ORGANISING PROCESS & FORMAL AND

INFORMAL ORGANISATION

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 MEANING OF ORGNISING

• The word organizing is derived form the word organism which means that
a unit with many parts and each parts of it, even though working
independently, has a definite relationship with the main unit . In business
all the departments or posts have their separate function but they are all
related to the main objective of the business.
• The nature of all the function is different but they ahead in the direction of
achieving the main objective.
• Organisation means deciding about the various department and the posts in
these departments and relationships between them. ,moreover in order to
run their work smoothly their authority and responsibility have to be
prescribed.

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 DEFINITION OF ORGANISING

• According to HANEY, “organising is harmonious adjustment of specialised

part for the accomplishment of some common purpose or purposes”

• According to HAIMANN, “ organising is the process of defining and

groupining the activities of the enterprise and establishing the authority
relationship among them.

• According to Mc FALAND, “ An identifiable group of people contrubuting

their efforts towards the attainment of goals is called organisation”

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 NATURE OR CHARACTERISTICS OF
ORGANISING

DIVISION OF WORK

COORDINATION

PLURALITY OF PERSON

COMMON OBJCTIVE

WELL DEFINIED AUTHORITY & RESPONSIBILITY

ORGANISATION IS A STRUCTURE OF RELATIONSHIP

ORGANISATION IS A MACHINE OF MANAGEMENT

ORGANISATION IS UNIVERSAL

ORGANISATION IS A DYNAMIC PROCESS

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 CONCEPTS OF ORGANISING
ORANISING AS STURUCTURE
ORGANISING AS PROCESS OF RELATIONSHIP
• Cannot perform in a single stroke
• Various posts are created
• It is a chain of various functions
• Establish mutual realtionship of
• It includes getting information employee working on various
about objective, deciding various posts
activities, allowing authority and
• Authority and responsibilty are
responsibility.
defined
• Human conduct is deeply affected
• Superior and subordinate
by the condition of work, change
relationship
in the internal & external
environment of organisation affect
the human conduct .
• Organizing as a process can also
be describe as dynamic element.

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 ORGANISING PROCESS

1. KNOWING THE OBJECTIVE OF THE ENTERPRISE

2. DETERMINING VARIOUS ACTIVITES
3. GROUPING AND DEPATMENTALISATION OF ACTIVITIES
4. DETERMINING KEY ACTIVITES
5. ASSIGNING RESPONSIBILITIES
6. DELEGATING AUTHORITIES
7. DEFINING INTER- RELATIONSHIP
8. PORVIDING RIGHT ENVIRONMENT

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 FORMAL ORGANISATION
• A formal organisation means an organisation in which the responsibilities,
authorities, and mutual relationship among all the employees working in an
enterprise are clearly defined. The structure of the organisation is created
after a lot of deliberation and is based on the division of activities, so that
the objectives of the organisation can be easily achieved by a human group.
Under this each individual has interrelationship with other and
consequently they know as to who happens to be their superior or the
subordinate. The organisation is bound by rules and procedures.
• CHARACTERISTICS OF FORMAL ORGANISATION :
1. It is deliberately created
2. It is based on rules and procedures
3. It is impersonal
4. Authority
5. It is based on division of work
6. defined inter-relationship
7. It is more stable
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 ADVANTAGES OF FORMAL ORGANISATION
1. SPECIALISATION POSSIBLE
2. MORE COORDINATION
3. GOOD HUMAN RELATIONSHIP
4. EASY TO FIND OUT INEFFICIENT EMPLOYEES
5. NO OVERLAPPIG OF WORK
6. LESS CHANCE OF PARTIALITY
7. EASY TO GET OBJECTIVES
8. EASY CONTROL
DISADVANTAGES OF FORMAL ORGANISATION
1. LACK OF INTIATIVES
2. PRSSSURE OF OFFICERS AUTOCRACY ON EMPLOYESS
3. DEALY IN WORK
4. MECHANISATION OF RELATIONS

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 INFORMAL ORGASATION
An informal organisation is that organisation which is not established
deliberately but comes into existence because of common interest, taste,
and religious and communal relations. The quality of this organisation lies
in friendly relationship and cooperative nature. In this organisation an
individual does not help another individual in his activities simply because
he is responsible for it but because it is his personal liking.

CHARACTERISTICS OF INFORMAL ORGANISAITION :

1. It is not deliberately created
2. No written rules and procedures
3. It is personal
4. Authority
5. No defined inter-relationship
6. Lack if stability
7. No place on organisation chart
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 ADVANTAGES & DISADVANTAGES OF INFORMAL
ORGANISATION

1. INCREASE I INTIATIVE
2. DECREASE IN PRESSURE OF OFFICER
3. EFFECTIVE COMMUNICATION
4. IT MAKES THE FOMA; ORGANISATION STRONG
5. QUICK SOLUTION OF THE PROBLEM

DISADVANTAGES OF INFORMAL ORGANISATION

1. SPECIALIZATION NOT POSSIBLE

2. IT RESISTS CHANGE
3. IT CREATE RUMOURS
4. SOMETIME IT CREATES HURDLE IN MANAGEMENT

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PRINCIPLES OF IDEAL & SOUND ORGANISATION
1. PRICIPLE OF UNITY OF OBJECTIVE
2. PRICIPLE OF SPECIALIZATION
3. PRICIPLE OF COORDINATION
4. PRICIPLE OF PARITY OF AUTHORITY & RESPONSIBILITY
5. PRICIPLE OF ABSOLUTENESS OF RESPONSIBILITY
6. PRICIPLE OF EXCEPTION
7. PRINCIPLE OF SPAN OF CONTROL
8. PRINCIPLE OF FLEXIBILITY
9. PRICIPLE OF FULL CLARITY
10. PRICIPLE OF BALANCE
11. PRICIPLE OF UNITY OF COMMAND
12. PRINCIPLE OF SCALAR
13. PRICIPLE OF CONTINUITY
14. PRINCIPLE OF PARTICIPATION
15. PRINCIPLE OF EFFICIENCY

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 ADVANTAGES OF ORGANISING
1. INCREASE IN MANAGERIAL EFFICIENCY
2. PROPER UTILISATION OF RESOURCES
3. SOUND COMMUNICATION POSSIBLE
4. FACILITATES COORDINATION
5. INCREASE IN SPECIALISATION
6. HELPFUL IN EXPANSION
7. CHECK ON CORRUPT PRCTICES
8. DECREASES EMPLOYEE TURNOVER
9. BETTER HUMAN RELATIONS
10. TRAINING AND DEVELOPMENT OF PERSONEEL
11. DEVELOPMENT OF NEW IDEAS
12. FACALITATES PROMOTIONS

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