Organizing – A Management Function (BBA/MBA Notes)

Posted on Jun 1 2020 - 11:48pm by admin

Concept of Organization and Organizing

Organizing comes after the completion of the creative phase of planning through which managers are able to define what is to be done; now the question arises who will do it. Then it is also the responsibility of managers to define who will do what and what will be the relationship among these persons.
• Organizing in general means systematic arrangement of activities.
• Organizing as a process of management essentially relates to sub-dividing and grouping of activities.
• The outcome of the organizing process is a set of formal relationships which is known as organization structure. It becomes necessary to have divisions and sub-divisions of work among employees at different levels.
• Ultimately, the work of the organization is divided into a number of positions of employees and managers and establish a relationship between them.

Functions of Organizing

It has been well understood that Organizing refers to the way in which the work of a group of people is arranged and distributed among group members. The function of organizing includes:
1. Determination of the necessary activities to be performed.
2. Creation of different necessary departments.
3. Sections and positions to perform those activities.
4. Establishing relationships among the various parts of an organization

The main purpose of Organizing is to create a framework for the performance of the activities of an organisation in a systematic manner.

Process of Planning

It is a process through which organisation structure is created and it consists of following elements or steps.

1. Grouping
The first and foremost element in organising is the grouping i.e., creating various departments, divisions, and sections in order to perform various organisational activities. To perform this effectively, it is necessary to identify the activities, which would lead to the achievement of organisational objectives. Since the objectives of different organisations are different it is therefore, necessary to determine the activities of each organisation separately. After tracing them, they need to be grouped into departments based on their similarities and differences. The responsible manager must check that all the necessary activities are performed; there is no duplication in performing various necessary activities, and activities are performed in a synchronised and co-ordinated way. It also has to be kept in mind while undergoing the process of departmentation that how many individuals should be put under the direct supervision of a superior manager.

2. Linking Groups
After creating different groups; which may be called as departments, divisions, sections etc., the question arises how to link them up. It is well understood that no group can work in isolation and the law of interdependence prevails everywhere so, it becomes necessary to link them up so that they can operate in a co-ordinated manner. The shape of any organisation is determined, the way they have been linked with each other. For example in any manufacturing unit four major functions of production, Marketing, Finance and Human Resource are there. Managerial positions will be created to supervise the activities of these departments.

3. Assigning Responsibility
Every individual is assigned with a particular task and made responsible to perform those activities. It is very important to assign different responsibilities to different individuals because of two major reasons:
• The total work in any organisation or department is so large that it cannot be completed by a single individual or by a few persons.
• If the work is divided into smaller units, it becomes easy to assign work to individuals who have the necessary skill and knowledge to perform the work efficiently.

4. Delegating Authorities
No individual would be able to discharge-his duties without having any power or authority so, it is an important part of ‘Organising’. It becomes very necessary to define well about the responsibility, accountability and authority. Therefore, establishing clear cut relationship or hierarchy among individuals is important aspect of the organising process. At this stage it is important to have clear demarcation between responsibility, authority and accountability to allocate three of them separately to each individual.
(i)Responsibility
It is the obligation of a subordinated to perform the assigned duties in the manner guided and desired by the superior. Responsibilities/duties are assigned to the subordinates to share the work.
(ii)Authority
When an individual is given certain responsibility/duty to perform then it is mandatory to give necessary authority to handle that responsibility otherwise, the employee will not be able to perform. Authority includes the rights to take decision, right to issue orders and the right to take action, if orders are not carried out. To sum up authority must follow responsibility.
(iii) Accountability
Bluntly Accountability means answerability and is always upward. Accountability as, each person has to report to his superior, how the work has been done and how authority has been used. In this way, every person becomes accountable to top management. Infact, accountability ensures that the work is done as planned and there is no misuse of authority. An important principle of accountability is principle of single accountability. The super subordinate may be in fix; whom to obey, if this principle is not followed.

5. Designing the Hierarchy Level

It is to design the connectivity between individuals to make the organisational working smooth and simple. « will basically make clear “who” will be reporting to “whom”.

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