Understanding the Organizing Function of Management Essay Example

the organizational goal.

Each individual is informed of their authorization and knows whom they must receive orders from and report to. Furthermore, they are aware of whom they have to explain their actions to. An explicit organizational structure is established and all staff members are informed of it.

Importance of Establishing Structure

A· Specialization - Organizational structure is a network of relationships in which the workload is divided into units and sections. This division enables specialization in various business activities.

The organizational structure helps in properly assigning people to various sections based on their qualifications, skills, and experience, which results in well-defined occupations. This clarity in job roles helps in defining the role of each individual. Additionally, the organizational structure clarifies the authority of each manager by defining their powers and how they should exercise them in order to prevent abuse. With well-defined job roles and attached responsibilities, efficiency is brought into managers' work, which ultimately increases productivity.

The coordination in an organization is the process of ensuring harmonious relationships and cooperation among different departments. It establishes clear and formal relationships between higher-level managers and lower-level directors, allowing for effective coordination of activities. This coordination is crucial for the smooth functioning of the organization. It requires a formal relationship between authority and duty, as well as coordination among various relationships.

Clarity is important regarding the ultimate duty associated with every authorization. The saying goes, "Authority without duty leads to ineffective behavior and duty without authorization makes individuals ineffective." Hence, coordination of authority and duty is crucial. Effective disposal of tasks and positions is facilitated by the organization structure.

The clarification of the functions performed by different directors leads to specialization and efficient

disposal. The company's growth depends on how effectively it operates, which can be achieved through clearly defining the roles of directors, coordinating authority and responsibility, and focusing on specialization. Additionally, a company can diversify if it has the potential to grow.

Organizational structure is essential for achieving clarity and coordination within an organization. A well-defined structure provides a sense of security by clarifying job roles and clearly assigning responsibilities to each manager.

Therefore, lucidity of powers helps automatically in increasing mental satisfaction and thereby a sense of security in a concern. This is really of import for job-satisfaction.

Principle of Specialization: Harmonizing to the rule, the whole work of a concern should be divided amongst the subsidiaries on the footing of makings, abilities and accomplishments. It is through division of work specialisation can be achieved which consequences in effectual organisation.

Principle of Functional Definition: Harmonizing to this rule, all the maps in a concern should be wholly and clearly defined to the directors and subsidiaries. This can be done by clearly specifying the responsibilities, duties, authorization and relationships of people towards each other.

Effective coordination and organization require clear clarifications in authority-duty relationships. This includes defining the primary functions of production, marketing, and finance departments as well as establishing the authority-responsibility relationships within these departments. Such clarification greatly contributes to efficient organization.

A· Principles of Span of Control/Supervision: The concept of span of control pertains to determining how many employees a single manager can effectively manage and supervise. According to this principle, managers need to decide the number of employees they can handle by choosing either a wide or narrow span of control.

In terms of span of control, there are

two types: wide and narrow. A wide span of control allows a director to effectively oversee and command a large group of individuals simultaneously. This means that one director can efficiently manage multiple subsidiaries at once. On the other hand, a narrow span of control involves dividing the work and authority among many subsidiaries, resulting in a director not overseeing and commanding a very large group. Instead, with a narrow span of control, the director supervises only a select number of employees at any given time.

The characteristics include work that requires tight control and supervision, such as handcrafts and tusk work, where workmanship is essential and a narrow span is more beneficial. For concerns with capable and experienced directors, a broad span of control is always helpful. Additionally, if subordinates are competent and have proper understanding levels, they tend to frequently seek assistance from higher-ups for problem-solving. In these cases, a director can manage a large number of employees. Therefore, a broad span is suitable.

The nature of work determines the most effective span of supervision. For repetitive tasks, a wide span of supervision is beneficial. However, for tasks that require mental skill or craftsmanship, tight control and supervision are necessary, which is best achieved with a narrow span. Delegation of authority plays a role in maintaining a harmonious work environment and reducing confusion. When tasks are delegated efficiently and properly to lower levels, a wide span of control is suitable. This allows supervisors to manage and oversee a large number of subordinates simultaneously.

Degree of decentralization- Decentralization is implemented to achieve specialization, where authorization is shared among multiple individuals and managers at different levels.

In such cases, a tall structure is advantageous. There are specific situations where decentralization is highly effective, resulting in direct and personal communication between superiors and subordinates, allowing superiors to easily manage a large number of subordinates. In these cases, a wide span of control is also beneficial.

Principle of Scalar Chain

Scalar chain refers to the flow of command or authority from top to bottom. Having a clear chain of authority minimizes resource wastage, improves communication, prevents work overlap, and facilitates smooth organization.

A combination of bid helps with work flow in an organization, leading to effective outcomes. This happens as authority is clearly defined for managers at all levels, resulting in an effective organization.

Principle of Unity of Command

This principle means that each subordinate has one superior. Each subordinate is responsible and accountable to one supervisor at a time.

This assists in preventing the spread of communication and allows for prompt feedback and response. Bid integrity also aids in effectively combining resources, such as physical and financial resources, to facilitate easy coordination and efficient organization.

Salespersons

According to the diagram above, the Managing Director holds the highest level of authority, which is also shared by the Marketing Manager and Sales Manager.

The clarity of communication and stability in a business is facilitated by the hierarchical structure, where the concatenation of hierarchy defines the authority positions of various managers at different levels. This scalar concatenation always flows from top to bottom.

Categorization of Organizations

Organizations are classified based on relationships. There are two types of organizations formed based on relationships in an organization:

• Formal Organization - This type refers to
  

a structure consisting of well-defined roles, each carrying a level of authority and responsibility.

The construction is a deliberate discovery through which people achieve goals by following established norms. This type of organization is a structured system where each person is accountable for their performance. Formal organization is a structured system designed to achieve predetermined objectives. Informal organization refers to a network of personal and social relationships that naturally arise within the formal structure. Informal organizations form relationships based on preferences, dislikes, and emotional connections.

In other words, informal organizations can be described as the network of social groups formed through friendly relationships. Unlike formal organizations, informal organizations arise spontaneously and are not governed by any regulations or rules.

Classification of Organizations

Both formal and informal organizations are crucial for businesses.

Formal organization is the result of the established organizational structure, and informal organization arises from formal organization. Both types are essential for efficiency as they function within the same entity. While formal organization can operate independently, informal organization relies solely on formal organization.

Both formal and informal organizations are important for maintaining efficiency and smooth operations within a company. In the formal organization, members interact and communicate to fulfill their assigned responsibilities. The informal organization, on the other hand, facilitates cooperation among employees when working towards organizational goals. It can be seen as arising from the formal organization, as social connections are built during collaboration. Therefore, both types of organizations play a crucial role in ensuring successful attainment of objectives.

Line Organization

The most ancient and simplest method of administrative organization is line organization. Authority flows vertically from top to bottom in a business under this type

of organization. This is also known as scalar organization, indicating a hierarchical structure. In line organization, communication and coordination flow smoothly and continuously without any gaps.

Importance of Delegation

Delegation is the process of dividing and sharing authority and powers among employees.

When a director's workload becomes overwhelming, it is crucial to establish a work sharing system. This involves the process of deputation, where the director delegates their authority within the organization. Through deputation, directors are able to distribute their workload among their subordinates and alleviate some of the burden on themselves. The importance of deputation lies in its ability to divide and assign tasks to subordinates, ultimately reducing the director's workload and enabling them to concentrate on essential areas like planning and business analysis.

With the decrease of burden on the superior, they are able to focus their energy on important and critical concerns. This allows them to be effective in their work and within the work unit, demonstrating their abilities and skills in the best way. Delegating authority is essential for the superior-subordinate relationship to thrive, as the organization functions through the flow of authority from top to bottom. Therefore, delegation makes the superior-subordinate relationship meaningful.

The process of authorization follows a top-down approach, which is effective in achieving desired outcomes. Granting authority to subsidiaries enables them to enhance their skills and performance by providing them with ample space and freedom. Delegation of power instills a sense of importance and motivation among the subsidiaries, leading to positive business outcomes. Maintaining a stable and healthy relationship between superiors and subordinates relies on job satisfaction as a crucial factor. Additionally, delegation aids in alleviating monotony

for subordinates, fostering creativity and efficiency.

Delegating authority is not only beneficial to subordinates but also helps managers develop their skills and talents. By allowing managers enough time to focus on important issues, delegation strengthens their decision-making abilities and allows them to enhance the skills required for effective management. Delegation enables managers to test their leadership traits by granting power and achieving tasks through effective communication, supervision, guidance, motivation, and leadership. Therefore, delegation is a means to assess a manager's capabilities. Overall, delegating authority promotes stability in a business's operations.

By effectively implementing new sections and divisions within a business, there can be beneficial outcomes. To achieve this, experienced and skilled directors can be transferred to these roles. This approach promotes both practical and horizontal growth, which is crucial for maintaining the stability of a business. Thus, it can be concluded that delegation is not just a process, but a method through which a director can enhance their impact and bring stability, capability, and strength to a business.