Meaning

Organisation is the detailed arrangement of

work and working conditions in order to
perform the assigned activities in an effective
manner.
 Definition
• “it is the process of identifying and grouping
of the works to be performed, defining and
delegating responsibility and authority and
establishing relationships for the purpose of
enabling people to work most efficiently"
- Louis A. Allen
 Purpose of
organising
• Coordinates activities
• Cluster job into units
• It ensure optimum use of resource
• Establish relationship among individual
groups
• It facilitates growth, creativity
 CHARACTERISTICS OR FEATURES OF
ORGANIZING OR ORGANIZATION

• Organisation is a process

• Organisation is a group of
individuals

• Organisation is a “means” not an

“end”

• Important function of management

• Related to objectives
 NATURE OF ORGANIZING

• Division of work
• Common
objectives
• Cooperative effort
• Communication
• Rules and
regulations
• Dynamic element
 IMPORTANCE OF ORGANIZING

• Specialization.
• Role clarity.
• Clarifies authority and
power.
• Avoid duplication of work.
• Coordination.
• Source of support and
security.
• Adaptation.
• Promotes human relations.
 STEPS IN THE PROCESS OF
ORGANIZING

1.Division of work

2. Grouping of jobs into departmentation

3. Assigning duties
Steps of
organizing
4. Establishing authority and
responsibility. 5.Delegation of
authority

6.Effective communication
7.Coordination of activities
ORGANIZATION
STRUCTURE
Elements of Organizational
Structure
• Work specialization
• Departmentalization
• Authority and responsibility
• Span of control
• Centralization vs. decentralization
• Formalization

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Specialization

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Departmentalization

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Types of Authority Relationships

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Line and Staff Authority

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Unity of Command

A structure in which each employee reports to

only one manager.

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How Do Authority and Power
Differ?
Authority: Power:
a right whose legitimacy an individual’s ability to
is based on an authority influence decisions
figure’s position in the
organization; it goes
with the job

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Span of Control
Most effective and efficient span depends on:
• Employee experience and training (more they
have, larger span).
• Similarity of employee tasks (more similarity,
larger span).
• Complexity of those tasks (more complex, smaller
span).

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Centralization & Decentralization
Centralization Decentralization
decision making takes lower-level managers
place at upper levels of provide input or actually
the organization make decisions

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Formalization
How standardized an organization’s jobs are and
the extent to which employee behavior is guided
by rules and procedures.

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