BC0C-132 BUSINESS ORGANISATION AND MANGEMENT CHAPTER-10 ORGANISING

 

BC0C-132 BUSINESS ORGANISATION AND MANAGEMENT CHAPTER-10 ORGANISING

The organisation is a group of people working together to achieve common goals, it involves arranging tasks, defining responsibility and creating a structure that helps everyone work efficiently toward the objectives of the company or group.

CHARECTERISTICS OF ORGANISATION

1. GROUP OF PEOPLE: an organization forms when people work together for a

   common purposes

2. DIVISION OF WORK:- tasks are divided based on skills and assigned to

   individuals

3. COMMON PURPOSE:- the organization has shared goal separate from personal

   objectives

4. VERTICAL AND HORIZONTAL:- corporation is established between departments

   and levels of authority

5. CHAIN COMMAND:- hierarchy is formed , determining the 8low of authority

   and communication

6. DYNAMICS OF ORGANIZATION:-interactions are influenced by sentiments,

   attitudes and behavior adding a dynamic element

IMPORTANCE OF ORGANISATION

1. FACILITATE ADMINISTRATION:- enables management to align resources with

   objective of planning, coordination and control

2. FACILITATE GROWTH AND DIVERSIFICATION:- supports organizational

   expansion and adaptability to changing needs

3. OPTIMUM USE OF RESOURCES:- allows efficient use of technical and human

   resources, fostering development and adaption to technological advancement

4. STIMULATES CREATIVITY:- encourages creativity by providing clear roles and

   allowing managers to focus on important issues

5. ENCOURAGES HUMANISTIC APPROACH:-fosters a team-oriented environment ,

   job satisfaction and human centric approach to work

ORGANAISATION AS A SYSTEM

Organizations viewed as systems consist of components with unique properties and relationships. The system concept emphasizes that the whole organization is more than the sum of its parts, and it includes various sub systems like inputs , through output ,transformation output

COMPONENTS OF AN ORGANISATION SYSTEM

1. INPUTS:- resources from the environment , such as human resources, materials,

   energy and information

2. PROCESS(THROUGHPUT):- utilizes inputs within the organization to produce

   desired outputs, involving subsystem like production, marketing , finance etc.

3. OUTPUT:- the results or product of the organization , both intended (objectives)

   and unintended (informal relations)

MANAGEMENT COMPONENT:

MANAGEMENT: involves planning, organizing, staffing, directing, and controlling . feedback is crucial for managing , ensuring quality , quantity , and timeliness of output

STEPS IN THE ORGANISATION PROCESS:

1. DETERMINATION OF OBJECTIVES:- identify objectives to guide the

   organization and bring unity of direction

2. IDENTIFICATION AND GROUPING OF ACTIVITIES:- classify the major activities

   to avoid duplication and clarify expectation

3. ALLOTMENT OF DUTIES:- assign speci8ic jobs to individuals based on their

   abilities and provide authority

4. DEVELOPING RELATIONSHIP:- establish clear structures of relationships,

   enhancing accountability and facilitating delegation

5. INTEGRATION OF ACTIVITIES:- achieve unity through authority relationships

   and organized information system

ORGANISATION STRUCTURE
Definition:- the established pattern of relationship among the parts of the

organization , describing its framework
SIGNIFICANCE :- Contributing to efficient functioning by providing clear authority relationships, communication patterns, decision centers, proper balance , creativity stimulation, growth encouragement and adaption to technological improvements

TYPES OF ORGANISATION STRUCTURE:

1. FUNCTIONAL STRUCTURE: organization activities based on functions( eg:

   manufacturing, marketing, finance)

   Advantages :-

   • specialized operations lead to operational efficiency

   • Direct communication between functional head and the chief executive

     Disadvantages:

   • Ineffective for large and complex organizations

   • Coordination and control challenges as functional units become unwieldy

2. DIVISIONAL STRUCTURE: Suited for large enterprises with multiple products or markets

   Advantages

   • Autonomy for individual managers in running functions related to products or markets

   • Decentralisation of authority allows prompt decision making Disadvantages

     • Heavy financial costs due to duplicated functional units

     • Require capable mangers for each division

3. ADAPTIVE STRUCTURE (PROJECT ORGANISATION): designed for specialized

   time-bound projects without disrupting regular business Advantages:

   • Leaves regular business undisturbed
   • Better management control over project activities Disadvantages:

   • Functional managers may resist project manager authority, leading to conflict

   • Disruption in the stability of functional department due to personal transfer

   ADAPTIVE STRUCTURE (MATRIX ORGANISATION):- combines elements of

autonomous project organization and functional specialization

Advantages

• Flexible structure suitable for changing condition

• Pooling of specialized personnel for multiple projects Disadvantages:

• Dual authority for personnel from the functional department and project mangers

• Sacrifice of the unity of command principle, leading to stresses and strains in project management

PRINCIPLES OF ORGANISATION:

1. UNITY OF OBJECTIVES:- every part of the organization should be directed

   toward achieving common goals. Clear formulation and understanding of

   objective are crucial for focusing efforts

2. DIVISION OF WORK AND SOCIALISATION:- tasks should be divided, allowing

   individuals to specialize in specific areas, promoting efficiency and quality .

   coordination is vital to interrelate specialized functions

3. DEFINITION OF JOB:- each position in the organization must have clearly

   defined duties and responsibilities to avoid overlapping functions and maintain

   clarity

4. Separation of line staff functions:- distinguish between functions directly

   contributing to the main objectives(line functions) and support functions(staff

   functions) for better organizational efficiency

5. CHAIN COMMAND OR SCALR PRINCIPLE:- maintain clear lines of authority

   from top to bottom, facilitating delegation of authority through levels for

   effective decision making

6. PARITY OF AUTHORITY AND RESPONSIBILITY:- ensure that responsibility is

   matched with corresponding authority empowering individuals to ful8ill their

   assign tasks

7. UNITY OF COMMAND:- every individual should report to only one superior to

   prevent confusion, conflict and ensure a clear reporting structure

8. UNITY OF DIRECTION:- group activity with a common goal should be managed

   by one person, fostering cohesive approach towards organizational objectives

9. EXCEPTION PRINCIPLE:- higher level mangers should focus on exceptional

   matters , while routine decisions are made at lower levels, maintaining

   efficiency

10. SPAN OF SUPERVISION:- the number of subordinate a manager can

effectively supervise should be balanced , considering factors like nature of

work, managerial ability, and organizational efficiency
11. PRINCIPLE OF BALANCE:-maintain a proper balance between various

aspects of the organization , avoiding undue importance in any one area 12. COMMUNICATION:- a good communication network is crucial for

organizational effectiveness , ensuring smooth 8low of information and

understanding
13. FLEXIBILITY:- a business organization structure should be adaptable to

change in business nature and technological advancements, ensuring flexibility

without disrupting the basic design
14. CONTINUITY:- the organization’s structure should be able to serve its

objectives for a long period

SPAN OF CONTROL:( SPAN OF AUTHORITY)
The number of subordinates a manger can supervise effectively should be neither too wide nor too narrow, considering factors like nature of work, managerial ability and organizational efficiency
Factors affecting span of control:

• Nature of work
• Ability of manager
• Efficiency of organization
• Staff assistant
• Time available for supervision • Ability of subordinates
• Degree of decentralization

ORGANISATION CHART

An organization chart is a diagrammatic representation of an organization’s structure , illustrating formal relationships, lines of authority and communication channel Advantages:-

• Clarity and communication • Administrative tool
• Orientation and evaluation
• Organizational improvement

Disadvantages:
• Limited formal relationship
• Rigidity
• Inability to answer specific questions • Potential for. Confusion
• Depiction of supposed relationships

ORGANISATIONL MANUAL

An organizational manual compliments an organization chart by providing detailed information on job duties and responsibilities , helping to avoid interruptions and enhance efficiency
IMPORTANCE:

1. Clarity and avoidance of conflict:- a manual helps individuals understand job responsibilities, relationships within the organization , and thus reduces jurisdictional con8licts and overlapping

2. Definite instruction:- it makes instructions clear , reducing the need for employees to approach superiors for guidance, minimizing interruptions, and saving time and energy

3. Uniformity and consistency:- facilitating training of new employees and maintaining established routine

4. Promotion of delegation and management by exceptions:- supports delegations of authority and management by exception, enhancing organizational ef8iciency

TYPES OF MANUAL:

1. POLICY MANUAL:- describes the overall framework for enterprise policies .

   serving as a basic guide to action

2. OPERATIONAL MANUAL:-informs employees of established methods,

procedures , and performance standards ,often using diagram and sketches

3. ORGANISATIONAL MANUAL:- depicts the organizational setup , detailing duties ,responsibility and formal chain of authority
4. RULES AND REGULATIONS MANUAL:-contains operating rules , employment regulations, and bene8it plans , functioning as handbook of employment rules

5. DEPARTMENT MANUAL:-details internal policies , operating rules and relationships within specific departments
Advantages:

• Procedural information
• Ready reference
• Conflict resolution
• Quick learning of new employees • Quick decision making

Disadvantages:

• Cost and time for small enterprises • Rigidity(resistance of change)
• Exposure of sensitive relationships

FORMAL AND INFORMAL ORGANISATION:

FORMAL ORGANISATION:

• Definition:- a consciously planned structure representing officially established

  relationship to achieve organizational goals

• Structure:- hierarchy within defined positions, roles and relationships

  represented in charts and formal documents

• Purpose:- realizing specific well-defined enterprises objectives

• Activities:- differentiated and integrated around enterprise objectives,

  formulized into work units or departments

• Membership:-individuals belong to one work group and work under one

  superior

• Orientation:- dominantly economic and technical , focused on productivity ,

  pro8itability, and ef8iciency

• Norms of behavior:- prescribed manner enforced by rules and regulations

  INFORMAL ORGANISATION

• DeTinition:- spontaneously arising relationship based on personal attitudes,

  emotions and interests.

• Structure:- non-hierarchical , resembling a complex social network with

  unwritten norms

• Purpose:- created by manner for social and psychological satisfaction

• Activities:- no speci8ic formalized activities arise from interactions and

  sentiments

• Membership:-individuals can be part of multiple groups according to personal

  choice

• Orientation:- predominantly psychosocial , centered around individual and

  group satisfaction

• Norms of behavior:- behavior is more natural , in8luenced by group norms ,

with a system of informal rewards and punishments

CHARACTERISTICS OF INFORMAL ORGANISATION

1. Authority:- personal rather than positional, earned within the group

2. Objectives:- groups evolve own goals re8lecting special interest , driven by

   group cohesiveness

3. Communication:- arises from de8iciencies in formal channels, faster but may

   lead to rumors

4. Leadership:- emerges naturally within the group , not necessarily the formal

   superior

FUNCTIONS OF INFORMAL ORGANISATION:

1. Filling gaps is managerial abilities
2. Solving work problems through shared knowledge
3. Better coordination and communication
4. Acting as a restraint on managers
5. Building better relationship between mangers and subordinates 6. Developing future executives by recognizing talent

PROBLEMS OF INFORMAL ORGANISATION

1. Negative attitude of informal leaders
2. Conformity leading to willful control by the group leader
3. Resistance to change and obstructing organizational growth 4. Rumors causing con8lict and misunderstanding
5. Role con8lict between formal and informal exceptions