Chapter: 5 ORGANISING Organising is the second
management function which establishes relationships between activity and
authority. It is the process of determining and grouping of activities,
arrangement of needed resources (Physical, Financial and Human) and establishes
productive relationship among them for the attainment of business objectives.
It involves grouping of activities, allocation of work and giving up duties and
responsibilities among the members. Thus each job holder is clear about his
duties, responsibilities and to whom he is accountable. It creates the
structure of an organisation and aims to enable people to work together for a
common purpose. “Organising is 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 efficiently together in accomplishing objectives” -Louis A. Allen STEPS IN THE PROCESS OF ORGANISING Organising process involves
the following steps: 1.
Division of Work. 2.
Grouping of Jobs in to departments. 3.
Establishing authority relationships. 4.
Co-ordination of Activities. 1. Division of Work: The first step in the
process of organising is dividing the total work in to set of activities called
jobs. Each job consists of specialised tasks and objectives of the
orgainsation. This step is an essential one because no one has the ability to
perform the entire work. More over it facilitates specialization of work and
skill. 2. Grouping of Jobs in to departments: The second step in the
process of organising is making departments (divisions or sections). For this
purpose group the similar or related jobs in to large units. This grouping
process is called department. After creating departments, they should be linked
together on the basis of their interdependence. Generally grouping of jobs
should be conducted on the basis of organization’s functions, products
manufactured etc. 3. Establishing authority relationships: Creation of authority
relationship among the job holders and job positions is the third step in the
process of organising. This means linking all the members in an organisation on
the basis of authority-responsibility relationship. This helps to create an
authority structure, which reveals superior-subordinate relationship and chain
of command. 4. Co-ordination of Activities: Due to the implementation of
division of work, each part of the work is performed by different workers or
departments. So it should be coordinated for the attainment of group goal. This
step ensures each employee do the work as per the assigned, without making
conflicts or overlaps with the work of others. IMPORTANCE OF ORGANISING The process of organising
leads to the creation of the structure of an organisation. A sound organisation
can contribute to the success of an enterprise in many ways. Following are the
importance of organising: 1.
Specialisation 2.
Role clarity 3.
Clarifies authority and power 4.
Avoids duplication of work 5.
Co-ordination 6.
Source of support and security 7.
Adaptation 8.
Promotes human relations 1. Specialisation: Organising promotes
specialisation, speedy performance of task and efficiency. This is because in
the process of organising total activities are divided into small jobs and
allocate to each members in the organisation. So a worker has to carry out only
a small part of a particular job and get the opportunity of doing the same work
again and again. 2. Role clarity: The jobs of managers and
non-managers are clearly defined and differentiated. What task and activities
to be carried out at a particular job are clearly explained through job
description. 3. Clarifies authority and power: Each manager’s authority and
their area of decision making are clearly defined during the process of
organising. So each manager knows to whom they have the right to command. It
also provides knowledge about their responsibilities. This helps the managers
to minimises conflict and confusion about their respective powers and
privileges 4. Avoids duplication of work: Organising gives a clear
idea about the work to be performed by each member. So each member does only the work which
assigned to him. This process helps to avoid duplication and overlapping of
work and responsibilities among various workers and work units. 5. Co-ordination: Organising act as a system
for unification of people efforts. It makes clear the role of each people or
department. So they work as per guidelines which lead to co-ordination. 6. Source of support and security: Organising is a source of
support, security and satisfaction to managers and non-managers. It reveals the
status and position of each member and helps in performing their assigned task
properly. 7. Adaptation: Organising adapts various
changes which gives adequate scope for the development of technology. Such
changes will not affect adversely to the system of jobs, departments and
authority in an organisation. Example: When a worker
retires from a job, new one will be placed to it and enables the work to be
done without any delay. 8. Promotes human relations: Organising helps the workers
to work in a free and fair atmosphere. It will promote a sound human relation
among the members in the organisation. STRUCTURE OF ORGANISATION Organisation structure
refers to the network of vertical and horizontal authority relationship among
different positions and various personnel occupying these positions in an
organisation. It establishes a pattern of relationship. It lays down the
arrangement of job positions, assignment of personnel to it, authority
relationship among various positions, communication structure and way of
coordination. It provides a basis for managers and non-managers to do their
work. While building a structure
of an organisation following elements should take in to consideration: 1.
Job design 2.
Departmentation 3.
Span of control 4.
Delegation of Authority 1. Job design: While building a structure
of an organisation give prior consideration for designing the job. This means
define the activities and related tasks in each jobs and qualities, skills and
qualifications required to do that job. This is because managers must specify
the jobs to workers for getting the job done through them. 2. Departmentation: Once jobs are defined, give
importance to group similar jobs under one department and one manager. This
process of grouping employees and activities in to various departments is known
as Departmentation. This makes easier to coordinate various jobs towards group
goal. 3. Span of control: Give importance to span of
control while building the structure of an organisation. Span of control means
No: of subordinates a manager can manage effectively. It helps to decide how
many people and jobs one manager can manage and made responsible for. Span of
control varies according to the nature of industry and type of products/services
involved by the organisation. It also clarifies the chain of command and
established who will responsible to whom. 4. Delegation of Authority: Give some degree of
authority to subordinates to do the job perfectly. So determine the power of
each member to perform the job is another consideration take in to account
while deciding the structure of an organisation. Management scholars and
thinkers have developed various types of organisation structure to suit the
needs of organisation. Among them most commonly found forms are: A.
Functional Structure B.
Divisional Structure A.Functional
Structure Functional structure is a
structure base on grouping the entire work to be done in to major functional
departments. In this structure each major functions of business is organized as
departments like production, m marketing, finance and personnel. The major
functions may be further divided into sections and sub-sections. This type of
organisation work will be always in the shape of a pyramid. B.Functional
Structure In this type of
organizational structure activities and personnel are grouped on the basis of
different products manufactured. Within each product groups have personnel for
researching, manufacturing and marketing jobs. In this structure personnel
concentrate only on one product line in which each belongs and they are
responsible for its division’s profit. FORMAL AND INFORMAL ORGANISATION Formal Organisation An organisation which is
designed and established by management for the attainment of certain goals is
known as formal organisation. It is
consciously designed network of official authority-responsibility relationship
and communication flow, which helps to divide, allocate and coordinate the
activities of the organisation. It is a structure of well defined jobs each
having define objectives, authority and responsibility. Informal Organisation Informal organisation originates from within the formal organisation to meet the cultural and social needs of organizational members. When several individuals work together for achieving certain organizational goals, they came to know each other’s cultural needs and interest. They associate themselves to fulfill such interests and needs. The network of this social group based on friendship and human consideration is called informal organisation. DISTINGUSH BETWEEN FORMAL AND INFORMAL
ORGANISATION
DELEGATION OF AUTHORITY The
word delegation is derived from the Latin, which means to substitute a person
with adequate authority to act for others. In the same sense the term
‘delegation’ is used in management. When an organisation grow in
size it will be difficult to a manager to perform the entire managerial work
entrusted to him. However there are certain unique works which the manager must
do himself. So in order to reduce his managerial burden, he gives some part of
his authority to his subordinates and gets the work done through them. Delegation of authority means
downward transferring of some part of manager’s work (Responsibility) along
with adequate authority to his immediate subordinates. It is the process of
giving responsibility (work) and authority and creating accountability to a
person to whom managerial work has been given. It reduces the work load of managers and
enables them to concentrate on more important matters. Delegation is not an abdication
process. This means when a manager transfers his work to a subordinate, he
cannot escape from the answerability or accountability for the default made by
the subordinate to his superior for that work. ELEMENTS OF DELEGATION The elements of delegation
are: 1. Responsibility It the work assigned to a
subordinate. 2. Authority It is the power or right needed to perform a
given responsibility. 3. Accountability It is the obligation of
subordinate to report his manager that he has completed the assigned
responsibility. There is a close
relationship between authority and responsibility. Granting authority without
responsibility leads to misuse of it. If sufficient authority is not given
subordinates cannot discharge the assigned work. Following are the importance
of delegation of authority: 1. Reduces managers work load: It reduces the work load of
managers. It enables them to concentrate on important aspects of their work and
make better use of their valuable time and ability. 2. Basis of superior-subordinate relationship: It creates a
superior-subordinate relationship among managers. It helps to direct and
regulate the flow of authority from top to bottom in an organisation. 3. Quick decision making: It helps the organisation to
take quick decisions within the policy framework by the subordinates without
consulting his superior. This helps to do the functions of an organisation
smoothly. 4. Motivates Subordinates: It creates a feeling of
getting some freedom, which leads to job satisfaction. They become more willing
to work hard and achieve the targets delegated to him. This it promotes a sense of initiative and
accountability among employees.
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