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ORGANISING: DEFINITION, IMPORTANCE, PRINCIPLES AND STRUCTURES

 

organisation


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.

Empowerment, the process by which managers share power with group members, thereby enhancing employees’ feelings of personal effectiveness. Delegation is a specific way of empowering employees, thereby increasing motivation.

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.

Accountability is the obligation of an individual to report formally to his superior about the work he has done to discharge the responsibility.

TYPES OF STRUCTURE

1.Line organization characterized by direct lines of authority flowing from the top to the bottom levels of the organizational hierarchy and lines of responsibility flowing in an opposite but equally direct manner.

2.Functional organisation refers to the organisation in which various activities are classified into a number of functions.

3.Line and staff organisation is designed to maintain a proper balance between centralization and division of work. It seeks to combine the advantages of specialization and unity of command.

4.Committee organization, a group of competent and interested persons pool their thoughts for facilitating decision making process.

5.Project organisation, consists of a number of horizontal organizational units to complete projects of a long duration.

6.Matrix organization is otherwise known as grid organization is a hybrid structure combining two complementary structures: functional departmentation coupled with pure project structure.

DEPARTMENTATION

    The process of subdividing work into departments , means dividing and grouping the activities and employees of an enterprise into various departments. It implies the division of the total work of an enterprise into individual functions and sub-functions.

The most appropriate form of departmentalization is the one that provides the best chance of achieving the organization’s objectives. The organization’s environment is an important factor in this decision.

Functional departmentalization is an arrangement in which departments are defined by the function each one performs, such as accounting or purchasing. Dividing work according to activity is the traditional way of organizing the efforts of people. In a functional organization, each department carries out a specialized activity, such as information processing, purchasing, sales, accounting, or maintenance.

Territorial departmentalization is an arrangement of departments according to the geographic area served. In this organization structure, all the activities for a firm in a given geographic area report to one manager.

Product–service departmentalization is the arrangement of departments according to the products or services they provide.

Customer departmentalization creates a structure based on customer needs. When the demands of one group of customers are quite different from the demands of another, customer departmentalization is often the result.

Combined or composite sometimes , several basis of departmentalization may be used simultaneously .

REFERENCES

1-M.SAKTHIVEL MURUGAN, Management principles and practices.

2-A.DUBRIN, Essentials of management.


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