ORGANIZING

ORGANIZING

It is concerned with the identification of different activities, grouping of similar types of activities into one group and assignment of responsibilities and authorities to the organizational members, so that they can perform their duties to achieve the organizational goals. Further, we establish co-ordination between the different activities of the company and employees, so that they can work in groups.

Identification & Division of Activities

Grouping of Similar Types of Activities

Delegation of Authority and Responsibility

Co-ordination(Establishment of Groups Relationship)

1. Identification & Division of Work: The works are to identified and divided into various functions like, production, finance, marketing, staffing etc. The purpose of the division is to specialize individuals into different roles. This also helps in increasing the efficiency of employees.

2. Grouping of similar type of Activities: The activities are classified into various categories. All similar categories are grouped together. The activities relating to different functions are covered under different departments like all the functions of process of goods production from raw materials to final goods, are grouped in production department.

3. Assigning/Delegation of Authority & Responsibility: A person can perform the duties efficiently only when he will be delegated or assigned with adequate authority and responsibility.

4. Establishment of Groups Relationship (Co-ordination): Interpersonal relationship and Inter-group relations should be clearly defined so as to carry out orders and responsibility effectively, in order to, who is to undertake what?

TYPES OF ORGANIZATION


Line Organization Functional (Staff) Organization L & F Organisation
Line Organization
It is the simplest form of the organization structure and is also known as Scalar and Military organization. Under these types of organizations, the authority flows vertically downwards from Top to Bottom and the responsibility flows vertically upwards i.e., from Bottom to Top, throughout the organization.





















Advantages of Line Organization:

1. It is the simplest form of organization and can be easily understood by the employees.

2. It consists of Unity of command, means, every person in the organization works under the command of one boss only.

3. It ensures the clarity in relationship between authority and responsibility.

4. It is facilitate quick decision-making.

Disadvantages of Line Organization:

1. It is not feasible and stable for big organizations.

2. The concentration of authority at the top level only.

3. Lack of managerial specialization.

Functional (Staff) Organization
To overcome the limitation of line organization, these types of organization are formed. In this type of organization, different types of activities are divided into different groups according to their features. To perform these activities, expert people with specified knowledge are appointed.









Production HR Finance R & D Sales Admin
Manager Manager Manager Manager Manager Manager











Advantages of Functional Organization:

1. It has specialist managers for every field.

2. It helps to increase the overall efficiency of the organization.

3. It provides wide scope for growth and mass production.

4. Better supervision.

5. Better utilization of various resources.

Disadvantages of Functional Organization:

1. Costly: Multiplicity of experts increases overhead expenses on the organization.

2. Lack or difficulty of co-ordination.

3. No Unity of Command leads to lack of responsibility.

4. Delay in Decision-Making.

5. Time consuming.