – The environment is relevant for behaviour and the organization structure. Their understanding and concern for the specialty areas outside of their own is not easy to achieve. This establishes a structure of relationships in the organization which helps to ensure that the organization has clear relationships. 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. 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. 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. For example, marketing may be one department, in which packing, dispatching, sales, consumer service etc. The facilities and employees may become so specialized to solve the needs of the customers that they cannot be used for any other purpose. The basic elements of organising are as follows: It means dividing the work into specific tasks with deadlines to their completion. All the three resources are important to get results. It is to say that organizations are built around objectives; hence deciding the objectives is the first step in building up an organization. The leader need not be present during the course of performing the task as in case of delegation. Effective organisation must include specialisation. In this sense, organization can be considered as a vehicle through which goals are supposed to be achieved. Meaning and Definitions of Organizing 3. Besides organizing also encourages creativity and enhances interaction among different levels of management which leads to unification of efforts of all. 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 groups activities under the major headings such as production, marketing, finance, and personnel etc. Any number of configured charts can be prepared for any activity of an enterprise. Each employee of an organization must know where his accountability lies. The structure is usually represented by an organization chart, which provides a graphic representation of the chain of command within an organization. Receiving two commands from two bosses for one activity will hamper the implementation of that activity. Specialisation depends on division of work. The basic structures, viz., line staff and matrix can be configured according to the purpose, goals and objectives of the organisation. 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. This means that an individual should be given an assignment commensurate with his or her ability and interest. Division of work – The total work should be divided into many parts for effective performance of the work. A leader who empowers his people not building a great work, but builds great is people. Therefore, a manager needs to manage an organization in an organized manner so that work may be done. 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. It is really challenging to design an effective and workable organisation structure. Good organisation results in the creation of well balanced, low-cost, teamwork that performs the necessary work. 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.