ORGANISING AND ORGANISATION STRUCTURE: Organising Process - Meaning and Definition, Characteristics Process, Need and Importance, Principles, Span of Management, Organisational Chart - Types, Contents, Uses, Limitations, Factors Affecting Organisational Chart. Unit IV HSBTE. EDM. DMLT. IVth Semester.

Organising Process - Meaning and Definition

Meaning:

The organizing process involves arranging and structuring resources within an organization to achieve its objectives. Organizing is arranging activities of an organization to carry out smoothly. It determines the tasks to be performed. It also assigns responsibilities to individuals or groups. The organization aims to optimize the use of resources, such as human resources, financial assets, physical facilities, and information, to achieve the organization's goals.

The organizing process encompasses the following activities

1. Identifying objectives: Understanding the goals and objectives of the organization is the first step in organizing.

2. Dividing work: Work within an organization is divided into manageable tasks and responsibilities.

3. Assigning tasks: Once work is divided, tasks are assigned to individuals or groups based on their skills, expertise, and responsibilities.

4. Establishing authority: Authority is the right to make decisions and give orders to others. Authority is delegated to individuals or positions within the organization.

5. Creating a structure: Organizational structure defines the formal relationships among positions and departments within the organization.

6. Establishing coordination: Coordination is essential to achieve common goals.

7. Providing resources: Resources such as manpower, finances, materials, and technology are allocated according to the requirements.

Definition:

"The organizing process is the systematic arrangement of resources and activities within an organization to achieve goals."

Organising Process- Characteristics

The organizing process characteristics contribute to its effectiveness in achieving organizational goals. The following are the key characteristics of the organizing process:

1. Structure: Organizing establishes a formal structure within the organization. This structure clarifies who reports to whom, how decisions are made, and how tasks are coordinated.

2. Division of Work: A core characteristic of organizing is the division of work. That is the division of manageable tasks and responsibilities. The organizing process ensures efficient and effective work allocation.

3. Coordination: Organizing emphasizes the coordination of activities and resources to ensure common goals. It minimizes conflicts, avoids duplication of efforts, and maximizes productivity.

4. Hierarchy: Organizing establishes a hierarchical structure that defines the levels of authority and responsibility within the organization.

5. Delegation: Authority and responsibility are assigned to individuals or positions within the organization. Delegation empowers employees to make decisions and take actions within their areas. It enhances efficiency and effectiveness.

6. Flexibility: Organizing also allows for flexibility to adapt to changing circumstances and requirements. Organizational structures should be dynamic.

7. Optimization of Resources: Organizing aims to optimize the utilization of resources, such as human resources, financial assets, physical facilities, and information. Organizing helps maximize efficiency and minimize waste.

8. Clarity and Communication: Clear communication channels and reporting relationships are essential characteristics of organizing. Effective organizing ensures that information flows smoothly within the organization to make timely decisions and problem-solving.

9. Alignment with Goals: The organizing process is aligned with the overall goals and objectives of the organization. It ensures that the structure, processes, and resources support the achievement of objectives.

10. Continuous Improvement: Organizing is not a one-time activity but an ongoing process. It requires periodic evaluation and adjustment. Organizations continually refine their structures, processes, and systems to adapt to internal and external changes.

Organising Process Need and Importance

The organization needs an organizing process and its important functions fulfill several requirements. The following are the reasons why the organizing process is important for an organization:

1. Clarity and Structure: The organizing process provides clarity by establishing a formal structure within the organization. This structure defines roles, responsibilities, reporting relationships, and the chain of command, reducing ambiguity and ensuring everyone knows what is expected of them.

2. Efficient Resource Utilization: An effective organizing process ensures that resources such as human capital, financial assets, materials, and equipment are utilized efficiently. Organizing process minimizes waste, optimizes productivity, and enhances operational efficiency by matching resources to tasks and functions.

3. Coordination and Integration: The organizing process facilitates coordination among different departments, teams, and individuals within the organization. It ensures that activities are aligned towards common goals, prevents duplication of efforts, and promotes synergy. It leads to smoother workflow and improved collaboration.

4. Specialization and Division of Labor: The Organizing process enables specialization and division of labor. It allows individuals to focus on tasks that match their skills and expertise. Organizing processes enhances efficiency and quality of work output by breaking down complex tasks into smaller and specialized components.

5. Effective Decision-Making: A well-organized structure clarifies decision-making processes and authority levels within the organization. It streamlines communication channels, empowers decision-makers, and facilitates faster, more informed decision-making, leading to better outcomes.

6. Adaptability and Flexibility: The organizing process creates structures that are adaptable to changes in the internal and external environment. It enables organizations to respond quickly to market shifts, technological advancements, and other challenges. It maintains competitiveness and sustainability.

7. Promotion of Growth and Innovation: The organizing process encourages innovation and growth within the organization. It allows for the exploration of new ideas, initiatives, and opportunities, driving continuous improvement and long-term success.

8. Accountability and Transparency: The organizing process decided clear lines of authority and responsibility. Individuals know to report to whom for their assigned tasks. It develops transparency and accountability.

9. Employee Satisfaction and Morale: The organizing process decides clear expectations, roles, and responsibilities of employees. Employees understand their roles and their contribution to organizational goals. They are more engaged, motivated, and productive. These all lead to higher job satisfaction and morale

10. Achievement of Organizational Goals: The organizing process is essential for achieving the goals and objectives of the organization. It aligns resources, activities, and people towards common goals. This ensures that the organization operates efficiently to fulfill its mission and vision.Top of Form

Organising Process Principle

The organizing process is guided by several principles. They are fundamental guidelines for creating an efficient and effective organizational structure. Managers make informed decisions to allocate resources, assign tasks, and coordinate activities within the organization. The following are the principles of the organizing process:

1. Principle of Unity of Objective: All organizing efforts should be directed towards achieving the organization's objectives. The structure, allocation of resources, and coordination of activities should be aligned with the goals of the organization.

2. Principle of Specialization: Tasks and responsibilities should be divided based on individuals' specialized skills, knowledge, and expertise. Specialization allows employees to focus on areas to contribute most effectively, leading to higher productivity and efficiency.

3. Principle of Span of Control: This principle emphasizes the optimal number of subordinates that a manager can effectively supervise. It suggests that managers should have a manageable span of control. It ensures proper supervision and communication.

4. Principle of Authority and Responsibility: Authority and responsibility should go hand in hand. Individuals authorized to make decisions should also be held responsible for the outcomes of those decisions. Clear lines of authority and responsibility prevent confusion and promote accountability.

5. Principle of Scalar Chain: The scalar chain refers to the formal chain of command within the organization, from the highest level of management to the lowest. This principle emphasizes the importance of maintaining clear lines of communication and authority. It ensures that information flows smoothly up and down.

6. Principle of Delegation: Delegation involves assigning authority and responsibility to subordinates. Delegation empowers employees; promotes development, and enables managers to focus on priorities.

7. Principle of Flexibility: Organizational structures should be flexible to adapt to changing circumstances, environments, and business needs. Flexibility allows organizations to respond quickly to challenges and remain competitive in dynamic markets.

8. Principle of Equity: Organizational resources and opportunities should be distributed fairly among employees. Fairness promotes morale, motivation, and a positive organizational culture, promoting employee satisfaction and commitment.

9. Principle of Continuity: Organizing is an ongoing process that requires continuous evaluation, adjustment, and improvement. Organizations should continuously monitor their structures and systems. It ensures relevance and effectiveness in achieving their objectives.

10. Principle of Simplicity: Organizational structures and processes should be kept simple and easy to understand. Complexity can lead to confusion, inefficiency, and resistance to change. Simplifying structures promotes clarity and transparency within the organization.

Span of Management under organization process

The span of management is also known as the span of control. It refers to the number of subordinates or employees supervised and directed effectively by the manager. The span of management determines the structure and efficiency of an organization. The following are the aspects of the span of management:

1. Wide Span of Management: A manager supervises a large number of subordinates in a wide span of management. This structure is characterized by fewer levels of hierarchy, shorter communication channels, and a more decentralized decision-making process. Wide spans of management are common in organizations where tasks are routine, employees are skilled and self-directed, and communication technologies facilitate rapid information exchange.

2. Narrow Span of Management: A narrow span of management occurs when a manager supervises a smaller number of subordinates. This structure is characterized by more levels of hierarchy, longer communication channels, and a more centralized decision-making process. Narrow spans of management are in organizations where tasks are complex, employees require close supervision and guidance, and communication is formal and structured.

3. Factors Influencing Span of Management: The span of management is influenced by various factors such as the nature of tasks and responsibilities, the level of employee competence and experience, the degree of decentralization, the availability of communication technology, the manager's leadership style, and the organizational culture. Managers must consider these factors when determining the appropriate span of management for their teams or departments.

4. Effects on Organisation structure: The span of management directly affects the organizational structure. A wide span of management leads to a flatter organizational structure with fewer layers of management, efficiency, and rapid decision-making. In contrast, a narrow span of management results in a taller organizational structure with more levels of management. This may slow down communication and decision-making but provide greater oversight and control.

5. Optimization of Span of Management: Managers should aim to optimize the span of management by balancing the need for efficiency, effective supervision, and support. This involves assessing the capabilities of employees, the complexity of tasks, and the requirements of the organization.

Organizational Chart - Types, Contents, Uses, Limitations, Factors Affecting Organisational Chart

Define and Types of Organizational Chart

An organizational chart is a visual representation of the hierarchical structure and relationships within an organization. It illustrates the formal lines of authority, reporting relationships, and division of labor among different departments and levels of management. Organizational charts provide a clear overview of the organization's structure. It helps employees understand their roles, responsibilities, and connections within the organization. They are commonly used by managers, HR professionals, and employees to navigate the organization's hierarchy and facilitate communication and decision-making.

Types of Organizational Charts:

1. Hierarchical Organizational Chart: A hierarchical organizational chart represents the vertical structure of an organization. It also shows lines of authority flowing from top to bottom. It consists of a pyramid-shaped diagram. The highest levels of management are at the top, followed by middle management and frontline employees at the bottom. This type of chart shows the chain of command, reporting relationships, and the levels of authority within the organization.

2. Matrix Organizational Chart: A matrix organizational chart represents a more complex structure. Here employees report to multiple managers or supervisors. Matrix structures are common in organizations with cross-functional collaboration and project-based work.

3. Flat Organizational Chart: A flat organizational chart (horizontal organizational chart) represents a structure with few or no levels of middle management between frontline employees and top executives. In a flat organization, decision-making authority is decentralized. Employees have greater autonomy and responsibility for their work. This type of chart is characteristic of small businesses, startups, and organizations with a focus on innovation.

4. Divisional Organizational Chart: A divisional organizational chart organizes the company's structure based on business units. Each is responsible for a specific product, service, geographic region, or customer segment. Each unit operates as an independent entity. Each has its own functional departments such as marketing, finance, and operations. Divisional structures are common in large, diversified organizations with multiple product lines or geographical locations.

5. Team-Based Organizational Chart: A team-based organizational chart highlights collaboration and teamwork by grouping employees. This type of chart highlights the interconnectedness of teams and promotes a culture of collaboration and innovation. Team-based structures are popular in organizations and industries that require rapid adaptation and flexibility.

6. Virtual Organizational Chart: A virtual organizational chart represents a decentralized structure. Here employees work remotely or across different locations. This type of chart may not have a traditional hierarchy. Employees report to project managers, team leaders, or functional heads based on the nature of their work. Virtual structures are common in modern organizations that prioritize flexibility, work-life balance, and global connectivity.

Contents of the organizational chart

An organizational chart (Organizational structure) visually shows the hierarchical relationships, reporting lines, and functional roles within an organization. The contents of an organizational chart typically include the following components:

1. Title or Name of the Organization: The organizational chart usually begins with the name or title of the organization at the top of the chart.

2. Top Management: At the highest level of the chart are the top management positions, such as the CEO (Chief Executive Officer), President, or Managing Director. These individuals are responsible for setting direction, making major decisions, and overseeing the entire organization.

3. Departments or Divisions: The chart shows various departments or divisions within the organization. Common departments include Finance, Human Resources, Operations, Marketing, Sales, Research and Development, IT (Information Technology), and Customer Service.

4. Middle Management: Middle management positions come next in the hierarchy. It represents managers who supervise specific departments or functions. These managers report to top management. They are responsible for implementing strategies, managing resources, and supervising employees within their respective areas.

• Functional Positions: Within each department, the chart includes functional positions such as managers, supervisors, team leaders, specialists, analysts, and coordinators. These positions reflect the roles and responsibilities within the organization. Each contributes to the overall objectives of their department.

• Reporting Relationships: Lines or arrows connecting positions on the chart illustrate the reporting relationships within the organization. For example, a line connecting a department manager to the CEO indicates that the manager reports directly to the CEO.

5. Levels of Authority: The vertical arrangement of positions in the chart signifies the levels of authority and hierarchy within the organization. Positions at the top of the chart have higher authority and decision-making power. Those at the bottom have more specialized or operational roles.

6. Coordination and Communication Channels: The organizational chart also depicts coordination and communication channels between departments. This includes lateral relationships or committees responsible for collaboration and problem-solving.

7. Support Positions: The chart includes support positions such as administrative assistants, clerical staff, and maintenance personnel. These positions provide essential support services to the organization and its employees.

8. Key Contacts or External Entities: Some organizational charts include external entities, stakeholders, or key contacts outside the organization such as clients, suppliers, partners, regulatory agencies, or governing bodies. It illustrates external relationships and dependencies.

LIMITATIONS OF ORGANISATIONAL CHART

Organizational charts are valuable tools for visualizing the structure of an organization. It includes reporting relationships, hierarchies, and departmental divisions. They also have limitations that can affect their usefulness in certain contexts. The following are some limitations of organizational charts:

1. Static Representation: Organizational charts provide a print of the organization's structure at a particular point in time. Organizations are dynamic and grow over time in response to internal and external factors. As a result, organizational charts may quickly become outdated and fail to accurately reflect changes in roles, responsibilities, or reporting relationships.

2. Complexity Reduction: Large and complex organizations may have intricate structures that are difficult to represent accurately in a single organizational chart. As a result, organizational charts may oversimplify the organization's structure, omitting important details or relationships that are essential for understanding how the organization operates.

3. Limited Context: Organizational charts focus on formal reporting relationships and hierarchies within the organization. They may fail to capture informal networks, collaborations, or cross-functional teams. This limited context results in a superficial understanding of work performance within the organization.

4. Lack of Flexibility: Organizational charts are presented in a standardized format such as a hierarchical tree structure. This format may be suitable for many organizations. Organizational charts may lack the flexibility to adapt to unique organizational designs or changes in management philosophy.

5. Overemphasis on Titles and Positions: Organizational charts emphasize job titles, positions, and reporting lines. This emphasis may overlook the importance of informal leadership, collaboration, and expertise that exist outside of formal roles and titles.

6. Difficulty in Representing Matrix Structure: Employees report to both functional managers and project managers simultaneously in organizations with matrix structures. It poses challenges for traditional hierarchical organizational charts. Representing complex matrix relationships in a two-dimensional chart can be confusing. It may not accurately reflect the reality of authority and accountability distribution.

Organizational charts remain valuable tools despite these limitations. They should be used in conjunction with other sources of information, such as job descriptions, process maps, and informal networks. This develops an understanding of how the organization operates.

Factors Affecting Organisational Chart

Several factors influence the design and structure of an organizational chart. These factors shape how roles, responsibilities, and reporting relationships are depicted within the chart. The following factors affect organizational charts:

1. Organizational Size: The size of an organization influences its organizational chart. Larger organizations have more complex structures with multiple departments, levels of management, and reporting relationships. Smaller organizations have simpler structures with fewer hierarchical layers.

2. Organizational safety: The objectives of the organization determine its structure. For example, organizations may have functional structures to focus on specialized skills and expertise. Others may have centralized structures to promote efficiency and control.

3. Organizational Culture: The values, beliefs, and norms characterize an organization's culture. These influence organizational structure. Organizations with a strong emphasis on innovation and collaboration adopt flatter structures with decentralized decision-making. Organizations with a more hierarchical culture may have stricter reporting relationships and centralized control.

4. Industry and Environment: The industry in which the organization operates and its external environment impact its structure. For example, organizations in dynamic and rapidly changing industries may adopt more flexible and adaptive structures. It responds to market shifts and technological advancements.

5. Technology: Advances in technology have an impact on organizational structure. Organizations using digital tools and communication technologies may adopt flatter structures. It has virtual teams and remote work arrangements. Technology also influences the flow of information, decision-making processes, and collaboration within the organization.

6. Regulation Requirements: Compliance with regulatory requirements and industry standards influences organizational structure. Organizations operating in highly regulated industries are healthcare, finance, etc. They adhere to specific reporting structures and governance frameworks to ensure legal compliance and risk management.

7. Leadership Style: The leadership styles of top management shape the organization's structure. Leaders who prefer a more participative and decentralized approach promote flatter structures. They empower teams and share decision-making. Conversely, autocratic leaders favor hierarchical structures with clear lines of authority and control.

8. Employee Skills and Expertise: The skills, knowledge, and expertise of employees within the organization influence its structure. Organizations with highly skilled and specialized employees adopt functional structures to utilize their expertise effectively. Conversely, organizations with a diverse workforce adopt matrix structures to facilitate cross-functional collaboration and resource sharing.

9. Geographical Dispersion: Organizations spread across multiple locations or regions design their structure to accommodate geographical dispersion. This may involve creating regional divisions, satellite offices, or virtual teams to coordinate activities and resources across different locations.

10. Customer and Market Demands: Customer preferences, market dynamics, and competitive pressures drive changes in organizational structure. Organizations focused on customer-centricity adopt structures that enable rapid response to customer needs and preferences.

Alok Bains