Coordination between Authority and Responsibility: Healthy relationships between various groups facilitates smooth interaction which assists the organisation in achievement of its goals. 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. Management, Functions, Organising, Process of Organising. In order to achieve the objectives of the enterprise grouping of various activities is done. Secondary grouping is made on the basis of geographical areas, types of customers, equipment used, processes adopted or constituent parts of major leading function. In carrying out these major activities, business units have to perform many other activities such as producing, financing, marketing, accounting, recruiting employees, etc. It is there since Adam Smith published Wealth of Nations. Organization structure of a trading concern is different from that of an educational institution for the simple reason that activities of the two organizations are different. As a complex organism, the organisations, besides the reporting levels, have cross- functional relationships between different departments or divisions. They are. 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. 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. Mere assignment of duties and responsibility is not enough, people must also be given some authority of powers to perform their jobs. On the basis of geography – Activities are grouped on the basis of geographical locations. Organisation structure is a mechanism through which manager’s plan, allocates, direct, coordinate and control the activities of people. Since the complex task is broken into smaller units, less- skilled workers can be trained to carry out those activities. In a manufacturing organisation, production and sales are the two major activities. The point to remember, in order prevent discouragement, is that organizing is a ongoing PROCESS and not a destination. Its importance can be outlined as under: 1. A person who is saddled with a responsibility must be given some authority too. This network of authority-responsibility relationships is called ‘organisation structure’. Based on competence of individual and group acceptance. 3. Whereas it is important to have right persons on right jobs, it is equally important to have right working environment. 4. Grouping and classification of activities helps to attain the benefits of specialisation. Defining Authority and Responsibility. Each person is given a specific job suited to him and he is made responsible for its execution. (ii) Group those activities into interrelated functional areas. Determining the Span of Control and Decentralization 8. The jobs identified from the previous step are further grouped together and put into separate departments. In this article, PulseLearning presents six key steps to effective organizational change management. The divisions and departments function within the broad parameters of an administrative set up. Providing Physical Facilities and Right Environment 10. The activities and efforts of different individuals are then synchronized. This removes confusion, friction and conflict among people. Taking into consideration the importance and quantity of the work a department can be further divided into many branches or sub-departments. Other contemporary structures in popularity are matrix and project structures. Organising process may also be used as a device of maintaining and achieving coordination. Consideration of Plans and Goals 2. The division of work enables people to acquire skills and experience in their particular area, and consequently brings efficiency into the organisation. Managerial positions are defined and the extent of their power and authority is fixed. A business cannot function in anarchy. Content Filtration 6. It is thus clear that organization provides a structural framework of duties and responsibilities. Content Guidelines 2. Objectives bring about unity of direction in the organisation. It not only establishes authority relationship but also provides a system of communication. (iii) Establish the basic department design for the organisation structure. The head of the department must know that he/she will take instructions from and report to vice principal or principal. It is only after granting authority to an individual that he can be made accountable. Thus, structure of an organisation needs to be tailor-made than merely adopting the so-called ‘typical structure’. Usually, this helps in laying out the departments. Thereafter the work must be divided into smaller and manageable activities to avoid duplication and share the burden among employees. Right man is put in the right job. The nature and importance of the organising function, however, may vary with different managers. Organisation structure stimulates creative thinking and initiative among organisational members by providing them requisite authority to perform their assigned tasks. Coordinating efforts of all to achieve goals. Thus, the process of organising gives rise to a network of authority-responsibility relationships among members of the organisation. In a hierarchy, the ranking of managerial positions is done by grant of different degrees of rights and powers to different positions. Plagiarism Prevention 5. 6. But the following steps can be of great help in the designing a suitable structure, which will laid in achieving enterprise objectives: The first step in developing an organizational structure is to lay down its objectives in very clear terms. 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. Overall tasks or activities of the organisation are determined to achieve this goal. A flexible and implementable strategic facility planning based on the specific and unique considerations of your organization needs to be developed through a 4 step process. Communication takes place through personal and social relationship. It is detailing all the work that must be done to attain the organisations goals. Plans are the means to achieve certain ends or objectives. 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). Setting objectives is the most crucial part of planning. It is based on superior-subordinate relationships which are created by assignment of work and delegation of authority. The concentration goes to activities and functions. This is the last stage or step in the process of organisation. Step 5 Keep Your PromisesKeep Your Promises The organizing committee does not let upThe organizing committee does not let up after an election victory. This personal and social interaction is called informal organisation. Organising is an important function of a manager. 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. Here employees continuously work on projects. + notes. People are employed in each department and work is allocated depending on the competencies and skills of each employee. 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. Increases clarity of authority and responsibility: Division of work and delegation of authority among employees, through the process of organising, gives them a precise idea of what they are expected to perform and within what limits of authority they have to perform. Before uploading and sharing your knowledge on this site, please read the following pages: 1. To follow cost- leadership strategy the structure has to be stable and cost efficient. Terms of Service 7. In order to achieve the objectives of the enterprise, certain activities are necessary. Organising it is not only such an activity which includes determination of activities; and the defining of inter-relationship but it also ensures the optimum utilisation of human resources by providing physical resources and the right environment. Examples include Hallmark and Ford Australia. Organising involves the establishment of a sound organization structure so that work is carried out as planned. Organizing essentially implies a process which coordinates human efforts, assembles resources and integrates both into a unified whole to … 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. The activities to be carried out by the organisation have to be identified, grouped and classified into units. Some of important contemporary designs follow the following concepts. For example, Northern Zone, Eastern Zone, etc. Authority means the freedom of taking decision, guiding the subordinates and the freedom of supervising and controlling. You now have to deal with the issueswith the issues. Assessing personnel requirements and determining the physical resources is very necessary to build the structure of an organisation. The various activities are grouped into departments or divisions according to their nature. While designing an organisation structure, the managers must keep six elements in consideration. The steps allow you to do one or all at a time depending on the time you have available for the task. Share Your PPT File, Process of Organising – 9 Steps Involved in Organizing Process. Under the grouping of activities all the similar type of activities are given to one particular department. After grouping the various activities under different departments and sub-departments, the jobs are assigned to the individuals on the basis of their aptitude and skills. The last element is distinguishing between line and staff positions. Designing a Hierarchy of Relationships: 7. Determining the Work Activities Necessary to Accomplish Objectives 3. (c) Decentralization of authority subject to central control through centralization of decision-making. For example- it can be the objectives of the enterprise to produce mobile phones. Organising deals with group efforts that are made for attaining common goals. What was happening in the class the next morning was unimaginable. 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. 2. are brought together and co-coordinated towards the common objectives of the organisation. It is influenced by social, personal and emotional factors. Collecting Human and Material Resources: 5. Differentiation is the extent to which tasks are divided into sub-tasks and performed by individuals with specialised skills. Example – The teachers working in a department must know that they have to take instructions from and report to the head of the department. People with an aptitude for figures and numbers may be seen fit for the accounts department. Therefore, the initial step will entail dividing the work into different and specific areas or jobs. This is the step of grouping the work into specific departments, also known as departmentalisation. Determination of Objectives – It is the first step to build up an organisation. Disclaimer 8. 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. Line of authority and formal relationship become channel of communication. Since one person cannot manage all the organisational activities, total task is divided into smaller units and assigned to members. FACTA UNIVERSITATIS Series: Economics and Organization Vol. Resources are scarce and coordination helps in their optimum utilisation. A sound organisation structure has the capacity to handle increased level of activity. Such coordination is necessary to ensure effective performance of specialized functions. The organising process involves five broad steps: It is necessary to determine those activities which are essential to accomplish the organisational objectives. This may involve you sending a tailored CV and cover letter in response to an advertised position or going through an online application process. It arises naturally and spontaneously and is an integral dimension of formal organisation. These activities are arranged in a logical manner so that the performance of one activity facilitates the performance of other activities. Departmentalization means selecting the activities which are similar in nature and grouping them together. Identifying and Classifying the Work Activities 3. 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. In this step the total work is divided into various activities. Reviewing and Reorganising. The job of top management is to formulate the policies, the middle level staff is into departmental supervision and the lower level workers supervise the foremen. For example- the factory and the office should be located at a proper place so that the employees can perform better. 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. 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. Defining clearly the inter-relationship helps in establishing coordination. 4 step process of facility planning are; 1. An organisation structure is a mix of vertical and horizontal positions. These social groups and their associated behaviour in called the informal organisation. The person who gives authority is called ‘superior’ and the person to whom authority is given are known as ‘subordinate’. This implies that employees will have to report to an authority like the top management or superiors who manage, guide, supervise and oversee the work and responsibilities of their subordinate reporting to them. Activities can be grouped in the following ways: i. This will help in determining the type, stability and basic characteristics of the organization. Defining objectives; Enumeration of functions; Classification of activities; Placement of Individuals; Assigning authority for action; 1. This is presented in the following Table 9.1. There was chaos all over but no work was done. Before publishing your Articles on this site, please read the following pages: 1. Those activities are determined on the basis of common goals. The concentration goes to activities and functions. An organisation is a unified whole of the people and their activities. Share Your PDF File Here, the total organisation is made up of teams or work groups which perform the organisation’s work. If the responsibility is greater than the authority given and is insufficient to cope with the responsibility, the responsibility cannot be discharged successfully. 237 - 245 ORGANIZING AS THE PHASE OF MANAGEMENT PROCESS AND MANAGEMENT ACCOUNTING UDC 657.05+658.310.13 Ljilja Antić, Vesna Sekulić Faculty of Economics Niš, University of Niš, 18000 Niš, Serbia and Montenegro 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. Before and After Closet Pantry Organization with Zero Dollars Spent! Hence, organisation must provide a mechanism for coordinating the efforts of employees so that they can work together in team spirit. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. Each function or department may further be sub-divided to get the benefits of specialisation. 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). A definite type of ranking order called hierarchy exists which allows reporting and authority to flow in different directions. Identifying and Classifying the Work Activities: 3. i. ii. Organising is a basic function and a sub-process of management: Organising constitutes an essential element in the main process of management. Organizing consist of various steps. 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. What are the steps involved in Planning Process? 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. No activity remains unattended and work is assigned to people in accordance with their skills, aptitude, level of commitment, etc. People having good skills in communication are given jobs in sales department. We shall discuss about departmentation in greater detail in the chapter titled – Departmentation and span of Management. Improved work technology modifies pattern of authority-responsibility relationships and helps in improving work performance of employees. Let’s face it, life happens. In fact, organization activities are detailed in terms of objective to be achieved. If the organisation is working in different areas then activities can be grouped on the basis of region/territory viz. It’s important to point out though, that this is a process. Designing a Hierarchy of Relationships 7. Establishment of Structural Relationship for Overall Control 11. The six steps are: Clarify strategy – Clarify high-level strategy statements, separating and organizing goals, objectives, initiatives, aspirations, and strategies. Delegation of Authority – Authority without responsibility is a dangerous thing and similarly, responsibility without authority, is like an empty vessel. Authority brings in responsibility with its self. Grouping of Activities 4. This process is called departmentalisation. By authority, we mean power to take decisions, issue instructions, guiding the subordinates, supervise and control them. This interaction provides them an opportunity to know each other and develop personal and social relations. In a highly decentralised organisational structure, each position is strengthened by delegating required authority. Organising is based on the concept of division of work that ultimately leads to specialisation. It is normative and idealistic in nature. Schools should be able to articulate the purpose or intent of their curriculum principles. Each company must decide for itself as to how much decentralisation of authority and responsibility it desires to have. This creates a structure of relationships where every individual knows his superiors and subordinates and their reporting relationships. This network of activities creates responsibility centres in an organisation. The activities may be grouped on the basis of functions, products, territories, customers, etc., depending on the nature of the business. Each task is inter-related, and the collective performance of all tasks by different position holders enables the achievement of organisational goals. Departmentally Organising the Activities: This step requires the manager to combine and group similar and related activities of the company into units or departments. Each unit of the total work will be a ‘job’. Organising is a function of all managers: The management function of organising is practised by all the managers in the organisation. Coordination is essential because every department is dependent on the others for information resources. 223–244; and R.A. Burgelman, “Strategy Making as a Social Learning Process: The Case of Internal Corporate Venturing,” Interfaces, volume 18, number 3, 1988, pp. Coordination becomes possible by defining relationships amongst departments and people working at different positions. This is necessary for the smooth running and the prosperity of the enterprise. A fair organisational structure is out in the open for all the employees. Schools should begin the design process by establishing their curriculum principles. Its purpose is to satisfy social and personal needs of employees. Similarly, advertisements, sales promotion and selling can be given to marketing department. Organization structure of a manufacturing concern with assured market will be different from that of another concern operating under highly competitive situation. Legally Constituted rationally designed and consciously planned. Every department works under the supervision of departmental head and is governed by a set of rules, procedures and standards. For example, a manufacturing concern will have production, marketing and other activities. 74–85. There are superiors and subordinates who perform similar or different duties to ensure completion of a particular unit of work. The historical boundaries are blurred by increasing an organisation’s interdependence with its environment. 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. The steps are: 1. Providing Physical Facilities and Right Environment: 7. It is an ongoing process which involves gathering resources, identifying work to be performed, assigning duties and responsibilities, delegating authority, and coordinating the efforts of the employees. 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. It is meant for achieving specific goals. Objectives will help determine the broad economic and social goals to be accomplished by the organisation. It is meant to engage in production of goods and/or performing service required by society. Further explanation of this business practice can be found in the corresponding lesson titled Organizing Process in Management: Steps, Overview. 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. For a sound and well-defined organising process, a business needs to undertake the following steps: Organising as a function begins with identifying all activities that are planned for a business based on their mission, goals and objectives. Authority flows from top to bottom in the hierarchy. In the later case, organization structure will be market-oriented whereas organization structure in the former case will basically be production-oriented. Interdependence may be pooled, sequential and reciprocal. Thus, organising is a sub-process of management. These tasks must be classified into two categories: (a) On-going tasks – such as hiring, training, record keeping, storing, selling etc. Each unit of total work is called a job. Establishes authority-responsibility relationship: Organising establishes authority- responsibility relationship among the organisational members. For example- the purchase manager will be the superior for all the employees of the purchase department. 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. 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. shoes division, garments division, bags division etc. We shall discuss it in greater detail in the next chapter. This step is based on the principle of functional definition. The process of organising consists of the following steps: Organisation exists to achieve certain objectives. The whole work is to be divided into smaller activities so that duplication is avoided and work can be completed as per the organisational objectives. In this respect information about how many types of mobile phones will be manufactured, whether the necessary parts required for manufacturing mobile phones will be manufactured or purchased, how extensive the sales area will be – will it be the state, the whole country or international? To equip every individual to effectively shoulder the duties and responsibilities assigned to them, there must be delegation of authority. The departmental head delegates responsibility and authority related to departmental activities to members of his department. However, since organisational plans change with the passage of time, organisational objectives have to be also restructured. Each position has a set of tasks, responsibilities, and authority. A good and effective organiser follows series of steps to achieve the desired goal. 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 ! Production of pin was broken into sub-activities where people carried out the following specialised tasks —. The organising function is performed by a manager by taking the following steps: First thing first. It has no set boundaries; rather it operates in different directions. A realistic look must be taken at the prospect of these new opportunities and SWOT analysisshould be done. Organizing does this by creating and maintaining the activities in an accepted (manner) pattern, by inte… Determining total workload of the organisation is the first step in the process of organising. For example- the activities of a manufacturing company may be grouped into such departments as production, marketing, financing and personnel. How many sessions might be needed depends entirely on the circumstances and on the coachee. 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