Organizing - Introduction

8/4/2019 Organizing - Introduction

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ORGANIZING

Organizing is what you do before you do something, so that when you do it, it is

not all mixed up.A. A. Milne


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DEFINITION

Process off determining the activities to be performed,

arranging these activities to administrative units, as

well as assigning managerial authority and

responsibilitiesto people employed in the organization.


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FEATURES OF ORGANIZING

Two or more people are always involved in the process of

organizing. The activity of organizing is done to achieve a common goal.

Organizing process allows people to work in a cooperative way

without friction.

It believes in dividing the work into small parts and assigning

them to people involved. This ensures speedy execution of work.

Communication (especially downward communication) is very

essential for organizing

Rules and regulations define the territorial jurisdiction ofemployees which is essential for organizing activities.

Organizing is done by people and not by objects. So it is

important that people coordinate with each other.

It strikes balance between people, resources, tasks and

technology.

It is affected by economic, social, political and legal factors.


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ORGANIZING A STEP BY STEP

PROCESS

STEP 1: Identification of activities - All the activities which have to be

performed in a concern have to be identified first.

STEP 2: Departmentally organizing the activities - In this step, the

manager tries to combine and group similar and related activities into

units or departments. This process of dividing the whole concern intoindependent units and departments is called departmentation.

STEP 3: Classifying the authority - Once the departments are made, the

manager likes to classify the powers and its extent to the managers.

This activity of giving a rank in order to the managerial positions is

called hierarchy.

STEP 4: Co-ordination between authority and responsibility -Relationships are established among various groups to enable smooth

interaction. Each individual is made aware of his authority and he/she

knows whom they have to take orders from and to whom they are

accountable and to whom they have to report.


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IMPORTANCE OF ORGANIZING

PROCESS

Specialization - The division of work is helping in bringing

specialization in various activities of concern.

Well defined jobs - Organizational structure helps in putting right menon right job which can be done by selecting people for various

departments according to their qualifications, skill and experience. Clarifies authority - Organizational structure helps in clarifying the

role positions to every manager (status quo). This helps in bringing

efficiency into managers working and in increasing productivity.

Co-ordination - It creates clear cut relationships among positions and

ensure mutual co- operation among individuals. Harmony of work is

brought by higher level managers exercising their authority over

interconnected activities of lower level manager.

Effective administration - The organization structure is helpful in

defining the jobs positions. Specialization is achieved through division of

work. This all leads to efficient and effective administration.


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IMPORTANCE OF ORGANIZING

PROCESS

Growth and diversification - A company can diversify if its potential

grow. This is possible only when the organization structure is well-

defined. This is possible through a set of formal structure.

Sense of security - Organizational structure clarifies the job positions.

The roles assigned to every manager is clear. Clarity of powers helpsautomatically in increasing mental satisfaction and thereby a sense of

security in a concern. This is very important for job- satisfaction.

Scope for new changes - Where the roles and activities to be performed

are clear and every person gets independence in his working, this

provides enough space to a manager to develop his talents and flourish

his knowledge. A manager gets ready for taking independent decisionswhich can be a road or path to adoption of new techniques of

production.


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PRINCIPLES OF ORGANIZING

PROCESS

Principles in Relation to Purpose

Principle of unity of objectives: An organization structure is effectiveif it as a whole, and every part of it, make possible accomplishment of

individuals in contributing toward the attainment of enterpriseobjectives.

Principle of efficiency: An organization or organization structure is

efficient if it is structured to make possible accomplishment of

enterprise objectives by people with minimum unsought consequencesor costs.


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PROCESS

Principles Related to the Cause of Organizing

Span of management Principle: There is a limit at each managerial

position on the number of persons an individual can effectively manage.

But this number is not a fixed number and it will vary in accordance

with underlying variables of the situation.


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PROCESS

Principles in Developing the Structure of Organization

The scalar Principle: The more clear the line of authority from the

ultimate authority for management in an enterprise (CEO) to every

subordinate position, the more effective will be decision making and

organization communication at various levels in the organization.

Principle of delegation: Authority is a tool for managing to contribute

to enterprise objectives. Hence authority delegated to an individual

manager should be adequate to assure his ability to accomplish results

expected of him. Principle of responsibility: The responsibility of the subordinate to his

superior for authority received by delegation is absolute, and no

superior can escape responsibility for the activities of his subordinate to

whom he in turn has delegated authority.


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PROCESS

Principles in Developing the Structure of Organization

Principle of parity of authority and responsibility:The responsibility

exacted for actions taken under authority delegated cannot be greater

than that implied by the authority delegated, nor should it be less.

Principle of unity of command: The more completely an individual has

a reporting relationship to a single superior, the less the problem of

conflict in instructions and the greater the feeling of personal

responsibility.

The authority level Principle: Maintenance of authority delegationrequires that decisions within the authority competence of an individual

manager be made by him and not be referred upward in the

organization.


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PROCESS

Principles in Departmentation Activities

Principle of division of work: A good organization structure reflects a

classification of the tasks and activities required for achievement of

objectives and assist their coordination through creating a system of

interrelated roles.

Principle of functional definition: The more a position or a

department has clear definition of results expected, activities to be

undertaken, organization authority delegated, and authority and

informational relationships with other positions, the more adequately

individual responsible can contribute toward accomplishing enterprise

objectives.


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PROCESS

Principles in the Process of organizing

Principle of balance: The application of principles or techniques mustbe balanced in the light of the over-all effectiveness of the structure in

meeting enterprise objectives.

Principle of flexibility: The task of managers is to provide for attainingobjectives in the face of changing environments. The more provisions

are made for building organization flexibility, the more adequately

organization structure can fulfill its purpose.


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ORGANIZATIONAL DESIGN

CLASSICAL THEORY

FAYOLS 14 PRINCIPLES

OF MANAGEMENT

GANGPLANK PRINCIPLE

Organizing - Introduction

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