ORGANIZING

ORGANIZING
Organizing is the process of establishing orderly
uses for all resources within the management
system. These orderly uses emphasize the
attainment of management system objectives
and assist managers not only in making
objectives apparent but also in clarifying which
resources will be used to attain them.
process.
Organization refers to the result of the organizing.
In essence, each organizational resource represents get a
return. Appropriate organization of these resources
increases the efficiency and effectivenessof their use.
Henri Fayol has developed sixteen
general guidelines for organizing resources;
1. Judiciously prepare and execute the operating
plan.
2. Organize the human and material facets so that
they are consistent with objectives, resources
and requirements of the concern.
3. Establish a single, competent, energetic, guiding
authority (formal management structure).
4. Coordinate all activities and efforts.
5. Formulate clear, distinct and precise decisions.
6. Arrange for efficient selection so that each
department is headed by a competent, energetic
manager and each employee is placed where
he or she can render the greatest service.
7. Define duties.
8. Encourage initiative and responsibility.
9. Have fair and suitable rewards for services
rendered.
10. Make use of sanctions against faults and errors.
11. Maintain discipline,
12. Ensure that individual interests are consistent
with general interests of the organization.
13. Recognize the unity of command.
14. Promote both material and human
coordination.
15. Institute and effect controls.
16. Avoid regulations, red tape and paperwork.
The Organizing Process
The five main steps of the organizing process are:
• Reflecting on plans and objectives
• Establishing major tasks,
• Dividing major tasks into Subtasks.
• Allocating resources and directives for Subtasks.
• Evaluating the results of implemented organizing
strategy.
Chapter presidents should continually repeat these steps.
Through this repetition, they obtain feedback that will
help them improve the organization.
 THE ORGANIZING FUNCTION
Design Organizing
Implies that managers make a
conscious effort to predetermine the
way in which work is done by
Employees.
Structure Organizing
Structure refers to relatively stable
relationships and aspects of the
organization
The anatomy of the organizational,
providing a foundation within which the
organization functions.
Structure Organizing
Structure refers to relatively stable
relationships and aspects of the organization.
The anatomy of the organizational,
providing a foundation within which the
organization functions.
The Purpose Organizing
The describe the organizing function in
terms of dividing tasks into jobs,
departmentalizing jobs and delegating
authority.
The challenge to management is to
design the appropriate structure.
Departmental Bases
There two general categories of bases for
departmentalization :
1. Output oriented bases
2. Internal operations oriented bases
3. Multiple departmental bases
 Output Oriented Bases
Geographical Departmentalization

President

Vice President of Vice President of Vice President of

Southern Region Southern Region West Coast Region

Industrial
Production Distribution
Relations
 Internal Operations Oriented Bases
Functional departmentalization

President

Research and
Production Production Finance Personnel
Distributions
11.5 ORGANIZING
• Organizing is the next important function of
management after the planning. You know
that in case of planning a manager decides
what is to be done in future. In case of
organizing, he decides on ways and means
through which it will be easier to achieve
what has been planned. Suppose, it is
planned to start a new plant for soft drinks
within six months.
• The immediate task for the manager then is to
identify and assign the various tasks involved,
a devise structure of duties and
responsibilities so that things move smoothly
and the object is achieved. All these tasks
form part of organizing function. Thus,
organized. Identifying and grouping the work
to be performed.
• Defining and determining responsibility and
authority for each job position. Establishing
relationship among various job positions.
Determining detailed rules and regulations of
working for individuals and groups in
organization.
11.6 IMPORTANCE OF ORGANIZING
Organizing is essential because it facilitates
administration as well as operation of enterprise. By
grouping work and people properly, production increases,
overload of work is checked, wastage is reduced,
duplication of work is restricted and effective delegation
becomes possible. Secondly, organizing facilitates growth
and diversification of activities through clear division of
work. It helps in developing a proper organization
structure and the extent and nature of decentralization
can be determined. In addition to the above, organizing
also provides for the optimum use of technical and
human resources. It also encourages creativity and
enhances interaction among different levels of
management which leads to unification of efforts of all.
11.7 PROCESS OF ORGANIZING
The process of organizing consists of the following steps –
1. Identification of activities: Every enterprise is created with a
specific purpose.
Based on this, the activities involved can be identified.
2. Grouping of activities: Once activities are identified, then they need
to be grouped.
They are grouped in different ways.
3. 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.
4. Granting authority: On the basis of responsibilities given to specific
individuals, they are also to be given the necessary authority to ensure
effective performance.
5. Establishing relationship: This is a very important job of
management as everybody in the organization should know as to
whom he/she is to report, thereby establishing a structure of
relationships. By doing so, relationships become clear and delegation is
facilitated.