UNIT – 3
ORGANIZING
Meaning:
Organising refers to a process consisting of a series of steps to identify and group
various activities, collect or assemble various resources and establish authority
relationships with responsibility amongst job positions. It can be mentioned as collecting
and utilizing human and non-human resources to implement plans in a highly effective
and efficient manner. It is to achieve the overall plan of the organisation.
In other words, it refers to the process of arranging people to work together and
accomplish a common goal. It is a process of identifying activities to be performed,
grouping these activities into work units, assembling tasks for the various job positions,
defining rules, and establishing the authority, responsibility, and relationship amongst
them.
Definition of Organising:
“Organising is a process of defining and grouping the activities of the enterprise
and establishing the authority relationships among them. In performing the organising
function, the manager defines, departmentalizes, and assigns activities so that they can
be most effectively executed.” –Theo Haimann
“Organizing is a function by which the concern is able to define the role positions,
the jobs related and the coordination between authority and responsibility.” – Chester I.
Barnard
“Organizing is the process of defining and grouping the activities of the enterprise
and establishing the authority relationships among them.” – Luther Gulick
Importance of Organising:
The importance of organizing becomes clear with the help of the following points:
(1) Benefits of Specialization: Under organizing all the activities are subdivided into
various works or jobs. Each sub work is assigned to competent persons who become
experts by doing a particular job time and again. In this way, division of work leads to
specialization.
(2) Clarity in Working Relationship: Organizing clarifies the working relations among
job positions. It establishes authority and responsibility. It specifies who is to report to
whom. Therefore, communication becomes effective. It also helps in fixing accountability.
(3) Optimum Utilization of Resources: Organizing leads to optimum utilization of
resources. Each job positions is clearly defined along with its authority and responsibility.
It avoids confusion and duplication of any job. Consequently, there is optimum utilization
,of all the available resources e.g., material, machine, financial, human resource, etc. in the
organization.
(4) Adaptation to Change: Organizing process makes the organization capable of
adapting to any change. This becomes possible only because there exists a clear network
of relationships right from the top to the lower level. It also makes communication of any
sort easy and effective.
(5) Effective Administration: organizing makes administration effective by clarifying
the authority of each position and its responsibility. Everyone also knows to whom he is
accountable to. In this way, the confusion on authority is put to an end and effective
administration becomes possible.
(6) Development of Personnel: Organizing helps develop personnel through delegation
of authority. A superior can delegate his authority to subordinate. It provides the
subordinates with the opportunity to take higher level decisions. It not only motivates
them but also gives them a chance to show their creativity. Consequently, it helps them to
grow and develop.
(7) Expansion and Growth: The process of organizing allows the employees the freedom
to take decisions which helps them to grow. They are always ready to face new challenges.
This situation can help in the development of the enterprise. This helps in increasing the
earning capacity of the enterprise which in turn helps its development.
Characteristics of organizing:
(1) Division of work: Division of work is the basis of an organization. There can be no
organization where work is to be done by an individual. Under division of work the entire
work is divided into many parts. Each part of it is further sub divided into sub- parts.
Individuals are assigned their part of work. This piece of work when performed
repeatedly, gradually makes that person an expert. Thus, under organization an effort is
made to achieve the objectives successfully by way of division of work.
(2) Coordination: Organising coordinates the work of different persons for the
attainment of objectives. Under it the entire work is divided and subdivided into different
job positions and their authority and responsibility is clearly defined. Thus superior
subordinate relationships also get established. Everyone knows his role in the
organisation and there are no overlapping and clashes over work responsibilities.
(3) Plurality of persons: Organization is a group of many persons who assemble to fulfil
a common purpose. An organization structure cannot be created (or need not be created)
when there is only an individual to perform the entire work.
(4) Common objectives: Organisation aims at achieving the common objectives. There
are various parts of an organization each performing their own functions. But each
function has been designed to achieve common objectives.
,(5) Well-defined Authority and Responsibility: Under organization, relationships are
established between different positions right from the top to the bottom. It is clearly
specified as to what will be the responsibility of every position and adequate authority is
given to fulfil the responsibility assigned. There should be parity between authority and
responsibility. If responsibility is more than authority, work cannot be performed and if
authority is more than responsibility, there will be misuse of authority.
(6) Organization is a structure of relationship: Organising defines the role positions
and also relationship between these positions in the organization and defines
responsibility and authority for the performance of these functions. It establishes
superior subordinate relationships. This way, it establishes a structure for achieving
organisational goals.
Process of Organising:
The steps involved in the process of organising are as follows:
1. Identification and Division of Work:
The function of organising starts with the identification of the total work which is to be
done to achieve the organisational goal. The work is divided systematically so that each
person gets a separate task to perform. This helps to avoid unnecessary duplication and
wastage of efforts and facilitates the specialization of efforts and skills.
2. Departmentalisation:
Once the identification and division of work are done. The next step is to combine group-
related activities into units and departments. This process of grouping similar and related
activities into groups of large independent units or departments is known
as departmentalisation. The grouping may be done on the basis of function, product,
customer, etc.
, 3. Assignment of Duty:
After grouping various activities into departments, the next step is necessary to allocate
the work of different employees. Duty should be assigned based on the knowledge,
qualification, experience, and capability of the individual. There should be a proper match
between job requirements and the capabilities of employees.
4. Establishing Reporting Relationship:
After assigning duty, the next step is to clearly define the authority and responsibility of
the employees. If two or more person is working together for a common goal, then it is
necessary to define the relationship between them in clear terms. There is a need to create
a hierarchical structure and help in coordination among various departments.
Principles of Organization:
1. Principle of Objective:
The enterprise should set up certain aims for the achievement of which various
departments should work. A common goal so devised for the business as a whole and the
organization is set up to achieve that goal. In the absence of a common aim, various
departments will set up their own goals and there is a possibility of conflicting objectives
for different departments. So there must be an objective for the organization.
2. Principle of Specialisation:
The organization should be set up in such a way that every individual should be assigned
a duty according to his skill and qualification. The person should continue the same work
so that he specialises in his work. This helps in increasing production in the concern.
3. Principles of Co-ordination:
The co-ordination of different activities is an important principle of the organization.
There should be some agency to co-ordinate the activities of various departments. In the
absence of co-ordination there is a possibility of setting up different goals by different
departments. The ultimate aim of the concern can be achieved only if proper co-
ordination is done for different activities.
4. Principle of Authority and Responsibility:
The authority flows downward in the line. Every individual is given authority to get the
work done. Though authority can be delegated but responsibility lies with the man who
has been given the work. If a superior delegates his authority to his subordinate, the
superior is not absolved of his responsibility, though the subordinate becomes liable to
his superior. The responsibility cannot be delegated under any circumstances.
ORGANIZING
Meaning:
Organising refers to a process consisting of a series of steps to identify and group
various activities, collect or assemble various resources and establish authority
relationships with responsibility amongst job positions. It can be mentioned as collecting
and utilizing human and non-human resources to implement plans in a highly effective
and efficient manner. It is to achieve the overall plan of the organisation.
In other words, it refers to the process of arranging people to work together and
accomplish a common goal. It is a process of identifying activities to be performed,
grouping these activities into work units, assembling tasks for the various job positions,
defining rules, and establishing the authority, responsibility, and relationship amongst
them.
Definition of Organising:
“Organising is a process of defining and grouping the activities of the enterprise
and establishing the authority relationships among them. In performing the organising
function, the manager defines, departmentalizes, and assigns activities so that they can
be most effectively executed.” –Theo Haimann
“Organizing is a function by which the concern is able to define the role positions,
the jobs related and the coordination between authority and responsibility.” – Chester I.
Barnard
“Organizing is the process of defining and grouping the activities of the enterprise
and establishing the authority relationships among them.” – Luther Gulick
Importance of Organising:
The importance of organizing becomes clear with the help of the following points:
(1) Benefits of Specialization: Under organizing all the activities are subdivided into
various works or jobs. Each sub work is assigned to competent persons who become
experts by doing a particular job time and again. In this way, division of work leads to
specialization.
(2) Clarity in Working Relationship: Organizing clarifies the working relations among
job positions. It establishes authority and responsibility. It specifies who is to report to
whom. Therefore, communication becomes effective. It also helps in fixing accountability.
(3) Optimum Utilization of Resources: Organizing leads to optimum utilization of
resources. Each job positions is clearly defined along with its authority and responsibility.
It avoids confusion and duplication of any job. Consequently, there is optimum utilization
,of all the available resources e.g., material, machine, financial, human resource, etc. in the
organization.
(4) Adaptation to Change: Organizing process makes the organization capable of
adapting to any change. This becomes possible only because there exists a clear network
of relationships right from the top to the lower level. It also makes communication of any
sort easy and effective.
(5) Effective Administration: organizing makes administration effective by clarifying
the authority of each position and its responsibility. Everyone also knows to whom he is
accountable to. In this way, the confusion on authority is put to an end and effective
administration becomes possible.
(6) Development of Personnel: Organizing helps develop personnel through delegation
of authority. A superior can delegate his authority to subordinate. It provides the
subordinates with the opportunity to take higher level decisions. It not only motivates
them but also gives them a chance to show their creativity. Consequently, it helps them to
grow and develop.
(7) Expansion and Growth: The process of organizing allows the employees the freedom
to take decisions which helps them to grow. They are always ready to face new challenges.
This situation can help in the development of the enterprise. This helps in increasing the
earning capacity of the enterprise which in turn helps its development.
Characteristics of organizing:
(1) Division of work: Division of work is the basis of an organization. There can be no
organization where work is to be done by an individual. Under division of work the entire
work is divided into many parts. Each part of it is further sub divided into sub- parts.
Individuals are assigned their part of work. This piece of work when performed
repeatedly, gradually makes that person an expert. Thus, under organization an effort is
made to achieve the objectives successfully by way of division of work.
(2) Coordination: Organising coordinates the work of different persons for the
attainment of objectives. Under it the entire work is divided and subdivided into different
job positions and their authority and responsibility is clearly defined. Thus superior
subordinate relationships also get established. Everyone knows his role in the
organisation and there are no overlapping and clashes over work responsibilities.
(3) Plurality of persons: Organization is a group of many persons who assemble to fulfil
a common purpose. An organization structure cannot be created (or need not be created)
when there is only an individual to perform the entire work.
(4) Common objectives: Organisation aims at achieving the common objectives. There
are various parts of an organization each performing their own functions. But each
function has been designed to achieve common objectives.
,(5) Well-defined Authority and Responsibility: Under organization, relationships are
established between different positions right from the top to the bottom. It is clearly
specified as to what will be the responsibility of every position and adequate authority is
given to fulfil the responsibility assigned. There should be parity between authority and
responsibility. If responsibility is more than authority, work cannot be performed and if
authority is more than responsibility, there will be misuse of authority.
(6) Organization is a structure of relationship: Organising defines the role positions
and also relationship between these positions in the organization and defines
responsibility and authority for the performance of these functions. It establishes
superior subordinate relationships. This way, it establishes a structure for achieving
organisational goals.
Process of Organising:
The steps involved in the process of organising are as follows:
1. Identification and Division of Work:
The function of organising starts with the identification of the total work which is to be
done to achieve the organisational goal. The work is divided systematically so that each
person gets a separate task to perform. This helps to avoid unnecessary duplication and
wastage of efforts and facilitates the specialization of efforts and skills.
2. Departmentalisation:
Once the identification and division of work are done. The next step is to combine group-
related activities into units and departments. This process of grouping similar and related
activities into groups of large independent units or departments is known
as departmentalisation. The grouping may be done on the basis of function, product,
customer, etc.
, 3. Assignment of Duty:
After grouping various activities into departments, the next step is necessary to allocate
the work of different employees. Duty should be assigned based on the knowledge,
qualification, experience, and capability of the individual. There should be a proper match
between job requirements and the capabilities of employees.
4. Establishing Reporting Relationship:
After assigning duty, the next step is to clearly define the authority and responsibility of
the employees. If two or more person is working together for a common goal, then it is
necessary to define the relationship between them in clear terms. There is a need to create
a hierarchical structure and help in coordination among various departments.
Principles of Organization:
1. Principle of Objective:
The enterprise should set up certain aims for the achievement of which various
departments should work. A common goal so devised for the business as a whole and the
organization is set up to achieve that goal. In the absence of a common aim, various
departments will set up their own goals and there is a possibility of conflicting objectives
for different departments. So there must be an objective for the organization.
2. Principle of Specialisation:
The organization should be set up in such a way that every individual should be assigned
a duty according to his skill and qualification. The person should continue the same work
so that he specialises in his work. This helps in increasing production in the concern.
3. Principles of Co-ordination:
The co-ordination of different activities is an important principle of the organization.
There should be some agency to co-ordinate the activities of various departments. In the
absence of co-ordination there is a possibility of setting up different goals by different
departments. The ultimate aim of the concern can be achieved only if proper co-
ordination is done for different activities.
4. Principle of Authority and Responsibility:
The authority flows downward in the line. Every individual is given authority to get the
work done. Though authority can be delegated but responsibility lies with the man who
has been given the work. If a superior delegates his authority to his subordinate, the
superior is not absolved of his responsibility, though the subordinate becomes liable to
his superior. The responsibility cannot be delegated under any circumstances.
