FUNCTIONS OF MANAGEMENT - ORGANIZING

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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.

Decentralization

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.

Organizing is one of the four main FUNCTIONS OF MANAGEMENT, along with planning, leading, and controlling. It is the process of designing and structuring an organization to achieve its goals. Organizing involves creating a hierarchy of positions, assigning tasks and responsibilities, and coordinating the work of different individuals and groups.

There are a number of different ways to organize an organization. One common approach is to departmentalize, which means grouping similar tasks and activities together. There are several different types of departmentalization, including functional, product, geographic, and customer departmentalization.

Another important aspect of organizing is 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 and activities that are performed. The context of a job refers to the physical and social Environment in which the job is performed. The rewards of a job refer to the pay, benefits, and other forms of compensation that employees receive for their work.

Delegation is the process of assigning tasks and responsibilities to others. When managers delegate, they are giving up some of their own authority and control. However, delegation can also be a way to empower employees and increase their motivation and job satisfaction.

Span of control is the number of subordinates that a manager can effectively supervise. The ideal span of control will vary depending on the situation, but it is generally considered to be between 5 and 12 subordinates.

Centralization and decentralization refer to the degree to which decision-making authority is concentrated at the top of an organization. In a centralized organization, most decisions are made by top management. In a decentralized organization, decision-making authority is delegated to lower levels of the organization.

Formalization is the degree to which rules, procedures, and other written documentation are used in an organization. In a highly formalized organization, there are many rules and procedures that employees must follow. In a less formalized organization, there are fewer rules and procedures.

Coordination is the process of ensuring that the work of different individuals and groups is aligned with the organization’s goals. Coordination can be achieved through a variety of mechanisms, such as planning, Communication, and feedback.

Organizational structure is the overall framework of an organization, including its hierarchy of positions, division of labor, and coordination mechanisms. There are a number of different types of organizational structure, including functional, divisional, and matrix structures.

Organizational culture is the shared values, beliefs, and norms that characterize an organization. Organizational culture can have a significant impact on the way that an organization operates.

Organizational change is the process of modifying an organization’s structure, systems, or culture. Organizational change can be initiated by a variety of factors, such as changes in the external environment, changes in technology, or changes in the organization’s strategy.

Organizing is a complex and challenging process, but it is essential for the success of any organization. By understanding the different aspects of organizing, managers can create a more effective and efficient organization.

In addition to the subtopics listed above, there are a number of other factors that can affect the way that an organization is organized. These include the size of the organization, the Industry in which it operates, the technology it uses, and the culture of the country in which it is located.

The size of an organization can have a significant impact on its structure. Small organizations typically have a simple, flat structure, with few levels of hierarchy. Large organizations, on the other hand, often have a more complex, hierarchical structure.

The industry in which an organization operates can also affect its structure. For example, organizations in the manufacturing sector typically have a more functional structure, with departments for production, marketing, and finance. Organizations in the service sector, on the other hand, often have a more divisional structure, with separate divisions for different types of Services.

The technology that an organization uses can also affect its structure. Organizations that use new technologies, such as E-Commerce or Social Media, often have a more flexible, decentralized structure. Organizations that use traditional technologies, on the other hand, often have a more rigid, centralized structure.

The culture of the country in which an organization is located can also affect its structure. For example, organizations in countries with a high power distance index (PDI) typically have a more hierarchical structure, with clear lines of authority. Organizations in countries with a low PDI, on the other hand, often have a more flat, egalitarian structure.

The way that an organization is organized can have a significant impact on its performance. Organizations with a well-designed structure are more likely to be efficient and effective.

What is organizing?

Organizing is the process of defining and establishing the structure of an organization, and designing the systems and procedures needed to achieve its goals.

What are the steps in organizing?

The steps in organizing are:

Division of work: This involves breaking down the overall work of the organization into smaller tasks that can be assigned to individuals or groups.
Departmentalization: This involves grouping similar tasks together into departments or units.
Delegation of authority: This involves giving employees the authority to make decisions and take action on behalf of the organization.
Coordination: This involves ensuring that the work of different departments or units is properly coordinated so that the organization can achieve its goals.

What are the benefits of organizing?

The benefits of organizing include:

Increased efficiency: Organizing can help to improve efficiency by ensuring that tasks are assigned to the right people and that resources are used effectively.
Improved coordination: Organizing can help to improve coordination by ensuring that the work of different departments or units is properly coordinated.
Increased productivity: Organizing can help to increase productivity by ensuring that employees are working on the right tasks and that they have the resources they need to be successful.
Improved morale: Organizing can help to improve morale by giving employees a sense of purpose and by providing them with the opportunity to contribute to the organization’s success.

What are the challenges of organizing?

The challenges of organizing include:

The need to balance efficiency with flexibility: Organizing can sometimes lead to a loss of flexibility, as employees may be less willing to change their work practices or to take on new tasks.
The need to deal with conflict: Organizing can sometimes lead to conflict between different departments or units, as they may compete for resources or have different priorities.
The need to keep up with change: The organization structure needs to be constantly reviewed and updated to reflect changes in the organization’s environment.

What are some common mistakes made when organizing?

Some common mistakes made when organizing include:

Not defining the organization’s goals clearly: This can lead to a lack of focus and direction in the organization.
Not considering the organization’s culture: The organization structure needs to be compatible with the organization’s culture.
Not delegating authority effectively: This can lead to a lack of accountability and responsibility in the organization.
Not coordinating the work of different departments or units effectively: This can lead to duplication of effort and a lack of communication.

What are some tips for organizing effectively?

Some tips for organizing effectively include:

Define the organization’s goals clearly: This will help to ensure that the organization structure is aligned with the organization’s goals.
Consider the organization’s culture: The organization structure needs to be compatible with the organization’s culture.
Delegate authority effectively: This will help to ensure that employees are accountable and responsible for their work.
Coordinate the work of different departments or units effectively: This will help to ensure that the organization is working towards its goals in a coordinated manner.
Keep up with change: The organization structure needs to be constantly reviewed and updated to reflect changes in the organization’s environment.

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) Developing strategies and plans
(C) Assigning tasks and responsibilities
(D) Coordinating and integrating activities
Which of the following is not a type of organizational structure?
(A) Functional structure
(B) Divisional structure
(C) Matrix structure
(D) Hierarchical structure
A functional structure is a type of organizational structure in which:
(A) Employees are grouped by their functional specialties
(B) Employees are grouped by their product or service lines
(C) Employees are grouped by their geographic location
(D) Employees are grouped by their project or task
A divisional structure is a type of organizational structure in which:
(A) Employees are grouped by their functional specialties
(B) Employees are grouped by their product or service lines
(C) Employees are grouped by their geographic location
(D) Employees are grouped by their project or task
A matrix structure is a type of organizational structure in which:
(A) Employees are grouped by their functional specialties
(B) Employees are grouped by their product or service lines
(C) Employees are grouped by their geographic location
(D) Employees are grouped by their project or task
Which of the following is not a benefit of organizing?
(A) Increased efficiency
(B) Improved coordination
(C) Reduced costs
(D) Increased flexibility
Which of the following is a disadvantage of organizing?
(A) Increased Bureaucracy
(B) Reduced flexibility
(C) Increased costs
(D) Decreased efficiency
Which of the following is a principle of organizing?
(A) Unity of command
(B) Span of control
(C) Division of labor
(D) All of the above
Unity of command is the principle that:
(A) Each employee should have only one supervisor
(B) Employees should be grouped together based on their skills and abilities
(C) Tasks should be divided into smaller, more manageable units
(D) All of the above