It has a high degree of rationality and leaves no scope for personal, social and emotional factors. The responsibility of every individual should be defined clearly to avoid duplication and overlapping of efforts. The head of the department must know that he/she will take instructions from and report to vice principal or principal. James Stoner says, “Coordinating mechanisms enable members of the organisation to keep sight of the organisations goals and reduce inefficiency and harmful conflicts.”. Explain the steps involved in the process of organising. The heads of different departments can discuss collectively about the overall development of school. This is the step of grouping the work into specific departments, also known as departmentalisa­tion. Again, we shall discuss about the two concepts in detail later on. Hence, a monitoring system to assess the effectiveness of the organisation and to make adjustments, must the estab­lished. The individual groups of activities are then allotted to different individuals according to their ability and aptitude. However, since organisational plans change with the passage of time, organisational objectives have to be also restructured. 1. Differentiation is the extent to which tasks are divided into sub-tasks and performed by individuals with specialised skills. 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. Managerial positions are defined and the extent of their power and authority is fixed. i. An important part of the planning process is to be aware of the business opportunities in the firm’s external environment as well as within the firm. Clarifying the authority is useful in making the company’s operations efficient. Consideration of Plans and Goals 2. The activities of a department may be further classi­fied into sections. Hence, a list of specific tasks must be prepared. Organising is an important function of a manager. In organising, the activities performed by an individual employee are related to the functioning of his department, and then functioning of various departments is harmonised for seeking common goals. 4 step process of facility planning are; 1. Business process management (BPM) is much more than a record of the process employees are to follow. Organising involves the establish­ment of a sound organization structure so that work is carried out as planned. Share Your PDF File This is the last stage or step in the process of organisation. In the next stage, organisational activities which lead to accomplishment of organisational objectives are to be identified. While designing an organisation structure, the managers must keep six elements in consideration. Every department works under the supervision of departmental head and is governed by a set of rules, procedures and standards. are brought together and co-coordinated towards the common objectives of the organisation. Its importance can be outlined as under: 1. Account Disable 12. … Departmentally Organising the Activities: This step requires the manager to combine and group similar and related activities of the company into units or depart­ments. 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. The closely related or similar activities must be grouped into manageable divisions, departments or work units. Determining the Work Activities Necessary to Accomplish Objectives 3. So long as the authority to discharge the responsibility is not given, the person concerned has no accountability. Integration is the extent to which various parts of the organisation cooperate and interact with each other because of interdependence of the tasks. Organising is a basic function and a sub-process of management: Organising constitutes an essential element in the main process of management. Determination of Objectives – It is the first step to build up an organisation. The purpose of creating the superior-subordinate relationship is to coordinate the efforts of all individuals/groups/departments towards the common goals and objectives of the business. In carrying out these major activities, business units have to perform many other activities such as producing, financing, marketing, accounting, recruiting employees, etc. Allocation of Fixed Responsibility to Definite Persons – Here, specific job assignments are made to different subordinates, or ensuring a certainty of work performance. Organising deals with group efforts that are made for attaining common goals. Authority should be in proportion to the work or responsibility. 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. Everybody should know who is his superior and who is his subordinate? 6. Stronger the culture, the structure can be predictable, orderly and consistent with no written documentation. From the previous banking example, all jobs related to managing car loans, home loans and business loans will come under the ‘Loans Department’. Whereas it is important to have right persons on right jobs, it is equally important to have right working environment. Collecting Human and Material Resources 5. The managerial function of organizing may be called as the ‘process of organizing’. The top has more authority than the lower levels. What kind of organisation structure is best suited to an enterprise depends upon a number of considerations; the more important ones are given below: Organisation structure to be used for an enterprise is the direct result of objectives to be achieved which are derived from strategy. To follow cost- leadership strategy the structure has to be stable and cost efficient. 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. These various aspects of the organising function of management are discussed here under the following two broad heads: The term ‘organising” refers to the process of identifying and grouping of activities to be performed and dividing them among the individuals and creating authority and responsibility relationship among them for the accomplishment of organisational objectives. Other contemporary structures in popularity are matrix and project structures. The organizing function of management is concerned with combining people, work to be done, and physical resources into a meaningful relationship to achieve organizational goals. Nature of the organising function can be understood in reference to the following aspects: 1. Based on formal authority and position in organisation. It is detailing all the work that must be done to attain the organisations goals. An organisation structure is a mix of vertical and horizontal positions. After putting various activities into several groups, these are to be assigned or allotted to the various departments created for this purpose, or to the employees if the activities are limited. The first step, therefore, is to determine the tasks that must be performed to achieve the established objectives. Any situation involving two or more persons working collectively requires organising. Authority flows from top to bottom in the hierarchy. Reaping benefits of technology improvements: A sound organisation structure is flexible enough to accommodate changes in the work technology. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. Everybody should clearly know to whom he is accountable. Plagiarism Prevention 5. 1. Various steps of organizing process are as follows. If the organisation is working in different areas then activities can be grouped on the basis of region/territory viz. The division of work into smaller […] What was happening in the class the next morning was unimaginable. It is very essential to establish well-defined clear-cut structural relationships among individuals and groups. Each individual is allotted a specified job according to his aptitude and skills and made responsible for the performance of that job. In this step, the employees are assigned duties as per their qualifications, experience and suitability to a particular job. The activities to be carried out by the organisation have to be identified, grouped and classified into units. After dividing the various activities into different departments and sub-departments and having determined the activity that each individual is expected to perform, his responsibility is fixed. Departmentalisation: It involves grouping of similar activities into departments, units, sections etc. are made the basis of primary grouping. Distribution of authority involves addressing two issues – delegation of authority and centralisation-decentralisation. During working, the overall goals of the company may become submerged or conflicts between work units or members may develop. Functions like sales, production, finance, etc. 4. The steps allow you to do one or all at a time depending on the time you have available for the task. Examples include Hallmark and Ford Australia. Example – Every school has departments for each subject like Mathematics department, English department, Languages department etc. Identifying and Classifying the Work Activities 3. 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. 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. The structures will be organic if the organisation follows non-routine technology. Each task is inter-related, and the collective performance of all tasks by different position holders enables the achievement of organisational goals. This removes confusion, friction and conflict among people. The process of organising involves the following steps: 1. For example- banking activities in a bank include managing accounts, providing loans, managing foreign currency, managing customer queries, etc. Culture refers to a system of shared beliefs and values. Table 9.1: Formal vs. “Getting organized” implies the creation of a harmonious work environment. While delegating authority managers should work on establishing authority responsibility relationships in an organisation structure. Vertical positions arise on account of delegation of authority among employees, from higher levels to lower levels. Thus, informal organisation may be defined as a network of personal and social relations, arising out of communication and behavioural tendencies in the course of functioning of a formal structure of organisation. After that, departments may be linked depending on their related activities or functions. The nature and importance of the organising function, however, may vary with different managers. Such grouping of activities is known as – “Departmentation”. This will ensure overall control over the working of all departments and their coordinated direction towards the achievements of predetermined goals of business. The six steps are: Clarify strategy – Clarify high-level strategy statements, separating and organizing goals, objectives, initiatives, aspirations, and strategies. In order to achieve the objectives of the enterprise, certain activities are necessary. The activities and efforts of different individuals are then synchronized. However, of late the trend is towards broadening the scope of robs and reduced work specialisation. It may be narrow or wide. It operates through group norms, values and standards. The real goal of the campaign is to carry out and keep thethe campaign is to carry out and keep the promises made. These activities are arranged in a logical manner so that the performance of one activity facilitates the performance of other activities. Organizing consist of various steps. Privacy Policy3. The process of organizing consists of the following steps: (a) determining and defining the activities required for the achieve­ment of organizational goals; (b) grouping the activities into logical and convenient units; (c) assigning the duties and activities to specific positions and people; (ii) Group those activities into interrelated functional areas. Division of work and specialisation are the tools used by organisation to attain the objective of optimum utilisation of human efforts and physical resources. Organising means to coordinate and prepare for activity. Service organisations provide services such as transportation to their customers. Generally, an organisation structure has a pyramid shape, with less position on the upper side and more positions on the lower side. 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. Employees feel more involved, empowered and motivated. In order to create a balance and structure in the organisation, the activities of members need to be well-coordinated. 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. Line of authority and formal relationship become channel of communication. For example, an organisation producing and distributing washing machines has to perform large number of activities that may be related to production, distribution, finance, purchase and personnel, etc. Based on competence of individual and group acceptance. This creates the chain of command right from the top to the bottom and a hierarchy is thus created. Performance of the organising function provides a compact framework to an enterprise. This facilitates smooth operation of the management process which results in attaining enterprise goals. Through it, activities are divided, grouped-up and assigned to the concerned department having requisite competence, and resources, and the department develops as a specialised centre for those activities. Departmentation refers to grouping the jobs on some logical arrangements. 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. Drucker has said that “an institution is like a tune; it is not constituted by individual sounds, but by the relations between them.” This step involves the creation of superior-subordinate relationships. Therefore, organising is regarded as a mechanism or means to achieve planned objectives. Assigning Work, Responsibility and Authority: 6. The purpose of organising is for people to coordinate with each other and to work for the achievement of organizational goals. It is very important that for effective implementation of plans the work is assigned to such people who possess essential abilities and skills to perform their jobs with maximum efficiency. The Basic Steps in the Management Planning Process Published on April 24, 2015 April 24, 2015 • 63 Likes • 10 Comments Copyright 10. This grouping or combining of activities is called departmentation. 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). 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