Organising.pptx
- 1. Organising
- 2. NO QUESTIONS TO BE ASKED
- 3. Meaning Organizing is the establishment of an effective authority relationship that is created among the selected group of persons who are assigned in doing a specified work. Organizing is the process of dividing the workers into sections and departments. While the scope of the organization is present in every hemisphere of life. Organizing is a process of structuring the essential relationships among the people, tasks, and other activities. This is done in a way that the organization’s resources are integrated and are coordinated to accomplish the objectives efficiently and effectively.
- 4. Importance It helps in Achieving Group Goals - It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards achievement of pre-determined goals. Optimum Utilization of Resources - Management utilizes all the physical & human resources productively. This leads to efficacy in management. It makes use of experts, professional and these services leads to use of their skills, knowledge, and proper utilization and avoids wastage. If employees and machines are producing its maximum there is no under employment of any resources. Reduces Costs - It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output. Management uses physical, human and financial resources in such a manner which results in best combination. This helps in cost reduction. Establishes Sound Organization - No overlapping of efforts (smooth and coordinated functions). To establish sound organizational structure is one of the objective of management which is in tune with objective of organization and for fulfillment of this, it establishes effective authority & responsibility relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors & who are subordinates. Establishes Equilibrium - It enables the organization to survive in changing environment. It keeps in touch with the changing environment. Essentials for Prosperity of Society - Efficient management leads to better economical production which helps in turn to increase the welfare of people. Good management makes a difficult task easier by avoiding wastage of scarce resource.
- 5. Steps in the Process of Organisation Identifying the Work Grouping of Work Establish Hierarchy Delegation of Authority Coordination.
- 6. Identifying the Work The obvious first step in the process of organizing is to identify the work that has to be done by the organization. This is the ground level from which we will begin. So the manager needs to identify the work and the tasks to be done to achieve the goals of the organization. Identification of the work helps avoid miscommunication, overlapping of responsibilities and wastage of time and effort.
- 7. Grouping of Work For the sake of a smooth flow of work and smooth functioning of the organization, similar tasks and activities should be grouped together. Hence we create departments within the company and divisions within each department. Such an organization makes the functioning of the company way more systematic. Depending on the size of the organization and the volume of work, an organization can have several department and divisions. And every department has a manager representing them at the top-level of the management. In smaller organizations sometimes these departments are clubbed together under one manager.
- 8. Establish Hierarchy The next step in the process of organizing is to establish the reporting relationships for all the individual employees of the company. So a manager establishes the vertical and horizontal relationships of the company. This enables the evaluation and control over the performances of all the employees in a timely manner. So if rectifications need to be made, they can be made immediately.
- 9. Delegation of Authority Authority is basically the right an individual has to act according to his wishes and extract obedience from the others. So when a manager is assigned certain duties and responsibilities, he must also be delegated authority to carry out such duties effectively. If we only assign the duties, but no authority he will not be able to perform the tasks and activities that are necessary. So we must always assign authority and clearly specify the boundaries of the duties and the authority which has been delegated.
- 10. Coordination Finally, the manager must ensure that all activities carried out by various employees and groups are well coordinated. Otherwise, it may lead to conflicts between employees, duplication of work and wastage of time and efforts. He must ensure all the departments are carrying out their specialized tasks and there is harmony in these activities. The ultimate aim is to ensure that the goal of the organization is fulfilled.
- 11. Formal Organisation Formal organization refers to the organization structure which is designed by the management to accomplish a particular task. It specifies clearly the boundaries of authority and responsibility and there is a systematic coordination among the various activities to achieve organizational goals. Example: Churches Schools Hospitals Companies
- 12. Informal Organisation An informal organization exists in the sense that it has no legal existence, no legal boundaries, no membership roster, no tangible assets, no formal structure, and no official leadership. The distinguishing feature of an informal organization is the social fabric that binds its members together with a common identity. Example: Members of the sales team join every day for lunch with the human resource team. Another example of such informal groups is that sales team personnel help tech development employees to figure out the requirements of the product.
- 13. Line Organisation Line organization structure is the oldest and simplest form of organization. In these organizations, a supervisor exercises direct supervision over a subordinate. Also, authority flows from the top-most person in the organization to the person in the lowest rung. This type of an organization is also called a military organization or a scalar-type organization. Examples: Small businesses in which the top manager, often the owner, is positioned at the top of the organizational structure and has clear "lines" of distinction between him and his subordinates.
- 15. Line & Staff Organisation As an organization grows in scope, complexity increases, they need to be flexible with the control. The principle of line-staff organization introduces this flexibility into hierarchical lines of authority, in a try to maintain a unified command structure. Line groups are engaged in tasks that focus on the technical core of the firm. They are involved in achieving the primary objective of the enterprise. Staff groups are in tasks that provide support to the line groups. Their work is like that of advisory, or service groups. Staff groups support those who are engaged in the central productive activity of the enterprise. They back up their work. Staff groups help the organization in analyzing, researching, counseling, monitoring, and evaluating activities. Example: A human resources employee is ranked within the staff classification, as is an internal auditor, an accountant, a public relations person, and a risk manager.
- 16. Difference between Line and Line & Staff Organisation
- 17. Difference between Line and Line & Staff Organisation (Line) Meaning - The organization in which the authority and responsibility moves downward, and accountability flows upward, is called line organization. Authority - Command Discipline - Strict Executives - Line executives are generalist Degree of centralization - Absolute centralization Appropriate for - Small organization with less number of employees
- 18. Difference between Line and Line & Staff Organisation (Line & Staff) Meaning - The organization structure, in which specialist are added to the line managers to provide guidance and support, is called line and staff organization. Authority - Command and Advise Discipline - Loose Executives - Line executives are generalist and staff executives are specialist. Degree of centralization - Partly centralized and partly decentralized Appropriate for - Large organization with a large number of employees.
- 19. Functional Structure In a functional organization structure, the entire organization is divided into smaller groups or departments based on specialized functions. Since the work is divided into smaller sectors, so is the management. The management is also sub-divided according to the type of work being done. So every department has their own head or executive. And the reporting structure can also differ from department to department. So for example in such an arrangement there will be a finance department, an IT department, marketing department etc. This allows for greater cohesiveness and efficiency in the work of the employees.
- 20. Divisional Structure Divisional Organisation structure in which various departments are created on the basis of products, territory or region, is called a divisional structure. Each unit has a divisional manager, who is responsible for performance and has authority over their division. Each division is further divided into functional units like production, sales, finance, etc.
- 21. Difference between functional structure and Divisional Structure
- 22. Centralisation of Authority Centralization of authority denotes the concentration of authority in a few hands, generally at the top of the organizational hierarchy. Decisions are taken at the top by a few, and communicated down to the lower few of the management. That means that all operational and policy directions are given by a few at the top management level while those below have to carry out the instructions. Example: A person running a departmental store appoints a manager, a cleaning staff, a salesperson and a helper. The owner delegates the work among the staff according to their skills and positions.
- 23. Decentralization of Authority Decentralization of authority may be defined as a situation in which ultimate authority to command and ultimate responsibility for results is localized as far down in the organization as efficient management of the organization, permits. It is carried out by creating; under a central organization, a number of autonomous units with mandates to operate as independent units. Example: The decentralization of government, gives more power to the individual states, rather than concentrating it at the federal level. A hotel owner cannot control a 100 branches at the same time, so he appoints managers
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