0rganizing

Functions of Management
2018IMG-001 Aayush Singh
2018IMG-025 Harsh Verma
2018IMG-045 Rashi Gupta
2018IMG-066 Tushar Neogi
2018IMG-070 Vedant Tripathi
So, What is Organizing?
Organize -
arrange systematically; order.
 Organizing - Definitions

"Organizing is the process of defining and grouping the activities of the enterprise
and establishing the authority relationships among them."
- Theo Haimann
Author,
Managing the Modern Organization

"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."

- Louis A. Allen
Author,
Management and Organization
 Organizing - Definitions

“Organizing is a function by which the concern is able

to define the role positions, the jobs related and the
co-ordination between authority and responsibility.”

- Chester Barnard
Author,
The Functions of the Executive
Why Organizing?
Company A Company B

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 Company A Company B

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MANAGER MANAGER

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ORGANIZATION

STRUCTURE
 Company A Company B

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MANAGER Finance Marketing Resource

Manager Manager Manager

WORKERS
WORKERS
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MANAGER Finance Marketing Resource

Manager Manager Manager

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WORKERS
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Company A Company B

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 Company A Company B

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BANKRUPT SUCCESS
 Why is it so
Well it’s all hard to run
about the this
“STRUCTURE” Company ?
IMPORTANCE
OF
ORGANIZING

Organizing helps in the survival and growth of an enterprise and equips it to meet various challenges.
The following points highlight the role that organizing plays in any enterprise:
1. Benefits of specialization:

 Organizing leads to a systematic

allocation of jobs amongst the work
force.
 Repetitive performance of a particular
task allows a worker to gain experience in
that area and leads to specialization.
 This increases speed and accuracy of the
work force.
 Thus specialization increases the
efficiency of workforce and productivity
of organization.
2. Clarity in working relationships:

 In an organization it must be
known - who is to report to
whom.
 This removes ambiguity in
transfer of information and
instructions.
 It helps in the fixation of
responsibility and specification
of the extent of authority to be
exercised by an individual.
3. Optimum utilization of resources:

 Organizing leads to the proper usage

of all material, financial and human
resources.
 The proper assignment of jobs avoids
overlapping of work.
 Avoidance of duplication of work helps
in preventing confusion and minimizing
the wastage of resources and efforts.
4. Adaptation to change:

 Organizing allows organization to

accommodate changes in the business
environment.
 It allows the organization structure to be
suitably modified.
 It also provides much needed stability to the
enterprise as it can then continue to survive
and grow inspite of changes.
 5. Effective administration:

 Organizing provides a clear description of jobs

and related duties.
 This helps to avoid confusion and duplication.
 Clarity in working relationships enables proper
execution of work.
 Management thereby becomes easy and this
brings effectiveness in administration.
6. Development of personnel:

 Organising stimulates creativity amongst the

managers.
 Effective delegation allows the managers to
reduce their workload.
 It gives them the time to explore areas for
growth and the opportunity to innovate
thereby strengthening the company’s
competitive position.
 Delegation, develops in the subordinate the
ability to deal effectively with challenges and
helps them to realise their full potential.
7. Expansion and growth:

 A company’s growth is totally dependent on

how efficiently and smoothly a concern
works.
 A company can diversify if its potential grow.
 This is possible only when the organization
structure is well- defined.
 This is possible through a set of formal
structure and that formal structure could be
achieved by organizing.
Principles Of Organizing
These are the guidelines that help us to implement organizing efficiently. Using these we can
decide our actions in different conditions.
Principle of Specialization

 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.
Principle of Functional Definition

 All the functions in a concern should be

completely and clearly defined to the
managers and subordinates.

 Clarifications in authority-responsibility
relationships helps in achieving co-
ordination and thereby organization can
take place effectively.
Principles of Span of Control

Wide span of control Narrow span of control

 The manager supervises and control  The manager according to a narrow span
effectively a large group of persons at supervises a selected number of
one time. employees at one time.

 This results in less overhead cost of  Co-ordination increases in such type of

supervision . control.

 Such type of control is suitable for  Suitable for work which requires tight
repetitive jobs control and supervision, for example,
handicrafts
Principle of Scalar Chain

 Scalar chain is a chain of command or

authority which flows from top to bottom.

 With a chain of authority available:

 wastages of resources are minimized.
 communication is effective.
 overlapping of work is avoided
 easy organization.

 A scalar chain of command facilitates

work flow in an organization which helps
in achievement of effective results.
Principle of Unity of Command

 It implies one subordinate-one superior

relationship. Every subordinate is
answerable and accountable to one boss
at one time.

 This helps in avoiding communication gaps

and feedback and response is prompt.

 Unity of command also helps in effective

combination of resources, that is, physical,
financial resources which helps in easy co-
ordination and, therefore, effective
organization.
Classification of Organizations
Formal Organizations

Formal Organization is an organization

in which job of each member is clearly
defined, whose authority, responsibility
and accountability are fixed.
A Formal organization is an
organization with a fixed set of rules of
intra-organization procedures and
structures. ... They have a definite
place in the organization due to a well
defined hierarchical structure which is
inherent in any formal organization.
Informal Organizations

 Informal Organization is formed within the

formal organization as a network of
interpersonal relationship when people
interact with each other.
 People working in a formal organization
meet and interact regularly. They work,
travel, and eat together. Therefore, they
become good friends and companions.
There are many groups of friends in a formal
organization. These groups are called
informal organization.
 An informal organization does not have its
own rules and regulation. It has no system of
co-ordination and authority. It doesn't have
any superior-subordinate relationship nor
any specific and well-defined objectives.

Relationship between
Formal and Informal
Organizations
Classification of Organizations
• The formal and informal
organizations are inter-related.
They are not mutually exclusive.
The most efficient and
satisfactory organization is the
one in which formal
organization is supported the
informal organization.
• The relationship between the
formal and informal
organizations is always subtle
always complicated and
always interesting. The
continuous interaction and
association among the
members of formal organization
result in the emergence of
informal structure of roles and
relationships.
Types of
Organizations

 Line or Scalar organization

 Functional organization
 Line and Staff organization
 Line, Staff and Functional organization
 Committee organization
 Matrix organization
PROCESS
OF
ORGANIZING

Organizing is that managerial process which seeks to define the role of each
individual towards the attainment of enterprise objectives.
 1.Determination of the Total Work-Load

 The very first step in the process of organizing is to

make a determination of all the activities which
are necessary to be undertaken for the attainment
of the enterprise objectives.

 This step of organizing is, in fact, nothing but an

estimation of the total work-load.
 2.Grouping and Sub-Grouping of
Activities

 This step of organizing directly leads to the process of

creating departments.

 If an enterprise is compared to a building; the creation

of departments within it would amount to construction
of rooms within the building each room meant for a
specified special purpose.
3.Creation of Manager-Ship through
Delegation of Authority

 After the scheme of department is finalized; the

next step in the process of organizing would be to
entrust the responsibility for the functioning of each
department to a distinct manager.

 Creation of manager-ship requires a requisite e

delegation of authority to enable the manager to
take care of the job assigned to him.
 4.Division of Work within the Departmental
Set-Up-Human Organization:

 Since no single individual can undertake the

performance of the whole of the work assigned to one
department; it becomes necessary to resort to division
of work.

 As a result to undertaking division of work for all

departments; there emerges a human organization
within the enterprise.
5.Arrangement of Physical Facilities

 Each individual of the enterprise, in any

department, must need the basic physical
facilities-raw materials, machines and
tools, technology and other inputs-for the
proper execution of the assigned task.
 When physical facilities are made
available to all personnel in all
departments; there emerges a material
organization within the enterprise.
6.Definition and Establishment of
Authority-Responsibility Relationships

 Having created manager-ship and a human

organization within the enterprise; it becomes
necessary to devise a system which provides for
defining and establishing authority-responsibility
relationships among all personnel-managers and
operators.
 As a matter of fact, such relationships must be
defined and established throughout the enterprise
both-horizontally and vertically.