Organising

Organising

Meaning

Organising is the working together of two or more persons in a coordinated way for achieving common objectives. Organisation is the process of combining the work of people working in the enterprise for undertaking various duties and responsibilities.

The word organising is used for skating it as a function of management for bringing together human and physical resources and defining and establishing the authority responsibility relationship for achieving the organisational goals.

Definitions

George Terry, “organising is the establishing of effective authority relationships among selected work persons and work places in order for the group to work together efficiently”.

L. H. Haney, “organisation is a harmonious adjustment of specialised parts for accomplishment of some common purpose or purposes”.

Characteristics/ nature of organisation

1.      Division of work

2.      Coordination

3.      Common objectives

4.      Cooperative relationship

5.      Well defined authority responsibility relationship

Process of organising

1.      Identification of activities

2.      Grouping jobs into departments

3.      Assigning duties

4.      Delegation of authority

Principles of organisation

1.      Principle of objective

2.      Principle of specialisation

3.      Principle of coordination

4.      Principle of authority and responsibility

5.      Principle of definition

6.      Span of control

7.      Principle of balance

8.      Principle of continuity

9.      Principle of uniformity

10.  Principle of unity of command

11.  Principle of exception

Types of organisation

An organisational structure is mainly concerned with the allocation of duties and responsibility and delegation of authority. It mainly represents the hierarchical arrangement of various positions in the organisation. It helps in clearly identifying the line of authority and responsibility in an enterprise.

Broadly all types of organisations may be divided as formal organisation or informal organisations.

Formal organisations

It is a structure of relationships created by management for achieving organisational goals. It is an official framework for taking up every activity. Formal organisations clearly define the authority-responsibility relationship among various people working in an enterprise. The creation of the structure is based on division of work so that the labour force working in an organisation is able to achieve the business objectives.

The employees in the organisation know the relation among one another and also understand as to who their superiors and subordinates are. Here the organisation works as per the rules and procedures designed for smooth working.

Features of formal organisation

1.       Officially created structure

2.       Based on rules and procedures

3.       Balance between authority and responsibility

4.       Based on division of work

5.       Organisation chart

6.       Provides specialisation

Advantages of formal organisation

1.       Specialisation

2.       No overlapping of work

3.       Better coordination

4.       Proper evaluation of work

5.       Obtaining objectives

6.       Helps control

Disadvantages of formal organisation

1.       Mechanical system

2.       Rigorous regulations

3.       Delay in work.

Informal organisation

     Informal organisation refers to a relationship between people in an organisation based not on formal hierarchy but on personal attitudes, whims, prejudices, likes and so on. People work together because of their personal likes and dislikes. People with common interest may work beyond the confines of formal relationships. Informal organisations are not created but they appear at their own in a natural way in a formal organisation.

    Management also encourages informal organisations because informal communication may help in sorting out many issues which cannot find solution in a formal set up.

Features of informal organisation

1.       Relations not planned

2.       No written rules and regulations.

3.       Natural process

4.       Common interests

5.       Voluntary membership

6.       Lack of stability

Need for informal groups

1.       Source of protection

2.       Job satisfaction

3.       Improve communication

4.       Overcoming managerial limitations

5.       Helpful in coordination and control

Advantages of informal organisation

1.       Fast communication

2.       Fulfills social needs

3.       Supports formula organisation

4.       Lightens burden of formal managers

Disadvantages of informal organisation

1.       Spread rumours

2.       Resists change

3.       Emphasis on individual interest

LINE ORGANISATION

    Line organisation is the basic framework for the whole organisation. It represents a direct vertical relationship through which authority flows. This is the simplest and oldest form, known as chain of command or scalar principle. The authority flows from top to lower levels. Every person is in charge of all the persons under him and he himself is accountable to his superior only.

     This organisation is a vertical structure where one person delegates authority to his subordinate and who in turn delegates to his subordinate and so on.

       On the other hand responsibility flows upwards.

Features of line organisation

1.       Authority flows from top to lower levels

2.       Responsibility flows upwards

3.       Every person is in charge of all persons working under him

4.       Unity of command

5.       Authority and responsibility is clearly specified.

Advantages of line organisation

1.       Simplicity

2.       Identification of authority and responsibility

3.       Coordination

4.       Effective communication

5.       Economical

6.       Quick decision

7.       Unity of command

8.       Flexibility

Disadvantages of line organisation

1.       Excess work

2.       Lack of managerial specialisation

3.       Lack of coordination

4.       Improper communication

5.       Lack of initiative

6.       Favouritism
7.       Instability.

Functional/staff organisation

Under functional organisation, the organisation is divided into a number of functional areas and each functional area is represented as a department.

Each department is managed bye a functional expert in that area. All the persons in the organisation working for a particular function are put under the charge of one person called the departmental head.

Features of functional organisation

1.       All the activities are divided into different functions

2.       Specialisation

3.       Functional head is incharge of the department

4.       Independence

Advantages of functional organisation

1.       Specialisation

2.       Increase in efficiency

3.       Scope for growth

4.       Flexibility

5.       Relief to top executives

6.       Economy of operations

7.       Better supervision

8.       Democratic control

Disadvantages of functional organisation

1.       Conflict in authority

2.       Lack of coordination

3.        difficulty in fixing responsibility

4.       Delay in taking decisions

5.       Poor discipline

6.       Expensive

7.       Group rivalries

Line and staff organisation

Individually both the line organisation and the staff organisation suffer from some drawbacks. Line organisation is autocratic, where in staff organisation has loose control.

Line and staff organisation is design to eliminate the tracks of both forms of organisation and to integrate the good points of these organisations. It is a blend of line organisation and staff organisation, considering that both line and staff personnel have an important role to play in the success of any organisation.

In this form of organisation inequality flows in a vertical line from top to bottom and in addition staff specialist are attached to line positions to advise them on important matters.

Line managers are vested with executive authority. Line officers are responsible for accomplishment of various objectives. Staff officers role is that of an advisor.

Type of staff

1.       Personal staff

2.       Specialist staff

3.       General staff

Advantages of line and staff organisation

1.       Specialisation

2.       Better discipline

3.       Balanced and prompt decision

4.       Growth and expansion

5.       Development of employees

6.       Relief to line officers

7.       Quick action

Disadvantages of line and staff organisation

1.       Conflict between line and staff personnel

2.       Lack of responsibility

3.       More dependence on staff.

4.       Lack of coordination

5.       Ineffective staff

6.       Expensive