ORGANISATION

•Organizing involves establishing an intentional structure of roles for

people to fill in an Organization.
•The term organization implies a formalized intentional structure of
roles or positions.

Definition:
•“Organization is the process of identifying and grouping work to be
performed, defining and delegating responsibility and authority and
establishing relationships for the purpose of enabling people to work
most effectively together in accomplishing objectives.”

•Organization is an instrument for achieving organizational goals.

•The establishment of authority relationships

with provision for co-ordination between them,
both vertically and horizontally in the
enterprise structure.
 Nature of Organisation
• There are some common features of organisation through
which a clear idea about its nature can be obtained.

1. Process
2. Structure
3. Dividing and Grouping the Activities
4. Accomplishment of Goals or Objectives
5. Authority-Responsibility Relationship
6. Human and Material Aspects

Formal organization:
• Formal organization means the intentional structure of role
in a formally organized enterprise.
• Formal Organization must be flexible.

Informal Organization:
• Informal organization as any joint personal
activity without conscious joint purpose, even
though contributing to joint results.
 Objectives
• To apply behavioral science theories

• To improve organizational performance

• To ensure proper use of individual efforts

• To create awareness & To create supportive

values

• To encourage people to solve problems

• To increase motivation level

• To establish and maintain interpersonal relations

• To create & maintain work environment

• To increase knowledge & skills

• To minimize resistance to change & To create job

satisfaction
Principles of Organization
 
(I) Overall Principles:
Principle of unity of objective
Principle of simplicity
Principle of flexibility

(II) Structural Principles:

Principle of division of work
Principle of functional definition
Principle of optimum departmentation
Principle of unity of direction

(III) Operational Principles:

Principle of unity of direction

Span of management principle
Scalar chain principle
Principle of unity of comment
Authority-level principle
 Characteristics
• Specialization and division of work -
Certain operatives occupy positions of management at various points in the process
to ensure coordination.

•Orientation towards goals.

•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 are grouped into departments, form a group and the groups form an organization.

• Continuity –
An organization is a group of people with a defined relationship in
which
they work together to achieve the goals of that organization.
•Flexibility –
The organizing process should be flexible so that any change can be
incorporated easily.
 Structure
The structure is the framework in which the organization defines how tasks
are divided, resources are deployed, and departments are coordinated.

Departmentalization
Departmentalization is the basis on which individuals are grouped into
departments and
departments into total organizations.
1. Functions
2. products
3.customers
4. Regions and territories
5. Time
6. Process
7. Combined base
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.
 Delegation
Delegation is the transfer of authority and/or responsibility
to others, often lower in position.

Possible reasons for delegation:

1. Efficiency
2. Specialization
3. Training

Types of authority and responsibility

•Line authority
•Functional authority
•Staff authority
•Line and Staff Authority

Span of management
Direct single relationship.
Direct group relationships.
Cross relationship
 Tall versus flat structure
Tall - A management structure characterized by an overall narrow
span of management and a relatively large number of hierarchical
levels.

Flat - A management structure characterized by a wide span of

control and relatively few hierarchical levels.
Centralization, Decentralization, and Formalization

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

levels.
Decentralization - The location of decision-making authority near lower organizationa
levels.
Formalization - The written documentation used to direct and control employees.

Importance of organizing

•Specialization
•Well defined jobs
•Proper authority
•Responsibility
•Effective administration
•Job satisfaction
•Dynamic functions
•Facilities growth
•Optimum utilization of resources
•Innovation
5 Main Steps Involved in Organizing Process:
Step 1. Consideration of Plans and Goals

Step 2. Determining the Work Activities Necessary to Accomplish Objectives.

Step 3. Classifying and Grouping Activities.

Step 4. Assigning Work and Delegating Appropriate

Authority.

Step 5. Designing a Hierarchy of Relationships.

 Conclusion
In short, “the organization process, like all managerial functions, is ongoing.
The initial application of the process results in the organization is activated
and begins its systematic pursuit of goals, management monitors and controls
its actions, successes, and failures. Changes and reassignments will take
place. New plans will dictate organizational modifications, after a new
application of the organizing process.”