iii. The division of work into smaller […] Providing Physical Facilities and Right Environment: 7. This network of activities creates responsibility centres in an organisation. In this article, PulseLearning presents six key steps to effective organizational change management. While authority and responsibility moves downward in the scalar chain of command in an organisation, accountability moves upwards. In work specialisation, a job is broken down into different steps and each step is completed by a separate individual. In this step the total work is divided into various activities. Necessary inputs such as men, machines, materials, equipments and other physi­cal means must be collected and arranged for. This interaction provides them an opportunity to know each other and develop personal and social relations. In order to ensure effective performance, it is essential that parity is created between the nature of a job and ability of the employee responsible for that particular job. 7. An organisation whose design or structure is not limited to, or not defined by, the horizontal, vertical or external boundaries imposed by a predefined structure is known as boundary less organisation. 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). On the basis of functions – Various activities are grouped into different departments on the basis of various functions in the organisation. Plagiarism Prevention 5. The BEST Organizing Steps to Follow For an Organized Home. These social groups and their associated behaviour in called the informal organisation. Relationship that is personal and social in nature. An organisation structure is the structural framework of all positions in a set-up. TOS4. Delegation of authority must be commensurate to the duties and responsibilities assigned. Delegation of authority means when duties and tasks are entrusted to the subordinates by the superior, authority should be granted to them to perform those duties and tasks well. No planning can succeed unless a framework of activities (necessary for the accomplishment of objectives) is constructed. Enumeration of Activities – The total job is sub-divided into essential activities, e.g., the work of an industrial concern may be divided into the following major functions viz., purchasing, production, financing, personnel, sales, export promotion, etc. Other contemporary structures in popularity are matrix and project structures. Content Guidelines 2. These form ‘the building blocks’ of the organisational structure. Chain of command involves two principles of management, i.e., unity of command (each person having one boss only) and the scalar principle (someone to be finally responsible as clear line of authority is drawn). Government of India’s organisation structure is an example of mechanistic or bureaucratic design, whereas some of the private sector firms like NUT, HDFC Bank, or ICICI Bank are examples of organic organisation structure. Organising ensures all departments complement the activities of each other so that they support one another as far as the overall organisational objectives are concerned. Defining objectives; Enumeration of functions; Classification of activities; Placement of Individuals; Assigning authority for action; 1. We shall discuss about departmentation in greater detail in the chapter titled – Departmentation and span of Management. Everybody should clearly know to whom he is accountable. Essays, Research Papers and Articles on Business Management, Organisation Structure: Meaning, Elements and Forms, Organisational Structure: Meaning and Importance, Departmentation: Its concept, Structure, Benefits and other Details, Importance of Organizing in an Organisation (7 Points). Our mission is to provide an online platform to help students to discuss anything and everything about Economics. The effect of this coordination is that it lends a feeling of teamwork and an environment of efficiency within the organisation. Explain the steps involved in the process of organising. For accomplishing the works which are similar in nature different tasks, processes or skills required are to be placed together so as to achieve the organisational objectives. This is necessary for the smooth running and the prosperity of the enterprise. Each organisation shall have its own specific way of classifying and grouping work activities. 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. So in this step, the employees actually start working for a common goal. Middle-level managers are significantly involved in organising their departmental activities as a large number of members are involved in the performance of departmental activities. According to Villanova University’s Essentials of Business Process Management course, BPM is a strategic, cross-functional methodology with six phases that equips BPM practitioners to plan and execute their projects. The structures will be organic if the organisation follows non-routine technology. Provides framework to perform management functions: Organisational structure provides a framework within which various management functions can be performed by the managers more efficiently. If you’re ready to start spring cleaning your finances, these six steps will start you off on the right track: Step 1: Set Up a Filing System For Your Personal Finance Whether you stash your receipts and bills in folders or file them electronically in your computer, what’s important is that you keep all of the paperwork related to your personal finance together in a safe place. This is necessary for most desirable performance. Apart from this, the span of control of superiors i.e. Assessing personnel requirements and determining the physical resources is very necessary to build the structure of an organisation. Content Guidelines 2. Such an activity needs special attention. Assigning Work and Delegating Appropriate Authority 5. Setting objectives is the most crucial part of planning. Though chain of command maybe a problem. For instance, the total work of a manufacturing concern may be – (i) purchase of raw material, (ii) purchase of spare parts, (iii) marketing research, (iv) production, (v) raising funds, (vi) maintaining accounts books, etc. The activities may be grouped on the basis of functions, products, territories, customers, etc., depending on the nature of the business. These form ‘the building blocks’ of the organizational structure. The closely related or similar activities must be grouped into manageable divisions, departments or work units. An organisation is a unified whole of the people and their activities. 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. Designing a Hierarchy of Relationships. ADVERTISEMENTS: The process of organizing consists of following steps! It is a functional unit with thick walls between functional departments. Delegation of authority is very important as it gives a person the right to carry out his or her responsibilities. The division of work enables people to acquire skills and experience in their particular area, and consequently brings efficiency into the organisation. Hence, corresponding to the responsibility, authority is delegated to the subordinates for enabling them to show work skill. Example – Every school has departments for each subject like Mathematics department, English department, Languages department etc. The curriculum principles should reflect the school’s values, context, pedagogy and needs. Grouping or Classification of Activities: In this stage grouping of activities related to one another is done. By authority, we mean power to take decisions, issue instructions, guiding the subordinates, supervise and control them. Every individual must know his area of responsibility i.e., what work he is to do and also what rights and powers him may exercise in doing it. People are made aware of their responsibilities and authority. For example- if a marketing manager is assigned the responsibility of increasing sales but has not been given the authority to appoint sales representatives needed for the job, the increase in sales cannot be expected. It’s important to point out though, that this is a process. 74–85. 6. A good and effective organiser follows series of steps to achieve the desired goal. Also, the levels at which various major and minor decisions will be made must be determined. In order to achieve the objectives of the enterprise, certain activities are necessary. On the basis of geography – Activities are grouped on the basis of geographical locations. Organizing consist of various steps. Organizing does this by creating and maintaining the activities in an accepted (manner) pattern, by inte… authority) to perform those tasks. Schools should be able to articulate the purpose or intent of their curriculum principles. You now have to deal with the issueswith the issues. 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. A line position means one who is in direct chain of command and is responsible for achievement of organisational goals, whereas a staff position is meant to provide guidance, expert advice, and support to line officials. For example- the purchase manager will be the superior for all the employees of the purchase department. While preparing Chocolate Candies, one only hots up the raw Chocolate, the next’s man puts hot stuff n dyes, the third person puts into fridge, the fourth person brings it out from the fridge and the dyes, the fifth person starts wrapping, and the next person puts then into boxes. The organising function is performed by a manager by taking the following steps: First thing first. Hence, a list of specific tasks must be prepared. In order to achieve the objectives of the enterprise grouping of various activities is done. Organising deals with group efforts that are made for attaining common goals. 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. It is influenced by social, personal and emotional factors. This may involve you sending a tailored CV and cover letter in response to an advertised position or going through an online application process. There are speakers to hire, venues to rent, guests to invite, and food to supply. It further creates hierarchy in the management. It not only establishes authority relationship but also provides a system of communication. This facilitates smooth operation of the management process which results in attaining enterprise goals. Here, the total organisation is made up of teams or work groups which perform the organisation’s work. A broad and balanced curriculum will equip our children with a breadth of knowl… ii. When departments work for their objectives, there may develop inter-departmental conflicts. After putting various activities into several groups, these are to be assigned or allotted to the various departments created for this purpose, or to the employees if the activities are limited. Larger the organisation it tends to have more work specialisation, horizontal and vertical differentiation, and rules and regulations. It is detailing all the work that must be done to attain the organisations goals. It has a high degree of rationality and leaves no scope for personal, social and emotional factors. The concentration goes to activities and functions. The divisions and departments function within the broad parameters of an administrative set up. The degree of authority reduces as the hierarchy flows towards lower level of management. It is only through relationship of superior and subordinate, which is created by organising process that the manager plans, directs and controls activities of his subordinates. Reviewing and Reorganising. This conflict can be resolved through co­ordination so that all departments share common resources. Content Filtration 6. Share Your PDF File Objectives determine the various activities which need to be performed and the type of structure which needs to be built to achieve the goal. Every individual subsequently delegates authority to individual in the lower hierarchical chain to them. To balance between differentiation and integration of people and activities, formal and defined structure in relation to decision making, communication and control is a must. These separate tasks are classified into separate business units. Thus, structure of an organisation needs to be tailor-made than merely adopting the so-called ‘typical structure’. Organisation structure of an enterprise operating in the midst of a highly dynamic environment organic will be different from the enterprise operating in a stable environment mechanistic. Subsequent to containing all activities into specialised departments, employees working in these departments are assigned with only one job in that department that suit their skills, qualifications and capabilities. Determining the Span of Control and Decentralization: (1) Knowing the Objectives of the Enterprise: Process of Organising – For Achieving Enterprise Objectives. The jobs identified from the previous step are further grouped together and put into separate departments. The act of organising involves integrating, balancing and coordinating the activities of people working together for seeking common goals. Distribution of authority involves addressing two issues – delegation of authority and centralisation-decentralisation. Process # 1. (ii) Group those activities into interrelated functional areas. Production of pin was broken into sub-activities where people carried out the following specialised tasks —. This stage reveals if any reorganising process is necessary to steer the activities of the departments in the desired direction. The success of an organization depends upon the provision of proper physical facilities and right environment. Identifying and Classifying the Work Activities: 3. In the next stage, organisational activities which lead to accomplishment of organisational objectives are to be identified. 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 When two or more than two persons work for the attainment of common goals their inter-relationship must be defined very clearly. People are assigned their duties after matching their capabilities to the job requirements. At this stage, duties are assigned to different subordinates and heads of departments on the basis of their specialisation. For example- it can be the objectives of the enterprise to produce mobile phones. Employees feel more involved, empowered and motivated. There was chaos all over but no work was done. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. There is no production activity in retail establishment. Organising is a basic function and a sub-process of management: Organising constitutes an essential element in the main process of management. Delegation of Authority – Authority without responsibility is a dangerous thing and similarly, responsibility without authority, is like an empty vessel. One day a class teacher gave general instructions to his/her class “please change the class boards with new information, arrange the class library and collect all the books from students by tomorrow”. are created and filled with people having different skills and expertise but performing similar activities. Various departments like production, marketing, finance etc. Organising is a function of all managers: The management function of organising is practised by all the managers in the organisation. These various aspects of the organising function of management are discussed here under the following two broad heads: The term ‘organising” refers to the process of identifying and grouping of activities to be performed and dividing them among the individuals and creating authority and responsibility relationship among them for the accomplishment of organisational objectives. Since objectives of different enterprises tend to be different, they cannot afford to adopt just one topical organisation structure, and yet work efficiently. Grouping of Activities 4. In a matrix organisation the different functional departments assign specialist to work on a project. People know who is to direct whom for what results. Legally Constituted rationally designed and consciously planned. These tasks must be classified into two categories: (a) On-going tasks – such as hiring, training, record keeping, storing, selling etc. People-structure relationship is important. Proper allocation of resources helps in proper utilisation also. The nature and character of formal and information organisation is briefly discussed below: A formal organisation, is a consciously planned a deliberately designed entity. Ensures optimum utilisation of resources: Allocation of resources is the core activity of organisation structure. The Decision‐Making Process; Organizational Planning Detailing Types of Plans; Identifying Barriers to Planning; Defining Planning; Recognizing the Advantages of Planning; Using Plans to Achieve Goals; Creating Organizational Structure Concepts of Organizing; The Informal Organization; Going from Planning to Organizing; The Organizational Process Privacy Policy3. 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. It operates through group norms, values and standards. Communication takes place through personal and social relationship. An organisation following differentiation strategy must innovate and add R&D to its organisation structure. 3. The activities of a department may be further classi­fied into sections. Each position has a set of tasks, responsibilities, and authority. Share Your PPT File, Process of Organising – 9 Steps Involved in Organizing Process. 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. The relationship between different jobs is determined, and provision for their proper integration is made. If the growth strategy is followed, it will need flexible, fluid and instantly adaptable organisation. Fixation of duties and responsibilities is done for each and every employee of the organisation, so that everyone has their defined scope of operation. Business Studies Class XII Organising Organising Process: Steps Lesson Progress 0% Complete Identification and division of work: It is done in accordance with predetermined plans to avoid duplication of activities and ensure that the burden of work is being shared among the employees. Allocation of Fixed Responsibility to Definite Persons – Here, specific job assignments are made to different subordinates, or ensuring a certainty of work performance. While delegating authority managers should work on establishing authority responsibility relationships in an organisation structure. 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. 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. However, since organisational plans change with the passage of time, organisational objectives have to be also restructured. The process of linking up the activities of the various departments of the organisation is a must to achieve organisational objectives. Image Guidelines 4. The demand is to meet the needs of customers, employees and other organisational stockholders. Since one person cannot manage all the organisational activities, total task is divided into smaller units and assigned to members. The real goal of the campaign is to carry out and keep thethe campaign is to carry out and keep the promises made. Its importance lies in serving the following purposes: 1. Consideration of Plans and Goals 2. They are. 8. Taking into consideration the importance and quantity of the work a department can be further divided into many branches or sub-departments. For example, if the organisation wants to export goods, it should determine the nature and type of goods to be exported, the sources from where raw material will be obtained, countries where goods will be exported, co-ordinate with foreign buyers etc. This implies the allocation of authority and responsibility among employees of the enterprise in such a way that each person should know who is responsible to whom and for what. If the responsibility is greater than the authority given and is insufficient to cope with the responsibility, the responsibility cannot be discharged successfully. There are superiors and subordinates who perform similar or different duties to ensure completion of a particular unit of work. Organising is the second basic function of the management. Mere assignment of duties and responsibility is not enough, people must also be given some authority of powers to perform their jobs. Table 9.1: Formal vs. Improved work technology modifies pattern of authority-responsibility relationships and helps in improving work performance of employees. Various Steps involved in process of organization. The chain of command is the continuous line of authority from the top level to the lowest levels in the organisation. Any situation involving two or more persons working collectively requires organising. Once the activities have been identified, they have to be grouped into units and each group is placed under the charge of a manager. This personal and social interaction is called informal organisation. Everybody should know who is his superior and who is his subordinate? Plans are the means to achieve certain ends or objec­tives. Looking at the contemporary trends in organisation structure or design, it would be very essential to differentiate between ‘mechanistic’ and ‘organic’ organisation. In order to create a balance and structure in the organisation, the activities of members need to be well- coordinated. After having learnt about the objectives of the enterprise, necessary functions to achieve the objectives are determined. Further explanation of this business practice can be found in the corresponding lesson titled Organizing Process in Management: Steps, Overview. i. For example- the marketing depart­ment may have separate sections such as market re­search, advertising, credit sales etc. Delegation involves assigning a part of managerial job by a manager to his subordinate(s), and the requisite authority and the delegate becomes accountable to the delegator. 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