ORGANIZING

The organization can be defined in many ways and many experts had given their own definitions in this regard, after analysis the basics of these definitions we can define the organization as follows

Organization can be defined as a group of working together in an interdependent and interrelated environment to achieve predetermined unified objectives through efficient and effective use of available resources through division of work. Interrelationship is of cooperation, coordination and communication and interdependencies is of delegation of authorities and responsibilities.                                                                                         

So following points are there to further understand the concept of organizing

Group of people:- organizing involves group of people, until there is not more than two people organizing is not possible.

Working together:- organizing require that people should be working in togetherness and not in isolation to achieve the objective.

Unified Objectives:- organizing required defining objectives, and these objectives should be unified i.e. each activity or achievement of individual target is one step further in achieving the main goal of the organization, the individual targets can be directly or indirectly related to achievement of the overall target.

Interdependent environment:- organizing involves interdependencies of one group or individual on another in fulfillment of his own targets, the out put of one process can be the input of the other, a supervisor will be dependent on his manager for work and foreman will be dependent on the supervisor, functioning of finance will effect the marketing and marketing will effect the functioning of production, so in organization the environment is of interdependencies which is defined by way of authorities and responsibilities.

Interrelated environment:- organizing require direct or indirect linkages of all activities, every work in organization is having an effect or effected by the organization. This interrelation is set through cooperation & coordination of efforts and through the formal channels of communications.

Communication:- Communication is very significant in organizing as its only through communication the instructions, feed back, suggestion and other information will flow like the blood in the organizing providing necessary inputs for operations.

Division of Work:- organizing involves the work to be divided among the people in a well coordinated manner so that the entire work can be done in a logical manner without confusion and wastage of efforts.

Authority and Responsibility:- Organizing require that the responsibility be given to people along with sufficient authority to carry out task for which he is made responsible.

STEPS IN ORGANIZATION

·                  Determination of Objectives: This is the first step in organizing as without any purpose or objective organizing has no meaning. Organizing will define the different tasks which have to be done for the achievement of the objectives.

·                  Division of Work: once all the activities and work is defined the next step to divide the entire work in a logical manner so the people can contribute their
efforts effectively, there must be a rational division of total activities of the
organization, like based on the similarity or standardization or requirements . division of work avoids duplication of efforts and provide better coordination between different activities. Based on the principle we see today departmentalization in the organization.

·         Fitting Individuals into Jobs: once the division of work is done, the next step is to find out the requirements of jobs based on which the suitable people will be assigned those jobs.

·                  Establishing Relationships: the organizing also involves establishing formal relationships among people at different level so that there is no chaotic condition in the organization, the roles and responsibilities, the formal code of conduct and communication should be well defined. People should know what is expected from them to whom they are responsible and for whom they are liable.

·                  Delegation of authority:- authority is the power to take certain decisions, right to issue instructions, allocate resources or enquire explanations, organizing involves that sufficient amount of authority should be given at each level so that people can perform their duties.

·                  Co-ordination & Control: - coordination should be well defined i.e. the relationships in the organization are spelled clearly so that activities and efforts of individual must be in sync with each other.

• IMPORTANCE OF ORGANIZATION

Sound organization structure can contribute to the success of an enterprise in many ways. It is, as a matter of fact, the backbone of management. It helps in achieving the following advantages:

·         Efficient Management: Organizing builds efficiency in management which is very much necessary for the performance of other functions of management like planning, staffing, directing and controlling. Poor organization may result in duplication of work and efforts and some of the important operations may be left out. With better organization optimization of resources will be there yielding to efficiencies.

·         Enhances abilities:- with proper division of work people become more specialized and enhance their abilities, which not only improves their skill set also helps the company to achieve the organization objectives.

·         Co-ordination and Communication: Organization is an important means of bringing coordination among the various departments of the enterprise. It creates clear-cut relationships between the departments and helps in laying down balanced emphasis on various activities. It also provides for the channels of communication for the coordination of the activities of different departments. The synergies which develops help the company in achieving larger objectives.

·         Growth and Diversification: Sound organization helps in the growth and expansion of the enterprise by facilitating its efficient management. Sound organization helps in keeping the various activities under control and increases the capacity of the enterprise to undertake more activities.

·         Flexibility to change: Sound organization helps it self to change easily & quickly as per the changing business environment, flexibility helps the company to remain competitive in the market place.

·         Optimum Use of Human Resources: Sound organization matches the job with the individual and vice versa. It ensures that every individual is placed on the job for which he is best suited. This helps in better use of individuals working in the enterprise.

·         Stimulates innovation and creativity:- an efficient organization provides reasonable freedom and empowerment to the people and give sufficient room for decision making this help people to bring innovative ideas and creativity in the work place.

ORGANISATION CHARTS

Organization chart is the graphical representation of the organizational structure showing the levels of management and relationships of each level with the other, organizational charts depict the formal channels of communication and act as a guide to understand the management and its functioning. Organizational charts reflect the authority and responsibility structure of the organization.

Below is an example of an organization chart for better understanding, so we can see how the departmentalization is being done.

                                                                                                                                     

Information in the organization charts

·         Organizational chart shows the division of work within the organization e.g. we can see in picture above the organization is having departments like marketing, finance etc.

·         Show the responsibility and authority structure, the higher the level in the chart greater will be the responsibility and authority. Lower level is responsible to the higher level in the organization chart e.g the supervisor is responsible to shift in charge and responsible for the foreman and workers working under him.

·         Organizational charts also reflect the formal communication structure of the organization the instructions will flow from higher level to lower level and feed back and suggestions will flow from the lower to upper level.

·         Charts show the relationships of the levels e.g. the departments may not have a direct relationships in terms of authority e.g. a supervisor of Human Resource department can not give instructions to the worker of production department.

·         Organization chart is a tool to create awareness among employees about the designations and person holding these designations.

·         Organizational charts show the basis of departmentalization like product, process or regions etc.

Types of organization charts

Vertical chart: - organization chart shown in form of pyramid, the levels authority and responsibility increases as we move up in the pyramid.

Horizontal chart: - Horizontal charts, which read from left to right are occasionally used. The pyramid lies horizontally instead of standing in the vertical position. The line of command proceeds horizontally, i.e. from left to right to left showing top level at the left and each successive level extending to the right.

Circular chart:- organization chart drawn in a circular form, centre showing high level of management having more authority and responsibility.

 

Benefits of Organization Charts

Management Tool:- it act as a management tool to express the line and staff relationship, line of authority and responsibility, to show the formal channels of work and communications.

Organization Improvement: - An organization chart defines responsibility and authority and indicates various functions and their relationships. It will show if there is any overlapping, duplication or deficiency and thereby helps in taking timely corrective action.

Training Device: - An organization chart act as an important tool for providing training & creating awareness among new employees. They are able to know the person they can contact in case of any such requirement.

Avoids Conflicts: - An organization chart is a blueprint of how the positions are arranged. It makes clear the limits of authority of various positions. This helps in minimizing jurisdictional conflicts.

Informational tool: - organization charts helps as an information tool for the outsiders interested in contacting the various functionaries of the organization.

•   Limitations of Organization Charts

Require regular up gradation and modification so as to reflect the clear picture.

Only depict the formal structure but cant guide anything about the informal network of the organization which is sometime more effective.

An organization chart is taken as a tool to show status differentials which may give rise to a feeling of superiority or inferiority among the people in the organization. A chart shows the authority relationships, but it cannot pin-point the extent of authority at any level in the organization. Brings excessive bureaucratic rigidity in the relationship between the manager at higher and lower levels as a result of which organization tends to grow as bureaucratic. Even with these limitations the concept of organizational relationship is very much required in the organization.

PRINCIPLES OF ORGANISATION

·         Principle of Objective:- organization should be done in a such a way to achieve the objectives of the organization, every part of the organization must be an expression of the purpose of the undertaking concern.

·                  Principle of efficiency: - organization should be done in a manner to bring efficiencies in the organization by optimization of resources, clear lines of authority and responsibility and providing means for personal development

·                  Principle of Division of Work: - The total task should be divided in such a
manner that the work of every individual in the organization is limited as far as possible to the performance of a single leading function. The activities of the enterprise should be so divided and grouped as to achieve specialization. However, the principle of division of work does not imply occupational specialization. The allocation of tasks should be on the basis of qualification and aptitude and should not make work mechanical and boring.

Division of work should also take care that the work load is balanced so that no case of under work or overwork is there in the organization.

·         Principle of Unity of Command. Each person should be accountable to only one person i.e. one should receive orders from
only one superior. This is necessary to avoid the problems of conflict in instructions, frustration, uncertainty and divided loyalty and to ensure the feeling of personal responsibility for results. This principle promotes co-ordination but may operate against the principle of specialization.

·         Principle of Span of Control. No person should be required to supervise
more subordinates than he can effectively manage on account of the limitation of time and ability. There is a limit on the number of subordinates that an individual can effectively supervise. However, the exact number of subordinates will vary depending on nature of work, the people employed and skill of the individual.

·         Principle of Scalar Chain. The line of authority and responsibility should be clear & unbroken and should be consistent from the highest executive to the lowest executive. Ideally chain of command should be short. The clearer the line of authority from the ultimate authority in an enterprise to every subordinate position, the more effective will be decision-making and organization communication.

·         Principle of Delegation. The authority delegated to an employee should be sufficient to carry out his responsibility in an effective manner; secondly the lower order in the organization should also have required empowerment so that they can take decisions on the spot of the situation.

·         Principle of Absoluteness of Responsibility. The responsibility of the
subordinate to his superior is absolute. No executive can escape responsibility for the delegation of authority to his subordinates.

·         Principle of Co-ordination. Orderly arrangement of group efforts and unity of action in the pursuit of a unified common objective.

·         Principle of Flexibility:- organization should have preparedness to change, and should be too rigid given the condition of prevailing market condition today the changes are very rapid and very extensive.

·                  Principle of Continuity:- Organization should ensure continuity of efforts and processes, organization should be done in such manner that one activity doesn’t hamper flow of other. 

·         Principle of Balance:- there should be balance in the organization pertaining to work, objectives, coordination, authorities and responsibilities etc so that each factor is in harmony to the total organization.

Principle of Exception. Every manager should take all decisions within
the scope of his authority and only matters beyond the scope of his authority
should be referred to higher levels of management. In other words, routine
decisions should be taken at lower levels and top management should concentrate
on matters of exceptional importance