Though chain of command maybe a problem. No planning can succeed unless a framework of activities (necessary for the accomplishment of objectives) is constructed. Determination of Objectives – It is the first step to build up an organisation. On the basis of geography – Activities are grouped on the basis of geographical locations. Performance of the organising function provides a compact framework to an enterprise. Each unit of total work is called a job. This can affect achievement of organisational goals. Employees feel more involved, empowered and motivated. It further creates hierarchy in the management. 6. It is only through relationship of superior and subordinate, which is created by organising process that the manager plans, directs and controls activities of his subordinates. It operates through predetermined systems and procedures. Coordination is essential because every department is dependent on the others for information resources. In order to complete the organising function of management, following steps are taken: (1) Knowing the Objectives of the Enterprise, (3) Grouping and Departmentalization of Activities. Organisational structure also provides a useful means to cope with changing environment. ii. On the basis of types of products – In this case, activities are grouped into different departments on the basis of products manufactured by the organisation. In other words, what they are to do for the attainment of the objectives of the organisation. Therefore, establishment of organizational or overall objectives is the first step in planning. Assessing personnel requirements and determining the physical resources is very necessary to build the structure of an organisation. It has no set boundaries; rather it operates in different directions. For example, the finance department wants to cut down costs, but marketing department wants more funds to advertise the products. We shall discuss it in greater detail in the next chapter. Proper allocation of resources helps in proper utilisation also. 3. Right man is put in the right job. The final step involves the establishment of authority that creates a chain of command. Steps in the process of Organizing. For example- under the Department of Production, purchase department, stock department, research department, etc., can be established to get the benefits of specialisation. Delegation of authority means when duties and tasks are entrusted to the subordinates by the superior, authority should be granted to them to perform those duties and tasks well. Looking at the contemporary trends in organisation structure or design, it would be very essential to differentiate between ‘mechanistic’ and ‘organic’ organisation. People with an aptitude for figures and numbers may be seen fit for the accounts department. An organisation is a continuing entity. This is where the activities of different individuals are carefully synchronised, and interrelationships clearly defined. Other contemporary structures in popularity are matrix and project structures. The chain of command is the continuous line of authority from the top level to the lowest levels in the organisation. It may be done by maintaining flexibility in the structure and making it adaptive to changes. Organizing is a process of establishing work relation, flow of work and information and grouping of activities, identification of authority and responsibility of employees in the organisation. Usually, this helps in laying out the departments. People are made aware of their responsibilities and authority. In a manufacturing organisation, production and sales are the two major activities. 1. The organizing process, thus, establishes working relationship among employees by assigning those tasks and giving them enough rights (i.e. Once the work is divided and departmentalized then follows the allocation of responsibility. No activity remains unattended and work is assigned to people in accordance with their skills, aptitude, level of commitment, etc. … In this step, the employees are assigned duties as per their qualifications, experience and suitability to a particular job. They are. Numerous tools for each step of the four-step process will also be suggested. In the given example of a Mobile phones producing company the main problem can be of advertisement because only an effective and large scale advertisement can attract the attention of the consumers towards a new product. Analyzing. For example- it can be the objectives of the enterprise to produce mobile phones. ii. Business process management (BPM) is much more than a record of the process employees are to follow. 4. To follow cost- leadership strategy the structure has to be stable and cost efficient. It makes the optimum utilisation of human and material resources. This grouping or combining of activities is called departmentation. The process then involves ‘division of labour’ that divides the work process into a certain number of tasks, with each task performed separately by employees or groups of employees. Content Guidelines 2. Relationship that is personal and social in nature. The important steps of organising are discussed as under: All the work cannot be done by a single man or machine. Areas such as production and maintenance require certain technical skills and qualifications, and as such, jobs in these areas are given too technically qualified people. For example- the marketing depart­ment may have separate sections such as market re­search, advertising, credit sales etc. Division of work leads to specialisation which has the following benefits: Adam Smith illustrated a study where one person could manufacture 20 pins a day if he worked alone. The boundary less organisation doesn’t bother of job specialisation, chain of command or span of management and replaces departments with empowered teams. After the work is assigned to people, those performing similar activities are grouped in similar departments. The top has more authority than the lower levels. It is meant for achieving specific goals. The relationship between different jobs is determined, and provision for their proper integration is made. This is presented in the following Table 9.1. Informal Organisation: Today market place demands lean, flexible and innovative organisation structures. Important steps involved in organizing process include the following: Although this first step is actually part of planning, it is pertinent to know the objectives of the enterprise. In this process higher level manager gives away some of his right in favour of other who becomes his subordinate and it continues till the last level of management. Any situation involving two or more persons working collectively requires organising. Thus, creation of authority – responsibility relationships among various positions is a must. The performance of departments and sections are to be compounded to achieve objectives. A fair organisational structure is out in the open for all the employees. By following the PROCESS steps below anyone can conquer any space of any size. Authority flows from top to bottom in the hierarchy. The activities and efforts of different individuals are then synchronized. In carrying out these major activities, business units have to perform many other activities such as producing, financing, marketing, accounting, recruiting employees, etc. An organisation whose design or structure is not limited to, or not defined by, the horizontal, vertical or external boundaries imposed by a predefined structure is known as boundary less organisation. … In a matrix organisation the different functional departments assign specialist to work on a project. Each company must decide for itself as to how much decentralisation of authority and responsibility it desires to have. Therefore, the initial step will entail dividing the work into different and specific areas or jobs. 8. Some of important contemporary designs follow the following concepts. Grouping of Activities into Departments or Work Units: 4. Once the activities have been broken into small elements, these can be easily put into various groups on the basis of their relationship and similarities. The organising function follows the function of planning and the other functions of management follow organising. As an alternative to job design, managers have five alternative approaches – job rotation, (moving employees from one job to another), job enlargement (giving employees more tasks to perform), job enrichment (increasing the number of activities and also control over the job), job characteristics approach (jobs diagnosed and improved along skill variety, task identity, task significance, autonomy and feedback), and work-teams (to design the work systems). The demand is to meet the needs of customers, employees and other organisational stockholders. FACTA UNIVERSITATIS Series: Economics and Organization Vol. Similarly, advertisement and sales activities are given to the marketing department, and department of finance takes care of finance, accounts and correspondence. The BEST Organizing Steps to Follow For an Organized Home. The division of work enables people to acquire skills and experience in their particular area, and consequently brings efficiency into the organisation. Reaping benefits of technology improvements: A sound organisation structure is flexible enough to accommodate changes in the work technology. If the growth strategy is followed, it will need flexible, fluid and instantly adaptable organisation. Therefore, organising is regarded as a mechanism or means to achieve planned objectives. Managerial positions are defined and the extent of their power and authority is fixed. (c) Decentralization of authority subject to central control through centralization of decision-making. Assigning Work, Responsibility and Authority: 6. A line position means one who is in direct chain of command and is responsible for achievement of organisational goals, whereas a staff position is meant to provide guidance, expert advice, and support to line officials. The person who gives authority is called ‘superior’ and the person to whom authority is given are known as ‘subordinate’. When the objectives have been set and policies framed, the necessary infrastructure of organization has to be built up. Thereafter, a number of groups will be combined and grouped into larger units or departments. Performing the same task over and over again increases the skills and efficiency of workers. Further explanation of this business practice can be found in the corresponding lesson titled Organizing Process in Management: Steps, Overview. The nature and importance of the organising function, however, may vary with different managers. Top management enjoys the highest degree of authority. Equally important is to decide how many people will report to one manager. This lesson will help you: Define management process Interdependence may be pooled, sequential and reciprocal. Organising an event can seem like an incredibly overwhelming task. Organising is based on the concept of division of work that ultimately leads to specialisation. Determining the Work Activities Necessary to Accomplish Objectives 3. The degree of authority reduces as the hierarchy flows towards lower level of management. The divisions and departments function within the broad parameters of an administrative set up. There are no such rules as to which will lead to the best organizational structure. Here employees continuously work on projects. This helps in the expansion and growth of an enterprise. The heads of different departments can discuss collectively about the overall development of school. Let us discuss the steps involved in the process of organising: The first step in organising is to follow a plan and identify the work to be done. The appearance of a typical organisation structure is shown in Figure 9.1. The process of linking up the activities of the various departments of the organisation is a must to achieve organisational objectives. Come Organize With Me: Kitchen Cabinets. Work is assigned according to qualification and ability of persons. Copyright 10. Organisation structure of an enterprise using sophisticated capital- intensive mass-production technology will be different from the enterprise using labour- intensive small-scale production technology. Further, establishing reporting relationships facilitates coordination at all levels of management. The process of organising involves identification and division of work. Each individual is allotted a specified job according to his aptitude and skills and made responsible for the performance of that job. This is the step of grouping the work into specific departments, also known as departmentalisa­tion. It reduces fractions among functional areas. ADVERTISEMENTS: Read this article to learn about “Organizing: It’s Process, Structure, Importance , Characteristics and Other Details!” Any situation involving two or more persons working collectively requires organising. Since one person cannot manage all the organisational activities, total task is divided into smaller units and assigned to members. For example- the activities like the purchase of raw material, purchase of ready-made parts, production, stocking the material, research, etc., are assigned to the production department. Everybody should know who is his superior and who is his subordinate? In some cases you may be headhunted or called to interview on the basis of a strong referral. 4 step process of understanding the situation, facilities, conditions, and expectations, analyzing the needs and changes required, planning, and then executing an approved plan will be explained. Thus, an organisation structure refers to a network of authority and responsibility relationships by showing who reports to whom and for what in a set-up to facilitate realisation of common goals. This compact framework is called formal organisation structure, or simply, formal organisation. Every head has authority to get the work done through departmental members. If there are too many people working in a group it is essential for group members to know from whom they have to take orders and to whom they are accountable. The rights are granted through the process of delegation. Provides framework to perform management functions: Organisational structure provides a framework within which various management functions can be performed by the managers more efficiently. Coordinating the functioning of various departments: In the process of organising, attempts are also made for coordinating working of individual with respective department, and finally to coordinate functioning of various departments towards the achievement of common goals. If an organisation has a product line then, activities can be grouped on the basis of products viz. Objectives bring about unity of direction in the organisation. Among all teachers, the teacher who has the ability to administer the overall working of the department will be appointed as Head of the department. These separate tasks are classified into separate business units. Organising is done in relation to all other functions of management. Assignment of group of activities among various departments is followed by giving them adequate rights so that they can perform assigned work in a satisfactory manner. Before publishing your Articles on this site, please read the following pages: 1. To balance between differentiation and integration of people and activities, formal and defined structure in relation to decision making, communication and control is a must. The Decision‐Making Process; Organizational Planning Detailing Types of Plans; Identifying Barriers to Planning; Defining Planning; Recognizing the Advantages of Planning; Using Plans to Achieve Goals; Creating Organizational Structure Concepts of Organizing; The Informal Organization; Going from Planning to Organizing; The Organizational Process An individual who is entrusted with the responsibility must be given authority necessary to carry out the duties assigned to him. For example, Northern Zone, Eastern Zone, etc. Overall tasks or activities of the organisation are determined to achieve this goal. Organising involves the establish­ment of a sound organization structure so that work is carried out as planned. The class teacher forgot to divide the work, assign responsibilities and develop reporting relationship. Use these six-steps and guidelines to help you develop a robust framework for coaching your work colleagues. Differentiation is the extent to which tasks are divided into sub-tasks and performed by individuals with specialised skills. It is a functional unit with thick walls between functional departments. Individuals with relevant qualifications and expertise are allotted across each of these divided activities making tellers, loan officers, customer care representatives, etc., as specified jobs. Interdependence may be pooled (the lowest level of interdependence – their output is simply pooled), sequential (out put of one department becomes the input for another in a sequence), and reciprocal (when activities flow both ways). Preparation of Organisation Charts and Manuals: Thereafter, organisation charts and manuals are to be prepared for smooth running of the operations of an organ­isation. It was observed that as against 20 pins in a day, division of work and specialisation enabled 10 people to produce 48,000 pins in a day — watch the wonders of specialisation ! Organizing consist of various steps. Authority-responsibility Relationships: Authority is a core constituent of organisation. In the later case, organization structure will be market-oriented whereas organization structure in the former case will basically be production-oriented. Running a business without a strategic plan is like driving across the country blindfolded without a map. Generally, an organisation structure has a pyramid shape, with less position on the upper side and more positions on the lower side. The activities will depend upon the nature and size of the enterprise. The nature and character of formal and information organisation is briefly discussed below: A formal organisation, is a consciously planned a deliberately designed entity. Various Steps involved in process of organization. It is at this stage that members of the organisation know from whom each has to take instructions and to whom one has to issue instructions. Coordination between Authority and Responsibility: Healthy relationships between various groups facilitates smooth interaction which assists the organisation in achievement of its goals. This may involve you sending a tailored CV and cover letter in response to an advertised position or going through an online application process. This will help create a logical structure of authority-responsibility relationships and establish co­ordination. They will receive orders from him and will also be responsible to him. The first step in the process of organisation is to know about the objectives of the enterprise. ADVERTISEMENTS: The process of organizing consists of following steps! Based on formal authority and position in organisation. In order to ensure effective performance, it is essential that parity is created between the nature of a job and ability of the employee responsible for that particular job. Account Disable 12. A realistic look must be taken at the prospect of these new opportunities and SWOT analysisshould be done. An organisation structure exhibits the following features: The first and foremost feature of an organisation structure is that it is a network of well-defined activities. It is deciding who will act under whom, who will be his subordinates and what will be his status in the organisation. Although the determination of the objectives of an enterprise is done under the first function of management, i.e., planning but before commencing the process of organising a clear and detailed information about these objectives has to be obtained. However, of late the trend is towards broadening the scope of robs and reduced work specialisation. This step is based on the principle of functional definition. Establishment of Structural Relationship for Overall Control: Process of Organising – Determination of Objectives, Enumeration of Activities, Grouping Activities, Allocation of Fixed Responsibility, Delegation of Authority and Coordination, Process of Organising – Steps: Identification and Division of Work, Departmentalisation, Alignment of Duties and Establishing Reporting Relationships, – Division of Work, Departmentalisation, Assigning Duties, Delegation of Authority and Coordinating Activities, – 3 Major Steps:  Division of Work, Formation of Departments and Reporting, Process of Organising – Identification and Division of Work, Grouping of Activities, Assignment of Duties and Delegation of Authority, Process of Organising – Determination of Objectives, Division of Activities, Grouping of Activities, Defining Authority and Responsibility, Reviewing and Reorganising, Process of Organising – Division of Work, Departmentalisation, Assigning Duties, Delegation of Authority and Coordinating Activities, Process of Organising – 3 Major Steps:  Division of Work, Formation of Departments and Reporting. It is thus clear that organization provides a structural framework of duties and responsibilities. (ii) Group those activities into interrelated functional areas. Identification and enumeration of activities: At the first stage of organising process, a manager identity and determines those activities that are to be performed for achieving common goals. Each organisation shall have its own specific way of classifying and grouping work activities. Hence, organisation must provide a mechanism for coordinating the efforts of em­ployees so that they can work together in team spirit. In work specialisation, a job is broken down into different steps and each step is completed by a separate individual. The division of work into smaller […] The clearly defined relationships helps to create a hierarchal structure and facilitates coordination amongst different departments. A business cannot function in anarchy. Organising is an important function of a manager. Such an activity needs special attention. For example, if the organisation wants to export goods, it should determine the nature and type of goods to be exported, the sources from where raw material will be obtained, countries where goods will be exported, co-ordinate with foreign buyers etc. For example- the purchase manager will be given the responsibility for the purchase of goods; the sales manager will be responsible for the sales; the advertising manager will be responsible for advertisement and the finance manager will take care of the responsibility of finance. With the time, organisations grow and situations change. Each position has a set of tasks, responsibilities, and authority. Assigning Work and Delegating Appropriate Authority 5. Legally Constituted rationally designed and consciously planned. Here, both vertical and horizontal operating rela­tionships are determined. Organising deals with group efforts that are made for attaining common goals. This is known as the division of work in management terms. A definite type of ranking order called hierarchy exists which allows reporting and authority to flow in different directions. 2, No 3, 2005, pp. Defining clearly the inter-relationship helps in establishing coordination. These departments can be either functional or divisional where in functional departments are related to common functions grouped into one department or divisional departments are created for businesses on the basis of either types of products, geographical location of the business or the targeted customer groups. Organisation charts depict the delegation of authority and responsibil­ity and the vertical and horizontal relationships of the different departments and the individuals manning the organisation, while, organisation manuals convey instructions for conducting regular activities. shoes division, garments division, bags division etc. The six steps are: Clarify strategy – Clarify high-level strategy statements, separating and organizing goals, objectives, initiatives, aspirations, and strategies. Thus, in all the organisations key activity can be different. Also, the levels at which various major and minor decisions will be made must be determined. Thus, organising is a sub-process of management. The closely related or similar activities must be grouped into manageable divisions, departments or work units. To eliminate these boundaries managers might use virtual organisation (a small core of full time employees and hiring outside specialists as and when the need arises); network organisation (concentrate on core activities and balance activities to be outsourced); modular organisation (outside vendors to supply components and the organisation to do assembly job); and learning organisation (per se not a specific organisation structure, but describes an organisational mind-set or philosophy that has significant design issues). Each job should be classified under some category. Organizing does this by creating and maintaining the activities in an accepted (manner) pattern, by inte… On the basis of functions – Various activities are grouped into different departments on the basis of various functions in the organisation. The concentration goes to activities and functions. “Getting organized” implies the creation of a harmonious work environment. Organising process aims at achieving higher efficiency because it helps in making efficient utilisation of both human as well as physical resources. When two or more than two persons work for the attainment of common goals their inter-relationship must be defined very clearly. While getting all of this done can seem impossible, if you start organising yourself right away and delegate tasks to a competent team, you can make your event run smoothly and tackle anything the day might throw at you. The purpose of organising is for people to coordinate with each other and to work for the achievement of organizational goals. Explain the steps involved in the process of organising. Before and After Closet Pantry Organization with Zero Dollars Spent! 3. Each person is given a specific job suited to him and he is made responsible for its execution. This article throws light upon the five main steps involved in organizing process. The various activities are grouped into departments or divisions according to their nature. It is detailing all the work that must be done to attain the organisations goals. Functions like sales, production, finance, etc. To equip every individual to effectively shoulder the duties and responsibilities assigned to them, there must be delegation of authority. Keeping this is view, Alfred Chandler has said, “Structure follows strategy.” For example- the structure required for hospital or educational institution is different from the structure required for a manufacturing company. This will ensure overall control over the working of all departments and their coordinated direction towards the achievements of predetermined goals of business. It’s important to point out though, that this is a process. Hence, a monitoring system to assess the effectiveness of the organisation and to make adjustments, must the estab­lished. The managerial function of organizing may be called as the ‘process of organizing’. For example- a Mobile Phone manufacturing company can have different activities like purchase of raw material, purchase of manufactured parts, production, advertisement, sales, arrangement of finance, research, accounts, correspondence, keeping stock of material, recruitment of employees, etc. the number of subordinates who should report directly to each superior is decided. It is based on superior-subordinate relationships which are created by assignment of work and delegation of authority. Examples include Hallmark and Ford Australia. In a trading organisation, purchases and sales are the two main activities. The existence and operation of formal organisation permits people to interact with each other at a personal and social level. Coordination can be achieved through managerial hierarchy, rules and procedures liaison roles and integrating departments of late electronic coordination has become important. The second issue is centralisation (retaining power and authority in the hands of top-level managers) and decentralisation (distribution of authority to middle and lower-level mangers). The steps allow you to do one or all at a time depending on the time you have available for the task. 2. 2. The delegation of authority is responsible for creating subordinate- superior relationship. They can be grouped on the basis of functions, products, Clear Definition of Objectives: 6. Vertical positions arise on account of delegation of authority among employees, from higher levels to lower levels. authority) to perform those tasks. When the objectives have been set and policies framed, the necessary infrastructure of organization has to be built up. 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