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R
G A N I Z I N
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is the function of management
which follows planning. It is a
function in which the
synchronization and combination
of human, physical and financialresources takes place.
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According to Chester Barnard ,“Organizing is a function by which
the concern is able to define the rolepositions, the jobs related and theco- ordination between authority
and responsibility. Hence, amanager always has to organize inorder to get results.
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Organizing - is the managerial function ofarranging people and resources to work toward agoal. The purposes of organizing include but are
not limited to determining the tasks to be performed in order to achieve objectives, dividingtasks into specific jobs, grouping jobs intodepartments, specifying reporting and authorityrelationships, delegating the authority necessaryfor task accomplishment, and allocating anddeploying resources in a coordinated fashion.
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Identification of activities - All the
activities which have to be performed in
a concern have to be identified first. Forexample, preparation of accounts,
making sales, record keeping, quality
control, inventory control, etc. All theseactivities have to be grouped and
classified into units.
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Departmentally organizing the activities
- In this step, the manager tries to
combine and group similar and relatedactivities into units or departments. This
organization of dividing the whole
concern into independent units anddepartments is called departmentation.
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Classifying the authority - Once the departments are made,the manager likes to classify the powers and its extent tothe managers. This activity of giving a rank in order to themanagerial positions is called hierarchy. The top
management is into formulation of policies, the middlelevel management into departmental supervision and lowerlevel management into supervision of foremen. Theclarification of authority help in bringing efficiency in therunning of a concern. This helps in achieving efficiency in
the running of a concern. This helps in avoiding wastage oftime, money, effort, in avoidance of duplication oroverlapping of efforts and this helps in bringingsmoothness in a concern’s working.
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Co-ordination between authority andresponsibility - Relationships are establishedamong various groups to enable smooth
interaction toward the achievement of theorganizational goal. Each individual is madeaware of his authority and he/she knows whomthey have to take orders from and to whom they
are accountable and to whom they have to report.A clear organizational structure is drawn and allthe employees are made aware of it.
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The following are the important characteristics of organization.
Specialization and division of work
The entire philosophy of organization is centered on the concepts of
specialization and division of work. The division of work is assigning responsibility
for each organizational component to a specific individual or group thereof. It becomes specialization when the responsibility for a specific task lies with a
designated expert in that field. The efforts of the operatives are coordinated to allow
the process at hand to function correctly. Certain operatives occupy positions of
management at various points in the process to ensure coordination.
Orientation towards GoalsEvery organization has its own purposes and objectives.
Organizing is the function employed to achieve the overall goals
of the organization. Organization harmonizes the individual goals
of the employees with overall objectives of the firm.
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Composition of Individuals and Groups
Individuals form a group and the groups form an
organization. Thus, organization is the composition of
individual and groups. Individuals are grouped intodepartments and their work is coordinated and directed
towards organizational goals.
Differentiated Functions
The organization divides the entire work and assigns the tasks to
individuals in order to achieve the organizational objectives; each one
has to perform a different task and tasks of one individual must be
coordinated with the tasks of others. Collecting these tasks at the final
stage is called integration.
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Continuity
An organization is a group of people with a defined
relationship in which they work together to achieve the
goals of that organization. This relationship does not cometo end after completing each task. Organization is a never
ending process.
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Helps to achieve organizational goal
Organization is employed to achieve the overall objectives
of business firms. Organization focuses attention of
individuals objectives towards overall objectives.Optimum use of resources
To make optimum use of resources such as men, material,
money, machine and method, it is necessary to design an
organization properly. Work should be divided and right
people should be given right jobs to reduce the wastage of
resources in an organization.
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To perform managerial function
Planning, Organizing, Staffing, Directing and
Controlling cannot be implemented without proper
organization.Facilitates growth and diversification
A good organization structure is essential for expanding
business activity. Organization structure determines theinput resources needed for expansion of a business activity
similarly organization is essential for product
diversification such as establishing a new product line.
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Human treatment of employees
Organization has to operate for the betterment of
employees and must not encourage monotony of work due
to higher degree of specialization. Now, organization hasadapted the modern concept of systems approach based on
human relations and it discards the traditional productivity
and specialization approach.
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Organizing, in companies point of view, is the
management function that usually follows after
planning. And it involves the assignment of tasks,the grouping of tasks into departments and theassignment of authority and allocation of
resources across the organization.
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The framework in which the organization defines
how tasks are divided, resources are deployed,
and departments are coordinated.
1. A set of formal tasks assigned to individuals anddepartments.
2. Formal reporting relationships, including lines of
authority, decision responsibility, number ofhierarchical levels and span of managers control.
3. The design of systems to ensure effective
coordination of employees across departments.
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Work specialization (also called division of labor ) is
the degree to which organizational tasks are sub-
divided into individual jobs. With too muchspecialization, employees are isolated and do only a
single, tiny, boring job. Many organizations enlarge
jobs or rotate assigned tasks to provide greaterchallenges.
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Authority
• is a manager's formal and legitimate right to makedecisions, issue orders, and allocate resources toachieve organizationally desired outcomes.
Responsibility
• means an employee's duty to perform assignedtask or activities.
Accountability
• means that those with authority and responsibilitymust report and justify task outcomes to thoseabove them in the chain of command.
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Delegation is the process managers use to transfer
authority and responsibility to positions below
them. Organizations today tend to encouragedelegation from highest to lowest possible levels.Delegation can improve flexibility to meet
customers’ needs and adaptation to competitiveenvironments. Managers often find delegationdifficult.
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Line authority- managers have the formal power to direct and control
immediate subordinates. The superior issues orders and is responsible
for the result the subordinate obeys and is responsible only for
executing the order according to instructions.
Functional authority- is where managers have formal power over aspecific subset of activities. For instance, the Production Manager
may have the line authority to decide whether and when a new
machine is needed but the Controller demands that a Capital
Expenditure Proposal is submitted first, showing that the investment
will have a yield of at least x%; or, a legal department may have
functional authority to interfere in any activity that could have legal
consequences. This authority would not be functional but it would
rather be staff authority if such interference is "advice" rather than
"order".
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Factors influencing larger span of management. Work performed by subordinates is stable and routine.
Subordinates perform similar work tasks.
Subordinates are concentrated in a single location.
Subordinates are highly trained and need little direction in performingtasks.
Rules and procedures defining task activities are available.
Support systems and personnel are available for the managers.
Little time is required in non-supervisory activities such ascoordination with other departments or planning.
Managers' personal preferences and styles favor a large span.
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Tall - A management structure characterized by an
overall narrow span of management and a relatively
large number of hierarchical levels. Tight control.
Reduced communication overhead.
Flat - A management structure characterized by a
wide span of control and relatively few hierarchicallevels. Loose control. Facilitates delegation.
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Departmentalization is the basis on which individuals
are grouped into departments and departments into
total organizations. Approach options include:
1. Functional - by common skills and work tasks.2. Divisional - common product, program or
geographical location.
3. Matrix - combination of Functional and Divisional4. Team - to accomplish specific tasks.
5. Network - departments are independent providing
functions for a central core breaker.
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Organizations are often troubled by how to
organize, particularly when a new strategy is
developed.
Changing market conditions or new technology
requires change.
Organizations seek efficiencies through
improvements in organizing.
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The field of home organization has multiplied in
recent years. Any life or lifestyle change may
require reorganizing a home space or getting
rid of accumulated items. Many home design
and organizational websites feature
organizational tips and guidelines for people
to implement on their own when they need
more space or less clutter.
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