Organizing is the arrangement of organizational resources ( such as human, financial, physical, information, and so on) to achieve strategic goals.
In addition, it assigns the tasks (such as, handling different projects, business plans) which developed in the planning stages, to various individuals or groups within the organization.
Purpose of Organizing Function
- Mainly, to achieve organizational goals and objectives.
- To assign authority and responsibilities.
- Make growth and diversification. For example : business expansion
- To coordinate the effort of all departments.
- Eliminate duplication.
- To ensure maximum use of manpower and resources.
Organizing Process
The organizing Process has 5 steps. Those are,
- Design of Job
- Grouping Jobs
- Establishing Reporting Relationship
- Distributing Authorities
- Coordinating Activities
Let’s talk about it one by one.
1. Design of Job
First of all, we should understand the goals, vision, and mission of the organization. Organization structure and design ( organizational hierarchy).
Here, implement strategies and plans to achieve goals. The overall set of structural elements and the relationship between those elements are used to configure the total organization.
- Job specialization ( Division of labour)
Here the overall task of the organization is divided into smaller component parts.
Benefits of Job specialization
- Employees can become proficient at a task.
- Task time between tasks is decreased.
- Specialized equipment can be more easily developed.
- Employee replacement becomes easier.
Limitations of Specialization
- Employee boredom and dissatisfaction with mundane tasks.
- Anticipated benefits of specialization do not always occur.
Alternative to specialization
- Job rotation ( within the department) - systematically moving employees from one job to another.
- Job enlargement ( increasing tasks ) - here increase total number of tasks performed. It increases training costs.
- Job enrichment (vertical ) - increase both the number of tasks and control over the job.
- Work teams - give the team activities. Also allows the entire group to design the work system.
2. Grouping Jobs
Departmentalization - the process of grouping jobs according to some logical arrangement. ( department or units )
Rationale for Departmentalization
- When organizational growth exceeds the owner- manager’s capacity to personally inspect all of the tasks of the organization they do departmentalization.
- Through this can achieve department goals.
- Additional managers are employed and assigned specific employees to supervise.
Advantages
- Each department is filled with functional area experts.
- Coordination becomes easier.
- Managers only need to be familiar with a set of skills.
Disadvantages
- Decision making takes more time.
- Because employees narrow their focus to the department, they lose sight of organizational goals.
- Accountability and performance are difficult to monitor.
3. Establishing Reporting Relationship
- Chain of command- A clear line of authority among the positions in an organization.
- Unity of Command - Every by g worker within the organization should have a clear reporting relationship to one and only one boss.
- Scalar Principle - A clear and continuous line of authority must extend from the lowest to the highest of the organization. Also , it is a continuous process. Participation management such as, top level, middle and lower level to setting decision making.
- Span of Management- This means a number of people who report to a particular manager. Also, there is no ideal or optimal span of management.
Tall Vs. Flat organizations reporting Relationship
Tall Organization
- Communication problems arise because massage should go through a number of people.
- Because of the number of managers involved it becomes expensive.
Flat Organization
- Increase employee morale and productivity.
- It creates more administrative responsibility for the nearly few number of managers.
- Create more supervisory responsibility for managers because of a wider span of control.
4. Distributing Authority
Authority means a power that has been authorized by the organization.
Delegation - managers assign a part of their total workload to others. They delegate work to their subordinates, develop their decision-making and problem-solving skills. And enable the manager to get more work from their subordinates by utilizing their talents and skills.
Problems in Delegation
- For Managers
- Some managers don’t like to delegate their work.
- Their subordinates' success threatens superior advancement.
- Disorganization badly affects the planning work in advance.
- Lack of trust on subordinates.
- For Subordinates
- Some are unwilling to accept delegated works because of fear of failure.
- When they know, they haven’t any rewards for accepting additional responsibilities.
- Some avoid any risks and responsibilities.
Decentralization
The process of systematically delegating power and authority among the middle and lower-level managers of the organization.
Centralization
The process of systematically retaining power and authority in the hands of top-level managers
5.Coordinating Activities
Coordination means the process of connecting the activities of the different departments of the organization.
For Example: Marketing and production