ORGANISING

Meaning & Definition of Organising:

Organising is the second fundamental function of management.

The organising process results in the creation of a formal organisation structure.
It is a process which consists of determining the activities to be performed in an
organisation, grouping these activities and assigning managerial authority and
responsibility to people employed in the organisation. The organising function
primarily deals with the grouping of activities and establishment of authority
relationships among various people working in the organisation. Organising
involves the preparations necessary for implementing plans. The manager must
determine who reports to whom in the organisation.

According to Theo Haimann, “Organising is the process of defining and

grouping the activities of the enterprise and establishing the authority
relationships among them”

According to Louis Allen, “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 effectively together in accomplishing objectives”

Nature of Organising:

The nature of organising are explained as follows:

i) Organization is a group of Individuals: Organization can consider as a

group of individuals who comes together and make co-operative
relationship with each-other and contributing their efforts with a view to
attain pre set goals. Infact, in the absence of group of individuals there is
no existence of organization. Thus it is clear that organization is a group
of individuals.
 ii) Organization is a process: The feature of organization can put to be as a
process, because a large number of events is done under organizing
process towards the attainment of predetermined goals, such as
determination of various activities, grouping of activities, allocation of
work amongst the employees and delegation of authority as well. Hence,
organization is a process.

iii) Organization is an important Function of Management: It is an

essential feature of organisation. Organization refers to an
important function of management because all other functions of
management like staffing, directing, controlling etc, will become
ineffective in the absence of this function.

iv) Organization is related to its Objectives: Organization is directly

concerned with the objectives of enterprise. In the absence of objectives
there is no life of organization. If there is an organization then the objectives
must be attached with it. Hence, Organization is related with its goals.

Importance/ Significance of Organising:

A sound organizing facilitates administration, promotes
specialization, encourages growth, and stimulates creativity. It can contribute to
the success of an organization. Hence, the significance of organizing may be
discussed as below:

i) Efficient Administration: Organizing is an important and the only tool

to achieve enterprise goals. A sound organizing helps the management in
many ways. It defines various activities and their authority relationships
in the organizational structure. It can avoid confusion and delays as well
as duplication of work and overlapping of effort. It is the mechanism by
which management directs, controls, and coordinates the various
activities in the enterprise.
ii) Optimum Use of Human Resources: Sound organizing ensures that
every individual is placed on the job for which he is best suited. Such
matching of jobs and individuals helps in better use of human talent. It also
provides the benefits or specialization, which results in economy of
operations and reduction in costs.
iii) Coordination and Communication: Organizing is an important means
of creating coordination and communication among different departments of
the enterprise. Different jobs and positions are welded by
together structural relationship. It also specifies the channels of
communication among different members of the enterprise.
iv) Training and Development: A sound organizing provides a good scope
for the development of managerial ability through proper delegation of
authority and decentralization. It provides responsibility, sufficient freedom
to the supervision and creative thinking in different levels. By this practice,
managers are trained, developed and tested for assuming greater
responsibilities in the future.
v) Productivity and Job Satisfaction: A sound organizing is based on
democratic and participative management. Hence, the
entire organizational environment is favourable for productivity and
job satisfaction.

Process of Organising:
The process of organising consists of 4 steps which are explained as
follows:
i) Identification and Division of work:
The organising function begins with the division of total work
into smaller units. Each unit of total work is called a job. And an
individual in the organisation is assigned one job only. The division of
work into smaller jobs leads to specialization because jobs are
assigned to individuals according to their qualifications and
capabilities. The division of work leads to systematic working. For
example, in a bank every individual is assigned a job. One cashier
accepts cash, one cashier makes payments, one person issues cheque
books, one person receives cheques, etc. With division of work into
jobs the banks work very smoothly and systematically.
 ii) Grouping the Jobs and Departmentalisation:
After dividing the work in smaller jobs, related and similar jobs are
grouped together and put under one department. The departmentation or
grouping of jobs can be done by the organisation in different ways. But the most
common two ways are:
(a) Functional departmentation:
Under this method jobs related to common function are grouped
under one department. For example, all the jobs related to production are
grouped under production department; jobs related to sales are grouped under
sales department and so on.
(b) Divisional departmentation:
When an organisation is producing more than one type of products then
they prefer divisional departmentation. Under this jobs related to one product
are grouped under one department. For example, if an organisation is
producing cosmetics, textile and medicines then jobs related to production, sale
and marketing of cosmetics are grouped under one department, jobs related to
textile under one and so on.
iii) Assignment of Duties:
After dividing the organisation into specialised departments each
individual working in different departments is assigned a duty matching to
his skill and qualifications. The work is assigned according to the ability of
individuals. Employees are assigned duties by giving them a document
called job description. This document clearly defines the contents and
responsibilities related to the job.

iv) Delegation of Authority:

Any position in the organisation comes into existence only when the
positions are empowered to carry out the activities, for which the positions are
designed. This means injecting the positions with managerial authority. To carry
out any activity, one must have enough authority.