Organizing is the function of management which follows planning.

It is a function in which the synchronization and

A manager performs organizing function with the help of following steps:-

1. Identification of activities - All the activities which have to be performed in a concern have to be identified
first. For example, preparation of accounts, making sales, record keeping, quality control, inventory control,
etc. All these activities have to be grouped and classified into units.
2. Departmentally organizing the activities - In this step, the manager tries to combine and group similar
and related activities into units or departments. This organization of dividing the whole concern into
independent units and departments is called departmentation.
3. Classifying the authority - Once the departments are made, the manager likes to classify the powers and
its extent to the managers. This activity of giving a rank in order to the managerial positions is called
hierarchy. The top management is into formulation of policies, the middle level management into
departmental supervision and lower level management into supervision of foremen. The clarification of
authority help in bringing efficiency in the running of a concern. This helps in achieving efficiency in the
running of a concern. This helps in avoiding wastage of time, money, effort, in avoidance of duplication or
overlapping of efforts and this helps in bringing smoothness in a concern’s working.
4. Co-ordination between authority and responsibility - Relationships are established among various
groups to enable smooth interaction toward the achievment of the organizational goal. Each individual is
made aware of his authority and he/she knows whom they have to take orders from and to whom they are
accountable and to whom they have to report. A clear organizational structure is drawn and all the
employees are made aware of it.

Principles of Organisation
The organizing process can be done efficiently if the managers have certain guidelines so that they can take
decisions and can act. To organize in an effective manner, the following principles of organization can be used by a
manager.

1. Principle of Specialization or Division of Work

According to the principle, the whole work of a concern should be divided amongst the subordinates on the
basis of qualifications, abilities and skills. It is through division of work specialization can be achieved which
results in effective organization.

2. Principle of Functional Definition

According to this principle, all the functions in a concern should be completely and clearly defined to the
managers and subordinates. This can be done by clearly defining the duties, responsibilities, authority and
relationships of people towards each other. Clarifications in authority- responsibility relationships helps in
achieving co- ordination and thereby organization can take place effectively. For example, the primary
functions of production, marketing and finance and the authority responsibility relationships in these
departments shouldbe clearly defined to every person attached to that department. Clarification in the
authority-responsibility relationship helps in efficient organization.

3. Principles of Span of Control/Supervision

According to this principle, span of control is a span of supervision which depicts the number of employees
that can be handled and controlled effectively by a single manager. According to this principle, a manager
should be able to handle what number of employees under him should be decided. This decision can be
taken by choosing either froma wide or narrow span. There are two types of span of control:-

a. Wide span of control- It is one in which a manager can supervise and control effectively a large
group of persons at one time. The features of this span are:-
a. Less overhead cost of supervision
b. Prompt response from the employees
c. Better communication
 d. Better supervision
e. Better co-ordination
f. Suitable for repetitive jobs

According to this span, one manager can effectively and efficiently handle a large number of
subordinates at one time.

b. Narrow span of control- According to this span, the work and authority is divided amongst many
subordinates and a manager doesn't supervises and control a very big group of people under him.
The manager according to a narrow span supervises a selected number of employees at one time.
The features are:-
a. Work which requires tight control and supervision, for example, handicrafts, ivory work,
etc. which requires craftsmanship, there narrow span is more helpful.
b. Co-ordination is difficult to be achieved.
c. Communication gaps can come.
d. Messages can be distorted.
e. Specialization work can be achieved.

Factors influencing Span of Control

c. Managerial abilities- In the concerns where managers are capable, qualified and experienced,
wide span of control is always helpful.
d. Competence of subordinates- Where the subordinates are capable and competent and their
understanding levels are proper, the subordinates tend to very frequently visit the superiors for
solving their problems. In such cases, the manager can handle large number of employees. Hence
wide span is suitable.
e. Nature of work- If the work is of repetitive nature, wide span of supervision is more helpful. On the
other hand, if work requires mental skill or craftsmanship, tight control and supervision is required
in which narrow span is more helpful.
f. Delegation of authority- When the work is delegated to lower levels in an efficient and proper
way, confusions are less and congeniality of the environment can be maintained. In such cases,
wide span of control is suitable and the supervisors can manage and control large number of sub-
ordinates at one time.
g. Degree of decentralization- Decentralization is done in order to achieve specialization in which
authority is shared by many people and managers at different levels. In such cases, a tall structure
is helpful. There are certain concerns where decentralization is done in very effective way which
results in direct and personal communication between superiors and sub- ordinates and there the
superiors can manage large number of subordinates very easily. In such cases, wide span again
helps.
h.

4. Principle of Scalar Chain

Scalar chain is a chain of command or authority which flows from top to bottom. With a chain of authority
available, wastages of resources are minimized, communication is affected, overlapping of work is avoided
and easy organization takes place. A scalar chain of command facilitates work flow in an organization which
helps in achievement of effective results. As the authority flows from top to bottom, it clarifies the authority
positions to managers at all level and that facilitates effective organization.

5. Principle of Unity of Command or Principle of Responsibility

The organizational set up should be arranged in such a way that a subordinate should receive the instruction
or direction from one authority or boss. Every subordinate is answerable and accountable to one boss at one
time. This helps in avoiding communication gaps and feedback and response is prompt. Unity of command
also helps in effective combination of resources, that is, physical, financial resources which helps in easy co-
ordination and, therefore, effective organization.