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Understanding Organizational Structure

Organizing is a managerial activity that involves the division of work, coordination of efforts, and structuring responsibilities to achieve specific objectives. It encompasses identifying and grouping activities, assigning duties, and establishing authority relationships within an organization. The process is essential for efficient resource utilization, effective communication, and facilitating specialization and coordination among employees.

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0% found this document useful (0 votes)
6 views12 pages

Understanding Organizational Structure

Organizing is a managerial activity that involves the division of work, coordination of efforts, and structuring responsibilities to achieve specific objectives. It encompasses identifying and grouping activities, assigning duties, and establishing authority relationships within an organization. The process is essential for efficient resource utilization, effective communication, and facilitating specialization and coordination among employees.

Uploaded by

luckysisodia80
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

INTRODUCTION

TO ORGANISING
ORGANIZING
 MEANING:
 Organization involves division of work among people whose efforts must
be co- ordinated to achieve specific objectives and to implement pre-
determined strategies.
 Organizing refers to grouping elements of an organization in the most
effective way.
 To accomplish an organization’s goals efficiently and effectively, all its
resources must be integrated and coordinated to define the essential
relationships between people, tasks, and activities.
 Organising is a managerial activity that involves arranging and
structuring of responsibilities and work of the employees for attaining
the desired result.
 The organising function requires effective skills, a proper chain of
command, authority, a delegation of work, and efficient control.
ORGANIZING
 Definition:
 According to Koontz and O'Donnell, "Organization
involves the grouping of activities necessary to accomplish
goals and plans, the assignment of these activities to
appropriate departments and the provision of authority,
delegation and co- ordination."
 According to Louis Allen, "Organizing involves
identification and grouping the activities to be performed
and dividing them among the individuals and creating
authority and responsibility relationships among them for
the accomplishment of organizational objectives."
NATURE OR CHARACTERISTICS OF
ORGANIZING
 (1) Division of Work: Division of work is the basis of an organization.
In other words, there can be no organization without division of work.
 Under division of work the entire work of business is divided into many
departments. The work of every department is further sub- divided into
sub-works. In this way each individual has to do the same work
repeatedly which gradually makes that person an expert.
 (2) Coordination: Organization ensures that the work of all the
persons depends on each other’s work even though it happens to be
different. The work of one person starts from where the work of
another person ends. The non-completion of the work of one person
affects the work of everybody.
 Therefore, everybody completes his work in time and does not hinder
the work of others. It is thus, clear that it is in the nature of an
organization to establish coordination among different works,
departments and posts in the enterprise.
NATURE OR CHARACTERISTICS OF
ORGANIZING
 (3) Plurality of Persons: Organization is a group of many persons
who assemble to fulfil a common purpose. A single individual cannot
create an organization.
 (4) Common Objectives: There are various parts of an organization
with different functions to perform but all move in the direction of
achieving a general objective.
 (5) Well-defined Authority and Responsibility: Under
organization a chain is established between different posts right from
the top to the bottom. It is clearly specified as to what will be the
authority and responsibility of every post.
 (6) Universal Process: Organization is needed both in business and
non-business organizations. Not only this, but organization will also
be needed where two or more than two people work jointly.
Therefore, organization has the quality of universality.
NATURE OR CHARACTERISTICS OF
ORGANIZING
 (7) Dynamic Process: Organization is related to people and the
knowledge and experience of the people undergo a change. The impact of
this change affects the various functions of the organizations. Thus,
organization is not a process that can be decided for all times to come but
it undergoes changes according to the needs. The example in this case
can be the creation or abolition of a new post according to the
need.
 (8) Structure of Relationship: Relationship between persons working
on different posts in the organization is decided. In other words, it is
decided as to who will be the superior and who will be the subordinate.
 (9) Machine of Management: Organization is considered to be a
machine of management because the efficiency of all the functions
depends on an effective organization. In the absence of organisation, no
function can be performed in a planned manner. In other words, if the
division of work is not done properly or posts are not created correctly the
whole system of management collapses.
IMPORTANCE OR ADVANTAGES OF
ORGANIZING
 1) Increase in Managerial Efficiency: A good and balanced organization
helps the managers to increase their efficiency. Managers, through the
medium of organization, make a proper distribution of the whole work
among different people according to their ability.
 (2) Proper Utilization of Resources: Through the medium of
organization optimum utilization of all the available human and material
resources of an enterprise becomes possible. Work is allotted to every
individual according to his ability and capacity and conditions are created to
enable him to utilize his ability to the maximum extent.
 For example, if an employee possesses the knowledge of modem
machinery but the modem machinery is not available in the organization, in
that case, efforts are made to make available the modem machinery.
 (3) Sound Communication Possible: Communication is essential for
taking the right decision at the right time. However, the establishment of a
good communication system is possible only through an organization.
IMPORTANCE OR ADVANTAGES OF
ORGANIZING
 (4) Facilitates Coordination: In order to attain successfully the
objectives of the organization, coordination among various activities in
the organization is essential. Organization is the only medium which
makes coordination possible.
 (5) Increase in Specialization: Under organization the whole work is
divided into different parts. Competent persons are appointed to handle
all the sub-works and by handling a particular work repeatedly they
become specialists. This enables them to have maximum work
performance in the minimum time while the organization gets the
benefit of specialization.
 (6) Helpful in Expansion: A good organization helps the enterprise in
facing competition. When an enterprise starts making available good
quality product at cheap rates, it increases the demand for its products.
In order to meet the increasing demand for its products an organization
has to expand its business.
ORGANIZING PROCESS
ORGANIZING PROCESS
 (i) Identification and division of work: The first step in the
process of organising involves identifying and dividing the
work that has to be done in accordance with previously
determined plans. The work is divided into manageable
activities so that duplication can be avoided and the burden of
work can be shared among the employees.
 (ii) Departmentalisation: Once work has been divided into
small and manageable activities then those activities which
are similar in nature are grouped together. Such sets facilitate
specialisation. This grouping process is called
departmentalisation. Departments can be created using
several criteria as a basis. Examples of some of the most
popularly used basis are territory (north, south, west, etc.) and
products (appliances, clothes, cosmetics etc).
ORGANIZING PROCESS
 (i) Identification and division of work: The first step in the
process of organising involves identifying and dividing the work
that has to be done in accordance with previously determined
plans. The work is divided into manageable activities so that
duplication can be avoided and the burden of work can be
shared among the employees.
 (ii) Departmentalisation: Once work has been divided into
small and manageable activities then those activities which are
similar in nature are grouped together. Such sets facilitate
specialisation. This grouping process is called
departmentalisation. Departments can be created using several
criteria as a basis. Examples of some of the most popularly used
basis are territory (north, south, west, etc.) and products
(appliances, clothes, cosmetics etc).
ORGANIZING PROCESS
 (iii) Assignment of duties: It is necessary to define the work
of different job positions and accordingly allocate work to
various employees. Once departments have been formed, each
of them is placed under the charge of an individual. Jobs are
then allocated to the members of each department in
accordance to their skills and competencies. It is essential for
effective performance that a proper match is made between the
nature of a job and the ability of an individual. The work must be
assigned to those who are best fitted to perform it well.
 (iv) Establishing authority and reporting relationships:
Merely allocating work is not enough. Each individual should also
know who he has to take orders from and to whom he is
accountable. The establishment of such clear relationships helps
to create a hierarchal structure and helps in coordination
amongst various departments

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