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ORGANISING
Its Nature and Purpose
• ‘Organising’ is the part of managing that involves establishing an intentional structure of roles for people to fill in an organization.
• It is intentional in the sense of making sure that all the tasks necessary to accomplish goals are assigned and, it is hoped, assigned to people who can execute them best.
Definition: George Terry defines Organising as,” The
establishing of effective authority relationships among selected work, persons and work places in order for the group to work together effectively.”
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re ORGANISATIONORGANISATION• The term ‘Organisation’ is derived from the
word ‘Organism’ which means a structure of body divided into parts that are held together by a fabric of relationship as one organic whole.
• ‘Organisation’ can be defined as a group of people working together to create a surplus.
• An organisation structure is the design of
positions, arrangement of positions and relationship of positions in an organisation.
• In this sense, organisation structure refers to the network of relationships among individuals and positions in an organisation.
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Formal Organisation Structure• Formal Organisation is a network of official authority –
responsibility relationships.• According to Chester Bernard,” An organisation is ‘formal’
when the activities of 2 or more persons are consciously coordinated towards a common objective.”
• Formal organisation structure has official status and recognition.
Informal Organisation Structure• According to Keith Davis, “Informal Organisation is a is a
network of personal and social relations not established or required by the formal organisation but arising spontaneously as people associate with one another.”
• These are the relationships not appearing on an organisation chart and include the sixth floor group, the Friday evening bowling gang, the morning coffee regulars etc.
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THE PROCESS OF ORGANISING
EnterpriseObjectives
Supporting Identification Grouping of Delegation
Objectives, and classification of activities of Policies, of required in light of
Authorityand plans activities resources and situations
Horizontal and vertical coordination of authority and information relationships
Staffing Leading Controlling
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• The term span of control / management refers to the number of subordinates who can be successfully supervised, directed and controlled by one supervisor or manager.
• The span of control suggests the appropriate number of subordinates a manager can manage effectively.
TALL AND FLAT ORGANISATION STRUCTUREA] Tall Organisation Structure : If the span is narrow, ie limited to 4
or less subordinates, many managers would be required in every unit of organisation and there would be many managerial levels. Such an organisation structure is known as a ‘Tall organisation’.
Managing Director General Manager
Manager Manager Manager
Supervisors Supervisors Supervisors
Workers Workers Workers
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tB] Flat Organisation Structure : • If the span of control is wide ie each manager directs relatively
large number of subordinates (e.g. 6 or more) there would be fewer management levels.
• Such organisation structure is known as a ‘Flat Organisation Structure’.
• A wide span means fewer levels and flat/wide organisation. Managing Director General Manager
Manager Manager Manager Manager Manager Manager
Workers Workers Workers Workers Workers Workers
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N• Departmentation is a process of dividing an organisation
into convenient smaller units called departments.• According to Pearce and Robinson, “Departmentation is
the grouping of jobs, processes and resources into logical units to perform some organisational tasks.”
BASES FOR DEPARTMENTATION / TYPES OF
DEPARTMENTATION
A] Departmentation by Functions
B] Departmentation by Process
C] Departmentation by Products
D] Departmentation by Geographical Location
E] Departmentation by Customers
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Delegation of Authority • Delegation of authority is the transfer of certain responsibilities
to subordinates and giving them the necessary power or authority which is necessary in order to discharge the responsibility properly.
• According to F.C. Moore,” Delegation means assigning work to the others and giving them authority to do so.”
Decentralisation of Authority• Decentralisation of authority is the conscious/systematic effort
to bring dispersal of decision-making power to lower levels of the organisation.
• According to Henry Fayol,” Everything that goes to increase the importance of the subordinate’s role is decentralisation, everything that goes to reduce it is centralisation.”
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reA] Line Organisation Structure : In the line organisation, the line of authority moves
directly from the top level to the lowest level in a step-by-step manner.
B] Line and Staff Organisation Structure :• A combination of line and functional organisations is
made in order to create a new/superior organisation structure called Line and Staff organisation.
• In line and staff organisation, line executives and staff are
combined together. The line executives are ‘doers’ whereas staff refers to experts and act as ‘thinkers’.
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reC] Matrix Organisation : • In matrix, two complementary organisation structures, i.e.
the project organisation and functional organisation are merged together in order to create a matrix structure.
• According to Koontz, O’Donnell and Weihrich, “The essence of matrix management, as one normally finds it , is combining of functional and project forms of departmentation in the same organisation structure.”
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