ORGANIZING

Introduction

Once plans are formulated, the next step is that of organizing. Organizing is an important element
of management because it is through organizing that a manager brings together the material and
human resources required for the achievement of desired goals. "To organize a business is to
provide it with everything useful to its functioning—raw materials, tools, capital and personnel."

According to Oliver Sheldon "organization is the process of so combining the work which
individuals and groups have to perform with the facilities necessary for its execution that the duties
so performed provide the best channels for the efficient, systematic, positive and coordinated
application of available efforts."

A sound organization helps to avoid duplication of work and overlapping of effort. However, an
organization structure is not an end in itself. It should, therefore, be designed to fit into the needs
and objectives of the particular enterprise.

Organizing

Organizing is the process of establishing harmonious authority-responsibility relationships among

the members of the enterprise. Organizing in a general sense means systematic arrangement of
activities.

"Organizing is the process of identifying and grouping the work to be performed, defining and
delegating responsibility and authority and establishing relationships for the purpose of enabling
people to work most effectively together in accomplishing objectives.
Advantages of organizing
1) Facilitates Efficient Management
2) Optimum Utilization of Human Resources
3) Helps in Growth of Enterprise
4) Utilizes Science and Technology
5) Facilitates Co-ordination
6) Encourages Creativity, Initiative and Innovation
7) Motivates the Employees
8) Facilitates Delegation of Authority

Organizing process

Processes provide a likely solution. In the broadest sense, they can be defined as collections of
tasks and activities that together — and only together — transform inputs into outputs.

Organizing process contains:

1. Gathering information
2. Identifying and analysing activities
3. Allocating staff
4. Assigning authorities and staff
5. Work facilitation

Principles of organizing

The organizing process can be done efficiently if the managers have certain guidelines so that
they can take decisions and can act. To organize in an effective manner, the following principles
of organization can be used by a manager.

A. Coordination: is the integration of activities, responsibilities, and command

and control structures to ensure that the resources of an organization are used most efficiently
in pursuit of the specified objectives. Along with organizing, monitoring, and controlling,
coordinating is one of the key functions.
B. Authority: Authority is the right to make decisions, issue orders and utilize resources.
Authority can also be defined as the character of communication by which an order is accepted
by an individual as governing the actions that individual takes within the system.

C. Responsibility: Responsibility is the duty to execute work activities. In accepting a job, the
employee takes responsibility for performing the activity involved in it.

D. Accountability: Accountability is any means of ensuring that the employee who is supposed
to perform an activity in fact performs it and does so correctly.

E. Delegation: Delegation of Authority means division of authority and powers downwards to

the subordinate. Delegation is about entrusting someone else to do parts of your job. Delegation
of authority can be defined as subdivision and sub-allocation of powers to the subordinates in
order to achieve effective results.

Advantages of delegation
1. Good delegation saves you time,
2. Good delegation develops you people,
3. Good delegation grooms/prepares a successor, and
4. Good delegation Motivates employees

Steps of successful delegation

1. Define the task

2. Select the individual or team
3. Assess ability and training needs
4. Explain the reasons
5. State required results
6. Consider resources required
7. Agree deadlines
8. Support and communicate
9. Feedback on results
F. Specialization: According to this principle, the whole work of a concern should be divided
amongst the subordinates on the basis of qualifications, abilities and skills. It is through
division of work specialization can be achieved which results in effective organization.

G. Divisionalisation: According to this principle, all the functions in a concern should be

completely and clearly defined to the managers and subordinates. This can be done by clearly
defining the duties, responsibilities, authority and relationships of people towards each other.

This figure illustrates the typical business organization, and the divisionalisation of
labour, department and work for employees

Centralisation and decentralisation.

Centralization is said to be a process where the concentration of decision making is in a few

hands. All the important decision and actions at the lower level, all subjects and actions at the
lower level are subject to the approval of top management. According to Allen, “Centralization”
is the systematic and consistent reservation of authority at central points in the organization.

Under centralization, the important and key decisions are taken by the top management and the
other levels are into implementations as per the directions of top level. For example, in a
business concern, the father & son being the owners decide about the important matters and all the
rest of function.

Decentralization is a systematic delegation of authority at all levels of management and

in all of the organization. In a decentralization concern, authority is retained by the top
management for taking major decisions and framing policies concerning the whole
concern. Rest of the authority may be delegated to the middle level and lower level of
management