What is Organizing? definition, characteristics, process and ...

Chapter 4 Organizing

Meaning and Definition: Organizing is a critical managerial function that follows the planning phase. It involves translating identified objectives into practical actions, establishing roles, and defining responsibilities to facilitate efficient collaboration. While definitions vary, organizing universally recognized as the creation of effective behavioral relationships within an organization to achieve goals.

Characteristics and Concepts in Organizing:

1.     Division of Labor / Specialization:

·         It involves assigning specific tasks based on expertise.

·         Advantages: Enhances efficiency, saves time, and minimizes material waste.

·         Disadvantages: it may cause boredom, lacks job enrichment for specialists.

2.     Coordination:

·         It establishes proper relationships between individuals, groups, and departments.

·         It promotes co-ordination through methods like Management by Objectives (MBO).

·         It ensures a unified pursuit of objectives to avoid conflicting paths.

3.     Accomplishment of Objectives:

·         The organization structure resulting from organizing is geared towards achieving specific objectives.

·         All managerial functions converge to achieve common goals.

4.     Authority & Responsibility Relationships:

·         Authority: refers to the right to command subordinates' actions.

·         Responsibility: The obligation of a manager to carry out assigned duties.

·         Clear definition of authority and responsibility is crucial in the hierarchical organization structure.

5.     Formal Organization:

·         The intentional formal structure results from organizing.

·         Comprises various positions arranged hierarchically with defined authority and responsibility.

6.     Communication:

·         It involves the transfer of information to achieve organizational goals.

·         Effective communication is essential for successful management.

·         Channels of communication can be formal, informal, upward, downward, or horizontal.

Organizing encompasses the identification, classification, grouping, and assignment of activities, creating a structured framework capable of achieving predetermined objectives. The intentional formal organization structure aligns roles, authority, and communication channels for the seamless operation of the organization.

The Organizing Process: Structuring for Efficiency

The organizing function unfolds through a systematic process to efficiently align tasks, responsibilities, and reporting relationships within an organization.

Key Steps in Organizing:

1.      Determine Tasks/Activities:

·         Identify activities essential for goal attainment.

2.      Create Jobs and Define Responsibilities:

·         Formulate distinct job roles with defined duties and responsibilities.

3.      Group Jobs into Departments:

·         Categorize jobs into practical units or departments based on similarities, importance, and work allocation.

4.      Establish Authority/Reporting Relationships:

·         Define hierarchies and reporting structures to establish clear lines of authority.

5.      Delegate Authority:

·         Empower individuals with the necessary authority to fulfill their roles.

Important Elements of Organizing Process:

1.     Departmentation:

v  It involves dividing and grouping activities and employees into various departments.

v  It is essential for managing the size of an organization.

v  Results in manageable organizational units, efficient use of managerial abilities, and optimal results.

Span of Management/Control:

v  Refers to the number of subordinates a manager can effectively supervise.

v  Wide span:

v  Advantages: Delegation, clear policies.

v  Disadvantages: Overloaded superiors, potential decision bottlenecks.

v  Narrow span:

v  Advantages: Close supervision, control, and fast communication.

v  Disadvantages: Over-involved superiors, many management levels, high costs.

Departmentation Benefits:

v  It facilitates organizational expansion.

v  It enhances efficiency through specialization, responsibility fixation, autonomy, and management development.

v  Streamlines appraisal processes.

The organizing process serves as the backbone of effective management, fostering streamlined operations, accountability, and optimal resource utilization.

Bases of Departmentation: Enhancing Organizational Structure

Organizations utilize various bases for departmentation, tailoring their structure to optimize efficiency and meet diverse needs. Here are the most common bases:

1.     Functional Departmentation:

·         Definition: Organizing activities based on essential functions required to achieve organizational goals.

·         Advantages:

v  The logical and scientific method fosters specialization.

v  It simplifies supervision due to expertise in specific skills..

v  Ensures tight control and facilitates training.

·         Disadvantages:

v  It may lead to a loss of sight of overall business operations.

v  Workers may lack general managerial abilities.

v  It has limited coordination between functions.

2.     Product Departmentation:

·         Definition: Grouping activities based on product or product line.

·         Advantages:

v  It focuses on product lines, aiding in the assessment of production efficiency.

v  It improves coordination for a specific product.

v  Provides a training ground for general managers..

·         Disadvantages:

v  It requires more individuals with general manager abilities.

v  It has risk of duplication activities.

v  Presents challenges for top management control.

3.     Departmentation by Geographical Area/Territory:

·         Definition: Grouping activities based on geographic region or territory.

·         Advantages:

v  Economical savings in time and money benefit from local markets.

v  It places responsibility at lower levels, ensuring quick decision-making.

v  Facilitate better face-to-face communication with local interests.

·         Disadvantages:

v  The team requires more personnel with general manager abilities.

v  There is a possibility of duplication of effort.

v  Challenges in top management control due to a flat span of management.

4.     Customer Departmentation:

v  Definition: Grouping activities based on customers' interests.

v  Advantages:

ü  Encourages focus on customer needs.

ü  Creates a sense of understand and expertise in customer areas.

v  Disadvantages:

ü  Difficulty in coordinating operations between competing customer demands.

ü  The project requires specialized managers and staff.

ü  There is a risk of underutilization of resources in some departments..

Utilizing these bases of departmentation, organizations tailor their structures to align with their unique objectives, fostering efficiency and adaptability.

5.     Process or Equipment Departmentation

In process or equipment departmentation, enterprise activities are grouped based on the manufacturing process or the specialized equipment required. This method is logical when operating machines demands special skills, involves large-capacity equipment, eliminates organizational division, or requires a concentrated location. For example, a textile factory might categorize its activities into Spinning, Weaving, Dyeing, Processing, etc.

Advantages:

v  It achieves economic advantage.

v  It utilizes specialized knowledge efficiently.

v  It simplifies training processes.

v  It utilizes specialized technology for enhanced efficiency.

Disadvantages:

v  Coordination between departments can be challenging.

v  Profit responsibility rests at the top.

v  It is unsuitable for developing general managers.

6.     Matrix Departmentation

Matrix departmentation is an organizational arrangement developed to expedite the completion of highly technical projects requiring significant contributions from multiple functional groups. This structure combines functional and product departmentation within the same organizational framework. Employees are assigned to both basic functional department and specific project, client/customer, or product.

Advantages:

v  More channels of information due to multiple managers.

v  It is oriented toward clear project objectives.

v  It maintains professional identification.

v  Efficient resource utilization, with workers assigned to different projects as needed.

Disadvantages:

v  There is potential for conflict and power struggles.

v  There is a possibility of disunity of command.

v  Higher overhead costs due to additional managerial positions.

v  It requires managers effective in human relations.Top of Form

 

2.     Delegation:

Delegation is the act of assigning formal authority and responsibility for specific activities to subordinates. In essence, it is the process which managers share their authority and tasks with their subordinates. This involves assigning tasks, granting authority, and establishing accountability for the completion of specific activities.

Importance of Delegation:

Delegation is crucial for several reasons:

A.    Time Management: Frees managers from time-consuming duties, allowing them to focus on critical issues.

B.     Timely Decision-Making: Enables quicker decision-making by lower-level managers compared to hierarchical layers.

C.    Employee Development: Allows subordinates to reach their full potential by making decisions and assuming responsibility.

D.    Efficiency: Empowers subordinates to carry out tasks, promoting efficiency in the organization.

Delegation Process Involves:

1.      Allocation of Duties: involves identifying tasks for subordinates to perform.

2.      Delegation of Authority: it empowers others to act on behalf of the manager by passing formal rights.

3.      Assignment of Responsibility: Assigning corresponding obligations to perform tasks when authority is delegated.

4.      Creation of Accountability: involves holding subordinates answerable for the satisfactory completion of assigned tasks.

Obstacles to Effective Delegation:

Ø  Management Obstacles: Reasons include the need for total control, lack of confidence in subordinates, and fear of consequences.

Ø  Subordinate Obstacles: Reluctance due to perceptions of decision-making being the boss's job, fear of criticism, lack of information, overwork, lack of self-confidence, and insufficient incentives.

Decentralization:

Decentralization is the dispersal of decision-making authority in an organized structure, the opposite of centralization. It allows tapping into managerial knowledge, fostering innovation, and involving non-managerial employees in decision-making. While it relieves top management, enhances flexibility, and promotes employee commitment, decentralization may increase the chances of undesirable actions and hinder uniform policy implementation.

Organizational Relationships:

Formal Organization: is consciously design with defined authority, responsibility, and communication lines. It exists in written form and is represented in organization charts.

Informal Organization: Emerges spontaneously within the formal organization, consisting of small social groups and associations. While undocumented and unofficial, it significantly influences organizational dynamics.

Line and Staff Relationships:

Ø  Line Authority: Direct responsibility for achieving organizational goals, represented in the chain of command.

Ø  Staff Authority: is the he authority of individuals providing advice and services to line managers.

Ø  Functional Authority: Staff department members' authority to control activities related to specific staff responsibilities in other departments.

Line and Staff Positions/Functions:

·         Line Functions: Directly contribute to producing and distributing goods or services.

·         Staff Functions: Facilitate the accomplishment of major organizational objectives by providing advice and assistance.

Organizational Structure & Charts:

·         Organizational Structure: is the arrangement and interrelationship of parts within a company, with various forms like line, functional, and line & staff.

·         Organizational Charts: Diagrams depicting the structure, functions, and relationships of an organization.

·         Organizational Manual: Describes the organizational chart, providing a detailed understanding of job roles beyond titles listed on charts.

 

 

 

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