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
