Concept

 Organising is a fundamental management function that involves arranging and structuring resources such as people, materials, and tasks effectively to achieve organisational goals. It ensures the smooth coordination of activities and resources to maximise efficiency and productivity.

Key Elements of Organising

 

1. Identification of Activities

• Determining all the tasks necessary to achieve the objectives.

2. Grouping of Activities

• Combining similar tasks into departments, teams, or units.

3. Assignment of Responsibilities

• Delegating tasks to individuals or groups based on their skills and competencies.

4. Establishing Authority Relationships

• Defining the hierarchy and ensuring clarity in reporting relationships.

5. Coordination

• Integrating various activities and ensuring collaboration among departments.

 

Importance of Organising

 

• Clarity of Roles: Helps in clearly defining job roles and responsibilities.
• Efficient Resource Utilisation: Ensures optimal use of human, financial, and material resources.
• Facilitates Growth: Creates a strong structure that supports expansion.
• Promotes Specialisation: Enables employees to focus on specific tasks, increasing efficiency.
• Improves Communication: Establishes clear channels for effective communication.

Objectives of Organising

Organising aims to create a structured framework that ensures efficient functioning and goal achievement. Below are its key objectives:

• Clarity in Roles and Responsibilities: Organising defines roles and responsibilities clearly, reducing confusion, avoiding duplication of efforts, and ensuring accountability.
• Efficient Resource Utilisation: It ensures optimal allocation of resources like manpower, materials, and finances, minimising wastage and maximising productivity.
• Coordination of Efforts: Organising harmonises efforts across departments and individuals, ensuring alignment with organisational goals and fostering teamwork.
• Specialisation and Division of Work: By dividing work into specific tasks based on expertise, it promotes efficiency, enhances quality, and reduces task completion time.
• Achievement of Goals: It facilitates the accomplishment of organisational objectives by aligning resources and efforts systematically.
• Adaptability to Change: Organising creates a flexible structure that allows the organisation to adapt quickly to market changes and new challenges.
• Growth and Development: A scalable framework supports expansion, innovation, and effective management of complexity, ensuring sustained growth.
• Authority and Accountability: It establishes a clear hierarchy, balancing authority with accountability, ensuring efficient decision-making and discipline.
• Effective Communication: Organising simplifies communication by defining clear channels, ensuring smooth information flow and better coordination.
• Building Organisational Culture: It fosters teamwork, responsibility, and innovation, creating a positive work environment that motivates employees.

Nature of organising

 Organising is a fundamental function of management that reflects certain inherent characteristics essential for effective and efficient functioning of an organisation. The nature of organising can be understood through the following key points:

1. Grouping of Activities: Organising involves grouping various activities and tasks into specific roles and departments. This grouping is based on similarities in function, skills, or resources, facilitating coordination and specialisation.
2. Establishment of Structure: It involves the creation of a formal organisational structure that outlines reporting relationships, roles, and responsibilities. This structure provides a framework for the distribution of authority and coordination of activities.
3. Hierarchy and Authority: Organising establishes a hierarchical structure with clear lines of authority. Each level in the hierarchy has a defined set of responsibilities, and individuals at each level report to those above them.
4. Division of Labor: Division of labor is a key aspect of organising. It involves breaking down tasks into smaller, specialised components to increase efficiency and expertise. Each individual or department focuses on specific functions.
5. Coordination: The organising function is closely linked to coordination. Coordination ensures that activities and efforts across different roles and departments are harmonised to achieve common goals without duplication or conflict.
6. Flexibility: While organising establishes a formal structure, it should also allow for flexibility to adapt to changing circumstances. A balance between structure and flexibility is crucial for organisational adaptability.
7. Optimal Resource Allocation: Organising aims to allocate resources—human, financial, and material—in the most efficient manner. This involves matching resources with tasks and responsibilities to achieve optimal utilisation.
8. Efficiency and Productivity: The ultimate goal of organising is to enhance efficiency and productivity. Well-organised structures and processes contribute to streamlined workflows, reduced redundancies, and improved overall performance.

Types of Organisation

 There are various types of organisational structures that an organisation can adopt, each with its advantages and characteristics. The six main types of organisation structure are given below:

• Line Organisation
• Functional Organisation
• Line and Staff Organisation
• Project Organisation
• Matrix Organisation
• Committee Organisation

Line Organisation

 Structure Overview

1. General Manager: At the top, oversees all operations.
2. Department Managers: Marketing, Production, and Finance Managers handle their specific areas.
3. Foremen: In the Production department, foremen supervise workmen and ensure task execution.
4. Workmen: At the bottom, perform the operational tasks.

 

Key Features

• Clear Chain of Command: Authority flows directly from the General Manager to workmen.
• Specialised Departments: Each department focuses on specific functions like marketing, production, or finance.
• Unity of Command: Every employee reports to a single superior.

Advantages

• Quick decision-making and clear accountability.
• Simple structure suitable for small organisations.

Limitations

• Potential for overburdened managers.
• Limited flexibility and inter-departmental coordination.

Functional Organisation

Functional Organisation, where the company is divided into specialised departments based on key

functions, each managed by a departmental head.

1. President:

Oversees the entire organisation and coordinates department activities.

2. Functional Departments:

• R&D Manager: Handles product design, development, and testing.
• Finance Manager: Manages accounting, purchasing, and finances.
• Marketing Manager: Focuses on sales and customer service.
• Division Product Z: Manages production, supervision, and distribution for a specific product.

Features

• Specialisation ensures efficiency in each area.
• Clear Authority defines roles and responsibilities.

Pros

• Increases efficiency and expertise.
• Focused management in each area.

Cons

• Departments may work in isolation.
• Coordination between functions can be challenging.

This structure emphasises expertise and clarity but requires strong leadership for smooth interdepartmental collaboration.

 

Line & Staff Organisation

 Line and Staff Organisation, which combines the authority of line managers with the expertise of staff personnel. It blends direct command with advisory roles to ensure efficient management and decision-making.

Explanation of the Structure

1. Managing Director:

• Positioned at the top, responsible for overall management and leadership.
• Directs both line managers (e.g., Works Manager) and staff personnel (e.g., Personnel Assistant).

2. Line Managers:

• These are the individuals with direct authority over the production and operations processes. They include:
• Works Manager: Oversees operations, including the Plant Superintendent and shop foremen.
• Plant Superintendent: Manages foremen of different shops (A, B, and C) who supervise the workers.

3. Staff Personnel:

• Provide expert advice and support to the line managers but do not have direct authority over operations. Examples include:
• Personnel Assistant: Advises on human resource management.
• Chief Accountant: Offers financial expertise.
• Quality Control Inspector: Ensures product quality.
• Repairs and Maintenance Officer: Provides technical support to maintain equipment.

4. Workers:

• At the base of the structure, performing tasks under the supervision of foremen.

Key Features of Line and Staff Organisation

• Line Authority: Clear chain of command, with line managers directly responsible for operations.
• Staff Support: Specialists provide advice, expertise, and support to enhance decision-making.
• Coordination: Staff and line roles work together to achieve organisational goals.

Advantages

•  Combines expertise with operational efficiency.
• Improves decision-making with professional advice.
• Maintains clarity in authority and responsibilities.

Disadvantages

• Can lead to conflicts between line and staff roles.
• Staff suggestions may not always align with line managers’ priorities.

 

Project Organisation

Project Organisation structure, designed to manage specific projects efficiently by creating dedicated teams for each project. This type of structure is commonly used in industries like construction, IT, and R&D.

Explanation of the Structure

1. Managing Director:

• Positioned at the top, responsible for overseeing all projects and ensuring alignment with organisational goals.

2. Project Divisions:

• The organisation is divided into Project Division I and Project Division II, each led by a Project Manager. These managers have authority over their respective divisions and are responsible for the successful execution of their projects.

3. Functional Teams in Each Division:

• Each project division includes a team of specialists who report to their respective project manager:
• Engineer: Handles technical aspects of the project.
• R&D Manager: Focuses on research and innovation within the project.
• Accounts Officer: Manages financial activities for the project.
• Personnel Officer: Oversees HR functions such as staffing and employee management.
• Clerks: Provide administrative support to the functional teams.

Key Features of Project Organisation

• Project-Based Focus: Each division is dedicated to a specific project, ensuring focus and accountability.
• Specialised Teams: Functional experts are grouped within each project to provide technical, financial, and administrative support.
• Temporary Nature: The structure is often disbanded upon project completion.

Advantages

• Clear focus on project goals and timelines.
• Effective use of specialised expertise within each project.
• Flexibility to adapt resources as per project needs.

Disadvantages

• Duplication of roles across projects, increasing costs.
• Potential conflicts over resource allocation between divisions.
• Limited opportunities for long-term functional team development.

Matrix Organisation

 The matrix organisational structure shown in the diagram combines elements of both functional and project-based structures. Here’s an explanation based on the image:

1. Dual Authority:

• Employees report to two managers: a functional manager (e.g., Production, Personnel, Engineering, Finance) and a project manager.
• For example, the Production Group I team works under both the Production department and Project Manager I.

2. Functional Structure:

• The functional structure is represented by vertical hierarchies such as Production, Personnel, Engineering, and Finance.
• Each function specialised in a specific area of expertise and oversees respective teams or groups.

3. Project-Based Structure:

• The project-based structure is represented horizontally with Project Manager I and Project Manager II leading specific projects across various functions.
• Teams from different functional areas (e.g., Production Group I, Personnel Group I) collaborate on these projects.

4. Cross-Functional Collaboration:

• Teams from different functions are pooled together to work on projects, ensuring expertise from multiple areas is utilised effectively.

5. Managing Director:

• The Managing Director oversees the entire organisation and provides strategic direction.

Advantages

• Facilitates better communication and coordination across departments.
• Encourages flexibility and efficient use of resources.
• Promotes a balanced focus on both functional specialisation and project goals.

 Disadvantages

•  Can create confusion or conflict due to dual reporting relationships.
• May lead to power struggles between functional and project managers.

This structure is ideal for organisations managing complex projects that require diverse expertise.

Committee Organisation

 The committee organisational structure shown in the diagram emphasises decision-making and coordination through committees. Here’s an explanation based on the image:

Key Features of the Structure:

• Board of Directors (BOD):
  • The BOD is at the top of the hierarchy and is responsible for overall governance and strategic decision-making.
  • It oversees various committees (e.g., Finance Committee, Executive Committee).
• Committees:
  • Committees are formed for specialised tasks and decision-making in specific areas:
  • Finance Committee: Handles financial policies, budgeting, and resource allocation.
  • Executive Committee: Focuses on key executive decisions and operational matters.
  • Purchase Committee: Oversees procurement and purchasing-related decisions.
  • Committees ensure that diverse perspectives are considered in decision-making.
• General Manager:
  • The General Manager acts as a link between the committees and the functional departments.
  • This role ensures that committee decisions are implemented across the organisation
• Functional Departments:
  • Below the General Manager are functional departments such as Production, Marketing, Finance, and Personnel.
  • These departments carry out the day-to-day operations of the organisation based on directives from the General Manager and committees.

Advantages

• Encourages participation and diverse perspectives in decision-making.
• Promotes specialisation and accountability for specific organisational areas.
• Reduces the burden on a single authority figure by delegating responsibilities to committees.

Disadvantages

• Slower decision-making due to the need for consensus.
• Possible conflicts or duplication of effort between committees.
• Relies on effective coordination between the General Manager and committees.

This structure is particularly suited for large organisations or institutions requiring systematic and collaborative decision-making processes.

Delegation of Authority

Delegation of authority is the process of transferring decision-making power and responsibilities from a superior to a subordinate within an organization. It involves assigning specific tasks, granting the necessary authority to carry out those tasks, and establishing accountability for their completion.

This process can be formal or informal, written or unwritten, but clarity is crucial to ensure an understanding of duties and expected outcomes. Effective delegation is essential for  workload management , skill development, and organizational efficiency.

It relies on principles such as delegation by results expected, functional definition, scalar principle, authority-level principle, unity of command, absoluteness of responsibility, and parity of authority and responsibility. Overcoming weaknesses in delegation requires defining assignments based on expected results, selecting qualified individuals, maintaining open communication, establishing appropriate controls, and rewarding effective delegation.

Ultimately, delegation enables effective decision-making and task execution, contributing to the achievement organisational goal.

Objectives of Authority Delegation

The following are the 5 key objectives of delegation of authority:

Workload Management

 Delegating authority helps distribute tasks among team members, preventing overload on individuals and improving overall productivity. By assigning responsibilities effectively, managers ensure that work is evenly distributed, reducing the risk of burnout and maximizing efficiency.

Skill Enhancement and Empowerment

 Delegation provides opportunities for skill development and empowerment. Allowing individuals to handle diverse tasks fosters learning, boosts confidence, and promotes personal and professional growth. It enables employees to expand their capabilities and contribute more effectively to organizational goals.

Enhanced Efficiency and Time Management

 Delegating tasks to competent individuals with the necessary skills leads to efficient completion. It frees up time for managers to focus on high-priority tasks, optimizing time management within the organization. Effective delegation ensures that tasks are completed promptly, enhancing overall efficiency.

Encouragement of Team Collaboration

 Delegation encourages teamwork and collaboration. It builds trust among team members, fostering a collaborative work environment where individuals feel valued and involved in achieving organizational objectives. Delegating authority promotes a sense of shared responsibility and mutual support among team members.

Leadership Development

Delegation cultivates leadership skills among individuals. It allows them to take charge, make decisions, and handle responsibilities, nurturing leadership qualities essential for future roles within the organization. By delegating authority, managers empower their team members to become effective leaders, contributing to long-term organizational success.

Authority and Responsibility

 

Basis for Comparison	Authority	Responsibility
Meaning	Authority refers to the power or right, attached to a particular job or designation, to give orders, enforce rules, make decisions and exact compliance.	Authority refers to the power or right, attached to a particular job or designation, to give orders, enforce rules, make decisions and exact compliance.
What is it?	Legal right to issue orders.	Corollary of authority.
Results from	Formal position in an organization	Superior-subordinate relationship
Task of manager	Delegation of authority	Assumption of responsibility
Requires	Ability to give orders.	Ability to follow orders.
Flow	Downward	Upward
Objective	To make decisions and implement it.	To execute duties, assigned by superior.
Duration	Continues for long period.	Ends, as soon as the task is accomplished.

 

Centralization and Decentralization

 

Basis	Centralization	Decentralization
Meaning	The concentration of authority at the top level is known as Centralization.	The evenly and systematic distribution of authority at all levels is known as Decentralization.
Delegation of authority	There is no delegation of authority as all the authority for taking decisions is vested in the hands of top-level management.	There is a systematic delegation of authority at all levels.
Suitability	It is suitable for small organisations.	It is suitable for large organisations.
Freedom of decision making	There is no freedom of decision-making at the middle and lower level.	There is freedom of decision-making at all levels of management.
Flow of Information	There is a vertical flow of information.	There is an open and free flow of information.
Employee Motivation	Employees are demotivated as compared to decentralization.	Employees are motivated as compared to centralization.
Conflict in Decision	There are least chances of any conflict in decision as only top-level management is involved.	There are chances of conflict in decision as many people are involved.
Burden	The burden of work is not shared and only one group carries the burden.	The burden of work is shared amongst all levels.

 

Span of Control

Span of control refers to the number of subordinates a manager can effectively supervise and control. It determines the structure of an organization, influencing whether it will be a flat or hierarchical structure.

Types of Span of Control

• Wide Span of Control
• Narrow Span of Control

When one manager supervises many subordinates, it shows a wide span of control. It is also called Operative Span as it is generally applicable at the lower or operating managerial level

Advantages of Wide Span of Control

1. Cost-effective in nature.
2. Suitable for large organizations.
3. Effective communication within the organization.
4. Reduced Planning time.
5. Results in the flatter organizational structure.
6. Subordinates are well-trained.

Disadvantages of Wide Span of Control

1. Confusion among the subordinates.
2. Difficulty in management if the number is considerably large.
3. Requirement of qualified superior.
4. Delegation of authority may be difficult at lower levels.

 When one manager manages a few subordinates, it shows a narrow span of control. It is also called the Executive span because it is applicable at the top or middle managerial level.

Advantages of Narrow Span of Control

1. Ease in management.
2. Improved control of management.
3. Effective Supervision.
4. Suitable for work complex in nature.
5. Creativity in planning and decision making.

Disadvantages of Narrow Span of Control

1. High cost as a greater number of managers is appointed.
2. Increased levels of management in the organization.
3. Delay in communicating information from top to bottom.
4. Delay in decision-making.