Organizing is the process of identification and grouping of activities, assigning duties and delegating authority to the managers, allocating necessary Resources and establishing coordination among individuals and department of an organization with a view to attain its objectives.
PROCESS OF ORGANIZING :
The process of organising consists of the following steps –
Identification of activities: Every enterprise is created with a specific purpose. Based on this, the activities involved can be identified. For example, in a manufacturing firm, producing goods and selling them are the major activities in addition to routine activities like, paying salary to employees; raising loans from outside, paying taxes to the government etc. and these activities vary when the organisation is a service concern or a trading firm.
Grouping of activities: Once activities are identified, then they need to be grouped. They are grouped in different ways. The activities which are similar in nature can be grouped as one and a separate department can be created. For example – activities undertaken before sale of a product, during the sale of the product and after the sale of the product can be grouped under the functions of a Marketing department. Normally, all activities of a manufacturing unit can be grouped into major functions like purchasing, production, marketing, accounting and finance, etc. and each function can be subdivided into various specific jobs.
Assignment of Responsibilities: Having completed the exercise of identifying, grouping and classifying all activities into specific jobs, they can be assigned to individuals to take care of.
Granting authority: On the basis of responsibilities given to specific individuals, they are also to be given the necessary authority to ensure effective performance.
Establishing relationship: This is a very important job of management as everybody in the organisation should know as to who he/she is to report, thereby establishing a structure of relationships. By doing so, relationships become clear and delegation is facilitated.
ORGANIZATION STRUCTURE
Organization structure is a Network of formal authority relationships among people within which behaviour and activities of people are regulated for the accomplishment of organizational objectives.
Forms of Organizational Structure
Line Organization
Pure Line: – Activities at a particular level are same, every employee performs by & large the same type of work.
Departmental Line: – Whole work divided into functional Departments. Each Department works as a self-sufficient unit under the supervision & direction of a department manager who himself work under the immediate boss.
Line and Staff Organization
It is one that has line managers with direct vertical relationships between different levels in the organization in addition to the specialist responsible for advising and assisting the line managers.
Functional Organization
According to this, Line authority is channelized through the staff specialists. In such an organizational structure, Line authority runs through many functional experts who have authority to issue orders in their respective areas of specialisation.
Project Organization
It is a temporary structure designed to accomplish a specific task or project with the help of specialists drawn from different functional departments within the organization.
Matrix OR Grid Organization
It is permanent Organizational Structure designed to accomplish specific project or result by using using teams of specialists drawn from different functional departments within the organization.It is a combination of project organization and functional organization.
Committee Organization
It is a group of 2 or more appointed, nominated or elected persons to consider, discuss decide, recommend or report on some issue or matter assigned to it.
Informal & Formal Organization
Formal organisation refers to the officially established pattern of relationships among departments, divisions and individuals to achieve well-defined goals and is a consciously designed structure of roles.
Informal organisations on the other hand, refers to relationship between individuals in the organisation based on personal attitudes, likes and dislikes and originates to meet their social and emotional needs and develops spontaneously.
Delegation
The active process of entrustment of a part of work or responsibility and authority to another and the creation of accountability for performance is known as delegation. Thus, there are three Elements of delegation as follows-
Assignment of Responsibility: This is also known as entrustment of duties. Duties can be divided into two parts: one part, that the individual can perform himself and the other part, that he can assign to his subordinates to perform.
Granting Authority: Authority refers to the official powers and position required to carry on any task. When duties are assigned to subordinates then the required authority must also be conferred to him
Creating Accountability: The delegatee is fully answerable to his superior for performance of the task assigned to him. Thus, the superior ensures performance through accountability by his subordinate.
Decentralisation refers to a systematic effort to delegate authority at all levels of management and in all departments. This shifts the power of DECISION MAKING to lower level under a well considered plan.
Decentralisation has number of benefits. Firstly, it reduces the workload of the top level management. Secondly, it motivates the employees and gives them more autonomy. It promotes initiative and creativity. It also helps employees to take quick and appropriate decisions. In this process, the top management is freed from the routine jobs and it enables them to concentrate on crucial areas and plan for Growth.
Distinction between Delegations and Decentralisation
Decentralisation is not same as delegation. The points of differences are –
While delegation is the process of assigning responsibility and authority and thereby creating accountability; decentralisation is the ultimate outcome of planned delegation.
Delegation of authority takes place between the manager and his subordinates while decentralisation involves the entire organisation, and is between top management and divisions/departments.
Delegation is done to speed up the work and is essential in trace; while decentralisation is optional and is usually done in large scale organisations.
In case of delegation the responsibility and authority delegated may be withdrawn by the delegator; which is not so easy in case of decentralisation.
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Functions of Management: Organizing
Organizing is one of the four main functions of management, along with planning, leading, and controlling. It is the process of creating a structure for an organization, and includes activities such as division of work, departmentalization, job design, span of control, delegation, centralization and decentralization, formalization, and coordination.
Division of Work
Division of work is the process of breaking down a job into smaller tasks that can be assigned to different people. This allows for specialization, which can lead to increased efficiency and productivity.
Departmentalization
Departmentalization is the process of grouping similar tasks together into departments. This can be done by function, product, customer, or geography. Departmentalization helps to create a clear structure for the organization and to improve Communication and coordination.
Job Design
Job design is the process of determining the content, context, and rewards of a job. The content of a job refers to the tasks that are performed, the context of a job refers to the Environment in which the tasks are performed, and the rewards of a job refer to the compensation and benefits that are associated with the job. Job design is important because it can affect employee satisfaction, motivation, and productivity.
Span of Control
Span of control is the number of subordinates that a manager can effectively supervise. The ideal span of control varies depending on the situation, but it is typically between 5 and 15 subordinates. A narrow span of control means that each manager has a small number of subordinates, while a wide span of control means that each manager has a large number of subordinates. A narrow span of control allows for more supervision and control, while a wide span of control allows for more delegation and Empowerment.
Delegation
Delegation is the process of assigning tasks and authority to subordinates. Delegation is important because it allows managers to focus on more important tasks and to develop their subordinates. When delegating, it is important to clearly define the tasks, to provide the necessary authority, and to hold subordinates accountable for their results.
Centralization and Decentralization
Centralization is the degree to which decision-making authority is concentrated at the top of an organization. Decentralization is the degree to which decision-making authority is delegated to lower levels of the organization. Centralization and decentralization are often discussed in terms of the advantages and disadvantages of each approach. Centralization can lead to more Control And Coordination, while decentralization can lead to more flexibility and innovation.
Formalization
Formalization is the degree to which rules, procedures, and other written documentation are used in an organization. Formalization can help to ensure consistency and uniformity, but it can also lead to rigidity and Bureaucracy.
Coordination
Coordination is the process of ensuring that the activities of different parts of an organization are working together in a harmonious and efficient manner. Coordination can be achieved through planning, communication, and control.
Organizing is a complex and challenging process, but it is essential for the success of any organization. By understanding the principles of organizing, managers can create a structure that will help their organizations achieve their goals.
What is organizing?
Organizing is the process of creating a structure for an organization. It involves identifying the tasks that need to be done, grouping them together into departments or teams, and assigning them to individuals. Organizing also involves establishing lines of authority and communication, and developing procedures and policies.
What are the benefits of organizing?
Organizing can help an organization to be more efficient and effective. By creating a clear structure, organizing can help to ensure that tasks are completed in a timely and accurate manner. Organizing can also help to improve communication and coordination between different departments or teams.
What are the challenges of organizing?
One of the challenges of organizing is that it can be difficult to get everyone to agree on the best way to structure an organization. There are often competing priorities and interests, and it can be difficult to find a solution that everyone is happy with. Another challenge of organizing is that it can be difficult to keep up with changes in the environment. As the world changes, organizations need to be able to adapt their structures to meet the new challenges.
What are some common mistakes made when organizing?
One common mistake made when organizing is to create a structure that is too rigid. A rigid structure can make it difficult for the organization to adapt to change. Another common mistake is to create a structure that is too complex. A complex structure can make it difficult for employees to understand their roles and responsibilities.
What are some tips for organizing effectively?
One tip for organizing effectively is to start by identifying the goals of the organization. Once the goals are clear, it is easier to identify the tasks that need to be done to achieve those goals. Another tip is to group similar tasks together and assign them to a single department or team. This can help to improve efficiency and communication. Finally, it is important to regularly review the organization’s structure and make changes as needed.
Which of the following is not a function of management? (A) Planning (B) Organizing (C) Controlling (D) Directing
Organizing is the process of: (A) Setting goals and objectives (B) Determining how to achieve goals and objectives (C) Assigning tasks and responsibilities (D) Monitoring progress and making adjustments as needed
Which of the following is not a principle of organizing? (A) Unity of command (B) Span of control (C) Departmentalization (D) Delegation
Unity of command means that: (A) Each employee should have only one supervisor (B) Employees should be grouped together based on their skills and abilities (C) Managers should have a limited number of subordinates (D) Employees should be given the authority to make decisions
Span of control refers to the number of subordinates that a manager can effectively supervise. The optimal span of control is: (A) 3-6 (B) 7-10 (C) 11-15 (D) 16-20
Departmentalization is the process of grouping together jobs that are similar in nature. The most common types of departmentalization are: (A) Functional, product, and geographic (B) Functional, divisional, and matrix (C) Functional, product, and customer (D) Functional, divisional, and geographic
Functional departmentalization is based on the type of work that is performed. For example, a company might have a marketing department, a sales department, and a production department.
Product departmentalization is based on the type of product or service that is produced. For example, a company that makes cars might have a department for each of its car models.
Geographic departmentalization is based on the location of the company’s operations. For example, a company that has offices in several countries might have a department for each country.
Matrix departmentalization is a hybrid of functional and divisional departmentalization. In a matrix structure, employees are assigned to both a functional department and a product or geographic department. This allows companies to get the benefits of both types of departmentalization.
Delegation is the process of assigning tasks and responsibilities to others. When managers delegate, they give up some of their authority, but they also gain the ability to focus on more important tasks.
There are several advantages to delegation, including: (A) It allows managers to focus on more important tasks (B) It can help to improve employee morale (C) It can help to develop employees’ skills and abilities (D) All of the above
There are also some potential disadvantages to delegation, including: (A) Managers may not be able to control the work that is delegated (B) Employees may not be able to handle the delegated tasks (C) Delegation can lead to conflict between managers and employees (D) All of the above
To be effective, delegation should be done in a systematic way. The following steps should be followed: (A) Define the task to be delegated (B) Select the right person to delegate the task to (C) Provide the necessary information and resources (D) Monitor the progress of the task (E) Provide feedback and support
When delegating tasks, it is important to consider the following factors: (A) The skills and abilities of the employee (B) The importance of the task (C) The amount of time the task will take (D) The level of risk involved (E) All of the above