The Organizing Process in Management.doc

7/23/2019 The Organizing Process in Management.doc

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The Organizing Process in Management

The term organizing process refers to the work of determining how to best arrange and utilizeyour resources in order to achieve the desired results. Let's break down those terms a bit further--what do we mean when we use the terms arrange and utilize? This could be as simple as

arranging your pens neatly next to your notepads on your desk and on a larger scale it meansalmost the same thing! putting things where they need to be in order to be used effectively. "oucan't use your pen if it's not on your desk and you can't deliver cakes to a customer's business ifyour only driver is in the kitchen mixing the batter.

The term resources refers to the people activities plans knowledge finances space time andanything else you have at your disposal to accomplish your desired results. #uring theorganization stage you'll need to make sure your resources are where they need to be in order to be used effectively.

$hich brings us to the term desired results which is what we want to have happen. %t can be

&ust about anything! more money happy customers growing business successful new productimplementation or for you as the owner of our imaginary bakery saving ())) per month.

* manager performs organizing function with the help of following steps!-

1. Identification of activities - *ll the activities which have to be performed in a concernhave to be identified first. +or example preparation of accounts making sales recordkeeping ,uality control inventory control etc. *ll these activities have to be groupedand classified into units.

2. Departmentally organizing the activities - %n this step the manager tries to combineand group similar and related activities into units or departments. This organization of

dividing the whole concern into independent units and departments is calleddepartmentation.

3. Classifying the authority - nce the departments are made the manager likes to classifythe powers and its extent to the managers. This activity of giving a rank in order to themanagerial positions is called hierarchy. The top management is into formulation of policies the middle level management into departmental supervision and lower levelmanagement into supervision of foremen. The clarification of authority help in bringingefficiency 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 ofduplication or overlapping of efforts and this helps in bringing smoothness in a concerns

working.

4. Co-ordination between authority and responsibility - /elationships are establishedamong various groups to enable smooth interaction toward the achievment of theorganizational goal. 0ach individual is made aware of his authority and he1she knowswhom they have to take orders from and to whom they are accountable and to whom theyhave to report. * clear organizational structure is drawn and all the employees are madeaware of it.



Formal and Informal Organization: Features, Advantages

and Disadvantages

Formal Organisation:

$hen the managers are carrying on organising process then as a result of organising process anorganisational structure is created to achieve systematic working and efficient utilization ofresources. This type of structure is known as formal organisational structure.

+ormal organisational structure clearly spells out the &ob to be performed by each individual theauthority responsibility assigned to every individual the superior- subordinate relationship andthe designation of every individual in the organisation. This structure is created intentionally bythe managers for achievement of organisational goal.

Features of Formal organisation:

234 The formal organisational structure is created intentionally by the process of organising.

254 The purpose of formal organisation structure is achievement of organisational goal.

264 %n formal organisational structure each individual is assigned a specific &ob.

274 %n formal organisation every individual is assigned a fixed authority or decision-making power.

2(4 +ormal organisational structure results in creation of superior-subordinate relations.

284 +ormal organisational structure creates a scalar chain of communication in the organisation.

Advantages of Formal Organisation:

! "ystematic #or$ing%

+ormal organisation structure results in systematic and smooth functioning of an organisation.

&! 'chievement of Organisational Ob(ectives%

+ormal organisational structure is established to achieve organisational ob&ectives.

)! *o Overlapping of #or$%

%n formal organisation structure work is systematically divided among various departments andemployees. 9o there is no chance of duplication or overlapping of work.



+! Co-ordination%

+ormal organisational structure results in coordinating the activities of various departments.

,! Creation of Chain of Command%

+ormal organisational structure clearly defines superior subordinate relationship i.e. whoreports to whom.

! More .mphasis on #or$%

+ormal organisational structure lays more emphasis on work than interpersonal relations.

Disadvantages of Formal Organisation:

! Delay in 'ction%

$hile following scalar chain and chain of command actions get delayed in formal structure.

&! Ignores "ocial *eeds of .mployees%

+ormal organisational structure does not give importance to psychological and social need ofemployees which may lead to demotivation of employees.

)! .mphasis on #or$ Only%

+ormal organisational structure gives importance to work only: it ignores human relations

creativity talents etc.

Informal Organisation:

%n the formal organisational structure individuals are assigned various &ob positions. $hileworking at those &ob positions the individuals interact with each other and develop some socialand friendly groups in the organisation. This network of social and friendly groups forms another structure in the organisation which is called informal organisational structure.

The informal organisational structure gets created automatically and the main purpose of suchstructure is getting psychological satisfaction. The existence of informal structure depends upon

the formal structure because people working at different &ob positions interact with each other toform informal structure and the &ob positions are created in formal structure. 9o if there is noformal structure there will be no &ob position there will be no people working at &ob positionsand there will be no informal structure.



Features of informal organisation:

234 %nformal organisational structure gets created automatically without any intended efforts ofmanagers.

254 %nformal organisational structure is formed by the employees to get psychologicalsatisfaction.

264 %nformal organisational structure does not follow any fixed path of flow of authority orcommunication.

274 9ource of information cannot be known under informal structure as any person cancommunicate with anyone in the organisation.

2(4 The existence of informal organisational structure depends on the formal organisationstructure.

Advantages of Informal Organisation:

! /ast Communication%

%nformal structure does not follow scalar chain so there can be faster spread of communication.

&! /ulfills "ocial *eeds%

%nformal communication gives due importance to psychological and social need of employeeswhich motivate the employees.

)! Correct /eedbac$%

Through informal structure the top level managers can know the real feedback of employees onvarious policies and plans.

9trategic ;se of %nformal rganisation. %nformal organisation can be used to get benefits in theformal organisation in the following way!

3. The knowledge of informal group can be used to gather support of employees and improvetheir performance.

5. Through grapevine important information can be transmitted ,uickly.

6. <y cooperating with the informal groups the managers can skillfully take the advantage of both formal and informal organisations.



Disadvantages of Informal organisation:

! "pread 0umours%

*ccording to a survey =)> of information spread through informal organisational structure are

rumors which may mislead the employees.

&! *o "ystematic #or$ing%

%nformal structure does not form a structure for smooth working of an organisation.

)! May 1ring *egative 0esults%

%f informal organisation opposes the policies and changes of management then it becomes verydifficult to implement them in organisation.

+! More .mphasis to Individual Interest%

%nformal structure gives more importance to satisfaction of individual interest as compared toorganisational interest.

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The Organizing Process in Management.doc