Management Function : Organizing (Azim)

                   

Management functions

                Organizing is the function of management which follows planning. It is the process of establishing orderly uses for all resources within the management system of the organization. It is a function in which the synchronization and combination of human, physical, financial, and information resources takes place for the achievement of the results. 

                Organizing function is essential because it facilitates administration as well as the functioning of the organization.

                   According to Louis A. Allen, “Organisation is the process of identifying and grouping of the works to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most efficiently”.

                 According to Chester Barnard, “Organizing is a function by which the concern is able to define the role positions, the jobs related and the co-ordination between authority and responsibility”.

                    Organizing is the next important function of management after the planning. In case of planning the management decides what is to be done in future. In case of organizing, it decides on ways and means through which it becomes easier to achieve what has been planned. Hence, organizing refers to the following process.

• Identifying and grouping of the work to be performed.
• Defining and determining responsibility and authority for each job position.
• Establishing relationship among various job positions.
• Determining detailed rules and regulations of working for individuals and groups in organization.

                 Organizing creates and maintains rational relationships between human, material, financial, and information resources by indicating which resources are to be used for the specified activities and also when, where, and how they are to be used. The organizing function leads to an organizational structure which defines precisely the authorities and the responsibilities. The following are the important factors which are to be taken into consideration in the process of designing of the organizational structure.

• Environment – The environment is relevant for behaviour and the organization structure. The most important characteristics of environment that determine organization structure are complexity (determined by the number of elements affecting the organization, their variety and intensity of influence on the operations), stability (measured by the rate of changes in time, similarity of changes, and possibility of their foresight and comprehension), and uncertainty (related to availability of relevant information for rational decision-making).

• Technology – It enables transformation of organizational inputs into outputs and it is an important determinant of the internal efficiency of the organization. Technology includes technical equipment for manufacturing, knowledge and ability for using the equipment, and working activity necessary for the transformation process. Considering the relationship between technical complexity of the organization and its structural characteristics, there are three groups of the organizations. The first group consists of the organizations which are having individual or small-lot production. In these organization the technology is universal, the technological process is subject to frequent changes, and they have a way of production which is characterized by a low level of centralization, a small number of hierarchy levels, informal proceedings, and verbal communication, which implies an organic organizational structure. The second group consists of the organizations with large-lot and mass production. In these organizations the activities are routine, the technological process is complex and not easy to change, there is a high level of standardization and specialization, and more hierarchy levels in the organization structure having a high level of formalization and routine distribution channels. The third group consists of the organizations with continually-process production. In these organizations the working process is continual in a certain production cycle, the operations and procedures are synchronized, the production is highly automated, technical complexity is at the highest level, centralization is low, communicating is verbal, and formalization is on a low level. All of these characteristics imply an organic structure of the organization.

• Strategy – Starting from its internal potentials, chances and threats of environment, the organization designs its strategy for the realization of the objectives. This strategy requires a certain organization structure as the frame. The concept of organization structure as a consequence of the adopted strategy has evolved in the sense that the relationship between strategy and structure is that of reciprocity, which means that the organization structure also influences the strategy.

• Size – Connection between the size of the organization (measured by the number of employees, power of installed capacities, total revenue, value of capital investment, and other factors) and its organizational structure is very easy to notice. Namely, when the organization grows up, its organization structure becomes more complex, and vice versa.

• Forms of aggregating – The essence of aggregating in the process of organizational structuring is a result of the need to control, coordinate, and communicate, which implies linkages on vertical and horizontal bases. Vertical aggregating is suitable for large organizations, with a long hierarchical chain, as well as for organizations with stable and simple environment and routine technology. The aim of vertical aggregating is to enable top bottom coordination in organization through different levels of management structure, strong control, and two-way communication. However, an environment which is turbulent and also the complex technology need horizontal coordination of activities. Vertical aggregating with formal authority and horizontal aggregating, as its complement, is a way of achieving internal and external efficiency of an integral totality.

Resource : Wikipedia, Google image.

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