Organizing in Management

Organizing is the grouping of activities necessary to attain objectives, the assignment of each grouping to a manager with authority necessary to supervise it, its provision for coordination horizontally and vertically in the enterprise structure. An organization should be designed to clarify who is to do what and who is responsible for what results, to remove obstacles to the performance caused by confusion and uncertainty of assignment and to furnish decision making and communication network reflecting and supporting enterprise objectives.

Organization can be used to denote an enterprise, company or firm. But for most practising managers, organization can be defined as “organization provides the structure, the frame on which the management of the enterprise is based." It can also be defined as “a vehicle moving the management efforts through the management team, with the help of the enterprise resources, to the accomplishment of the goals or plans."

The term organization is used in two different senses. In the first sense, it is used to denote the process of organizing and the second is used to denote the result of that process called organization structure. The process of organization is defining and grouping the activities of the enterprise and establishing the authority relationship among them. In the second step, it prepares an organization structure. There are two types of organizations – formal and informal.

Informal organization, there is nothing inherently inflexible or unduly confining about it. If the manager is to organize well, the structure must furnish an environment, in which individual performance, both present and future contribute most effectively to group goals. Formal organization must be flexible and there should be room for discretion, for taking advantage of creative talents.

Informal organization is any joint personal activity without conscious joint purpose, even though possibly contributing to joint results. Managers must be aware of the informal organization and avoid antagonizing it; they will find it advantageous to use it as they manage subordinates.

The basic purpose of the organization is to formulate a frame or structure of an enterprise with a view to fulfil the enterprise tasks. The purpose includes establishing the pattern of relationship by giving duties and responsibilities to an individual or group. It tells each manager where his accountability lies and below him, who are in his sphere of command. It provides adequate communication and co-ordination and also integrates and controls the activities of individuals or groups to achieve common objectives of the enterprise.

The organization is based on certain principles in which the success of its activities is ensured. In order to develop a sound and efficient organization structure, there is a need to adhere to such principles. If there is to be a systematic approach to the formulation of organization structure, there ought to be a body of accepted principles. Some of the basic principles are objectives, specialization, span of control, scalar principles, unity of command, responsibility, authority, efficiency, unity of direction, personal ability and so on.

Since organization structure or organization chart is not a routine or academic sketch, there can be no standard format which can fit any industrial enterprise. The organization chart has to evolve out of the present possible facilities available to the enterprise. Thus, we may identify five patterns of organization such as line organization, functional or staff organization, line and staff organization, committee organization and matrix organization.

In an organization, there is horizontal differentiation of tasks or activities into discrete segments, which is called departmentation. This is depending upon the nature and size or organization, goals, strategies and environment. Departmentation is based on products, functions, time, territory and geography and simple numbers.

In an organization, there are committees for different purposes. The committee consists of a group of people specially designed to perform some administrative activities. The committees should preferably be presided over by the head of department.

The advantage for setting up a committee is to widen the viewpoints of departmental managers when important policy decisions are arrived at. Only through committees, the various department managers will automatically consider the viewpoints of other departments. Committees are also useful for harmonizing the efforts of the staff and the line executives. There are several types of committees such as standing committee, temporary committee, general advisory committee, joint consultative committee, academic committee, religious committee, etc.

In an organization, there exists centralization and decentralization of work and responsibilities. Generally, the responsibilities are centralized under the head of department. However, when the work and responsibilities enormously increase and the head is not in a position to handle conveniently, he delegates the work and responsibilities to his subordinates on the basis of grades and capabilities. This act is called decentralization.

Span of management or control refers to the number of subordinates who report to a manager or the number of subordinates a manager can effectively control or supervise. It is also called span of supervision. A manager should not have more subordinates, looking to him for guidance, than he can effectively manage. Because there is a limit to the number of persons a manager can supervise with effect, even though this limit varies depending on situations, the limit is the existence of organization levels.

The major problem in regard to the above is to decide how wide a span should be to decide as to how many subordinate a supervisor can manage. If the span is small, an executive may tend to over supervise and may even do spoon feeding to his subordinates. On the other hand, if the span is large, executive may not be able to supervise the subordinates effectively and they may start thinking that they are too remote from the point of control and may tend to become careless or may feel that they are impersonal and unimportant part of the organization machinery.

In an organization, there is a system called ‘management by objectives.' Management by objectives (MBO) is also referred to as results management or management by results. The main aim of the MBO is to increase the effectiveness of managers by placing responsibility. It is very popular because of its advantages. BMO is a process, in which the General Manager and his subordinates of an organization jointly identify the common objectives, define individual’s responsibility and use these measures as guides in achieving the companies goal.

The principle of management by exception was first given by F.W. Taylor in 1919. According to this principle, only unusual or exceptional items of major deviations in daily activities should be brought to the notice of the manager. It states that none deviations from standards should not be brought to his attention.

The theory behind this principle is that once a standard is set for a particular activity and if it is going on smoothly, there is no point in informing this to the manager, as this is a mere waste of his time, as well as the manager’s time. If something in the activity goes wrong and affects the smooth functioning of the project and the deviation is such that it could not be solved at a lower level, then that matter should be brought to the notice of the manager and his expert opinion can be sought in resolving the problem.

Rajesh Padmanabhan

About Rajesh Padmanabhan

My self is Rajesh Padmanabhan from Bangalore, India. I have been in this field of freelance article writing for above 5 years and i am working in one of the software firm in Bangalore.

Rajesh Padmanabhan