Organizing is the process of identifying and grouping the work to be performed defining and delegating

responsibility and authority and establishing relationship for the purpose of enabling people to work most
effectively together in accomplishing objectives.

Characteristics
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 goals. Every 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.
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 into departments and their work is
coordinated and directed towards organizational goals.
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 come to end after completing each task. Organization is a
never ending process.

Purpose

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.
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 the input resources needed for expansion of a business activity similarly
organization is essential for product diversification such as establishing a new product line.
Humane 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 has adapted the modern
concept of systems approach based on human relations and it discards the traditional productivity and specialization
approach.

Applications
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 the assignment of authority with adequate
resoponsibility and allocation of resources across the organization to achieve common goals.
Structure 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 and departments.

2. Formal reporting relationships, including lines of authority, decision responsibility, number of hierarchical levels
and span of managers control.
3. The design of systems to ensure effective coordination of employees across departments.
Work specialization
Work specialization (also called division of labour or job specialization) is the degree to which organizational tasks are
sub-divided into individual jobs. It may increase the efficiency of workers, but with too much specialization, employees
may feel isolated and bored. Many organizations enlarge jobs or rotate assigned tasks to provide greater challenges.
Chain of command
Chain of command is the vertical lines of a command structure that is used for the purposes of overall responsibility and
accountability in the achieving of stated goals and objectives through the use of orders one direction and reports of
compliance in the other direction. Chain of command differs from horizontal lines in an organization which are basically
the communication and coordinating lines of the organization.
Authority, responsibility, and accountability

Authority is a manager's formal and legitimate right to make decisions, issue orders, and allocate resources to
achieve organizationally desired outcomes.
Responsibility means an employee's duty to perform assigned task or activities.
Accountability means that those with authority and responsibility must report and justify task outcomes to those
above them in the chain of command.
Delegation of Authority
Assigning work to subordinates and giving them necessary authority to do the assigned work effectively. Delegation is
the process managers use to transfer authority and responsibility to positions below them. Organizations today tend to
encourage delegation from highest to lowest possible levels. Delegation can improve flexibility to meet customers needs
and adaptation to competitive environments. Managers often find delegation difficult reasons for delegation(when a
manager is advised to carry out delegation) 1 where there is need to carry out more important work that reflect
organization's objective 2. where there is need to give more training to his supervisors, juniors,en employees as well 3.if
there is need of improvement/acquisition of skills by people in that organization then the manager will find well to delegate
authority 4.where there is need to save time, utilize organizational resources then the manager finds is way best to
delegate
Types of authority (and responsibility)
Line authority managers have the formal power to direct and control immediate subordinates. The superior issues orders
and is responsible for the result and the subordinate obeys and is responsible only for executing the order according to
instructions.
Functional authority is where managers have formal power over a specific 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".
Staff authority is granted to staff specialists in their areas of expertise. It is not a real authority in the sense that a staff
manager does not order or instruct but simply advises, recommends, and counsels in the staff specialists' area of expertise
and is responsible only for the quality of the advice (to be in line with the respective professional standards etc.) It is a
communication relationship with management. It has an influence that derives indirectly from line authority at a higher
level.
Line and Staff Authority is the combination of Line organization and Staff organization. Such organization follows both
the principles of scalar chain of command and there is a provision for specialized activities to be performed by staff officers
who act in an advisory capacity
Span of management
Categories:

Direct single relationship.

Direct group relationships.
Cross relationship.
Factors influencing larger span of management.

1. Work performed by subordinates is stable and routine.

2. Subordinates perform similar work tasks.
3. Subordinates are concentrated in a single location.
4. Subordinates are highly trained and need little direction in performing tasks.
5. Rules and procedures defining task activities are available.
6. Support systems and personnel are available for the managers.
7. Little time is required in non-supervisory activities such as coordination with other departments or planning.
8. Managers' personal preferences and styles favor a large span.
Tall versus flat structure

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. Are more expensive because of the number
of managers involved. Are more expensive because of the number of managers involved.
Flat - A management structure characterized by a wide span of control and relatively few hierarchical levels. Loose
control. Facilitates delegation. Are more expensive because of the number of managers involved. Create more
administrative responsibility for the relatively few managers. Create more administrative responsibility for the
relatively few managers.
Centralization, decentralization, and formalization

Centralization - The location of decision-making authority near top organizational levels.

Decentralization - The location of decision-making authority near lower organizational levels.
Formalization - The written documentation used to direct and control employees.
Departmentalization
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 Divisional
4. Team - to accomplish specific tasks
5. Network - departments are independent providing functions for a central core breaker
Importance of organizing

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
Matrix Organization

Advantages: Enhances organizational flexibility. Team members have the opportunity to learn new skills. Provides an
efficient way for the organization to use its human resources.Team members serve as bridges to their departments for
the team.

Disadvantages: Employees are uncertain about reporting relationships. The dynamics of group behavior may lead to
slower decision making, one-person domination, compromise decisions, or a loss of focus. More time may be required
for coordinating task-related activities.

Organizational Design: Mechanistic vs Organic Organization

Mechanistic organizational units are the traditional pyramidal pattern of organizing. In a mechanistic organizational unit,
roles and procedures are precisely defined. Communication is channelized, and time spans and goal orientations are
similar within the unit. (Michael). The objective is to work toward machine-like efficiency. The mechanistic form is efficient
and predictable. For people with a low tolerance for ambiguity, it provides a stable and secure work setting. Under what
conditions is this pattern of organization appropriate? When the organizational unit is performing a task that is stable,
well-defined, and likely to be programmable, or when members of the organization prefer well-defined situations, feel
more secure when the day has a routine to it, and tend to want others to supply direction, the mechanistic pattern is
applicable. (Michael) For instance, few customers would want a McDonalds employee to use creativity in preparing their
hamburger. Instead, the repetitiveness and stability of the procedures needed to cook a hamburger are more efficient
when the employee follows established procedures and customers can trust that each hamburger they purchase will taste
the same. However, the mechanistic form is less flexible: once a direction and procedures have been set, it is hard to
change them.

In contrast to mechanistic units, organic organizational units are based on a more biological metaphor for constructing
social organizations. The objective in designing an organic unit is to leave the system maximally open to the environment
in order to make the most of new opportunities. An organic form is useful in the face of an uncertain task or one that is
not well enough understood to be programmed. The organic form is also appropriate for people who like the disorder of
an ambiguous setting, for people who prefer variety, change, and adventure and who grow restless when they fall into
the same routine day after day. A prime example for an organic company is Google. Fortune magazine has ranked Google
number one of the 100 best companies to work for in 2007. Googles headquarter, the Googleplex, resembles a
playground for employees including a corporate recreation center. Its organization structure stresses innovative
teamwork, flat hierarchies and decentralization in the sense that teams have the necessary autonomy to make decisions
for themselves without interruption from middle management. (Sweid) However, the organic form is often waste of
resources. Not having precisely defined authority, control, and information hierarchies, time can be wasted in search
activities that duplicate the efforts of other members. Furthermore, the stress of uncertainty and the continual threat of
power struggles can be exhausting.

Principles of Organizing The organizing process can be done efficiently if the managers have certain guidelines so that
they can take decisions and can act. To organize in an effective manner, the following principles of organization can be
used by a manager.

Principle of Specialization According to the principle, the whole work of a concern should be divided amongst the
subordinates on the basis of qualifications, abilities and skills. It is through division of work specialization can be achieved
which results in effective organization.

Principle of Functional Definition According to this principle, all the functions in a concern should be completely and
clearly defined to the managers and subordinates. This can be done by clearly defining the duties, responsibilities,
authority and relationships of people towards each other. Clarifications in authority-responsibility relationships helps in
achieving co-ordination and thereby organization can take place effectively. For example, the primary functions of
production, marketing and finance and the authority responsibility relationships in these departments shouldbe clearly
defined to every person attached to that department. Clarification in the authority-responsibility relationship helps in
efficient organization.

Principles of Span of Control/Supervision

According to this principle, span of control is a span of supervision which depicts the number of employees that can be
handled and controlled effectively by a single manager. According to this principle, a manager should be able to handle
what number of employees under him should be decided. This decision can be taken by choosing either froma wide or
narrow span. There are two types of span of control:-

Wide span of control- It is one in which a manager can supervise and control effectively a large group of persons at one
time. The features of this span are:- Less overhead cost of supervision Prompt response from the employees Better
communication Better supervision Better co-ordination Suitable for repetitive jobs

According to this span, one manager can effectively and efficiently handle a large number of subordinates at one time.

Narrow span of control- According to this span, the work and authority is divided amongst many subordinates and a
manager doesn't supervises and control a very big group of people under him. The manager according to a narrow span
supervises a selected number of employees at one time. The features are:-

Work which requires tight control and supervision, for example, handicrafts, ivory work, etc. which requires craftsmanship,
there narrow span is more helpful. Co-ordination is difficult to be achieved. Communication gaps can come. Messages
can be distorted. Specialization work can be achieved.

Factors influencing Span of Control

Managerial abilities- In the concerns where managers are capable, qualified and experienced, wide span of control is
always helpful.

Competence of subordinates- Where the subordinates are capable and competent and their understanding levels are
proper, the subordinates tend to very frequently visit the superiors for solving their problems. In such cases, the manager
can handle large number of employees. Hence wide span is suitable.

Nature of work- If the work is of repetitive nature, wide span of supervision is more helpful. On the other hand, if work
requires mental skill or craftsmanship, tight control and supervision is required in which narrow span is more helpful.

Delegation of authority- When the work is delegated to lower levels in an efficient and proper way, confusions are less
and congeniality of the environment can be maintained. In such cases, wide span of control is suitable and the supervisors
can manage and control large number of sub- ordinates at one time.

Degree of decentralization- Decentralization is done in order to achieve specialization in which authority is shared by
many people and managers at different levels. In such cases, a tall structure is helpful. There are certain concerns where
decentralization is done in very effective way which results in direct and personal communication between superiors and
sub- ordinates and there the superiors can manage large number of subordinates very easily. In such cases, wide span
again helps.

Principle of Scalar Chain

Scalar chain is a chain of command or authority which flows from top to bottom. With a chain of authority available,
wastages of resources are minimized, communication is affected, overlapping of work is avoided and easy organization
takes place. A scalar chain of command facilitates work flow in an organization which helps in achievement of effective
results. As the authority flows from top to bottom, it clarifies the authority positions to managers at all level and that
facilitates effective organization.

Principle of Unity of Command

It implies one subordinate-one superior relationship. Every subordinate is answerable and accountable to one boss at
one time. This helps in avoiding communication gaps and feedback and response is prompt. Unity of command also helps
in effective combination of resources, that is, physical, financial resources which helps in easy co-ordination and,
therefore, effective organization.