ORGANISING

Organising can be defined as a process that initiates implementation of plans

by clarifying jobs, working relationships and effectively deploying resources for
attainment of identified and desired results (goals).

Therefore, it is a process which coordinates human efforts, assembles

resources and integrates both into a unified whole to be utilized for achieving
specified objectives. Organizing is the managerial function and this function of
organizing is known as process of organization.

To organize is to harmonize, co-ordinate or arrange in a logical and orderly

manner.

Making the rational division of work into groups of activities and tying together
the positions representing grouping of activities for accomplishment of desired
objectives is the function of management and this function is known as
organizing.

Koontz O’Donnel, “Organising involves the establishment of an international

structure of roles through determination and enumeration of the activities
required to achieve the goals of an enterprise and each part of it; the grouping
of these activities, the assignment of such groups of activities to the manager,
the delegation of authority to carry them out and provision for co-ordination of
authority and informational relationship, horizontally and vertically, in the
organization structure.”

Organizing in Management

Once the general and specific objectives determined and to achieve them a plan
is prescribed, the next step is to organize the activities of the enterprise with a
view to work the plan and to fulfill the organizational objectives. The
management has to identify the activities necessary to reach the objectives and
group these activities and assigned to the group of people, known as
departments.

A manager, with required qualification, intelligence and capability is given

authority and made in charge of each department, so as enable him to work his
subordinates to reach the organizational objectives. Proper organization will
assist the most effective use of all the resources of the business. The need for
adequate organization grows with the increase in size of the business unit.

Process of organising
(i) Identification and grouping of the work,

(ii) Defining the responsibility,

(iii) Delegation of appropriate authority and

(iv) Establishment of structural relationships.

NATURE OF ORGANISING
The nature of organising is discussed below:

1. Division of Labour:

According to Fayol, work of all kinds must be sub-divided and assigned to a

number of persons. This helps to make the work being carried out in a simpler
and efficient manner. It, thus, leads to specialization and increasing employees’
efficiency. By repeating a small part of work the individual acquires speed and
accuracy in its performance. This principle holds true for technical as well as
managerial tasks.

2. Coordination:

Different persons are assigned for different functions and yet all these
functions have only one aim i.e. accomplishment of the enterprise’s objectives.

To this end, an organization has to adopt adequate methods to ensure that

there is proper coordination of the different activities performed at various
work points. This means establishment of correct and adequate relationships
between an employee and his work; one employee with another; and one
department or sub-department with another.

3. Social System:

All parts of the organizational system are inter-dependent. Each part affects
and is influenced by any other part and also in turn by the system as a whole.
An organization is a social system. Its activities are governed by social and
psychological laws. People working in an organization are influenced in their
actions and behaviour by their social and psychological needs.

Two aspects of an organizational social system are the formal or official and the
informal or unofficial. The organization social system is dynamic, in the sense
that inter-personal and group relationships within it, keep on changing and are
not dormant.
4. Objectives:

Any organization structure is bound together by the pursuit of specific and

well-defined objectives. In fact, as objectives cannot be accomplished without
an organization, an organization cannot exist for long without objectives and
goals.

5. Cooperative Relationship:

An organization ensures co-operative relationship among the members of the

group. It cannot be constituted by one person. It requires at least two or more
persons. Organization is a system which helps in creating meaningful
relationship among persons both vertical and horizontal.

6. Well-Defined Hierarchy:

Hierarchy acts as a line of communication, as well as command, and shows the

pattern of relationships among people. Hierarchy of organization refers to the
positioning of people from the highest level to the lowest rank in the
organization. It also helps to define authority and responsibility attached to
each position/person.

7. Communication:

Although every organization has its own channels and methods of

communication. For success in management, effective communication is vital.
This is because management is concerned with working with others and unless
there is proper understanding between people, it cannot be effective. The
channels of communication may be formal, informal, downward, upward or
horizontal.

CHARACTISTICS OF ORGANISING
The features of organizing are stated as here under:

1. Division of work – The total work should be divided into many parts for
effective performance of the work. Each part of work is to be performed by one
person or a group of persons. In this way, the division of work results in the
creation of specialized persons.

2. Achieving organizational objective – There is a need of coordination among

the employees in the organization. The division of work is done keeping in view
the overall objectives of the organization. The organiz ing process is framed in
such a way so as to achieve organizational objectives smoothly.
3. Authority-responsibility structure – The position of each of the executives is
defined with regard to the extent of authority and responsibility vested in him
to discharge his duties. Organizing arranges for the delegation of authority and
responsibility. It tries to bring harmony, authority, and responsibility.

4. Grouping of activities – Activities are needed to be grouped on certain well-

defined basis such as function, product, customer, process, territory, etc. This
grouping process is called departmentation. It helps in achieving the benefits of
specialization and administrative control.

5. Scalar (step-by-step) principle – Authority is delegated from the upper level

to the lower level and the responsibility flows from the lower level to the upper
level of organizational hierarchy. Provision is to be made for the accountability
of the assigned duties. Each employee of an organization must know where his
accountability lies.

6. Installing sound communication system – The success of management

depends upon effective system of communication. It helps the management by
providing information about the duties, responsibilities, authority, positions,
and jobs. Coordination can be maintained among various related departments
by making exchange of information on a regular basis.

7. Flexibility – The organizing process should be flexible so that any change can
be incorporated as and when required. It ensures the ability to adapt and
adjust the activities in response to the change taking place in the external
environment. The programs, policies, and strategies can be changed as and
when required if the provision for flexibility is made in the organizing process.

8. Coordination – Coordination ensures the unity of action in the realization of a

common objective. It is an arrangement of group effort to achieve
organizational goals. Coordination of different personnel and departments are
needed for ensuring higher efficiency and effectiveness.

PROCESS OF ORGANISING

Step # 1. Determination of Objectives:

Any business is established or started by entrepreneurs to achieve some

objectives. These objectives must be clearly stated so as to understand the very
purpose and existence of the business. Depending on the objectives the work to
be done is decided and it is divided into groups and they are organized in an
orderly way. It is to say that organizations are built around objectives; hence
deciding the objectives is the first step in building up an organization.

Step # 2. Enumeration of Activities:

The work of an industrial concern is divided into essential activities. For
example, it is divided as production, financing, purchasing, marketing,
personnel, like wise.

Step # 3. Classification of Activities:

The next step is to classify activities according to similarities and common

purposes and function by taking the available human and material resources
into account. For each class of activities, there will be a department and for
each sub-class there will be section of the department and so on. For example,
marketing may be one department, in which packing, dispatching, sales,
consumer service etc. may be sections.

Step # 3. Fitting Individuals into Functions:

Once the departmentalization and formation of sections is over, each section

should be allocated to a subordinate and each department should be allocated
to one executive. Hence, next duty is to fix a suitable and well-qualified and
capable person to fit into these activities. The rule is right peg in a right hole.
Each person in the group is given a specific work and made responsible
correctly and effectively. This step consists of appointment of workers and
defining their responsibility of each one of them.

Step # 4. Assignment of Authority for Action:

Now suitable persons are fitted in their respective jobs and made responsible
to accomplish the job. He can only proceed to do the work, when he is given
adequate authority to proceed to do the work. The delegation authority to take
steps to complete the assigned part of the job is next step in organization. Once
the authority is given the concerned manager will have power to command his
subordinates and get the work done by them.