Management Function

ORGANIZING
 • The term 'Organization' can be used in
different senses. It can be used as a group of
person working together to as a structure of
relationships or as a process of
What is management.
Organizing or • When it is used to refer to a structure of
relationships, it means the structural
an relationships among the positions and jobs
and person (i.e., the framework of
Orginization responsibility and authority) through which
the enterprise functions, and it is called
organization structure.
Definition.
• Theo Haimann: "Organizing is the process of
defining and grouping the activities; of the
enterprise and establishing authority
relationships among them".
• Louis A. Allen: "Organizing is the process of
identifying and grouping the work to be
performed, defining and delegating
responsibility and authority, and establishing
relationship the purpose for enabling people
to work most efficiently together in
accomplishing objectives".
NATURE & CHARACTERISTICS OF ORGANIZA TION:

• Organizing or organization is a management process (i.e., a managerial

function)
• Organization is concerned with groups of people. An organization cannot
be constituted by a single person. It comes into existence only when a
group of persons come together.
• Organization is, concerned with identification and grouping of activities
into logical pattern so as to secure homogeneous groups of activities.
• Division of work among division of labors is the basis of organization.
• Integration or-coordination of the various activities of the enterprise is
another important feature of organization.
NATURE & CHARACTERISTICS OF ORGANIZA TION
• An organization structure has no meaning unless it can contribute to
the accomplishment to the common objectives, i.e., the goal or
objectives of the enterprise.
• An organization structure consists of various positions arranged in a
hierarchy with clear definition of authority and responsibility
associated with each of the positions.
• Organization process involves taking a number to steps, such as the
identification of the activities to be performed to attain the objective
of the enterprise, the appropriate groping of activities into logical
pattern, assignment to activities to appropriate departments and
people, delegation of authority, creation of authority -responsibility
relationships, etc.
PRINCIPLES OF SOUND ORGANIZATION:

• 19 principles
• Take this as your homework
Principles of
formal
orginsations
FORMAL AND INFORMAL ORGANISATION
• In the organizational structure of every enterprise, both
formal and informal organisations exist.
• So, it is necessary for us to have some idea about the
formal and informal organisations existing in every
concern.
Formal and Informal Orginisations
FORMAL ORGANISATION
• In the words of Chester Barnard, " An organisation is formal when the
activities of two or more persons are consciously co-ordinated towards a
common objective".
• A Formal organization is an organization with a fixed set of rules of intra-
organization procedures and structures. As such, it is usually set out in
writing, with a language of rules that ostensibly leave little discretion for
interpretation. In some societies and in some organizations, such rules
may be strictly followed; in others, they may be little more than an empty
formalism.
Features of Formal Organisation:
• In a formal organisation, the position, authority, responsibilities,
accountability of each level are clearly defined.
• It prescribes the relationships amongst the people working in the
organisation.
• The formal relations in the organisation arise from the pattern of
responsibilities that are created by the management.
• The structure is consciously designed to enable the people of the
organisation to work together for accomplishing the common
objectives of the enterprise.
• A formal organisation is bound by rules) regulation and procedures.
• It is deliberately impersonal.
Advantages of Formal organisation:
• It makes everybody responsible for a given task.
• It ensures law -and order in the organisation by
prescribing rules, regulations and procedures.
• It contributes to accomplishment of the common
objectives of the enterprise.
Drawbacks or Criticisms of Formal Organisation:
• Formal Organisation is impersonal. So, emotions and
sentiments of individuals are ignored in determining the
interactions, communication and accountability.
• Formal Organisation is deliberately designed to achieve the
goals of the enterprise. It does not consider the goals of the
individuals.
• The rules and regulations prescribed in a formal organisation
may be rigid, and so, it may become difficult to achieve goals.
INFORMAL ORGANISATION
• In the words of Keith Davis, “Informal organisation is a network of personal
and social relations not established or required by the formal organisation
but arising spontaneously as people associate with one another”.
• The informal organization is the interlocking social structure that governs
how people work together in practice. It is the aggregate of, norms,
personal and professional connections through which work gets done and
relationships are built among people who share a
common organizational affiliation or cluster of affiliations. It consists of a
dynamic set of personal relationships, social networks, communities of
common interest, and emotional sources of motivation. The informal
organization evolves, and the complex social dynamics of its members also.
Features of Informal Organisation:

• Informal Organisation is not established by any formal authority. It arises

from the personal and social relations amongst the people working in the
organisation.
• Informal Organisation arises spontaneously, and not by deliberate or
conscious efforts.
• It is influenced by the personal attitudes, emotions, whims, likes and
dislikes, etc. of the people in the organisation.
• It is based on rules, regulations and procedures.
• The inter-relations amongst the people in an informal organisation cannot
be charted (i.e., cannot be shown in an organisation chart).
•
Benefits of Informal organisation:

• It helps the formal organisation to make a workable system to get the

work done.
• It assists the formal organisation to become humanistic.
• It helps the group members to attain specific personal objectives.
• It provides social satisfaction to group members.
• It acts as a means by which the workers achieve a sense of security
and belonging.
• It is best means of employee communication
Benefits of Informal organisation:
• It acts as a safety valve for the emotional problems and the
frustrations of the workers of the enterprise.
• It lightens the work-load of the formal managers.
• Many things which cannot be achieved through formal organisation
can be achieved through informal organisation.
• The presence of informal organisation in an enterprise makes the
managers plan and act more carefully.
Drawbacks of Informal Organisation:
• The communication in informal organisation may, son1etirnes, lead to
rumours.
• Informal organisation may put resistance to changes and innovations.
• It may not effectively contribute to the attachment of the objectives
of the enterprise
Conclusion
• Formal organisation alone is not capable of accomplishing the
organizational objectives. It needs the help of informal organisation.
Informal organisation supplements the formal organisation in
achieving the organizational objectives.
• "Informal organization brings cohesiveness to a formal organization. It
brings to the members of a formal organization, a feeling of
belonging, of status, of self-respect and of gregarious satisfaction".