Organising

Organising in management refers to the relationship between people, work and resources used to
achieve the common objectives (goals).

Definition of Organizing

According to Theo Hayman,

"Organizing is the process of defining and grouping the activities of the enterprise and establishing the
authority relationships among them."

According to Louis Allen,

"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."

Steps in the Process of Organising

Organizing is a step-by-step process. At each step, an important task is performed by the administrators
working at the top-level of management While organizing, the top managers carry out following
important tasks:-

1. Fixing the objectives of the organization

At the top level, administrative management
first fixes the common objectives of organisation. At the middle level, executive management fix the
departmental objectives. Lastly, at the lower level, supervisory management fix the day-to-day
objectives. All the objectives of the organisation must be specific and realistic.

2. Finding activities must for achieving objectives

After fixing the objectives, the top-
level management prepares a list of different activities (or works) which are required to be carried out
for achieving these objectives. This list is prepared at random without following any sequence or order.
This is a very important step because it helps to avoid duplication, overlapping and wastage of efforts.

3. Grouping the similar activities

All similar or related activities having a common
purpose are grouped together to make departments. For e.g. all activities or works which are directly or
indirectly connected with purchasing are grouped together to make the Purchase Department. So
various departments such as Purchase, Production, Marketing, Finance, etc. are made. The grouping of
similar activities leads to division of labour and specialisation
4. Defining responsibilities of each employee
The responsibilities (duties) of each
employee are clearly defined. This will result in the selection of a right person for the right post / job. He
/ she will know exactly what to do and what not to do. Therefore, it will result in efficiency.

5. Delegating authority to employees

Each employee is delegated (surrender or given)
authority. Without authority, the employees cannot carry out their responsibilities. Authority is the right
to give orders and the power to get obedience. The authority given to an employee should be equal to
the responsibility given to him.

6. Defining authority relationship

When two or more persons work together for a
common goal, it becomes necessary to clearly define the authority relationship between them. Each
person should know who is his superior, from who he should take orders, and to whom he will be
answerable. Similarly, each superior should know what authority he has over his subordinates.

7. Providing employees all required resources

After defining the authority relationships,
the employees are provided with all the material and financial resources, which are required for
achieving the objectives of the organisation. So in this step, the employees actually start working for a
common goal.

8. Coordinating efforts of all to achieve goals

This is the last stage or step in the process of organisation. Here, the efforts of all the individuals,
groups, departments, etc. are brought together and co-coordinated towards the common objectives of
the organisation

Importance of Organizing
1. Facilitates Efficient Management
A good organisation avoids confusion, delays and
duplication of work. It increases the promptness and efficiency, and it motivates the employees to do
their best. All this results in efficient management. Thus, we can say, good organisation facilitates
efficient management.
2. Optimum Utilization of Human Resources
A good organisation facilitates
division of labour and specialisation. It helps in selecting the "Right person for the right Job." It clearly
defines the authority and responsibility of each employee. It also motivates them to do their best. All
this results in optimum utilisation of human resources.

3. Helps in Growth of Enterprise

A good organisation helps in the growth, diversification
and expansion of the enterprise. Today's big and giant enterprises are the results of their best
organisation.

4. Utilises Science and Technology

A good organisation utilises the benefits of science
and technology. It provides the industries with the latest machines. It provides the consumers with the
latest products. This results in cost reduction and maximum satisfaction.

5. Facilitates Co-ordination
A good organisation co-ordinates the activities of different
individual, groups and departments in order to achieve the objectives of the business.

6. Encourages Creativity, Initiative and Innovation

A good organisation
encourages creativity in the enterprise. This results in brings new ideas, imaginations, visions, methods,
etc. It also encourages initiative and innovations.

7. Motivates the Employees

A good organisation provides the employees with a better
working environment, good remuneration, reasonable freedom, etc. All this results in job satisfaction for
the employees. So a good organisation motivates the employees to give good results.

8. Facilitates Delegation of Authority

A good organisation facilitates delegation
of authority. That is, the top executives can keep the important work for themselves, and they can
delegate (surrender or give) the less important work to their subordinates. This encourages the
subordinates to develop leadership qualities and to achieve the objectives of the business.
 Principles of Organisation In Management
A principle is a rule which is generally accepted by all. It is a guideline for solving problems and
difficulties. The principles of organisation are called as "Classical Principles" because they are old and
some of them are adopted from Henry Fayol's principles of management. The most common principles
of organisation are Objectives, Specialisation, Co-ordination, Authority and Responsibility, which are
often abbreviated as the OSCAR principles.

Some Principles of Organisation used for Designing an Organisation are:-

1. Objectives
The objectives of the organisation should be clearly defined. Every single
individual in the organisation should understand these objectives. This will enable them to work
efficiently and help the organisation to achieve its objectives.

2. Specialisation
Every single individual in the organisation should be asked to perform
only one type of function (work). This function should be related to his educational background, training,
work-experience, ability, etc., in other words, there should be a division of work and specialization in the
organisation. This will increase the efficiency, productivity and profitability of the organisation.

3. Co-ordination
The efforts of all the individuals, departments, levels, etc. should be
co-coordinated towards the common objectives of the organisation. Therefore, managers must try to
achieve co-ordination.

4. Authority
Every individual should be given authority (power) to perform his
responsibilities (duties). This authority should be clearly defined. Authority should be maximum at the
top level and it should decrease as we come to the lower levels. There should be a clear line of authority
which joins all the members of the organisation from top to bottom. This line of authority should not be
broken. It should be short, i.e. there should be few levels of management.

5. Responsibility
The responsibility (duties) of every individual should be clearly defined. This
responsibility is absolute, i.e. it cannot be delegated. The responsibility given to an individual should be
equal to the authority given to him.
6. Span of Control
Span of control means the maximum number of subordinates which
one superior can manage effectively. The span of control should be as small as possible. Generally, at
the top level, the span of control should be 1:6, while at the lower level, it should be 1:20. Span of
control depends on many factors such as nature of job, ability of superior, skill of subordinate, etc.

7. Balance
There should be a proper balance between the different levels, functions and
departments of the organisation. Similarly, there should be a proper balance between centralisation and
decentralisation, authority and responsibility, etc. If there is no balance between these factors then the
organisation will not function smoothly.

8. Chain of Command
The chain of command should be very short. That is, there should be
very few levels of management. If not, there will be many communication problems and delays in
execution of workflow.

9. Delegation
Authority and responsibility should be delegated to the lowest levels of the
organisation. Therefore, the decisions can be made at the lowest competent level. The authority
delegated to an individual should be equal to his responsibility.

10. Continuity
The organisation structure should have continuity. That is, the enterprise should
be able to use the organisation structure for a long period of time. The organisation structure should be
able to achieve not only present objectives but also future objectives of the enterprise.