ORGANIZING

Organizing is what you do before you do something, so that when you do it, it is not all mixed up.

A. A. Milne

DEFINITION
Process off determining the activities to be performed, arranging these activities to administrative units, as well as assigning managerial authority and responsibilities to people employed in the organization.

FEATURES OF ORGANIZING
Two or more people are always involved in the process of organizing. The activity of organizing is done to achieve a common goal. Organizing process allows people to work in a cooperative way without friction. It believes in dividing the work into small parts and assigning them to people involved. This ensures speedy execution of work. Communication (especially downward communication) is very essential for organizing Rules and regulations define the territorial jurisdiction of employees which is essential for organizing activities. Organizing is done by people and not by objects. So it is important that people coordinate with each other. It strikes balance between people, resources, tasks and technology. It is affected by economic, social, political and legal factors.

ORGANIZING A STEP BY STEP PROCESS

STEP 1: Identification of activities - All the activities which have to be performed in a concern have to be identified first. STEP 2: Departmentally organizing the activities - In this step, the manager tries to combine and group similar and related activities into units or departments. This process of dividing the whole concern into independent units and departments is called departmentation. STEP 3: 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. STEP 4: Co-ordination between authority and responsibility Relationships are established among various groups to enable smooth interaction. 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.

IMPORTANCE OF ORGANIZING PROCESS

Specialization - The 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. Clarifies authority - Organizational structure helps in clarifying the role positions to every manager (status quo). This helps in bringing efficiency into managers working and in increasing productivity. Co-ordination - 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. Effective administration - The organization structure is helpful in defining the jobs positions. Specialization is achieved through division of work. This all leads to efficient and effective administration.

IMPORTANCE OF ORGANIZING PROCESS

Growth and diversification - A company can diversify if its potential grow. This is possible only when the organization structure is welldefined. 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. 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.

PRINCIPLES OF ORGANIZING PROCESS

Principles in Relation to Purpose

Principle of unity of objectives: An organization structure is effective if it as a whole, and every part of it, make possible accomplishment of individuals in contributing toward the attainment of enterprise objectives. Principle of efficiency: An organization or organization structure is efficient if it is structured to make possible accomplishment of enterprise objectives by people with minimum unsought consequences or costs.

PRINCIPLES OF ORGANIZING PROCESS

Principles Related to the Cause of Organizing
Span of management Principle: There is a limit at each managerial position on the number of persons an individual can effectively manage. But this number is not a fixed number and it will vary in accordance with underlying variables of the situation.

PRINCIPLES OF ORGANIZING PROCESS

Principles in Developing the Structure of Organization
The scalar Principle: The more clear the line of authority from the ultimate authority for management in an enterprise (CEO) to every subordinate position, the more effective will be decision making and organization communication at various levels in the organization. Principle of delegation: Authority is a tool for managing to contribute to enterprise objectives. Hence authority delegated to an individual manager should be adequate to assure his ability to accomplish results expected of him. Principle of responsibility: The responsibility of the subordinate to his superior for authority received by delegation is absolute, and no superior can escape responsibility for the activities of his subordinate to whom he in turn has delegated authority.

PRINCIPLES OF ORGANIZING PROCESS

Principles in Developing the Structure of Organization
Principle of parity of authority and responsibility: The responsibility exacted for actions taken under authority delegated cannot be greater than that implied by the authority delegated, nor should it be less. Principle of unity of command: The more completely an individual has a reporting relationship to a single superior, the less the problem of conflict in instructions and the greater the feeling of personal responsibility. The authority level Principle: Maintenance of authority delegation requires that decisions within the authority competence of an individual manager be made by him and not be referred upward in the organization.

PRINCIPLES OF ORGANIZING PROCESS

Principles in Departmentation Activities
Principle of division of work: A good organization structure reflects a classification of the tasks and activities required for achievement of objectives and assist their coordination through creating a system of interrelated roles. Principle of functional definition: The more a position or a department has clear definition of results expected, activities to be undertaken, organization authority delegated, and authority and informational relationships with other positions, the more adequately individual responsible can contribute toward accomplishing enterprise objectives.

PRINCIPLES OF ORGANIZING PROCESS

Principles in the Process of organizing
Principle of balance: The application of principles or techniques must be balanced in the light of the over-all effectiveness of the structure in meeting enterprise objectives. Principle of flexibility: The task of managers is to provide for attaining objectives in the face of changing environments. The more provisions are made for building organization flexibility, the more adequately organization structure can fulfill its purpose.

ORGANIZATIONAL DESIGN CLASSICAL THEORY

FAYOLS 14 PRINCIPLES OF MANAGEMENT

GANGPLANK PRINCIPLE