Saturday, April 12, 2014

Unit 3 (P 24): Organizational Structure and Design: Meaning, principles an importance

Organizing:

It focuses how best to group organization activities and resources. Here ‘best’ depends upon manager ability to:
    • Choose a variety of structural possibilities.
    • Proper allocation of resources in the selected structural possibilities.
It is thus, the process of combining together all the organizational resources and establishing productive relation among them to achieve predetermined objectives by defining definite jobs and structure. It involves following series of activities (process), basic elements.
  1. Identification of the specific activities or task to perform.
  2. Grouping and coordinating of activities or task into jobs.
  3. Allocation of the resources to the jobs.
  4. Defining hierarchy of position.
  5. Establishing authority and responsibility relations between jobs and positions.
  6. Assigning of the jobs to formal groups.
  7. Providing framework for evaluation and control.

Principles of organizing:

  1. Clarity and unity of objectives: It clearly defines the objectives of each job and brings unity among them by focusing to achieve the common objectives of the organization.
  2. Division of Work and Specialization: Works are divided into specific jobs which are handled by a particular person assigned for the job, resulting to specialization.
  3. Unity of command: Organizing function should make assure that an employee should receive order and instruction only from one superior at a time, to reduce conflict and misunderstanding.
  4. Scalar chain: States that there must be clear line of authority flowing from top to bottom. The responsibility and authority of every employee should be clearly defined in writing.
  5. Span of control: It states number of employees directly reporting to the manger. The choice is to build tall organization having narrow span of control with large reporting level or flat organization having wide span of control with few reporting level.
  6. Departmentation: the logical grouping of work is called departmentation. It can be done on the basis of product, function, territory or customer.
  7. Decentralization: it is the process of handling the decision making power to the lower levels in the organization.
  8. Authority and responsibility: It must be divided according to level and position in organization structure. There must be balance between them.
  9. Simplicity: The organization structure must be simple, so that all the members can understand the relationship between the levels and system.
  10. Flexibility:  The structure must be flexible to withstand the change brought by the environmental factors both internal and external.
  11. Separation of line and staff function: There should be clear demarcation between the line and the staff functions.
  12. Exception: It states that top level should focus on exceptional and creative issues than lover level and  to ensure that what type of critical decision are to be taken by top level managers.

Importance of organizing:

  1. Efficient and effective management:
  2. Facilities specialization:
  3. Avoids overlapping and duplication:
  4. Optimum use of human resources:
  5. Defines authority responsibility relationship:
  6. Basis of coordination:
  7. Establishes channels of communication:
  8. Leads to growth and diversification
  9. Productivity and job satisfaction:


15 comments:

  1. organizing is the process of combining together all the orgnization resources and establishing productive relation among them...

    ReplyDelete
  2. An organization's structure is defined by its configuration and interrelationships of positions and departments. Organizational design is the creation or change of an organization's structure. The organizational design of a company reflects its efforts to respond to changes, integrate new elements, ensure collaboration, and allow flexibility.

    Principles of organizing are:
    -clarity about objectives
    -division of work
    -unity of command
    -scalar chain
    -span of control
    -departmentation
    -decentralization
    -separation of line and staff functions
    -authority and responsibility
    -simplicity
    -flexibility

    The importance of organizing is
    -Attainment of goals
    -Facilitates specialization
    -Defines formal relationship
    -Avoids omission overlapping and duplication
    -Facilitates staffing
    -Establishment channel of communication
    -Facilitates coordination

    ReplyDelete
  3. The working relationships — vertical and horizontal associations between individuals and groups — that exist within an organization affect how its activities are accomplished and coordinated. Effective organizing depends on the mastery of several important concepts: work specialization, chain of command, authority, delegation, span of control, and centralization versus decentralization. Many of these concepts are based on the principles developed by Henri Fayol.

    "Organisation is the process of identifying and grouping of the works to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most efficiently".

    Principles of Organizing: Organizing can be effective only if managers follow some guiding principles in order to make important decisions and act upon them.


    Importance of Organising :

    Organising helps Organisations to reap the benefit of specialization.
    Organising provides for Optimum utilization of resources.
    Organising helps in Effective administration.
    Organising channels for Expansion and growth.
    Organising achieves co-ordination among different departments.
    Organising creates scope for new change.

    ReplyDelete
  4. 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."
    Organization involves division of work among people whose efforts must be co-ordinated to
    achieve specific objectives and to implement pre-determined strategies.

    characteristic:

    (1) Division of Work
    (2) Coordination
    (3) Plurality of Persons
    (4) Common Objectives
    (5) Well-defined Authority and Responsibility
    (6) Organization is a Structure of Relationship
    (7) Organization is a Machine of Management
    (8) Organization is a Universal Process

    importance:

    (1) Increase In Managerial Efficiency
    (2) Proper Utilization of Resources
    (3) Sound Communication Possible
    (4) Facilitates Coordination
    (5) Increase in Specialization
    (6) Helpful in Expansion

    ReplyDelete
  5. principle of organization
    principle of objective: The organizational goal should be formulated for the business as whole and organization should be framed to achieve that goal. Departmental goals should be developed so that ultimate common goal should be attained. If the common organizational goal is not decided, departments may set their own goals and there may be occurrence of conflict about the common objective.

    Division of work: the organization should be framed in a manner such that every individual should get work according to his ability, skills and knowledge. The employees should do that work continuously to achieve specialization that particular work. This will increase his efficiency.

    Authority and responsibility: The amount of authority decreases as we go downward in the organizational level. For every given work or responsibility there must be provision of authority to get that work done. The manager can delegate his authority to his subordinates to complete the task but responsibility to complete that work can not be delegated, only manager would be answerable for the given work not his subordinates.

    Unity of command: There should be unity of command in the organization. An employee should be controlled by one boss. He should get orders from one superior and should report to the same superior. If a person is under the control of more than one person then there would be confusions and conflicts. Unity of command would lead to better coordination and controlling.

    Span of control: There should be proper span of control. Span of control is the number of subordinate reporting directly to a manger. The number of subordinates should be in such manner so that supervision can be done effectively. If span is not planned appropriately efficiency of workers will be affected.

    Scalar chain: There should be proper chain of supervisor from top level to lower level in vertical direction. This also shows the direction of communication in the organization. This suggests that communication should pass through each position placed in the chain.

    ReplyDelete
  6. Organization is important because it allows individuals and groups to perform tasks more efficiently. It helps people find information and items faster, and it allows groups to work together without wasting time. Organization is important for dealing with information as well.

    When items are organized, finding them is easier, and the time is takes to organize a home or office will save time that would otherwise be spent searching. Organization is an important part of logistics; warehouse management deals with ensuring that everything is stored in a designated location. Efforts to reorganize items can lead to time saved as well.

    Organization also deals with ideas and abstract concepts, and it is related to categorization. A zoologist, for example, might need to identify a particular animal. By using an organized system of categorization, the zoologist would be able to find attributes of the animal in question and identify it quickly using organized reference material.

    Humans excel at finding patterns, and organization allows people to rely on their ability to cope with patterns to locate items and information more easily. Alphabetical organization, for example, allows people to know where to look. Other systems are popular as well. The Dewey Decimal System helps people know where to find a book by categorizing the books by subject matter.

    ReplyDelete
  7. PRINCIPLES OF ORGANIZATION
    Clarity of objectives
    division of work
    unity of command
    scalar chain
    span of control
    departmentation
    decentralization
    separation of line and staff functions
    authority and responsibility
    simplicity
    flexibility
    span of control
    exception


    Importance
    proper utilization of resources
    effective communication
    increases efficiency
    facilitates coordination
    facilitates staffing
    facilitatesspecialization
    productivity and job satisfaction

    ReplyDelete
  8. Importance of Organising :

    Organising helps Organisations to reap the benefit of specialization.
    Organising provides for Optimum utilization of resources.
    Organising helps in Effective administration.
    Organising channels for Expansion and growth.
    Organising achieves co-ordination among different departments.
    Organising creates scope for new change.

    ReplyDelete
  9. Organizing:
    it is assigning task and functions to individual and groups.

    Principles of organizing:
    -clarity about objectives
    -division of work
    -unity of command
    -scalar chain
    -span of control
    -departmentation
    -decentralization
    -separation of line and staff functions
    -authority and responsibility
    -simplicity
    -flexibility

    Importance of organizing:
    -Efficient and effective management:
    -Facilities specialization:
    -Avoids overlapping and duplication:
    -Optimum use of human resources:
    -Defines authority responsibility relationship:
    -Basis of coordination:
    -Establishes channels of communication:
    -Leads to growth and diversification
    -Productivity and job satisfaction:

    ReplyDelete
  10. Organizing:
    it is assigning task and functions to individual and groups.

    Principles of organizing:
    -clarity about objectives
    -division of work
    -unity of command
    -scalar chain
    -span of control
    -departmentation
    -decentralization
    -separation of line and staff functions
    -authority and responsibility
    -simplicity
    -flexibility


    CHARACTERISTICS:
    (1) Division of Work
    (2) Coordination
    (3) Plurality of Persons
    (4) Common Objectives
    (5) Well-defined Authority and Responsibility
    (6) Organization is a Structure of Relationship
    (7) Organization is a Machine of Management
    (8) Organization is a Universal Process

    Importance of organizing:
    -Efficient and effective management
    -Facilities specialization
    -Avoids overlapping and duplication
    -Optimum use of human resources
    -Defines authority responsibility relationship
    -Basis of coordination
    -Establishes channels of communication
    -Leads to growth and diversification
    -Productivity and job satisfaction

    ReplyDelete
  11. The typically hierarchical arrangement of lines of authority, communications, rights and duties of an organization. Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management.
    A structure depends on the organization's objectives and strategy. In a centralized structure, the top layer of management has most of the decision making power and has tight control over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions may have different degrees of independence. A company such as Proctor & Gamble that sells multiple products may organize their structure so that groups are divided according to each product and depending on geographical area as well.

    ReplyDelete
  12. According to Louis Allen, ”Organizing is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority and establishing relationship for the process of enabling people to work most effectively together in accomplishing objectives.”

    Principles of organizing:
    • Unity of objectives
    • Specialization
    • Coordination
    • Authority and responsibility
    • Unity of command
    • Scalar chain
    • Exception
    • Efficiency
    • Balance
    • Homogeneity
    • Continuity
    • Simplicity
    • Flexibility
    • Personal ability

    Importance of organizing:
    • Optimum use of human resources
    • Effective and efficient management
    • Facilitates specialization
    • Avoids overlapping
    • Defines authority and responsibility relationship
    • Establishes channels of communication
    • Leads to growth and diversification
    • Productivity and job satisfaction
    • Helpful in expansion

    ReplyDelete
  13. 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."
    Organization involves division of work among people whose efforts must be co-ordinated to
    achieve specific objectives and to implement pre-determined strategies.

    characteristic:

    (1) Division of Work
    (2) Coordination
    (3) Plurality of Persons
    (4) Common Objectives
    (5) Well-defined Authority and Responsibility
    (6) Organization is a Structure of Relationship
    (7) Organization is a Machine of Management
    (8) Organization is a Universal Process

    importance:

    (1) Increase In Managerial Efficiency
    (2) Proper Utilization of Resources
    (3) Sound Communication Possible
    (4) Facilitates Coordination
    (5) Increase in Specialization
    (6) Helpful in Expansion

    ReplyDelete
  14. Organizing is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority and establishing relationship for the process of enabling people to work most effectively together in accomplishing objectives

    characteristic:

    (1) Division of Work
    (2) Coordination
    (3) Plurality of Persons
    (4) Common Objectives
    (5) Well-defined Authority and Responsibility
    (6) Organization is a Structure of Relationship
    (7) Organization is a Machine of Management
    (8) Organization is a Universal Process

    importance:

    (1) Increase In Managerial Efficiency
    (2) Proper Utilization of Resources
    (3) Sound Communication Possible
    (4) Facilitates Coordination
    (5) Increase in Specialization
    (6) Helpful in Expansion

    ReplyDelete
  15. Any operating organization should have its own structure in order to operate efficiently. For an organization, the organizational structure is a hierarchy of people and its functions.
    Some principles of organizing are:

    - Clarity and unity of objectives
    -Division of Work and Specialization
    -Unity of command
    -Scalar chain
    -Span of control
    -Departmentation
    -Decentralization
    -Authority and responsibility
    -Simplicity
    -Flexibility
    -Separation of line and staff function
    -Exception

    Importance of organizing

    - Organizations are often troubled by how to organize, particularly when a new strategy is developed
    - Changing market conditions or new technology requires change
    - Organizations seek efficiencies through improvements in organizing

    ReplyDelete