Organizing

Definition: Organizing is the second key management function, after planning, which coordinates human
efforts, arranges resources and incorporates the two in such a way which helps in the achievement of
objectives. It involves deciding the ways and means with which the plans can be implemented.

Characteristics of Organizing

Organizing has the following characteristics:

• Division of Labour: Work is assigned to the employee who is specialised in that work.

• Coordination: Different members of the organisation are given different tasks to perform when
all the tasks are put together logically and sequentially, it results in the objectives, so
coordination is required.

• Objectives: Objectives need to be specifically defined.

• Authority-Responsibility Structure: For an effective authority responsibility structure, the

position of each manager and executive is specified, as per the degree of the authority and
responsibility assigned to them, while performing the duties.

• Communication: The techniques, flow and importance of communication must be known to all
the members.

Process of Organizing

Organizing is the core function which binds all the activities and resources together in a systematic and
logical sequence. It encompasses a number of steps which are pursued to achieve organizational goals.
Now, we will discuss those steps in detail:

1. Identification and division of work: Organizing process begins with identifying the work and
dividing them as per the plans.

2. Departmentalization: After classifying the work into different activities, the activities having a
similar nature are grouped together.

3. Assignment of the task: After the formation of departments, employees are placed in different
departments under a manager, called as a departmental manager. Thereafter, employees are
assigned the jobs as per their skills, qualifications and competencies.

4. Establishment of organizational hierarchy: Deployment of work is not all, the employees must
be aware of whom they have to report and who can give them orders.

5. Provision of resources to the members: Arrangement and deployment of resources such as

money, materials, supplies, and machine, etc. which are important to carry out day to day
operations of the organization.

6. Coordination of efforts and scheduling of activities: The final step to this process is the
coordination of efforts and scheduling the activities in a logical and systematic manner so that
the common objectives can be achieved effectively.
Importance of Organizing

Organizing is integral to management as it facilitates the smooth functioning of the enterprise. The
importance of organizing is as under:

• Advantage of Specialization: Organizing helps in the classification of jobs systematically amongst

the workforce, which helps in the reduction of workload, as well as improved productivity.

• Describes work relationships: The definition of work relationships describes the flow of
communication and determine the superior-subordinate relationship.

• Effective utilization of resources: Organizing function ensures the best possible utilization of
resources whether it is human, material, financial or technical.

• Adaptation to change: Organizing process helps the organization to survive and adapt the
changes, by making substantial changes in the strategies, hierarchy, relationships, etc.

• Development of personnel: Organising encourages creativity in executives. Delegation of

authority reduce their workload and they get time to identify new methods to perform the work.

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.

Principle of Specialization

According to the principle, the whole work of a concern should be divided amongst the subordinates on
the basis of qualifications, abilities and skills.

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. Clarifications in authority-responsibility relationships helps in achieving co-
ordination and thereby organization can take place effectively.

Principle of Scalar Chain

Scalar chain is a chain of command or authority which flows from top to bottom. With a chain of
authority available, wastages of resources are minimized, communication is affected, overlapping of
work is avoided and easy organization takes place.

A scalar chain of command facilitates work flow in an organization which helps in achievement of
effective results. As the authority flows from top to bottom, it clarifies the authority positions to
managers at all level and that facilitates effective organization.
Principle of Unity of Command

It implies one subordinate-one superior relationship. Every subordinate is answerable and accountable
to one boss at one time. This helps in avoiding communication gaps and feedback and response is
prompt. Unity of command also helps in effective combination of resources, that is, physical, financial
resources which helps in easy co-ordination and, therefore, effective organization.

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.

b. Narrow span of control- According to this span, the work and authority is divided
amongst many subordinates and a manager doesn't supervises and control a very big
group of people under him.

Factors influencing Span of Control

Managerial abilities- In the concerns where managers are capable, qualified and experienced, wide span
of control is always helpful.

Competence of subordinates- Where the subordinates are capable and competent and their
understanding levels are proper, the subordinates tend to very frequently visit the superiors for solving
their problems. In such cases, the manager can handle large number of employees. Hence wide span is
suitable.

Nature of work- If the work is of repetitive nature, wide span of supervision is more helpful. On the
other hand, if work requires mental skill or craftsmanship, tight control and supervision is required in
which narrow span is more helpful.

Delegation of authority- When the work is delegated to lower levels in an efficient and proper way,
confusions are less and congeniality of the environment can be maintained. In such cases, wide span of
control is suitable and the supervisors can manage and control large number of sub- ordinates at one
time.

Degree of decentralization- Decentralization is done in order to achieve specialization in which authority

is shared by many people and managers at different levels. In such cases, a tall structure is helpful.