Organizing: Concept, Principles of an Organization
Organizing is the function of management which follows planning. It is a function in which the synchronization and combination of human, physical and financial resources takes place. All the three resources are important to get results. Therefore, organizational function helps in achievement of results which in fact is important for the functioning of a concern. According to Chester Barnard, “Organizing is a function by which the concern is able to define the role positions, the jobs related and the co-ordination between authority and responsibility. Hence, a manager always has to organize in order to get results.
A manager performs organizing function with the help of following steps:
1. Identification of activities: All the activities which have to be performed in a concern have to be identified first. For example, preparation of accounts, making sales, record keeping, quality control, inventory control, etc. All these activities have to be grouped and classified into units.
2. Departmentally organizing the activities: In this step, the manager tries to combine and group similar and related activities into units or departments. This organization of dividing the whole concern into independent units and departments is called departmentation.
3. Classifying the authority: Once the departments are made, the manager likes to classify the powers and its extent to the managers. This activity of giving a rank in order to the managerial positions is called hierarchy. The top management is into formulation of policies, the middle level management into departmental supervision and lower level management into supervision of foremen. The clarification of authority help in bringing efficiency 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 of duplication or overlapping of efforts and this helps in bringing smoothness in a concern’s working.
4. Co-ordination between authority and responsibility: Relationships are established among various groups to enable smooth interaction toward the achievment of the organizational goal. Each individual is made aware of his authority and he/she knows whom they have to take orders from and to whom they are accountable and to whom they have to report. A clear organizational structure is drawn and all the employees are made aware of it.
Principles of Organizing
The organizing process can be done efficiently if the managers have certain guidelines so that they can take decisions and can act. To organize in an effective manner, the following principles of organization can be used by a manager.
(i) Principle of Specialization
According to the principle, the whole work of a concern should be divided into the subordinates on the basis of qualifications, abilities and skills. It is through division of work specialization can be achieved which results in effective organization.
(ii) Principle of Functional Definition
According to this principle, all the functions in a concern should be completely and clearly defined to the managers and subordinates. This can be done by clearly defining the duties, responsibilities, authority and relationships of people towards each other. Clarifications in authority-responsibility relationships helps in achieving co-ordination and thereby organization can take place effectively. For example, the primary functions of production, marketing and finance and the authority responsibility relationships in these departments should be clearly defined to every person attached to that department. Clarification in the authority-responsibility relationship helps in efficient organization.
(iii) Principles of Span of Control/Supervision
According to this principle, span of control is a span of supervision which depicts the number of employees that can be handled and controlled effectively by a single manager. According to this principle, a manager should be able to handle what number of employees under him should be decided. This decision can be taken by choosing either from a wide or narrow span. There are two types of span of control:-
(a) Wide span of control: It is one in which a manager can supervise and control effectively a large group of persons at one time. The features of this span are:-
- Less overhead cost of supervision
- Prompt response from the employees
- Better communication
- Better supervision
- Better co-ordination
- Suitable for repetitive jobs
According to this span, one manager can effectively and efficiently handle a large number of subordinates at one time.
(b) Narrow span of control: According to this span, the work and authority is divided into many subordinates and a manager doesn’t supervises and control a very big group of people under him. The manager according to a narrow span supervises a selected number of employees at one time. The features are:-
Work which requires tight control and supervision, for example, handicrafts, ivory work, etc. which requires craftsmanship, there narrow span is more helpful.
- Co-ordination is difficult to be achieved.
- Communication gaps can come.
- Messages can be distorted.
- Specialization work can be achieved.