Concept of Organizing -TU Notes BBA-BBS -POM

Organizing TU Notes-Bikram Adhikari
 Meaning/Concept of Organizing  

Organizing  is  grouping  the  elements  of  an  organization  in  the  best  possible manner.  It  is  a  process  of  defining  the  essential  relationships  among  people,  tasks  and  activities  in  such  a  way  that  all  the  organization’s  resources  are  integrated and coordinated to accomplish its goals efficiently and effectively.

Importance of Organizing 

The following are the importance of organizing. 

1.   Brings   organizational   efficiency:

  Organizing  involves  building a structure  that defines activities and their relationships. It avoids confusion and delays in performing the works. It further   removes   duplication   of   work   and   overlapping  of  efforts.  Coordination  is  established.  Finally,  organizational  efficiency increases.  

2.   Facilitates   specialization:  

 The   structure   clearly   defines   the   duties   and   responsibilities    of    the    employees.    The    employee is informed    and    knowledgeable about their works. They perform their duties more efficiently resulting in job specialization.  

3.    Optimum  use  of  human  and  other  resources:  

Organizing  ensures  the  right  person for the right job. It motivates the employees toward the individual as well group  goal.  It  also  provides  the  benefits  of  specialization  which  results  reduction   in   costs.   It   also   ensures   the   effective   allocation   of   other   organizational resources

 4.  Effectiveness     in     communication:  

   Organizing     establishes     effective     communication  among  departments  or  units  of  an  organization.  Different  jobs  and  positions  are  interrelated  by  structural relationships.  It  specifies  the  channel and mode of communication among the departments or units. 

5.   Growth  and  diversification:  

When  resources  are  optimally  utilized  with  a  proper division of work among departments, organizational activities can be carried smoothly. This allows organizations to expand and grow by facing environmental challenges. 

6.   Employee   development: 

 When  the  roles  and  activities  to  be  performed  are  clear, it allows the employees to develop their skills and knowledge. It helps to  build  shared  goals  between  the  employees  and  the  organization  and  toward a sustainable organization. 

 7.   Establishes  authority  and  responsibility  relationships: 

 The  organizational  structure dictates the relationship among the members of the organization. It brings  efficiency to job  performance.  All  the  members  become  aware of their  duties  and  responsibilities.  It  also  brings  cooperation  among  them.  It finally helps for a congenial organizational environment.  

8.   Improves  job  satisfaction  and  productivity:

 Organizing  involves  clarifying the job positions. The roles assigned to every level are clear. It boosts mental satisfaction  creating  a  sense  of  security  among  the  employees.  This  is  very  important for job satisfaction.

Process of Organizing 

Organizing   is   a   complex   process.   It   demands   thorough   knowledge   of   organizational  plans,  policies  and  strategies.  Organizing  as  a  process  involves  the following steps. 

1.     Determination     of     Objectives         

 Every   organization   is   established   for   achieving   certain   objectives.   Hence, the determination  of  short  as  well  as  long-term objectives is  a  major  function  of  an  organization.  The  short-term  objective  should  support  the  achievement  of  long-term   objectives.   The   objectives   should   be   specific   measurable,   achievable,   realistic, and find bound.  

2.     Identification and Grouping of Activities Identification of activities: 

In the first step of organizing, all the organizational activities are identified. Organizational activities vary with the nature and size of the  organization.  They  are  related  to  finance  and  accounting,  production  and  operation, marketing and sales, human resource, and research and development. Grouping  of  activities:  In  this  step,  the  related activities  are  combined  and  grouped  into  units  or  departments  and  it  is  called  departmentalization.  Similar  and  related  activities  are  grouped  together  under  a  department  or  unit  which  may   be   further   be   divided   into   sub-departments   or   groups.   Grouping   of   activities  helps  to  secure  specialization.  It  should  be  done  considering  human  factor, the nature of activities, and the needs of the organization.

3.     Assigning Duties and Responsibilities 

In  this  step,  the  duties  and  responsibilities  of  discharging  the  activities  are  assigned to different individuals according to their skill, knowledge, ability, and aptitude.  The  responsibility  of  every  individual  is  defined  clearly.  It  is  done  to  avoid duplication of work and overlapping of effort. Each individual is given a specific job best suited to him/her and made responsible for its execution.

4.     Delegation of Authority

 After  assigning  duties,  each  individual  is  delegated  the  authority  necessary  to  perform  the  assigned  duties  effectively.  The  authority  delegated  should  be  commensurate   with   the   responsibility   assigned.   Delegation   of   authority   establishes a clear hierarchy of authority or chain of command running from the top to the bottom of the structure. 

5.     Coordinating     Activities   

Organizing  involves  coordinating  activities.  It  is  an  orderly  arrangement  of  activities or efforts to achieve unity of action in pursuance of a common goal. It ensures   that   different   departments   and   groups   work   in   harmony   and   synchronization.   Coordination   is   necessary   to   remove   conflicts   between   employees or departments, duplication of work, and wastage of time and efforts. It  also  ensures  that  all  the  departments  are  carrying  out  their  tasks  and  there  is  harmony between them.  

6.     Differentiating among Positions

 Organizing  also  involves  differentiating  among  positions,  i.e.  line  and  staff positions.  A  line  position  is  the  position  in  the  direct  chain  of  command.  It  is  responsible for the achievement of organizational goals. On the other hand, a staff position  is  a  supportive  position,  hence  provides  expertise,  advice  and  support  for line managers. 

7.     Reviewing     and     Reorganizing  

   The  organizing  process  should  be  constantly  reviewed  and  appraised  so  that  organization structure can be modified or adjusted as per changes in the internal and external factors

Principles of Organizing 

Organizing  is  based  on  certain  principles.  They  are  the  building  blocks  of  organizing.  

1.     Specialization  

   According  to  the  principle  of  specialization,  the  whole  work  of  an  organization  should  be  divided  amongst  the  employees based on their  qualifications,  abilities, and skills. Through the division of work, specialization can be achieved. 

2.     Functional     Definition 

    According  to  the  principle  of  functional  definition,  all  the  functions  in  an  organization   should   be   clearly   defined.   It   involves   defining   the   duties,   responsibilities,   authority, and   relationships   of   people   in   the   organization.   Clarifications    in    authority-responsibility    relationships    help    in    achieving    coordination for efficient organization. 

3.     Span of Control/Supervision

 A span of  control  is the length  or  range  of  supervision.  It  shows  the  number  of  employees  who  can  be  handled  and  controlled  effectively  by  a  single  manager.According to this principle, the number of employees that a manager can handle under him should be determined. This decision can be taken by choosing either from a wide or narrow span. 

 a.   Wide span of control: 

It is one in which a manager can supervise and control a large number of subordinates at a time.  

b.   Narrow  span  of  control: 

 Under  this,  a  manager  supervises  and  controls  few  subordinates under him. 

 4.     Chain of Command and Unity

 The   chain   of   command   is   a   line   of   authority   that   links   all   persons   in   an   organization  and  defines  who  reports  to  whom.  This  has  two  underlying  principles: the unity of command and the scalar principle. 

a.   Unity of command: 

This principle states that an employee should have only one supervisor to whom he/she is directly responsible. No employee should report to two or more people.  

b.   Scalar   chain:  

 The  principle  of  scalar  chain  refers  to  a  clearly  defined  line  of  authority  in  the  organization.  In  other  words,  there  should  be  a  clear  and  unbroken chain of command linking every person in the organization. 

5.     Unity of Goals/Objectives 

All organizational activities are directed towards organizational goals which are formulated  for  each  level  (top,  middle  and  low)  and  each  functional  area.  The  goals must be clearly communicated and understood by all. All the levels, areas, and units should support each other to achieve the goals effectively. 

6.     Delegation of Responsibility and Authority

 Authority  and  responsibility  must  go  hand-in-hand.  Responsibility  means  an  obligation  to  carry  out  the  assigned  task  which  requires  a  certain  level  of  authority. The tasks assigned should be performed within the scope of authority. The responsibility without authority will result in poor performance. 

7.     Flexibility     

Modern  organizations  are  operating  in  a  competitive,  complex  and  volatile  environment.   Their   success   largely   depends   on   how   they   address   the   environmental   impacts.   For   this,   they   should   be   situational   or   flexible.   Organizations are required to change their plans, policies, and structure with the changes in the environmental factors.  

8.     Exception     

The managers should perform several diverse activities according to rules, policies  and  procedures  of  the  organization.  However,  they  may  be  exceptional  while  dealing  with  complex  and  unusual  situations.  It  allows  them  to  respond  the situations promptly and enhance creativity in decision making. 

9.     Personal     Ability     

According   to   this   principle,   an   organization   should   constantly   work   for   enhancing  efficiency  of  the  workers  at  all  levels.  This  can  be  achieved  through  training  and  development  programs.  It  further  helps  to  enhance  productivity  and worker commitment. 

10.   Balance/Coordination   

There  should  be  a  good  balance  between  the  parts  of  an  organization.  In  other  words,  the  organization  should  develop  its  structure  in  a  balanced  way  so  that  coordination may be maximized. There must be a trade-off between centralization and decentralization. 

11.   Efficiency  

 An organization runs on the principle of efficiency. this is achieved by operating the organization with minimum cost and effort. The cost of the product is kept as low as possible  without  compromising  the  quality.  This  can  be  achieved  by  using  the  human  as  well  as  other  resources  effectively  through  proper  organizational  structure.  

12.   Simplicity   

This principle states that the organizational structure should be simple. A simple structure  is  well  understood  by  all  employees.  They  became  clear  about  their  duties  and  responsibilities.  The  structure  should  be  less  hierarchical  and  with  a  clear path of communication. 

Approaches to Organizing 

There are three major approaches to organizing. They are the classical approach, behavioral and contingency approaches.

1.     Classical     Approach     

The  classical  approach  of  organizing  advocates  one  best  way  to  manage  the  organization.   It   is   also   called   the   universal   approach.   This   approach   to   organizing    can    be    better    highlighted    through    scientific    management,    administrative management, and bureaucratic theories.   The  scientific  management  theory  advocates  an  increase  in  production  by  effective  planning  and  controlling,  use  of  modern  machines  and  tools,  and optimum  utilization  of  resources  to  minimize  cost  of  production  and  increase  profit.  This  theory  attempts  to  develop  workers’  efficiency  through  modern  machines  and  tools  and  proper  remuneration.  It  is  based  on  maximizing  the  degree  of  cooperation  between  the  employer  and  employees  and  employee  development through training and development. The administrative management theory attempts to find a rational way to design an organization as a whole. It is based on formalized administrative structure, a clear division of labor, and delegation of power and authority to administrators. This   theory   defines   management   in   terms   of   functions   such   as   planning,   organizing,  staffing,  directing  and  controlling  and  provides  a  comprehensive  framework for the study and development of management. The   bureaucratic   theory   contains   two   essential   elements:   structuring   an   organization into a hierarchy and having clearly defined rules and procedures to run  the  organization.  There  are  several  characteristics  in  bureaucracies  that  would  effectively  help  in  decision-making,  controlling  resources,  protecting  workers  and  accomplishment  of  organizational  goals.  According  to  this  theory,  the   organization   should   have   a   high   degree   of   division   of   labor   and   specialization   with a well-defined   chain   of   command   and   the   principle   of   rationality,  objectively  and  consistently.  There  should  be  a  formal  relationship  among  the  member  of  the  organization  based  on  positions  with  well-defined  rules and regulations

2.     Behavioral     Approach    

 The  behavioral  approach  advocates  the  importance  of  behavioral  and  human aspects of  organizing.  Three  leading  theories  under  this  are  Maslow’s  needs  hierarchy theory, McGregor’s Theory X and Y, and Herzberg’s two-factor theory. Maslow’s   need   priority   (hierarchy)   theory   is   based   on   the   human   needs,   comprising  a  five-step  model  depicted  as  hierarchical  levels  within  a  pyramid.  The needs lower down in the hierarchy must be satisfied before individuals can attend  to  the  needs  higher  up.    He  advocated  the  importance  of  these  human  needs while organizing. Douglas McGregor developed Theory X and theory Y. Theory X is the traditional theory of  management  philosophy.  According  to  this  theory  people  want  to  avoid  work  as  much  as  possible,  meaning  that  they  do  not  wish  to  take  responsibility.  People  are  motivated  through  financial  incentives.  They  must  be  continually  controlled;  hence  the  system  of  rewards  and  punishments  works  best for them. Contrary to theory X, theory Y assumes that people are inherently happy to work. They are motivated to pursue the objectives. There is no need for a rewards  and  punishment  system.  People  are  prepared  to  take  responsibility  for  everything they do and want to use their creativity in solving problems. Herzberg’s  two-factor  theory  believes  that some job factors result in     satisfaction     while other job factors prevent dissatisfaction. Herzberg used the term ‘hygiene and motivators to describe job satisfaction.  The  hygiene  factors  are  extrinsic  and  are  related  to  things  such  as  compensation, job security, career development, organizational politics, working conditions,   quality   of   leadership,   and   relationships   between   supervisors,   subordinates,  and  peers.  Motivators are  intrinsic  and  include  responsibility,  job  satisfaction,     recognition,     achievement,     opportunities     for     growth,     and     advancement.

3.     Contingency     Approach   

  The contingency approach of organizing states that management is situational in nature.  It  assumes  that  management  principles  are  not  universal  in  nature  as  there  is  no  best  style  of  management.  It  focuses  on  the  multivariate  nature  of  organizations and helps organizations to operate under different environmental conditions.  It  provides  a  framework  for  solving  problems  according  to  the  environmental   conditions.   It   advocates   organization’s   adaptability   to   both   internal and external environments and fit between them.  

a. Size  of  the  organization: 

The size  of  the  organization  has  major  impact  on  organizing.Larger  organizations  are  likely  to  have  more  hierarchies  and  units.

b.   Task   and   technology:  

 The   intensity   of   use   of   technology   also   affects   organizing.  It  governs  the  pattern  of  communication,  ways  of  doing  jobs, relationships among the employees, and authority-responsibility patterns. 

c.   Environmental   uncertainty:  

The  degree  of  environmental  uncertainty  also  affects the organizing function. If the organizational environment is volatile,a   flexible   structure   is   preferred.   On   contrary,   an   organization   may   be   organized  in  a  formalized  way  if  it  is  operating  in  a  relatively  stable  environment. 

d.   Individual    differences:  

 Individual   differences in the   leadership   of   an   organization  also  determine  the  way  an  organization  is  organized.  For  example,  an  authoritative  leader  tends  to  centralize  authority  to  the  upper  level.

Related Posts

Post a Comment