ORGANISING

Deffine: The word organize means placement of ideas, objects or people in a correct order so that they are easily available for use when required.

Example: TATA group has organized itself into seven division: I. II. III. IV. V. VI. VII. Engineering. Materials. Chemicals. Energy. Information technology and Communications. Services. Consumer goods.

Characterstics of Organizing: . It is the basic function of the management. . It is the process of grouping activities to achieve the organisational Objectives . Organisation helps in granting the authorities. . Organisation co-ordinates among various functions and its departments. . Effective communication possible through round organisational structures.

DIFFERENT CONSTITUENTS OF ORGANIZING:

Organization. Organization Design. Organization Structure. Departmentation Organizational relationship. Span of Control. Employee Empowerment. Centralization and Decentralization. Power and Authority. Delegation. Organization culture.

IMPORTANCE OF ORGANIZING: Presents clear hierarchy of roles and responsibility. Defines extent of Authority and Responsibility. Establishes the nature of relationship among different positions in the organization structure in a manner that will minimize friction, duplication, and ambiguity. Attainment of organizational objectives. Bringing specialization in managerial functions.

Organization: Organization involves two or more people with ideas and resources, working together in a structured, formal environment to achieve common goals. ORGANIZING PROCESS: Step I: Review of Strategic and Operational Plans Step II: Determination of the activities to be performed to implement the Plans Step III: Creation of a job Step IV: Departmentation Step V: Organization Structure Step VI: Determination of Authority

Step I: Review of Strategic and Operational Plans: A manger must be aware of the vision, mission, goals, objectives and strategies that have to be implemented through organizing. Step II: Determination of the activities to be performed to implement the Plans: A manager needs to outline the activities that need to be performed in order to achieve the goals and the objectives of the organization. Step III: Creation of a job: Organizing different tasks that need to be performed into groups that can be accomplished by a single individual.

 Step IV: Departmentation: Classifying these activities into administrative units in a logical and efficient manner so that similar activities are grouped together, and a manager can be appointed to be responsible for the execution of these activities Step V: Organization Structure: Establishing relationship between jobs or positions in the form of an organization structure or hierarchy by taking into account the number of individuals that can be managed by a single individual for that position. Step VI: Determination of Authority: Assigning a particular level of managerial authority and responsibility to various managerial positions so that people manning these positions could be enabled to perform as desired to accomplish long term organizational goals.

CLASSIFICATION OF ORGANIZATION

FORMAL ORGANIZATIONS INFORMAL ORGANISATIONS

FORMAL ORGANIZATIONS The formal organization represents the official organization structure that is convinced and established by the top management. It can be represents in the form of an organizational chart, which displays the organizational structure, job titles, lines of authority and relationship between departments and positions.

INFORMAL ORGANIZATIONS The informal organisation represents the unofficial network of individuals that includes social interactions among it employees, which may be unrelated to the firms formal authority structure. It depicts the personal and social relationships that arise spontaneously as people associate with one another in the work environment.

EVOLUTION OF ORGANISATION DIFFERENT PHASES OF GROWTH: Phase I: CREATIVITY Phase II: DIRECTION Phase III: DELEGATION Phase IV: COORDINATION Phase V: COLLABORATION

Phase I: CREATIVITY At the start, an organization needs to display a fairly high degree of creativity and innovation to create a new product and establish itself in the market dominated by establish competitors. In this phase, there is little need for formal control systems, and face to face communication prevails. This phase is also termed as Foundation.

Phase II: DIRECTION As the organization grows beyond a point, the informality and creativity that helped it in the creativity phase start creating problems in the attainment of optimum results. As a result, there emerges a need for a managerial framework with clearly laid down policies and procedures to coordinate the activities of different individuals. The formal systems are put in place and passion is replaced with rational decision-making

Phase III: DELEGATION A stage comes when formalization and controls that were initiated in the Direction phase start acting as a hindrance instead of promoting the interest of the organization. This sets the stage for the organization to move into the Delegation phase. In this phase, the organization makes an attempt to make the best use of opportunities by instituting a decentralized organization structure and give up some of the formal control to empower the frontline and middle level managers to make vital decisions.

Phase IV: COORDINATION Due to decentralization of decision making in the Delegation phase, the organization falls into a crisis of control after sometime. As a result, there emerges the problem of lack of uniformity of standards and policies, duplication of efforts and inefficiency. The top management seek to regain the control over the company as a whole by introducing some revolutionary changes; this leads to beginning of Coordination phase. Corporate architecture systems are introduced, and the functions such as data processing, HR, R&D, etc are centralized at the headquarters. Only the daily operating decisions are decentralized.

Phase V: COLLABORATION After a certain period of time, the organization starts feeling the need to enchase collaboration and share the learning's and good practices across the entire organization by bringing down the isolation of different functions, profit centers etc. Thus the organization moves into its last phase of evolution where there is emphasis on strong interpersonal collaboration. Matrix organization structure is usually employed.

Basic Organizational Designs: Functional Organization The classic organizational structure where the employees are grouped hierarchically, managed through clear lines of authority, and report ultimately to one top person. Divisional Organization In divisional organization a separate division is created under a project manager. The project managers enjoys full line authority on the personnel working under him Matrix Organization Matrix Organisation is a combination of two or more organisation structures. For example, Functional Organisation and Project Organisation. Strategic Business Unit (SBU) Strategic Business Unit or SBU is understood as a business unit within the overall corporate identity which is distinguishable from other business because it serves a defined external market where management can conduct strategic planning in relation to products and markets Virtual Organization A group of people with similar interest that primarily interact via communication media such as newsletters, telephone, email, online social networks etc. rather than face to face, for social, professional, educational or other purposes

 Boundaryless Organizations A boundaryless organization is a contemporary approach in organization design It is an organization that is not defined by, or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure. This term was coined by former General Electric chairman Jack Welch because he wanted to eliminate vertical and horizontal boundaries within the company and break down external barriers between the company and its customers and suppliers.

Types of Departmentation: Departmentation by Function Departmentation by Product Departmentation by Geographical Regions Departmentation by Process Departmentation by Customer Group

Span of Management or Span of Control: It refers to number of subordinates that can be adequately and effectively supervised by one supervisor/manager. It can be classified as: Narrow Span of Control: Narrow span of control involves a hierarchical organizational structure wherein small number of subordinates report to a single manager. Thus, it leads to a taller organization structure with many hierarchical levels.

 Wide Span of Control: Wide span of control involves a relatively flat organizational structure with fewer hierarchical levels and good number of subordinates reporting to a single manager.

Factors determining the span of control: The competence of supervisor and subordinate Degree of interaction between supervisor and subordinate The nature of activities to be supervised Degree of standardization Physical distribution of the employees Nature of stability or complexity of work

Organizational Relationships: Line and Staff Function: Line Authority: It represents superior-subordinate relationships for functions, which are directly responsible for accomplishing the key objectives of the enterprise. Line professional has the authority and responsibility and is authorized to make decisions in that regard. Staff Function: It identifies those positions or functions that dont command a decision-making authority. These are support positions providing services, advice, and support required by the people in the line authority to enable them to perform their duties effectively and efficiently.

Organization Culture: Schein, defined organizational culture as: a pattern of basic assumptions invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and integration that has worked well enough to be considered valid and, therefore is to be taught to new members as the correct way to perceive, think, and feel in relation to those problems.

Kotter and Heskett divided corporate culture into two parts: pattern of shared values & beliefs that helps individuals understand organizational functioning (invisible) and those conventions that provide them with norms of behavior (visible).