The Function of Organizing - Part 3 -

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ORGANIZING Function of Management

Danica T. Zaragoza

B.A. 551: MANAGEMENT PRINCIPLES AND DYNAMICS (MPD)

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"Organisation is the process of identifying and grouping of the works to be performed, defining and delegating

responsibility and authority and establishing relationships for the

purpose of enabling people to work most efficiently".- Louis A. Allen

• Just how well organized are you? Do you spend time the night before work planning your day, or do you take the attitude that whatever happens will happen and you’ll handle it as it comes up? 

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Importance of Organising

• Organising helps Organisations to reap the benefit of specialization.

• Organising provides for Optimum utilization of resources.

• Organising helps in Effective administration.• Organising channels for Expansion and growth.• Organising achieves co-ordination among different

departments.• Organising creates scope for new change.

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Organizing PrinciplesOrganizing can be effective only if managers follow some guiding principles in order to make important decisions and act upon them. To organize efficiently, a manager can utilize the following principles:

Principle of Specialization• According to the principle, the entire work of

an enterprise must be shared among the subordinates based on their qualifications, abilities and skills. Hence, effective organization can be achieved through specialization of sharing or dividing work. Employees within each department perform only the tasks related to their specialized function.

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• When specialization is extensive, employees specialize in a single task, such as running a particular machine in a factory assembly line. Jobs tend to be small, but workers can perform them efficiently. By contrast, if a single factory employee built an entire automobile or performed a large number of unrelated jobs in a bottling plant, the results would be inefficient.

• Despite the apparent advantages of specialization, many organizations are moving away from this principle. With too much specialization, employees are isolated and perform only small, narrow, boring tasks. In addition, if that person leaves the company, his specialized knowledge may disappear as well. Many companies are enlarging jobs to provide greater challenges and creating teams so that employees can rotate among several jobs.

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Principle of Functional Definition• The principle states that all the work in an

enterprise must be fully and clearly described to the managers and subordinates. For instance, the initial work of production, marketing and finance, the authority of managers and the responsibilities of the workers and their relationships towards each other must be clearly described to all the people working in a department. Hence, clarification in the authority and responsibility helps in the growth of an organization

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Principles of Supervision or Span of Control• The principle states that the span of control shows the

number of employees that a single manager can handle and control efficiently. Hence, a manager must be able to decide the number of employees that he can handle and this decision can be chosen from either a wide or narrow span of employees. There are two types of span of control and they are as follows:

• A. Wide span of control: According to this principle, a manager can easily supervise and effectively handle a big group of subordinates independently.

• B. Narrow span of control: According to this principle, a manager does not have to supervise and control a large group of people as the work and authority is shared among many subordinates. Hence, he needs to supervise only a selected number of employees at one time.

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Principle of Scalar Chain• It is that chain of command or

authorization in which there is minimum wastage of resources, communication is unaffected, overlapping of work is prevented, and also facilitates effective organization. The flow of authorization from the top level to the bottom level enables the managers to understand their positions of authority and this helps in an effective organization.

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In an organization, the formal lines of authority, from highest to lowest level of all superiors and subordinates, are known as scalar chain. The principle of scalar chain suggests that there should be a clear line of authority from top to bottom, linking superiors and subordinates at all levels. The scalar chain serves as a chain of command as wells as communication. In normal circumstances, the formal communication is required to be made by the following this chain.

Above mentioned chain has the following disadvantages: • It caused delay in reaching communication to the required level.• Creates the possibility of distortion of information flow as various levels are

involved.• To avoid delays and to remove hurdles in the exchange of information, concept of

Gang Plank has been suggested by Fayol, shown by the dotted line joining D and G.

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Principle of Unity of Command

• According to this principle, one subordinate is accountable to only one superior at one time. This helps in preventing lack of communication and feedback and also brings about quick response. Hence, the principle of unity of command leads to effectively combine both physical and financial resources which in turn aids in effective coordination and organization.

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With the use of organizing function as a primary mechanism to activate plans resources, this leads to…

1. Creating and maintaining relationships between all of the organization’s resources.2. Defining which resources need to be used for which projects.3. Determining when, where and how the resources will be used.4. Minimizing cost overruns, duplication of efforts, and idle organizational resources.

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Organizing is what you do before you do something, so

that when you do it, it is not all mixed

up.

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Don’t agonize. Organiz

e.

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ORGANISE VS ORGANIZE

Organise and organize are different spellings of the same word. Organize is the preferred spelling in the U.S. and Canada, and Organise is more common outside North America.

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Resources:• http://www.emsvillage.com/articles/article.cfm?id=797

• http://dilipchandra12.hubpages.com/hub/ORGANISING-Management-principles

• http://dilipchandra12.hubpages.com/hub/Importance-of-Organizing