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#5 Organizing

Organizing refers to how work is arranged and distributed among group members. The key aspects of organizing include determining activities, creating departments to perform activities, and establishing relationships among parts. The organizing process involves determining activities, identifying functions, grouping activities within functions, and establishing relationships defined by responsibility, authority, and accountability. This results in an organization structure that outlines departments, positions, management levels, and communication channels. Principles of organizing aim to ensure purpose, authority matches responsibility, supervision responsibility, clear lines of authority, manageable spans of control, specialized functions, coordinated effort, and defined positions.

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179 views17 pages

#5 Organizing

Organizing refers to how work is arranged and distributed among group members. The key aspects of organizing include determining activities, creating departments to perform activities, and establishing relationships among parts. The organizing process involves determining activities, identifying functions, grouping activities within functions, and establishing relationships defined by responsibility, authority, and accountability. This results in an organization structure that outlines departments, positions, management levels, and communication channels. Principles of organizing aim to ensure purpose, authority matches responsibility, supervision responsibility, clear lines of authority, manageable spans of control, specialized functions, coordinated effort, and defined positions.

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Joanna Garcia
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ORGANIZING

Organizing
r efers to the way in which the work of a group of people is arranged and
distributed among group members.
Organizing in a general sense means systematic arrangement of
activities. In this sense, organising is done by each individual. However,
organising as a process of management essentially relates to sub-
dividing and grouping of activities.
FUNCTION OF ORGANIZING
● Determination of the activities to be performed
● Creation of departments, sections and positions to perform those
activities
● Establishing relationships among the various parts of an
organisation
STEPS IN THE PROCESS OF ORGANIZING
The process of organizing consists of the following steps:

1. Determining the activities to be performed to achieve the objectives of


the organisation.
》 Business organisations undertake economic activities with a view to
earning profit. They may perform manufacturing, trading or service activity.

2. Identification of major functions to which these activities relate.


》 The next step is to identify the major functions to which these activities
relate.Managerial positions will have to be created to supervise the
activities of these departments. At this stage, a list of activities relating to
each function must be prepared
. Grouping and sub-dividing the activities within each function on the
basis of similarity or relatedness.
》 In this step, it is decided how best the activities can be grouped on
the basis of similarity or relatedness. The activities of other
departments can similarly be sub-divided. This division and subdivision
of activities goes on till individual positions have been created for
performing all types of work in an organization.
4. Establishing relationship among individuals and groups.
》 Managers divide activities to increase efficiency and to ensure that
work is properly done. The activities which are performed by persons
holding different positions must be related. The responsibility, authority
and accountability of each person must be well defined.
4.1 Responsibility
4.2 Authority
4.3 Accountability
ORGANIZATION STRUCTURE
Organization Structure is the end-result of organizing is a framework
of formal relationships among different departments and positions.
Structure -refers to the arrangement of parts and interrelationships
among activities and people.
The organization structure of a business unit consists of the following
elements:
• The number of sections, units and positions in each Department
• The function of each department, section and position
• The number of levels of management
• The responsibility, authority and accountability Relationships
• The channels of communication
The structure of an organization is created by top management and the
structure so created is known as formal structure. The purpose of
having a formal structure is to perform the activities in a planned and
systematic manner.
Organization Structure
The structure of a small manufacturing organization.
Two Function:
Production
Selling
These functions are known as primary, basic or line functions.
Line functions are those which directly contribute to the objectives of
the organisation.
Personnel department- the job of this department will be to assist
the managers of production, sales and finance departments to
efficiently perform the function of hiring and training people.
PRINCIPLES OF ORGANISATION
Developed by Lyndall Urwick
The organizing function is carried out on the basis of guidelines given by experts.

Purpose: All organizations and each part of any undertaking should be


the expression of a purpose, either explicit or implied.
Authority and responsibility: Formal authority and responsibility must
be co-terminus and equal.
Responsibility of supervision: The responsibility of higher authority for
the acts of its subordinates is absolute.
Scalar Principle: There must be a clear line of formal authority running
from top to the bottom of every organization.
Span of control: No supervisor can supervise directly the work of more
than five, or at the most, six subordinates whose work interlocks.
Specialization of functions: The work of every person in the
organization should be confined as far as possible to the performance
of a single leading function.
Coordination of Effort: The final object of all organizations is smooth,
effective coordination.
Definition: Every position in every organization should be clearly
described in writing.
Line, Staff, and Functional Authority Relationship
1. Line Authority
• Authority of a manager over his immediate subordinates.
• Right of a manager to issue orders and to see that these orders are
carried out.
• Manager gets authority from superior and shares it to
subordinates.
• Scalar Chain - authority flows from top to bottom.
2. Staff Authority
• Managers of line as well as staff departments have line authority over their
subordinates.
• When the work of line managers increase, staff officers are appointed to help them.

3. Functional Authority
• Similar to line authority, but it is exercised over a person who is not the immediate
subordinate of a manager.
• Main reason for using it is to take advantage of the special knowledge and skill of
functional specialist.
• Disadvantage:
Too much functional authority, position of line managers become too weak.
Informal Organization
• Comes into being out of desire of people to associate with one
another.
• Consists of group of people who may work in the same department
or in different departments of the organization.
• formed on the basis of emotional attachment and purpose is to
satisfy needs.
• Informally elect someone as their leader.
• Informal leader does not have formal authority.

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