0% found this document useful (0 votes)
73 views6 pages

Organising Class 12

Uploaded by

Divya P
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
73 views6 pages

Organising Class 12

Uploaded by

Divya P
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 6

ORGANISING

MEANING
Organising is the process of de ning and grouping the activities of the enterprise and establishing
authority relationship among them.

- It refers to arranging everything in an orderly form and making most e cient use of
resources
- It initiates the implementation of plans by clarifying jobs and working relationships and
e ectively deploying resources for the attainment of identi es and desired results.
- organising is a process by which the manager brings order out of chaos, removes con ict
among people over work or responsibility sharing and creates an environment suitable for
teamwork.

STEPS IN ORGANISING PROCESS (IDAE):


STEP 1: Identi cation and division of work that has to be done in accordance with previously
determined plans. It makes sure that there is no duplication and all resources are made use of
e ciently

STEP 2: Departmentalisation refers to grouping of similar jobs and put under their own
departments
I) Functional departmentation: Jobs related to a common function are grouped under one
department. Preferred by organisations producing only 1 product
II) Divisional departmentation: when org is producing more than one type of product, then they
prefer this sort of departmentation. Under this jobs related to one product are under one
department

STEP 3: Assignment of duties refers to assignment of works to di erent departments matching


their skills and quali cations

STEP 4: Establishing reporting authority: Developing of hierarchy. Everyone will be assigned


some sort of authority and will know who has to report to whom. (Top level, Middle level,
Operational level)

IMPORTANCE:
1) Bene ts of specialisation - due to divine of work in smaller units according to their
quali cations leads to specialisation.

2) Optimum utilisation of resources - all nancial and physical resources are e ciently used as
the jobs are clearly de ned and no overlapping of work occurs

3) Clarity in a working relationship -Authority and responsibility is clearly de ned. Who is to


give orders and who is to receive the orders is clearly stated. Hierarchical order.

4) E ective administration - proper rules and regulations are set down and all resources and
set
ff
ffi
ff
fi
fi
fi
fi
fi
fi
fi
fi
ff
ffi
fi
ffi
fl
5) Adaption to change -The process of org helps modify the structure in a way in which the
org can adapt to these changes and there is a certain stability in to help the org grow in
spite of changes

6) Development of Personnel: Org helps develop personnel as new jobs and tasks are
assigned to the work force and helps make future leaders and this also reduces load on
managers and helps the managers shift those e orts to areas requiring higher focus

7) Expansion and growth: Organising helps a business enterprise to add more job positions,
departments and even diversify their product lines

ORGANISATION STRUCTURE
-It is he framework within which the managerial and operating tasks take place
- A proper organisation structure is essential to ensure smooth ow of communication and
better control of managers over the operations of business enterprise
- An e ective structure will result in increased pro tability of the enterprise
- Peter Drucker emphasises on the importance of having an appropriate organisation structure
when he says, “organisation structure is an indispensable means; and the wrong structure will
seriously impair bus ness performance and even destroy it.”

SPAN OF MANAGEMENT: It refers to the number of subordinates that can be e ectively managed
by a superior. This determines the levels of mgmt in the structure

TYPES:
1) FUNCTIONAL STRUCTURE: if there is only 1 product, the departments are created based on
functions such as nance, marketing, HR sales

ADVANTAGES;
- creates specialisation
- Helps increase operational e ciency
- Easy coordination
- E ective training
DISADVANTAGES;
- Di culty is achieving organisational goals as each department as their own goals
- In exibility as employees getting training in a certain function get only that training and cannot
shift
- Con ict of interest between departments
- Problems in coordination between departments
2) DIVISIONAL STRUCTURE
- when a org is large in size and is producing more than one type of product then activities
related to one product are grouped together
- Suitable for org which require product specialisation rather than functional specialisation
ADVANTAGES:
-product specialisation
- expansion and growth
- Flexibility and initiative
DISADVANTAVGES:
- more usage of resources
- Con icts
- Ignorance of org interest
ff
fl
ffi
fl
fl
ff
fi

ffi
ff
fi
fl
ff
TYPES OF ORGANISATIONS (FORMAL AND INFORMAL):

FORMAL ORGANISATIONS:
It is a structure which is designed by the mgmt to accomplish a particular task
It clearly states boundaries of authority and rest and there is a systematic coordination among
various activities.
Created intentionally
Creates a scalar chain of communication and hierarchy

ADVANTAGES:
-Systematic working
- coordination
- Achievement of org. Objective
DISADVANTAGES:
-Delay in action
- Emphasis on work only
- Inadequate recognition of creativity

INFORMAL ORGANISATION
Informal organisation refers to the social network involuntarily created from within the formal
organisation.
When people interact beyond their o cially de ned roles
Does not have xed lines of communication
Behaviour Isn’t guided by rules and regulations

ADVANTAGES:
- Fast communication
- Fu ls social needs
fi
fi
ffi
fi
DISADVANTAGES:
- Spread of rumours - No systematic working -may bring negative results

Caption

DELEGATION OF AUTHORITY-
Delegation of authority refers to granting of authority to subordinates to operate within
prescribed limits.
- it refers to transfuse of authority from superior to subordinate
- Helps manager to focus on higher priority tasks
Done between one superior and one subordinate

ELEMENTS OF DELEGATION:
AUTHORITY-RESPONSIBILITY-ACCOUNTABILITY

RESPONSIBILITY (Obligation): It means work assigned to an individual


It refers to the physical and mental activities to be performed by the employees at a particular job
position
FLOWS UPWARD

AUTHORITY (power):
When manager passes their resp they also pass some authority to their subordinates
FLOWS DOWNWARDS
Authority must be equal to responsibility

ACCOUNTABILITY (owning up to actions):


It refers to being answerable for the nal income for the assigned task
‘once resp is accepted, one cannot deny accountability.
Flows upwards
It cannot be delegated
fi
Arises from rest.

Caption

CENTRALISATION:
It refers to concentration of power in the hands of the top level management

DECENTRALISATION:
It refers to an even and systematic distribution of authority at every level of management
Decision making authority is pushed down the chain of command

IMPORTANCE OF DECENTRALISATION:
- Develops initiative among subordinates
- Develops managerial talent for the future
- Quick decision making
- Facilitates growth
- Better control over the org
- Relief to top mgmt

You might also like