Organizing is the function of management which follows planning. It is a function in which the synchronization and combination of human, physical and financial resources takes place. All the three resources are important to get results. Therefore, organizational function helps in achievement of results which in fact is important for the functioning of a concern.
According to Chester Barnard, “Organizing is a function by which the concern is able to define the role positions, the jobs related and the co- ordination between authority and responsibility.Hence, a manager always has to organize in order to get results. Nature of the function of Organizing The following are the important characteristics of organisation. Division of work or specialization - The entire philosophy of organisation depends on the concept of specialization. In specialization, various activities are assigned to different people who are specialists in that area.
Specialization improves efficiency. Thus, organisation helps in division of work and assigning duties to different people.Orientation towards goals - Every organisation has its own purposes and objectives. Organizing is the function employed to achieve the overall goals of the organisation.
Organisation harmonies the individual goals of the employees with overall objectives of the firm. Composition of individuals and groups – Individuals form a group and the groups form an organisation. Thus, organisation is the composition of individual and groups. Individuals are grouped into departments and their work is coordinated and directed towards organizational goals.Differentiated functions - The organisation divides the entire work and assigns the tasks to individual in-order to achieve the organizational objectives each one has to perform a different task and tasks of one individuals must be coordinated with the tasks of others.
Continuous process - An organization is a group of people with defined relationship to each other that allows them to work together achieve the goals of the organisation. This relationship does not come to end after completing a task. Organisation is a never ending process.Process of Organizing A manager performs organizing function with the help of following steps:- Identification of activities - All the activities which have to be performed in a concern have to be identified first. For example, preparation of accounts, making sales, record keeping, quality control, inventory control, etc. All these activities have to be grouped and classified into units.
Departmentally organizing the activities - In this step, the manager tries to combine and group similar and related activities into units or departments.This organization of dividing the whole concern into independent units and departments is called departmentation. Classifying the authority - Once the departments are made, the manager likes to classify the powers and its extent to the managers. This activity of giving a rank in order to the managerial positions is called hierarchy. The top management is into formulation of policies, the middle level management into departmental supervision and lower level management into supervision of foremen.
The clarification of authority help in bringing efficiency in the running of a concern.This helps in achieving efficiency in the running of a concern. This helps in avoiding wastage of time, money, effort, in avoidance of duplication or overlapping of efforts and this helps in bringing smoothness in a concern’s working. Co-ordination between authority and responsibility - Relationships are established among various groups to enable smooth interaction toward the achievement of the organizational goal. Each individual is made aware of his authority and he/she knows whom they have to take orders from and to whom they are accountable and to whom they have to report.A clear organizational structure is drawn and all the employees are made aware of it.
Importance and Significance of Organizing Specialization - Organizational structure is a network of relationships in which the work is divided into units and departments. This division of work is helping in bringing specialization in various activities of concern. Well defined jobs - Organizational structure helps in putting right men on right job which can be done by selecting people for various departments according to their qualifications, skill and experience. This is helping in efining the jobs properly which clarifies the role of every person.Clarifies authority - Organizational structure helps in clarifying the role positions to every manager (status quo). This can be done by clarifying the powers to every manager and the way he has to exercise those powers should be clarified so that misuse of powers do not take place.
Well defined jobs and responsibilities attached helps in bringing efficiency into managers working. This helps in increasing productivity. Co-ordination - Organization is a means of creating co- ordination among different departments of the enterprise.It creates clear cut relationships among positions and ensure mutual co- operation among individuals. Harmony of work is brought by higher level managers exercising their authority over interconnected activities of lower level manager.
Authority responsibility relationships can be fruitful only when there is a formal relationship between the two. For smooth running of an organization, the co- ordination between authority- responsibility is very important. There should be co- ordination between different relationships. Clarity should be made for having an ultimate responsibility attached to every authority.
There is a saying, “Authority without responsibility leads to ineffective behaviour and responsibility without authority makes person ineffective. ’’ Therefore, co- ordination of authority- responsibility is very important. Effective administration – The organization structure is helpful in defining the jobs positions. The roles to be performed by different managers are clarified.
Specialization is achieved through division of work. This all leads to efficient and effective administration. Growth and diversification - A company’s growth is totally dependant on how efficiently and smoothly a concern works.Efficiency can be brought about by clarifying the role positions to the managers, co-ordination between authority and responsibility and concentrating on specialization. In addition to this, a company can diversify if its potential grow.
This is possible only when the organization structure is well- defined. This is possible through a set of formal structure. Sense of security - Organizational structure clarifies the job positions. The roles assigned to every manager is clear. Co- ordination is possible. Therefore, clarity of powers helps automatically in increasing mental satisfaction and thereby a sense of security in a concern.
This is very important for job- satisfaction. Scope for new changes - Where the roles and activities to be performed are clear and every person gets independence in his working, this provides enough space to a manager to develop his talents and flourish his knowledge. A manager gets ready for taking independent decisions which can be a road or path to adoption of new techniques of production. This scope for bringing new changes into the running of an enterprise is possible only through a set of organizational structure. Helps to achieve organizational goals - Organisation is employed to achieve the overall objectives of business firms.
Organisation focuses attention of individuals’ objectives towards overall objectives. Optimum use of resources - To make optimum use of resources such as men, material, money, machine and method, it is necessary to design an organisation properly. Work should be divided and right people should be given right jobs to reduce the wastage of resources in an organisation. Perform managerial function effectively – An important function of managers. Facilitates growth and diversification – A good organisation structure is essential for expanding business activity.
Organisation structure determines the input resources needed for expansion of a business activity similarly organisation is essential for product diversification such as establishing a new product line. Principles of Organizing The organizing process can be done efficiently if the managers have certain guidelines so that they can take decisions and can act. To organize in an effective manner, the following principles of organization can be used by a manager. Principle of Specialization According to the principle, the whole work of a concern should be divided amongst the subordinates on the basis of qualifications, abilities and skills.It is through division of work specialization can be achieved which results in effective organization. Principle of Functional Definition According to this principle, all the functions in a concern should be completely and clearly defined to the managers and subordinates.
This can be done by clearly defining the duties, responsibilities, authority and relationships of people towards each other. Clarifications in authority- responsibility relationships helps in achieving co- ordination and thereby organization can take place effectively.For example, the primary functions of production, marketing and finance and the authority responsibility relationships in these departments should be clearly defined to every person attached to that department. Clarification in the authority-responsibility relationship helps in efficient organization.
Principles of Span of Control/Supervision According to this principle, span of control is a span of supervision which depicts the number of employees that can be handled and controlled effectively by a single manager. According to this principle, a manager should be able to handle what number of employees under him should be decided.This decision can be taken by choosing either from a wide or narrow span. Principle of Scalar Chain Scalar chain is a chain of command or authority which flows from top to bottom. With a chain of authority available, wastages of resources are minimized, communication is affected, overlapping of work is avoided and easy organization takes place. A scalar chain of command facilitates work flow in an organization which helps in achievement of effective results.
As the authority flows from top to bottom, it clarifies the authority positions to managers at all level and that facilitates effective organization.
