05-12-2012, 04:10 PM
MEANING OF ORGANISATION STRUCTURE
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INTRODUCTION
Organising in a general sense means systematic arrangement of activities. In this sense, organising is done by each individual. However, organising as a process of management essentially relates to sub-dividing and grouping of activities.
Organising becomes necessary when two or more persons work together to achieve some common objectives. When a player is playing alone, there is perhaps no need of organising. But organising becomes important when players are playing in a team.
In that case, it is important to determine the role of each player and for the team as a whole to attain victory over the rival team. Similarly, in a one-man business, all the activities are performed by the owner himself. But when the owner employs someone to assist him, he has to determine the work to be done by the employee and give him the right to use materials, machinery, equipment, etc. This is the point when organising becomes necessary.
As more people are appointed, there has to be further division and sub-division of work among them. When an organisation becomes large, separate departments are created to perform different functions. Each department has to be divided into a number of smaller units. Ultimately, the work of the organisation is divided into a number of positions of employees and managers. Relationships are then established among the different positions in the organisation. The outcome of the organising process is a set of formal relationships which is known as organisation structure. In this lesson, we shall study about the process of organising which leads to the setting up of an organisation structure.
MEANING AND PROCESS OF ORGANISING
Organising refers to the way in which the work of a group of people is arranged and distributed among group members. The function of organising includes the determination of the activities to be performed; creation of departments, sections and positions to perform those activities; and establishing relationships among the various parts of an organisation. The purpose is to create a framework for the performance of the activities of an organisation in a systematic manner. It is important to note that the term organisation should not be used in the same sense as organising.Organising is a function of management, while organisation refers to a group of persons who have come together to achieve some common objectives.
The process of organising refers to identifying and grouping of activities to be performed, defining and delegating authority, casting responsibility and establishing relationships to enable people to work together effectively in accomplishing objectives.
Establishing relationship among individuals and groups:
Managers divide activities to increase efficiency and to ensure that work is properly done. The activities which are performed by persons holding different positions must be related. The responsibility, authority and accountability of each person must be well defined. This is necessary to avoid conflict and confusion and to ensure that work is performed as planned. Establishing relationships among individuals and groups is, therefore, an important aspect of the organising process.
Importance of organising
Performance of the organising function can pave the way for a smooth transition of the enterprise in accordance with the dynamic business environment. The significance of the organising function mainly arises from the fact that it helps in the survival and growth of an enterpriseand equips it to meet various challenges. In order for any business enterprise to perform tasks and successfully meet goals, the organising function must be properly performed.
MEANING OF ORGANISATION STRUCTURE
You must have noted that in the organising process, work is arranged and distributed among the members of a group. The end-result of orgnising is a framework of formal relationships among different departments and positions. This framework of formal relationships is known as organisation structure. The term structure refers to the arrangement of parts and interrelationships among activities and people. For example when we refer to the structure of a building, following things immediately come to our mind. What is the total area in which the building has been constructed? How many floors are there? The number of rooms in each floor? The number of doors, windows and ventilators in each room. For what specific purpose, each room will be used. How is one room connected with the other and how is one floor connected with another and so on.
How an organisation structure is created
In most organisations, the structure is created on the basis of functions. In one-man business, all the functions are carried out by the owner himself. The same person produces and sells. As the amount of work increases, he has to appoint some people to assist him. When the work further increases, he will need more people to perform the production and selling functions. The owner may now be forced to create separate departments for production and selling and appoint managers for each of these two departments. This is necessary because he has limited capacity and time. He cannot supervise the activities of more than a few subordinates. In other words, the owner is guided by the principle of span of management. According to this principle, there is a limit to the number of subordinates who can be effectively supervised by a single manager.