six steps of organising process

In organising, the activities performed by an individual employee are related to the functioning of his department, and then functioning of various departments is harmonised for seeking common goals. The nature and importance of the organising function, however, may vary with different managers. By following the PROCESS steps below anyone can conquer any space of any size. It is deciding who will act under whom, who will be his subordinates and what will be his status in the organisation. Report a Violation 11. 1. In other words, organising is the function through which management directs, coordinates, and controls business operations. An important part of the planning process is to be aware of the business opportunities in the firm’s external environment as well as within the firm. The final step involves the establishment of authority that creates a chain of command. Thus, channels of communications are also created. Authority brings in responsibility with its self. Grouping or Classification of Activities: In this stage grouping of activities related to one another is done. An organisation structure is a mix of vertical and horizontal positions. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. According to Villanova University’s Essentials of Business Process Management course, BPM is a strategic, cross-functional methodology with six phases that equips BPM practitioners to plan and execute their projects. Authority-responsibility Relationships: Authority is a core constituent of organisation. The rights are granted through the process of delegation. Clarifying the authority is useful in making the company’s operations efficient. Under the grouping of activities all the similar type of activities are given to one particular department. Thus, in this case the function of advertisement is the key activity which requires the utmost attention. Organisation is established for some objective. Read this article to learn about “Organizing: It’s Process, Structure, Importance , Characteristics and Other Details!”. At the time of making such assignment, it is ensured that the department has required competence and resources for performing that group of activities. Every individual is given the authority necessary to perform the assigned activity effectively. For accomplishing the works which are similar in nature different tasks, processes or skills required are to be placed together so as to achieve the organisational objectives. The manage­ment has to identify all the different activities required to be done in order to achieve organisational objectives. On the other hand, the purchase manager will get orders from the General Manager and will be responsible to him. You now have to deal with the issueswith the issues. There must be constant appraisal of organising process so that changes in the organisation structure can be introduced, consequent to changes in the internal and external environmental factors. Work is assigned according to qualification and ability of persons. The existence and operation of formal organisation permits people to interact with each other at a personal and social level. 3. Coordinating the functioning of various departments: In the process of organising, attempts are also made for coordinating working of individual with respective department, and finally to coordinate functioning of various departments towards the achievement of common goals. The Organizing PROCESS. Defining Authority and Responsibility. or ’Organising is the process of defining and grouping the activities of the enterprise and establishing the authority relationships among them* In the light of this statement, explain the steps in the process of organising. Every individual must know his area of responsibility i.e., what work he is to do and also what rights and powers him may exercise in doing it. If there are too many people working in a group it is essential for group members to know from whom they have to take orders and to whom they are accountable. Delegation of authority must be commensurate to the duties and responsibilities assigned. 4. The various processes of organization explained above are technically performed through-, (b) Delegation of authority and fixation of responsibilities, and. Clearly define the change and align it to business goals. Therefore, organising is regarded as a mechanism or means to achieve planned objectives. Since the complex task is broken into smaller units, less- skilled workers can be trained to carry out those activities. Thus, a formal organisation functions within set boundaries and is capable of being disciplined and controlled. Example – Every school has departments for each subject like Mathematics department, English department, Languages department etc. The divisions and departments function within the broad parameters of an administrative set up. Organising is a function of all managers: The management function of organising is practised by all the managers in the organisation. This is necessary for the smooth running and the prosperity of the enterprise. Example – The teachers working in a department must know that they have to take instructions from and report to the head of the department. You can think of these as defining the strategy-to-execution value stream. Uploader Agreement. Division of work leads to specialisation which has the following benefits: Adam Smith illustrated a study where one person could manufacture 20 pins a day if he worked alone. Constant appraisal and reorganisation is an integral part of the organising process. Departmentalisation: It involves grouping of similar activities into departments, units, sections etc. The Decision‐Making Process; Organizational Planning Detailing Types of Plans; Identifying Barriers to Planning; Defining Planning; Recognizing the Advantages of Planning; Using Plans to Achieve Goals; Creating Organizational Structure Concepts of Organizing; The Informal Organization; Going from Planning to Organizing; The Organizational Process Coordination becomes possible by defining relationships amongst departments and people working at different positions. Similarly, advertisement and sales activities are given to the marketing department, and department of finance takes care of finance, accounts and correspondence. The concentration goes to activities and functions. Each major activity is divided into smaller parts. To illustrate Materials Management Department may function alongside the Purchase Department to allow better coordination and reduce the ‘lead time’. It is ensured that competence of departmental head matches job requirements of the department. For example- the purchase manager will be given the responsibility for the purchase of goods; the sales manager will be responsible for the sales; the advertising manager will be responsible for advertisement and the finance manager will take care of the responsibility of finance. Ensures optimum utilisation of resources: Allocation of resources is the core activity of organisation structure. The top has more authority than the lower levels. Consideration of Plans and Goals 2. Interrelation­ship between the activities is also analyzed on the basis of which they may be grouped. Each job should be classified under some category. For example, a school may have different departments like teaching, office administration, library, sports, etc., and a particular department, say teaching, can further be sub-divided into smaller departments on the basis of subjects like Commerce, Economics, English, etc. 5. The six steps are: Clarify strategy – Clarify high-level strategy statements, separating and organizing goals, objectives, initiatives, aspirations, and strategies. For example, an organisation producing and distributing washing machines has to perform large number of activities that may be related to production, distribution, finance, purchase and personnel, etc. Process of Organising – Steps: Identification and Division of Work, Departmentalisation, Alignment of Duties and Establishing Reporting Relationships This is necessary for most desirable performance. It also arrests the wastage of resources, prevents duplication or overlapping of efforts and aids smooth working of the company. 2. By authority, we mean power to take decisions, issue instructions, guiding the subordinates, supervise and control them. On the basis of types of products – In this case, activities are grouped into different departments on the basis of products manufactured by the organisation. Classifying and Grouping Activities 4. Privacy Policy 9. Here, the efforts of all the individuals, groups, departments, etc. For example- the activities like the purchase of raw material, purchase of ready-made parts, production, stocking the material, research, etc., are assigned to the production department. Assigning Work, Responsibility and Authority: 6. The next step is about classifying the authority and how much of it is allocated to the managers in the hierarchy. Authority flows from top to bottom in the hierarchy. These form ‘the building blocks’ of the organizational structure. Also, the levels at which various major and minor decisions will be made must be determined. The purpose of creating the superior-subordinate relationship is to coordinate the efforts of all individuals/groups/departments towards the common goals and objectives of the business. ... Measure the change process. 4. In order to complete the organising function of management, following steps are taken: (1) Knowing the Objectives of the Enterprise, (3) Grouping and Departmentalization of Activities. The process of organising involves the following steps: 1. In some cases you may be headhunted or called to interview on the basis of a strong referral. Service organisations provide services such as transportation to their customers. Secondary grouping is made on the basis of geographical areas, types of customers, equipment used, processes adopted or constituent parts of major leading function. Chain of command involves two principles of management, i.e., unity of command (each person having one boss only) and the scalar principle (someone to be finally responsible as clear line of authority is drawn). To follow cost- leadership strategy the structure has to be stable and cost efficient. Collecting Human and Material Resources 5. Each unit of the total work will be a ‘job’. It has no set boundaries; rather it operates in different directions. are created and filled with people having different skills and expertise but performing similar activities. As an alternative to job design, managers have five alternative approaches – job rotation, (moving employees from one job to another), job enlargement (giving employees more tasks to perform), job enrichment (increasing the number of activities and also control over the job), job characteristics approach (jobs diagnosed and improved along skill variety, task identity, task significance, autonomy and feedback), and work-teams (to design the work systems). For instance, the total work of a manufacturing concern may be – (i) purchase of raw material, (ii) purchase of spare parts, (iii) marketing research, (iv) production, (v) raising funds, (vi) maintaining accounts books, etc. Determination of Objectives Division of Activities 2. In work specialisation, a job is broken down into different steps and each step is completed by a separate individual. Use these six-steps and guidelines to help you develop a robust framework for coaching your work colleagues. From the previous banking example, all jobs related to managing car loans, home loans and business loans will come under the ‘Loans Department’. Coordination between Authority and Responsibility: Healthy relationships between various groups facilitates smooth interaction which assists the organisation in achievement of its goals. Management, Functions, Organising, Process of Organising. As a result of it, each manager makes decisions, solves problems and tackles the situation that ultimately leads to overall development in his personality. 6. It makes the optimum utilisation of human and material resources. Allocation of Fixed Responsibility to Definite Persons – Here, specific job assignments are made to different subordinates, or ensuring a certainty of work performance. Its importance lies in serving the following purposes: 1. Grouping of Activities into Departments or Work Units: 4. This lesson will help you: Define management process authority) to perform those tasks. Further explanation of this business practice can be found in the corresponding lesson titled Organizing Process in Management: Steps, Overview. It is meant to engage in production of goods and/or performing service required by society. i. Defining objectives; Enumeration of functions; Classification of activities; Placement of Individuals; Assigning authority for action; 1. Activities can be grouped in the following ways: i. Assessing personnel requirements and determining the physical resources is very necessary to build the structure of an organisation. Organization structure of a trading concern is different from that of an educational institution for the simple reason that activities of the two organizations are different. 4. The organising function follows the function of planning and the other functions of management follow organising. In a hierarchy, the authority flows from the top to the bottom. The managerial function of organizing may be called as the ‘process of organizing’. Setting objectives is the most crucial part of planning. 7. Communication takes place through personal and social relationship. More routine the technology, the structure will be more standardised and mechanistic. This creates a structure of relationships where every individual knows his superiors and subordinates and their reporting relationships. It is a functional unit with thick walls between functional departments. are made the basis of primary grouping. This step is based on the principle of functional definition. It not only establishes authority relationship but also provides a system of communication. The real goal of the campaign is to carry out and keep thethe campaign is to carry out and keep the promises made. The process of organizing consists of the following steps: (a) determining and defining the activities required for the achieve­ment of organizational goals; (b) grouping the activities into logical and convenient units; (c) assigning the duties and activities to specific positions and people; Finally, evaluation of activities is done to judge the effectiveness of performance of the different departments. 2. This implies that employees will have to report to an authority like the top management or superiors who manage, guide, supervise and oversee the work and responsibilities of their subordinate reporting to them. Thus, the process of organising gives rise to a network of authority-responsibility relationships among members of the organisation. If the organisation is working in different areas then activities can be grouped on the basis of region/territory viz. Every individual subsequently delegates authority to individual in the lower hierarchical chain to them. As a complex organism, the organisations, besides the reporting levels, have cross- functional relationships between different departments or divisions. By grouping of activ­ities, the efforts within each department can be coordinat­ed in an effective manner. Organising is based on the concept of division of work that ultimately leads to specialisation. The appearance of a typical organisation structure is shown in Figure 9.1. It further creates hierarchy in the management. It is very important that for effective implementation of plans the work is assigned to such people who possess essential abilities and skills to perform their jobs with maximum efficiency. It has a high degree of rationality and leaves no scope for personal, social and emotional factors. Numerous tools for each step of the four-step process will also be suggested. 6. TOS4. Designing a Hierarchy of Relationships: 7. Each position has a set of tasks, responsibilities, and authority. A business cannot function in anarchy. It is only through relationship of superior and subordinate, which is created by organising process that the manager plans, directs and controls activities of his subordinates. In this step, the employees are assigned duties as per their qualifications, experience and suitability to a particular job. Interrelationship between different job and individuals are clearly defined so that everybody knows from whom he has to take orders and to whom he is answerable. For this purpose the advertisement activity should be taken from the purview of the marketing department and be handed over to the newly created advertisement department so that the superior officers are in direct touch with this department and they are in a position to pay full attention to it. 2. Grouping and classification of activities helps to attain the benefits of specialisation. In order to ensure effective performance, it is essential that parity is created between the nature of a job and ability of the employee responsible for that particular job. Share Your PDF File How many sessions might be needed depends entirely on the circumstances and on the coachee. Further, establishing reporting relationships facilitates coordination at all levels of management. The division of work into smaller […] Division of work and specialisation are the tools used by organisation to attain the objective of optimum utilisation of human efforts and physical resources. But the following steps can be of great help in the designing a suitable structure, which will laid in achieving enterprise objectives: The first step in developing an organizational structure is to lay down its objectives in very clear terms. Production of pin was broken into sub-activities where people carried out the following specialised tasks —. For example, each job and task related to production is to be grouped up into production group, and elements that are related to marketing, finance and purchase are to be grouped-up in the respective groups. We shall discuss it in greater detail in the next chapter. This grouping or combining of activities is called departmentation. Schools should be able to articulate the purpose or intent of their curriculum principles. The first step, therefore, is to determine the tasks that must be performed to achieve the established objectives. The grouping of activities facilitates specialization. For instance, production activity may be further divided into purchasing of materials, plant layout, quality control, repairs and maintenance, production research, etc. Departmentalization means selecting the activities which are similar in nature and grouping them together. People are made aware of their responsibilities and authority. In this step the total work is divided into various activities. The term organizing process refers to the work of determining how to best arrange and utilize your resources in order to achieve the desired results. Everybody should clearly know to whom he is accountable. Departmentation refers to grouping the jobs on some logical arrangements. After having learnt about the objectives of the enterprise, necessary functions to achieve the objectives are determined. It helps in boosting an employee’s morale and he feels comfortable in the work- setting. It is necessary to determine those work activities which are necessary to accomplish enterprise objectives and plans. After putting various activities into several groups, these are to be assigned or allotted to the various departments created for this purpose, or to the employees if the activities are limited. An organisation is a continuing entity. Explain the steps involved in the process of organising. Organising is designed on the basis of objectives and it aims at achieving them smoothly. Division of work facilitates specialisation in work. Organizing involves a series of steps that need to be taken in order to achieve the desired goal. Here employees continuously work on projects. Taking into account the available resources and various aspects of coordination, different departments are created at different levels in which jobs are grouped on the basis of their functional direction. The chain of command is the continuous line of authority from the top level to the lowest levels in the organisation. Informal Organisation: Today market place demands lean, flexible and innovative organisation structures. The managerial function of organising may be called as the ‘process of organising’. 6. This network of activities creates responsibility centres in an organisation. 2. The performance of departments and sections are to be compounded to achieve objectives. Each person is given a specific job suited to him and he is made responsible for its execution. Organization structure of a manufacturing concern with assured market will be different from that of another concern operating under highly competitive situation. Teachers who have proficiency in Mathematics and skills to teach the subject will be employed under Mathematics department. The demand is to meet the needs of customers, employees and other organisational stockholders. Terms of Service 7. Share Your Word File In this way the chain of command is established. Lines of accountability are drawn in black and white. Overall tasks or activities of the organisation are determined to achieve this goal. So long as the authority to discharge the responsibility is not given, the person concerned has no accountability. ADVERTISEMENTS: Read this article to learn about “Organizing: It’s Process, Structure, Importance , Characteristics and Other Details!” Any situation involving two or more persons working collectively requires organising. 237 - 245 ORGANIZING AS THE PHASE OF MANAGEMENT PROCESS AND MANAGEMENT ACCOUNTING UDC 657.05+658.310.13 Ljilja Antić, Vesna Sekulić Faculty of Economics Niš, University of Niš, 18000 Niš, Serbia and Montenegro the number of subordinates who should report directly to each superior is decided. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. … This removes confusion, friction and conflict among people. For a sound and well-defined organising process, a business needs to undertake the following steps: Organising as a function begins with identifying all activities that are planned for a business based on their mission, goals and objectives. An organisation structure is the structural framework of all positions in a set-up. Thus, informal organisation may be defined as a network of personal and social relations, arising out of communication and behavioural tendencies in the course of functioning of a formal structure of organisation. The historical boundaries are blurred by increasing an organisation’s interdependence with its environment. The act of organising involves integrating, balancing and coordinating the activities of people working together for seeking common goals. ii. An organisation structure exhibits the following features: The first and foremost feature of an organisation structure is that it is a network of well-defined activities. It is because when employees accept assigned work, they become responsible for performing it, and for discharging responsibility they are given requisite authority. A flexible and implementable strategic facility planning based on the specific and unique considerations of your organization needs to be developed through a 4 step process. In order to create a balance and structure in the organisation, the activities of members need to be well-coordinated. In a manufacturing organisation, production and sales are the two major activities. They can be grouped on the basis of functions, products, After that, departments may be linked depending on their related activities or functions. No planning can succeed unless a framework of activities (necessary for the accomplishment of objectives) is constructed. It operates through predetermined systems and procedures. Authority means the freedom of taking decision, guiding the subordinates and the freedom of supervising and controlling. In a highly decentralised organisational structure, each position is strengthened by delegating required authority. The second issue is centralisation (retaining power and authority in the hands of top-level managers) and decentralisation (distribution of authority to middle and lower-level mangers). For example, Purchase Department for purchase functions, Finance Department for financing activities, Marketing Department for marketing activities, etc. A strong organisation culture means rules and regulations can be substituted by organisation culture. The relationship between different jobs is determined, and provision for their proper integration is made. Welcome to EconomicsDiscussion.net! With the time, organisations grow and situations change. People-structure relationship is important. Say for example the government plans on promoting cottage i… It may be narrow or wide. Any situation involving two or more persons working collectively requires organising. What kind of organisation structure is best suited to an enterprise depends upon a number of considerations; the more important ones are given below: Organisation structure to be used for an enterprise is the direct result of objectives to be achieved which are derived from strategy. Important steps involved in organizing process include the following: Although this first step is actually part of planning, it is pertinent to know the objectives of the enterprise. In a way, he/she did not ‘organise’. In the event of change, necessary modification may be made in the organising process, organisational structure and organisational goals, so as to bring them in conformity with the change. In this process higher level manager gives away some of his right in favour of other who becomes his subordinate and it continues till the last level of management. 2, No 3, 2005, pp. The various activities are grouped into departments or divisions according to their nature. Departmentalisation facilitates specialisation and coordination in the organisation. The clearly defined relationships helps to create a hierarchal structure and facilitates coordination amongst different departments. (iii) Establish the basic department design for the organisation structure. 6. A good and effective organiser follows series of steps to achieve the desired goal. The following steps constitute the process of organising: To start with the process of organising, objectives of a business should be determined on the basis of plans framed. Here, the total organisation is made up of teams or work groups which perform the organisation’s work. Thus, an organisation structure refers to a network of authority and responsibility relationships by showing who reports to whom and for what in a set-up to facilitate realisation of common goals. When the objectives have been set and policies framed, the necessary infrastructure of organization has to be built up. Each organisation shall have its own specific way of classifying and grouping work activities. Other contemporary structures in popularity are matrix and project structures. Objectives will help determine the broad economic and social goals to be accomplished by the organisation. The activities and efforts of different individuals are then synchronized. Each task is inter-related, and the collective performance of all tasks by different position holders enables the achievement of organisational goals. These various aspects of the organising function of management are discussed here under the following two broad heads: The term ‘organising” refers to the process of identifying and grouping of activities to be performed and dividing them among the individuals and creating authority and responsibility relationship among them for the accomplishment of organisational objectives. Each unit of total work is called a job. What was happening in the class the next morning was unimaginable. If you’re ready to start spring cleaning your finances, these six steps will start you off on the right track: Step 1: Set Up a Filing System For Your Personal Finance Whether you stash your receipts and bills in folders or file them electronically in your computer, what’s important is that you keep all of the paperwork related to your personal finance together in a safe place. Organisation structure stimulates creative thinking and initiative among organisational members by providing them requisite authority to perform their assigned tasks. Coordination is essential because every department is dependent on the others for information resources.

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