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ORGANIZING PART 1
BUSINESS STUDY FOR PLUS TWO
BUSINESS STUDY FOR PLUS TWO
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PRINCIPLES OF MANAGEMENT
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MEANING OF ORGANIZING
1. ORGANIZING IS
THE PROCESS OF IDENTIFYING AND GROUPING OF VARIOUS ACTIVITIES IN THE
ORGANIZATION AND ASSIGNING THEM TO VARIOUS PERSONS,WORKING TOGETHER FOR
ACHIEVING SPECIFIC ORGANIZATIONAL GOALS.
2. FOUNDATION OF
THE SUCCESSFUL MANAGEMENT
3. PROCESS OF
DEFINING RELATIONSHIP TASKS AND DUTIES AMONG MEMBERS OF AN ORGANIZATION WITH
MINIMUM RESOURCES
4. ORGANIZATION
IS THE STRUCTURAL FRAMEWORK OF DUTIES AND RESPONSIBILITIES REQUIRED OF
PERSONNEL IN PERFORMING VARIOUS FUNCTIONS WITH A VIEW TO ACHIEVE BUSINESS GOALS
THROUGH ORGANIZATION.
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DEFINITION
1. KOONTZ AND O
DONNEL,” ORGANIZATION IS THE STRUCTURE OF RELATIONSHIP BY WHICH AN ENTERPRISE
IS BOUND TO GETHER AND THE FRAMEWORK,IN WHICH INDIVIDUAL EFFORTS IS COORDINATED.
2. LOUIS ALLEN,”
ORGANIZATION IS THE PROCESS OF IDENTIFYING AND GROUPING WORK TO BE PERFORMED
DEFINING AND DELEGATING RESPONSIBILITY AND AUTHORITY AND ESTABLISHING
RELATIONSHIP FOR THE PURPOSE OF ENABLING PEOPLE TO WORK MOST EFFECTIVELY TO
GETHER IN ACCOMPLISHING OBJECTIVES.
3. RELPH,”
ORGANIZING IS A GROUP OF PEOPLE WHO ARE COOPERATING UNDER THE DIRECTION OF
LEADERSHIP FOR THE ACCOMPLISHMENT OF A COMMON END.
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CONCEPTS OF ORGANIZING
1. STATIC
CONCEPT ( AS STRUCTURE) : ORGANIZING IS USED AS A STRUCTURE,AN ENTITY OR A
NETWORK OF SPECIFIED RELATIONSHIP AMONG PEOPLE WORKING IN ORGANIZATION..
ORGANIZATION IS A GROUP OF PEOPLE BOUND TOGETHER IN A FORMAL RELATIONSHIP TO
ACHIEVE COMMON OBJECTIVES, RELATIONSHIP BETWEEN SUPERIOR AND SUBORDINATES IS
WELL DEFINED.
2. DYNAMIC
CONCEPTS :-ORGANIZATION IS USED AS PROCESS OF AN GOING ACTIVITY. PROCESS OF
ORGANIZING WORK,PEOPLE AND THE SYSTEM. CONSIDERS ORGANIZATION AS OPEN ADOPTIVE
SYSTEM AND ORGANIZATION AS PROCESS :
1. IDENTIFICATION
OF WORK
2. GROUPING OF
SIMILAR WORK INTO SMALLER GROUPS
3. ASSIGNING
WORK TO EVERY INDIVIDUAL
4. DEFINING
AUTHORITY AND RESPONSIBILITY
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FEATURES( NATURE OF ) ORGANIZATION
1. DIVISION OF
WORK :- THE TOTAL WORK OF THE ORGANIZATION IS DIVIDED INTO ACTIVITIES AND
FUNCTIONS.ORGANIZATION HELPS IN DIVIDING THE WORK INTO RELATED ACTIVITIES SO
THAT THEY ARE ASSIGNED T DIFFERENT INDIVIDUALS.
2. PROMOTES
TEAMWORK :- PROMOTES TEAMWORK AS A LARGE NUMBER OF PEOPLE CONTRIBUTE TO ACHIEVE
ORGANIZATIONAL GOALS. IT HELPS IN INTEGRATING AND HARMONIZING VARIOUS
ACTIVITIES
3. GOAL ORIENTED
:- MEANS TOWARDS THE ACHIEVEMENT OF ORGANIZATION GOALS. THE ORGANIZATION
STRUCTURE SHOULD BUILD AROUND COMMON CLEAR CUT OBJECTIVES,
4.
FEATURES( NATURE OF ) ORGANIZATION
5. CO-OPERATIVE
RELATIONSHIP :- CREATES CO-OPERATIVES RELATIONSHIP AMONG VARIOUS MEMBERS OF THE
GROUP.MEANING FUL RELATIONSHIP IS CREATED AMONG THEM
6. MANAGERIAL
FUNCTION :ONE OF THE MAIN FUNCTION OF MANAGEMENT WHICH INTEGRATES RESOURCES FOR
ACHIEVEMENT OF GOALS
7. CONTINUOUS
PROCESS :INVOLVES VARIOUS STEPS SUCH AS IDENTIFICATION OF WORK,GROUPING OF
WORK,ASSIGNMENT WORK,DEFINING AUTHORITY AND RESPONSIBILITY.
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STEPS IN ORGANIZING PROCESS
1. DEFINING
ORGANIZATIONAL OBJECTIVES
2. IDENTIFYING
ACTIVITIES : IDENTIFY VARIOUS ACTIVITIES REQUIRED TO ACHIEVE THE ORGANIZATIONAL
OBJECTIVES.
3. IDENTIFICATION
AND DIVISION OF WORK :-DIVISION OF TOTAL WORK INTO SMALLER UNITS. EACH UNIT OF
TOTAL WORK IS CALLED A JOB. EVERY PERSON IS ASSIGNED A PARTICULAR JOB. THE
LOGIC BEHIND IS TO SPECIALIZATION OF INDIVIDUAL INTO DIFFERENT ROLES AND IT
WILL ALSO ENHANCE THE EFFICIENCY OF THE EMPLOYEE
4. DEPARTMENTALIZATION
:THE GROUPING OF THE ACTIVITIES. THE MOST COMMON METHOD OF CREATING :
a. FUNCTIONAL
DEPARTMENTATION: ACTIVITIES RELATED TO COMMON FUNCTIONS ARE GROUPED UNDER ONE
DEPARTMENT.
b. DIVISIONAL
DEPARTMENTATION:-ACTIVITIES RELATED TO ONE PRODUCT MAY BE BOUGHT UNDER ONE
DEPARTMENT.
5. ASSIGNMENT OF
DUTIES :-APPOINT SUITABLE PERSONS FOR DIFFERENT JOBS. THE PERSONS SHOULD BE
ASSIGNED JOBS AS PER THEIR SKILL AND QUALIFICATION
6. ESTABLISHING
REPORTING RELATIONSHIP :- ALLOCATION OF AUTHORITY AND RESPONSIBILITY IS DONE
AMONG EMPLOYEES IN SUCH A WAY THAT EACH PERSON SHOULD KNOW WHO IS RESPONSIBLE
TO WHOM AND FOR WHAT, PARITY BETWEEN ASSIGNED RESPONSIBILITY AND AUTHORITY
GIVEN
7. DELEGATION OF
AUTHORITY : A PERSON WILL BE ABLE TO PERFORM HIS DUTY ONLY WHEN HE IS GIVEN
ADEQUATE AUTHORITY REQUIRED FOR JOB. IF THE WORK IS ASSIGNED WITHOUT DELEGATING
AUTHORITY WILL BE MEANINGLESS. THE TOP MANAGEMENT DELEGATES AUTHORITY TO LOWER
LEVELS OF MANAGEMENT. A PERSON CAN BE MADE RESPONSIBLE FOR A WORK ONLY WHEN HE
IS GIVEN REQUIRED AUTHORITY ACCORDING TO RESPONSIBILITY.
8. COORDINATING EFFORTS : COORDINATION AMONG ALL
THE DEPARTMENT IS ESSENTIAL FOR ACHIEVING COMMON GOALS.
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FORMAL AND INFORMAL ORGANIZATION
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FORMAL ORGANIZATION :-CHESTER
BERNARD DEFINES FORMAL ORGANIZATION AS SYSTEM OF CONSCIOUSLY COORDINATED
ACTIVITIES OR FORCES OF TWO OR MORE PERSONS. ESSENCE OF THE FORMAL ORGANIZATION
IS CONSCIOUS COMMON PURPOSE DELEGATION
OF AUTHORITY,FUNCTIONS ,PROCEDURES AND REGULATIONS.
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INFORMAL ORGANIZATION :REFERS TO
THE RELATIONSHIP BETWEEN PEOPLE IN AN ORGANIZATION BASED NOT ON PROCEDURES AND
REGULATIONS BUT ON PERSONAL ATTITUDES,LIKES AND SO ON. PEOPLE WITH COMMON
INTERESTS MAY WORK BEYOND THE CONFINES OF FORMAL RELATIONSHIP
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PRINCIPLES OF ORGANIZATION
1. PRINCIPLE OF OBJECTIVE :-THE ENTERPRISE SHOULD SET UP CERTAIN AIMS FOR
THE ACHIEVEMENT OF WHICH VARIOUS DEPARTMENTS SHOULD WORK. A COMMON GOAL SO
DEVISED FOR THE ABSENCE OF COMMON AIM,VARIOUS DEPARTMENTS WILL SET UP TO
ACHIEVE THE GOALS
2. PRINCIPLES OF SPECIALIZATION :- THE ORGANIZATION SHOULD BE SET UP IN SUCH A
WAY THAT EVERY INDIVIDUAL SHOULD BE ASSIGNED A DUTY ACCORDING TO HIS SKILL AND
QUALIFICATION
3. PRINCIPLE OF AUTHORITY AND RESPONSIBILITY :- THE AUTHORITY
FLOWS DOWNWARD IN LINE. EVERY INDIVIDUAL IS GIVEN AUTHORITY TO GET THE WORK
DONE, THE ULTIMATE AIM OF THE CONCERN CAN BE ACHIEVED ONLY IF PROPER
CO-ORDINATION SHOULD BE ACHIEVED
4. PRINCIPLE OF DEFINITION :-THE SCOPE
OF AUTHORITY AND RESPONSIBILITY SHOULD BE CLEARLY DEFINED, THE RELATIONSHIP
BETWEEN DIFFERENT DEPARTMENTS SHOULD BE CLEARLY DEFINED TO MAKE THE WORK
EFFICIENT SMOOTH.
5. SPAN OF CONTROL :- HOW MANY SUBORDINATES CAN BE SUPERVISED BY A
SUPERVISOR. THE NUMBER OF SUBORDINATES SHOULD BE SUCH THAT THE SUPERVISORS
SHOULD BE ABLE TO CONTROL THE WORK EFFECTIVELY.
6. PRINCIPLE OF BALANCE :-THE PRINCIPLE MEANS THAT ASSIGNMENT OF WORK
SHOULD BE SUCH THAT EVERY PERSON SHOULD BE GIVEN ONLY THAT MUCH WORK WHICH HE
CAN PERFORM
7. PRINCIPLE OF CONTINUITY :- SHOULD BE DYNAMIC
8. PRINCIPLE OF UNIFORMITY :- EACH OFFICER SHOULD BE IN CHARGE OF THE HIS
RESPECTIVE AREA SO AS TO AVOID DUAL SUBORDINATION AND CONFLICT
9. PRINCIPLE OF UNITY OF COMMAND : A PERSON SHOULD BE ANSWERABLE TO ONE BOSS
10. PRINCIPLE OF EXCEPTION :TOP MANAGEMENT SHOULD INTERFERE ONLY WHEN SOMETHING
GOES WRONG. IF THINGS ARE DONE AS PER PLANS THEN THERE IS NO NEED FOR THE
INTERFERENCE OF TOP MANAGEMENT
11. PRINCIPLE OF SIMPLICITY :-THE ORGANIZATION STRUCTURE SHOULD BE SIMPLE
SO THAT IS EASILY UNDERSTOOD BY EACH AND EVERY PERSON
12. PRINCIPLE OF EFFICIENCY : SHOULD BE A BLE TO ACHIEVE ENTERPRISE
OBJECTIVES AT A MINIMUM COST
13. SCALAR PRINCIPLE : REFERS TO THE VERTICAL PLACEMENT OF
SUPERVISORS STARTING FROM TOP TO THE LOWER LEVEL
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IMPORTANCE OF ORGANIZING
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BENEFIT OF SPECIALIZATION :- IN
ORGANIZING THE WORK IS DIVIDED INTO DIFFERENT PARTS AND DIFFERENT PERSONS ARE
ASSIGNED DIFFERENT ACTIVITIES. IT BRINGS
SPECIALIZATION IN WORK SINCE ONE PERSON WILL BE TAKING UP THE SAME TASK
REPEATEDLY AND THIS WILL IMPROVE THE EFFICIENCY.
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CLARITY OF WORKING RELATIONSHIP :- IN THE ORGANIZATION STRUCTURE THE PLACEMENT AT
DIFFERENT JOB IS DONE AND AUTHORITY AND RESPONSIBILITY ASSIGNED IS CLEARLY
DEFINED
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OPTIMUM UTILIZATION OF RESOURCES :- THE WORK
OF EVERY PERSON IS CLEARLY DEFINED AND NO SCOPE OF OVERLAPPING AND DUPLICATION
OF ACTIVITIES
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EXPANSION AND GROWTH :- AREAS AND
ACTIVITIES OF A BUSINESS GROW IF IT HAS A WELL KNIT ORGANIZATION. FLEXIBLE
ORGANIZATION STRUCTURE WILL ENABLE THE EMPLOYMENT OF PERSONS WITHOUT DISTURBING
THE WORK
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ADAPTION TO CHANGE :- ORGANIZING HELPS IN
ADAPTION TO CHANGE WHEN BUSINESS ENVIRONMENT CHANGE
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EFFECTIVE ADMINISTRATION :- CLEAR
DESCRIPTION OF JOBS AND CLARIFIES THE AUTHORITY AND RESPONSIBILITY
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DEVELOPMENT OF PERSONNEL : IN THE
PROCESS OF ORGANIZING MANAGERIAL PERSONNEL ARE TRAINED TO ACQUIRE WIDE
EXPERIENCES IN DIVERSE ACTIVITIES THROUGH DELEGATION
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