Lesson 9

• Organizing


  It is a function in which the synchronization and combination of human, physical and financial resources takes place.
• Organizing is a function by which the concern can define the role positions, the jobs related, and the coordination between authority and responsibility. Hence, a manager always has to organize to get results according to Chester Barnard. 
• 1. Identification of activities


  All the activities which have to be performed in a concern have to be identified first.
• 2. Departmentally organizing the activities 


  the manager tries to combine and group similar and related activities into units or departments.
• 3. Classifying the Authority


  the manager likes to classify the powers and their extent to the managers.
• 4. Co-ordination between Authority and Responsibility


  Relationships are established among various groups to enable smooth interaction toward the achievement of the organizational goal.
• Importance of Organizing Function

  •Specialization

  •Well defined jobs

  •Clarifies authority

  •Co-ordination
• Specialization


  Organizational structure is a network of relationships in which the work is divided into units and departments.
• Well defined Jobs


  Organizational structure helps in putting right men on right job which can be done by selecting people for various departments according to their qualifications, skill and experience.
• Clarifies Authority


  Organizational structure helps in clarifying the role positions to every manager (status quo). Well defined jobs and responsibilities attached helps in bringing efficiency into managers working. This helps in increasing productivity.
• Co-ordination


  Organization is a means of creating co-ordination among different departments of the enterprise. It creates clear cut relationships among positions and ensure mutual co-operation among individuals. Harmony of work is brought by higher level managers exercising their authority over interconnected activities of lower level manager.
• Importance of Organizing Function

  •Effective administration

  •Growth and Diversification

  •Sense of security

  •Scope for new changes
• Principle of Specialization


  the whole work of concern should be divided amongst the subordinates based on qualifications, abilities, and skills.
• Principle of Functional Definition


  All the functions in a concern should be completely and clearly defined to the managers and subordinates. Can be done by clearly defining the duties, responsibilities, authority, and relationships of people towards each other.
• Principle of Span of Control/ Supervision


  Span of control is a span of supervision that depicts the number of employees that can be handled and controlled effectively by a single manager. A manager should be able to decide what number of employees under him should be decided.
• Principle of Scalar Chain


  A chain of command or authority which flows from top to bottom. A scalar chain of command facilitates workflow in an organization which helps in the achievement of effective results.
• Principle of Unity of Command


  Implies one subordinate-one superior relationship. Every subordinate is answerable and accountable to one boss at one time. Also helps in an effective combination of resources, that is, physical, and financial resources which helps in easy co-ordination and, therefore, effective organization.
• Formal Organization


  refers to a structure of well-defined jobs each bearing a measure of authority and responsibility. This kind of organization is an arbitrary setup in which each person is responsible for his performance. 
• Informal Organization


  Refers to a network of personal and social relationships that spontaneously originates within the formal setup. Informal organizations develop relationships that are built on likes, dislikes, feelings and emotions.
• Elements of Delegation

  1. Authority
  2. Responsibility
  3. Accountability
• Authority


  defined as the power and right of a person to use and allocate resources efficiently, to make decisions, and to give orders to achieve organizational objectives.
• Responsibility


  is the duty of the person to complete the task assigned to him.
• Accountability


  means giving explanations for any variance in the actual performance from the expectations set. Also means being answerable for the result. It can’t be escaped. It arises from responsibility.
• Steps in achieving delegation:

  1.Assignment of Duties

  2.Granting of Authority

  3. Creating Responsibility and Accountability
• Relationship between Authority & Responsibility


  Authority is the legal right of a person or superior to command his subordinates while accountability is the obligation of an individual to carry out his duties as per standards of performance.
•  Accountability is a result of responsibility and responsibility is the result of authority. Therefore, for every authority equal accountability is attached.
• Delegation of authority is a process in which the authority and powers are divided and shared amongst the subordinates
• Through delegation, a manager is multiplying himself by dividing/multiplying his work with the subordinates.
• Through delegation, a manager can divide the work and allocate it to the subordinates.
• With the reduction of load on superior, he can concentrate his energy on important and critical issues of concern. Delegation of authority is the ground on which the superior-subordinate relationship stands.
• Delegation of authority in a way gives enough room and space to the subordinates to flourish their abilities and skill.
• Delegation also helps in breaking the monotony of the subordinates so that they can be more creative and efficient.
• Delegation of authority is not only helpful to the subordinates but it also helps the managers to develop their talents and skills.
• Delegation of authority is helpful to both superiors and subordinates. This, in a way, gives stability to a concern’s working.
• Delegation


  Managers delegate some of their function and authority to their subordinates.
• Decentralization 


  Right to take decisions is shared by top management and other level of management.