ORGANIZING: DEFINITION, IMPORTANCE, PRINCIPLES AND STRUCTURES

INTRODUCTION

The term organisation means different things to different people. It is used widely to mean a group of people, a structure of relationships, a process and function of management. Organizing is a basic function of management. By organising, managers bring together the manpower and material resources for the attainment of the objectives of an enterprise.

DEFINITION

1. Organisation as a structure: is a structural relationship by which an enterprise is bound together and the framework in which individual effort is coordinated. It is the structural framework of duties and responsibilities required of the personnel in performing various functions within the company.

2. Organisation as a process: involves assigning activities to individuals and defining the authority and responsibility of each individual. It is a series of activities rather than a one stop function. It is performed by all managers and it is a continuous process. Organizing as a process involves: determining activities, grouping activities, assigning duties, delegating authority and coordinating activities.

IMPORTANCE OF ORGANISATION

- Effective administration.

- Growth and diversification.

– Adaptation of new technology.

– Optimum use of human resources.

– Specialization.

– Security and support.

– Coordination and communication.

– Training development.

FORMAL AND INFORMAL ORGANISATIONS

Formal organisation: refers to the structure of well-defined jobs each having a definite authority and responsibility. The structure is deliberately designed to enable people to work together effectively for accomplishment of common objectives.

Informal organisation: people working together in the formal organisation interact with each other daily. They develop friendly relations and form small social groups. The network of these social groups based on friendship is known informal organisation.

PRINCIPLES OF ARGANISATION

- Principles of objective.

- principle of functional definition.

– principle of division of labour.

- principle of unity of command.

- principle of authority and responsibility.

- principle of balance.

– principle of coordination.

– principle of exception.

- principle of simplicity.

– principle of flexibility.

– principle of efficiency.

– principle of a scalar chain.

- principle of span of control.

TERMS RELATED TO ORGANISATION

Delegation of authority, the process by which a manager shares some of his functions and authority with his subordinates within prescribed limits.

Authority the right and power of a person to exercise discretion to make decisions, to issue orders, to use organizational resources and to hire and fire employees.

Responsibility refers to the obligation to perform the given task to the best of one’s ability.

Centralization refers to systematic and consistent retention or concentration of authority for decision making at higher levels of management.

Decentralization means systematic dispersal of authority in all departments and at all levels of management.