L-7- ORGANISING
INTRODUCTION
Organizing
is a fundamental function of management that involves arranging and structuring
resources, tasks, and people within an organization to achieve its objectives
efficiently and effectively. It is the process of designing a framework that
enables the smooth execution of plans and facilitates coordination among
various individuals and departments.
INTRODUCTION
Organizing
plays a crucial role in the overall management process and is often considered
the backbone of any successful organization. It encompasses various activities
such as allocating resources, defining roles and responsibilities, establishing
reporting relationships, creating communication channels, and designing
workflows.
The primary
goal of organizing is to create a coherent and logical structure that enables
individuals and departments to work together harmoniously toward achieving
organizational goals. By organizing resources and activities, organizations can
optimize productivity, streamline operations, reduce duplication of efforts,
and enhance coordination and collaboration.
KEY ASPECTS OF ORGANIZING
Division of Work: Organizing involves breaking down
tasks and responsibilities into manageable units and assigning them to
individuals or groups. This division of work ensures that each person knows
their role and contributes to the overall objectives of the organization. It
helps in specialization, improves efficiency, and minimizes confusion or
overlap.
Establishing Relationships: Organizing establishes reporting
relationships and defines the hierarchy and authority structure within an
organization. It determines who reports to whom, the flow of information, and
the decision-making processes. Clear lines of communication and well-defined
relationships enable effective coordination and ensure that everyone is aware
of their roles and responsibilities.
Creating Departments or
Units: Organizing involves grouping
individuals with similar skills, expertise, or functions into departments or
units. This departmentalization allows for better coordination, efficient
resource allocation, and specialized focus within each unit. Departments can be
organized based on different criteria such as function, product, geography, or
customer type.
Delegation of Authority: Organizing involves delegating
authority and empowering individuals or teams to make decisions within their
designated roles. Effective delegation ensures that decision-making is decentralized,
promotes employee engagement, and facilitates faster responses to challenges
and opportunities. It also helps in developing and nurturing future leaders
within the organization.
Designing Workflows: Organizing includes designing
workflows and establishing the sequence of activities required to complete
tasks or projects. This involves identifying interdependencies, establishing
processes, and setting up systems that ensure smooth coordination and minimize
bottlenecks. Well-designed workflows optimize efficiency and enhance
productivity.
CONCLUSION
Organizing
is a critical management function that helps in structuring resources,
establishing relationships, and creating an efficient framework within an
organization. By effectively organizing, businesses can maximize productivity,
optimize resource allocation, enhance coordination, and adapt to changing
circumstances more efficiently. It provides the necessary foundation for the
successful execution of plans and the achievement of organizational goals.
MEANING AND DEFINITION OF ORGANISING
Organizing,
in the context of management, refers to the process of arranging resources,
tasks, and people within an organization in a structured manner to achieve
specific goals and objectives. It involves creating a coherent framework that
outlines the relationships, roles, and responsibilities of individuals,
departments, and functions within the organization.
Organizing
encompasses various activities and decisions related to the allocation of
resources, establishment of reporting relationships, creation of departments or
units, delegation of authority, and design of workflows. These activities are
aimed at achieving efficiency, coordination, and effectiveness in the
organization's operations.
The purpose
of organizing is to create an orderly structure that enables individuals to
work together smoothly, eliminates redundancy and confusion, and facilitates
the achievement of organizational goals. It provides clarity regarding roles
and responsibilities, establishes communication channels, and ensures that
tasks are carried out in a logical sequence.
In summary,
organizing is the management function that involves structuring and arranging
resources, tasks, and people within an organization to optimize efficiency,
coordination, and effectiveness. It establishes the framework necessary for
individuals and departments to work together towards achieving common
objectives.
CHARACTERISTICS OF AN ORGANISATION
An
organization, whether it is a business, nonprofit, government agency, or any
other type, possesses several key characteristics that define its nature and
functioning. Here are some common characteristics of an organization:
Goal Orientation: Organizations are created with
specific goals and objectives in mind. These goals serve as a guiding force for
the organization's activities and provide a sense of direction. All efforts and
resources are focused on achieving these goals, and the organization's
structure and processes are designed to support their attainment.
Structure and Hierarchy: An organization typically has a
formal structure that outlines the relationships, roles, and reporting lines
within the entity. It establishes the chain of command, authority levels, and
the flow of information. Organizational structures can vary, such as
hierarchical, matrix, flat, or networked, depending on the nature and size of
the organization.
Division of Labor: Organizations divide tasks and
responsibilities among individuals or groups to achieve efficiency and
specialization. This division of labor allows people to focus on specific areas
of expertise and contributes to increased productivity. Specialization can
occur based on functions, departments, or specific roles within the
organization.
Coordination and
Communication: Effective
coordination and communication are essential for the smooth functioning of an
organization. They ensure that different parts of the organization work
together harmoniously towards common goals. Communication channels, both formal
and informal, facilitate the exchange of information, instructions, and
feedback among individuals and departments.
Authority and
Responsibility: Organizations
have a system of authority and responsibility that defines decision-making
powers and accountability. Authority is delegated to individuals or positions
within the organization, empowering them to make decisions and take actions.
With authority comes responsibility, where individuals are accountable for
their actions and the outcomes of their decisions.
Resource Allocation: Organizations allocate and manage
resources, including human resources, financial capital, technology, and
physical assets, to support their operations. Efficient resource allocation
involves determining priorities, optimizing utilization, and ensuring that
resources are aligned with the organization's goals and strategies.
Adaptability and Change: Organizations operate in dynamic
environments and must be adaptable to change. They need to respond to internal
and external factors, such as market trends, technological advancements, and
regulatory changes. Organizations that can adapt and innovate are more likely
to thrive in a constantly evolving landscape.
Organizational Culture: Organizational culture refers to the
shared values, beliefs, norms, and behaviors that define the organization's
identity and shape its working environment. Culture influences how individuals
interact, make decisions, and approach their work. A strong and positive
organizational culture fosters employee engagement, collaboration, and a sense
of belonging.
These
characteristics collectively contribute to the identity, structure, and
functioning of an organization. They shape how the organization operates,
interacts with stakeholders, and pursues its goals.
STEPS IN THE PROCESS OF ORGANISING
The process
of organizing involves several steps to create a structured framework within an
organization. While the specific steps may vary depending on the organization
and its needs, here is a general outline of the process of organizing:
Identify Goals and
Objectives: Clearly
define the goals and objectives of the organization. This provides a clear
direction for the organizing process and helps determine the necessary
structure and resources.
Determine Tasks and
Activities: Identify the
tasks and activities required to achieve the organizational goals. Break down
the goals into specific actions and determine the necessary resources, skills,
and responsibilities for each task.
Grouping and
Departmentalization: Group tasks
and activities into logical categories or departments. This could be based on
functions (e.g., marketing, finance, (operations), products, customer segments,
geographical regions, or a combination of factors. Departmentalization helps
create focused units within the organization.
Establish Reporting
Relationships: Define the
reporting relationships and hierarchy within the organization. Determine the
chain of command, decision-making authority, and communication flow. Clarify
who reports to whom and establish clear lines of communication and
accountability.
Delegate Authority and
Assign Responsibilities: Delegate
authority and assign responsibilities to individuals or positions within the
organization. Clearly define the decision-making powers and empower individuals
to take ownership of their assigned tasks. Ensure that the authority and responsibility
align with each other.
Develop Job Descriptions: Create job descriptions that outline
the roles, responsibilities, and required skills for each position within the
organization. Clearly define the expectations, duties, and qualifications for
each role to guide recruitment, selection, and performance evaluation
processes.
Establish Communication
Channels: Set up effective communication
channels to facilitate information flow within the organization. This includes
both formal channels such as meetings, reports, and emails, as well as informal
channels that encourage collaboration and sharing of knowledge.
Allocate Resources: Determine the allocation of resources
such as human resources, financial capital, technology, and physical assets to
support the organizational activities. Ensure that resources are allocated
effectively and efficiently to meet the needs of each department and task.
Design Workflows and
Processes:
Establish workflows and
processes that define the sequence of tasks and activities required to achieve
specific objectives. Determine how tasks will flow between departments or
individuals, ensuring a logical and efficient progression.
Monitor and Adjust: Continuously monitor and evaluate the
organizing structure and processes. Identify any gaps, inefficiencies, or areas
for improvement and make necessary adjustments. Regularly review the
organizational structure to ensure it remains aligned with the organization's
goals and evolving needs.
It's
important to note that organizing is an ongoing process that may require
modifications as the organization grows, adapts to change, or encounters new
challenges. Flexibility and continuous evaluation are key to maintaining an
effective organizational structure.
PRINCIPLES OF ORGANISING
Organizing
principles provide guidance and a framework for creating effective
organizational structures and processes. They help in establishing a coherent
and efficient system that supports the achievement of organizational goals.
While different experts may emphasize different principles, here are some
commonly recognized principles of organizing:
Unity of Objective: This principle states that all
activities and efforts within an organization should be directed towards a
common objective or set of objectives. It ensures that the organizing process
aligns with the overall purpose of the organization and that all departments,
teams, and individuals work in harmony towards shared goals.
Division of Work: The principle of division of work
suggests that tasks and responsibilities should be divided and assigned to
individuals or groups based on their skills, expertise, and specialization. By
dividing the work, organizations can take advantage of specialization, which
leads to increased efficiency and productivity.
Span of Control: The span of control principle
emphasizes that each manager or supervisor should have a reasonable number of
subordinates to effectively supervise and manage. It helps in maintaining clear
lines of communication, efficient decision-making, and proper coordination. A
manageable span of control allows for effective supervision and reduces the chances
of overload or neglect.
Scalar Principle: The scalar principle, also known as
the chain of command, establishes a clear hierarchy of authority within an
organization. It defines the levels of management and the formal lines of
communication and reporting. The scalar principle ensures that there is a clear
flow of authority, accountability, and decision-making from top management down
to the lowest levels.
Coordination: Coordination is a fundamental
principle of organizing. It emphasizes the need to synchronize and harmonize
the efforts of different individuals, departments, and functions within an organization.
Effective coordination ensures that various parts of the organization work
together towards common goals, minimizes duplication of efforts, and promotes
synergy.
Balance and Flexibility: The principle of balance suggests
that the organizing process should strive for a balance between centralization
and decentralization, specialization and generalization, and formalization and
flexibility. It recognizes the need for adaptability and the ability to respond
to changing internal and external conditions.
Delegation of Authority: The principle of delegation of
authority emphasizes empowering individuals at various levels within the
organization to make decisions and take responsibility for their assigned
tasks. Delegation enhances efficiency, employee engagement, and development,
while relieving top-level managers from excessive decision-making burdens.
Unity of Command: The principle of unity of command
states that each employee should have only one direct supervisor to avoid
conflicting instructions and confusion. It helps maintain clear lines of
authority, reduces conflicts, and ensures clarity in reporting relationships.
Efficiency and
Effectiveness: Organizing
principles should aim to achieve efficiency and effectiveness in the allocation
and utilization of resources. The organization's structure and processes should
optimize the use of resources to achieve desired outcomes and deliver value to
stakeholders.
Continuity: Organizing principles should support
the organization's long-term sustainability and continuity. They should allow
for the organization to adapt to changes, manage transitions, and maintain
stability and consistency over time.
These
organizing principles provide a foundation for designing effective
organizational structures, decision-making processes, and coordination
mechanisms. Organizations can apply these principles while considering their
specific goals, industry, culture, and other contextual factors to create a
structure that best suits their needs.
IMPORTANCE\BENEFITS OF ORGANISING
Organizing
is a critical function of management that brings numerous benefits and
importance to an organization. Here are some key reasons why organizing is
important:
Clarity and Direction: Organizing helps establish clarity
and direction within an organization. It sets clear goals, defines roles and
responsibilities, and creates a structured framework that guides employees'
actions. This clarity ensures that everyone understands their tasks and how
they contribute to the overall objectives, which reduces confusion and enhances
productivity.
Efficiency and
Productivity: Effective
organizing enhances efficiency and productivity by optimizing the allocation
and utilization of resources. It ensures that resources, including human
resources, time, and finances, are allocated effectively to achieve the desired
outcomes. Organized workflows, clear processes, and coordination mechanisms
eliminate duplication of efforts and streamline operations.
Coordination and
Collaboration: Organizing
promotes coordination and collaboration among individuals, teams, and
departments. By clearly defining reporting relationships, establishing
communication channels, and designing workflows, organizing facilitates the
flow of information and promotes effective collaboration. This coordination
reduces conflicts, enhances synergy, and enables seamless teamwork.
Specialization and
Expertise:
Organizing allows for
the division of work based on individuals' skills, knowledge, and expertise. By
assigning tasks to individuals with specialized knowledge, organizations can
benefit from increased efficiency, higher quality outcomes, and faster
completion of tasks. Specialization enables employees to focus on their areas
of expertise, leading to improved performance and productivity.
Effective Decision Making: Organizing establishes clear lines of
authority and delegation of authority, which enables effective decision-making
processes. It empowers individuals at various levels to make decisions within
their roles and responsibilities, leading to faster responses to challenges and
opportunities. Well-defined decision-making processes enhance organizational
agility and responsiveness.
Adaptability and Change
Management: Organizing
helps organizations adapt to changes in the internal and external environment.
By having a structured framework, organizations can quickly adjust roles,
responsibilities, and processes to accommodate new challenges or opportunities.
Flexibility and adaptability in organizing ensure that organizations can
respond effectively to changing market conditions, technological advancements,
and customer demands.
Growth and Scalability: Effective organizing supports
organizational growth and scalability. As organizations expand, organizing
helps in managing increased complexity, establishing new departments or
functions, and ensuring efficient resource allocation. It enables organizations
to scale their operations without losing efficiency or effectiveness.
Employee Engagement and
Satisfaction: Organizing
that provides clarity, well-defined roles, and opportunities for skill
development enhances employee engagement and satisfaction. Clear organizational
structures and career paths give employees a sense of purpose and direction,
leading to higher motivation and job satisfaction. Employees are more likely to
be productive and committed when they understand their roles and see
opportunities for growth within the organization.
Effective Control and
Monitoring: Organizing
facilitates effective control and monitoring of organizational activities.
Clear reporting relationships, accountability mechanisms, and performance
measurement systems help managers monitor progress, identify deviations, and
take corrective actions. Organizing supports effective monitoring, evaluation,
and feedback processes that contribute to continuous improvement and goal
attainment.
In summary,
organizing is important for organizations as it brings clarity, efficiency,
coordination, adaptability, and growth. It establishes a structured framework
that enables organizations to utilize resources effectively, promote
collaboration, and achieve their goals successfully.
STRUCTURE OF ORGANISATION
The
structure of an organization refers to its formal framework that outlines the
relationships, roles, and responsibilities of individuals, departments, and
functions within the entity. It determines how tasks are divided, coordinated,
and controlled to achieve organizational objectives. The structure provides
clarity on reporting relationships, authority levels, communication channels,
and decision-making processes. Here are some common types of organizational
structures:
Functional Structure: This is the most traditional and
common type of organizational structure. It groups employees based on their
functional areas or specialized skills, such as marketing, finance, operations,
human resources, etc. Each department is headed by a functional manager who
oversees the activities and resources within that area. This structure allows
for specialization, clear career paths, and expertise development.
Divisional Structure: In a divisional structure, the
organization is divided into self-contained divisions or business units based
on products, geographic regions, customer segments, or projects. Each division
operates as a separate entity with its own functional areas, such as marketing,
finance, and operations, and has its own management team responsible for
decision-making. This structure allows for greater autonomy and flexibility in
responding to unique market conditions.
Matrix Structure: A matrix structure combines
functional and divisional structures, where employees are grouped by both
function and project or product teams. It allows individuals to work on
specific projects or products while still belonging to a functional department.
This structure promotes cross-functional collaboration, information sharing,
and efficient resource utilization. However, it can sometimes create complex
reporting relationships and dual lines of authority.
Flat Structure: A flat structure has fewer hierarchical
levels and a broader span of control. It promotes decentralized
decision-making, open communication, and a flexible work environment. In a flat
structure, there is less emphasis on formal titles and more on empowering
employees to take ownership and collaborate. It is often found in small organizations
or startup environments.
Hierarchical Structure: A hierarchical structure is
characterized by multiple levels of management with clear lines of authority
and control. It follows a top-down approach, where decisions and instructions
flow from top-level management to lower levels. Each level of management has
different roles and responsibilities, and employees report to their immediate
superiors. This structure provides clear reporting relationships, facilitates
control and coordination, but can sometimes be slow in decision-making and
communication.
Network Structure: A network structure is a flexible and
decentralized form of organization that relies on strategic alliances,
partnerships, and outsourcing. It emphasizes collaboration with external
entities to leverage specialized expertise and resources. This structure allows
organizations to adapt quickly, access global talent, and focus on core
competencies while relying on external partners for other functions.
It's
important to note that organizations can have a combination of structures or
tailor their structure to suit their specific needs. The chosen structure
should align with the organization's goals, culture, industry, and size. The
structure of an organization plays a crucial role in defining its operating
model, communication flows, decision-making processes, and overall
effectiveness in achieving its objectives.
TYPES OF ORGANISATONAL STRUCTURE
There are
several types of organizational structures that organizations can adopt based
on their needs, goals, and industry. Here are some common types of
organizational structures:
Functional Structure: This structure groups employees based
on their functional areas or specialized skills, such as marketing, finance,
operations, human resources, etc. Each department operates independently, with
a department head overseeing the activities and resources within that area.
Functional structures promote specialization, clear career paths within
functions, and efficient coordination within each department.
Divisional Structure: In a divisional structure, the
organization is divided into self-contained divisions or business units based
on products, geographic regions, customer segments, or projects. Each division operates
as a separate entity with its own functional areas, such as marketing, finance,
and operations. Divisional structures allow for greater autonomy, flexibility,
and focus on specific market needs or product lines.
Matrix Structure: A matrix structure combines elements
of both functional and divisional structures. It involves the formation of
cross-functional teams or project teams that work on specific projects or
products while still belonging to their respective functional departments. This
structure promotes collaboration, information sharing, and efficient resource
utilization. Employees have dual reporting relationships, both to their project
manager and functional manager.
Team-Based Structure: In a team-based structure, the
organization is organized around self-managed teams that have a high degree of
autonomy and responsibility. These teams are responsible for a specific
function, project, or customer segment and have decision-making authority.
Team-based structures foster collaboration, innovation, and employee
empowerment.
Network Structure: A network structure is a flexible and
decentralized form of organization that relies on strategic alliances,
partnerships, and outsourcing. It emphasizes collaboration with external
entities to leverage specialized expertise and resources. Network structures
allow organizations to adapt quickly, access global talent, and focus on core
competencies while relying on external partners for other functions.
Flat Structure: A flat structure has fewer
hierarchical levels and a broader span of control. It promotes decentralized
decision-making, open communication, and a flexible work environment. In a flat
structure, there is less emphasis on formal titles and more on empowering
employees to take ownership and collaborate. Flat structures are often found in
small organizations or startup environments.
Hybrid Structure: Hybrid structures are a combination
of different types of organizational structures. Organizations may adopt a mix
of functional, divisional, or matrix structures to suit their specific needs.
Hybrid structures allow organizations to benefit from the advantages of
multiple structures while managing their limitations.
It's
important to note that organizations can choose and adapt their structure based
on their unique circumstances. The chosen structure should align with the
organization's goals, culture, industry, and size. The structure of an
organization plays a crucial role in defining its operating model,
communication flows, decision-making processes, and overall effectiveness in
achieving its objectives.
Disadvantages of functional
While
functional structures offer several advantages, they also have some potential
disadvantages. Here are some common disadvantages of functional structures:
Communication Barriers: Functional structures can create
communication barriers between departments or functional areas. Since employees
are grouped based on their expertise, there can be a tendency for departments
to work in silos and have limited interaction with other areas of the
organization. This can hinder effective collaboration, information sharing, and
coordination across functions.
Lack of Flexibility and
Responsiveness: Functional
structures can be less flexible and responsive to changes in the external environment.
Decisions often need to go through multiple layers of management, which can
slow down the decision-making process and inhibit quick responses to market
changes or customer needs. Functional structures may struggle to adapt to
rapidly changing industries or dynamic market conditions.
Difficulty in
Cross-Functional Collaboration: In functional structures, employees may primarily identify with their
functional department rather than the organization as a whole. This can create
challenges in fostering cross-functional collaboration and cooperation.
Different departments may have different priorities, goals, and approaches,
which can lead to conflicts or difficulties in aligning efforts towards common objectives.
Limited Focus on Overall
Organizational Goals: Functional
structures tend to focus on functional goals and objectives rather than the
broader organizational goals. Employees may prioritize their functional
responsibilities over the overall success of the organization. This can result
in a lack of alignment and coordination among different departments,
potentially hindering the achievement of organizational objectives.
Duplication of Efforts: Functional structures can sometimes
lead to duplication of efforts or redundant activities. Each functional
department may have its own resources and capabilities, which can lead to
inefficiencies and increased costs. Without proper coordination and
communication, there may be a lack of sharing resources or knowledge across
departments, resulting in duplication or overlap of work.
Limited Career Development
Opportunities: In
functional structures, career progression may be limited to vertical growth
within the functional area. This can restrict employees' exposure to different
aspects of the organization and limit their ability to develop a broader skill
set. Employees may feel confined within their functional roles, which can lead
to dissatisfaction and hinder overall talent development.
Slow Decision-Making: Due to the hierarchical nature of
functional structures, decision-making processes can be slower and more
bureaucratic. Decisions may need to go through multiple levels of management
for approval, leading to delays and inefficiencies. This can be problematic in
situations where quick decision-making is required or in fast-paced industries.
It's
important to note that the disadvantages of functional structures can be
mitigated or managed through effective communication, cross-functional
collaboration mechanisms, and organizational culture that emphasizes the
overall goals and objectives of the organization. Additionally, organizations
can consider adopting hybrid structures or implementing strategies to overcome
the limitations of functional structures while leveraging their advantages.
Divisional structure
The
divisional structure is a type of organizational structure in which an
organization is divided into self-contained divisions or business units based
on products, geographic regions, customer segments, or projects. Each division
operates as a separate entity within the organization, with its own functional
areas, such as marketing, finance, operations, and human resources. Here are
some potential disadvantages of a divisional structure:
Duplication of Efforts: In a divisional structure, each
division may have its own set of functional departments. This can result in
duplication of efforts and resources across divisions. For example, each
division may have its own marketing, finance, and human resources departments,
leading to redundant activities and increased costs.
Lack of Synergy and
Coordination: Divisional
structures can sometimes hinder coordination and collaboration between
divisions. Each division operates independently and may have its own goals and
priorities, which can create a lack of synergy and alignment with the overall
objectives of the organization. Communication and coordination challenges may
arise when divisions need to work together on cross-divisional projects or
initiatives.
Reduced Economies of Scale: With each division operating as a
separate entity, there may be a reduction in economies of scale. Shared
resources, such as equipment, technology, or expertise, may not be fully
utilized across divisions, resulting in higher costs or underutilization of
resources. The lack of centralized control and coordination can lead to inefficiencies
in resource allocation.
Potential for Internal
Competition: In a
divisional structure, divisions may compete with each other for resources,
budgets, or market share. This internal competition can create conflicts,
hinder collaboration, and divert focus from the overall goals of the
organization. It can also lead to a silo mentality, where divisions prioritize
their own success over the success of the organization as a whole.
Difficulties in
Standardization and Consistency: In a divisional structure, there may be challenges in achieving
standardization and consistency across divisions. Each division may have its
own operating procedures, systems, or policies, which can make it difficult to
ensure uniformity in processes or branding. This can affect the organization's
ability to deliver consistent products or services to customers.
Potential for
Inefficiencies in Support Functions: Certain support functions, such as human resources, finance, or IT, may
need to be replicated in each division within a divisional structure. This can
lead to inefficiencies and redundancies in these support functions.
Coordinating and managing these functions across divisions may require additional
resources and effort.
Difficulty in Strategic
Alignment:
Ensuring strategic
alignment across divisions can be a challenge in a divisional structure. Each
division may have its own strategic priorities and initiatives, making it
important to establish mechanisms for coordinating and aligning divisional
strategies with the overall strategic direction of the organization.
Despite
these potential disadvantages, the divisional structure offers advantages such
as increased focus on specific markets or products, improved responsiveness to
local market conditions, and greater autonomy for divisions. The effectiveness
of a divisional structure depends on factors such as the organization's
industry, size, geographic scope, and the ability to establish effective
communication and coordination mechanisms between divisions.
FORMAL AND INFORMAL ORGANISATION
Formal and
informal organization are two distinct aspects of an organization's structure
and communication patterns. Here's an explanation of each:
Formal Organization:
Formal
organization refers to the official and planned structure of an organization.
It is based on the formal authority, roles, and responsibilities defined by the
management. The formal organization is typically depicted in organizational
charts and documented in official policies, procedures, and job descriptions.
Key features of the formal organization include:
Defined Structure: The formal organization establishes
the hierarchy, reporting relationships, and division of work within the
organization. It outlines the flow of authority and communication channels.
Clear Roles and
Responsibilities: The formal
organization defines the roles and responsibilities of individuals or
departments within the organization. It clarifies the job functions, tasks, and
reporting relationships to ensure smooth operations and coordination.
Formal Communication
Channels: In a formal organization,
communication follows predefined channels, such as through official memos,
emails, meetings, or reports. It adheres to the established hierarchy and
authority structure.
Formal Policies and
Procedures: Formal
organizations have written policies, procedures, and rules that guide the
behavior, decision-making, and operations within the organization. These
policies help maintain consistency and standardization.
The formal
organization provides stability, clarity, and order to the functioning of the
organization. It facilitates coordination, decision-making, and accountability.
Informal Organization:
The informal
organization, on the other hand, represents the social structure and
relationships that emerge within the formal organization but are not officially
defined or documented. It is based on informal interactions, friendships,
shared interests, and personal networks among employees. Key features of the
informal organization include:
Social Networks: The informal organization is
characterized by the informal social networks and relationships that develop
among employees beyond the formal structure. These networks can span across
departments, levels, and functions.
Informal Communication: Informal communication in the
organization occurs through informal conversations, grapevine, social media,
and personal interactions. It often bypasses the formal communication channels
and can spread information quickly.
Emergent Roles and Leaders: In the informal organization,
individuals may assume informal roles and become influential leaders based on
their expertise, experience, or relationships. These roles may not be
officially recognized but can have a significant impact on decision-making and
influence within the organization.
Norms and Culture: The informal organization reflects
the shared norms, values, and beliefs that emerge within the social fabric of
the organization. It shapes the organization's culture and influences employee
behavior and attitudes.
The informal
organization plays a vital role in fostering collaboration, innovation, and
employee engagement. It can complement or challenge the formal organization by
providing alternative communication channels, support systems, and sources of
influence.
Both formal
and informal organizations coexist within an organization, and understanding
their dynamics is crucial for effective management. While the formal
organization provides structure and direction, the informal organization
contributes to employee satisfaction, social cohesion, and informal
problem-solving. Balancing and leveraging both aspects can enhance
organizational effectiveness.
Multiple Choice Questions:
1. What is the primary goal
of organizing in management?
a)
Maximizing profits
b)
Minimizing costs
c) Achieving
organizational goals
d) Enhancing
employee satisfaction
2. Which of the following
activities is NOT part of the organizing function?
a)
Allocating resources
b) Defining
roles and responsibilities
c) Setting
performance targets
d) Establishing
reporting relationships
3. What does organizing
help organizations achieve?
a) Efficient
and effective execution of plans
b) Reduction
of competition in the market
c) Increase
in market share
d)
Elimination of all risks
4. Which of the following
is NOT a key aspect of organizing?
a) Division
of work
b)
Establishing relationships
c)
Developing job descriptions
d)
Allocating resources
5. The principle of
division of work suggests that tasks and responsibilities should be divided
based on:
a) Job
titles
b)
Geographical locations
c) Employee
seniority
d) Skills
and specialization
6. Which principle of
organizing emphasizes the need to synchronize and harmonize efforts within an
organization?
a) Unity of
objective
b) Division
of work
c)
Coordination
d) Balance
and flexibility
7. Which of the following
is NOT a benefit of organizing?
a) Clarity
and direction
b) Increased
flexibility
c)
Efficiency and productivity
d)
Coordination and collaboration
8. Which type of organizational
structure groups employees based on their functional areas or specialized
skills?
a)
Divisional structure
b) Matrix
structure
c)
Functional structure
d) Flat
structure
9. What is the advantage of
a flat organizational structure?
a) Clear
reporting relationships
b) Greater
autonomy and flexibility
c)
Specialization and expertise
d) Improved
coordination and collaboration
True-False Questions:
1.
Organizing involves arranging and structuring resources, tasks, and
people within an organization. (True / False)
2.
The primary goal of organizing is to create a structure that enables
individuals and departments to work together towards organizational goals. (True / False)
3.
Organizing helps optimize productivity, streamline operations, and
enhance coordination and collaboration within an organization. (True / False)
4.
Remember, these questions are based on the given paragraph, but you can
modify or add more questions based on the specific learning objectives of your
lesson. (True /
False)
5.
Organizing involves breaking down
tasks and responsibilities into manageable units and assigning them to
individuals or groups (True / False)
6.
The scalar principle establishes a clear hierarchy of authority within an
organization. (True
/ False)
7.
The principle of delegation of authority focuses on centralizing
decision-making at the top level of management. (True / False)
8.
Organizing helps establish clarity and direction within an organization. (True/False)
9.
In a divisional structure, each division operates independently with its
own functional areas. (True/False)
10.
The formal organization is based on the formal authority, roles, and
responsibilities defined by the management. (True/False)
VERY SHORT ANSWER
QUESTIONS
Q.1.State the meaning of informal organisation?
Ans. Informal organization refers to the unofficial
social structure and relationships that develop within an organization,
influencing communication and interactions among individuals.
Q.2. Enumerate the steps in the process of organizing?
Ans. A.2. The steps in the process of organizing
are:
1.
Setting objectives and goals.
2.
Identifying tasks and responsibilities.
3.
Creating a structure and hierarchy.
4.
Allocating resources.
5.
Establishing communication channels.
6.
Coordinating activities.
7.
Monitoring and evaluating progress.
Q.3.What type of relationships are shown by organisation
structure?
Ans. The types of relationships shown by organization
structure include hierarchical relationships, reporting relationships,
functional relationships, and coordination relationships.
Q.4. Name the type of organisation in which-
(a) Friendly
relationships exist among the members
(b) Official relationships exist among the members
Ans. (a) An organization in which friendly
relationships exist among the members is often referred to as an "informal
organization" or "social organization."
(b) An organization in which official relationships exist
among the members is typically called a "formal organization" or
"structured organization."
Q.5.Name the organisation which come into existence by
mutual relationship?
Ans. organization that comes into existence
through mutual relationships is commonly referred to as a "voluntary
organization" or "non-profit organization."
Q.6.Explain advantages of formal organisation?
Ans. The advantages of a formal organization include
clear hierarchy and authority, defined roles and responsibilities, efficient
coordination, effective communication channels, standardized processes,
accountability, and easier monitoring and evaluation.
Q.7. Explain two advantages of informal organisation?
Ans. Two advantages of informal organization
include enhanced employee morale and job satisfaction, as it fosters social
connections and a sense of belonging. It also facilitates the flow of
information and knowledge sharing outside of formal channels, leading to
increased innovation and problem-solving capabilities.
Q.8. Enumerate two features of functional organisation?
Ans. Two features of functional organization
are:
Division of work based on
specialized functions: In a functional organization, tasks and
responsibilities are grouped based on the functions or areas of expertise. This
allows employees to focus on specific areas and develop specialized skills.
Hierarchical structure: Functional
organizations typically have a hierarchical structure with clear lines of
authority and reporting. Employees report to their respective functional
managers, who oversee and coordinate the work within their specific function.
Q.9. Define ‘functional organisation?
Ans. Functional organization is a type of organizational
structure where employees are grouped based on their specialized functions or
areas of expertise. In this structure, tasks and responsibilities are divided
according to different functions such as marketing, finance, operations, human
resources, etc. Each function is headed by a functional manager who oversees
the work within that specific area. This structure allows for specialization
and efficiency within each function, as well as clear lines of authority and
reporting.
Q.10. Why does the principle of unity of command not hold
good in the case of functional organisation?
Ans. The principle of unity of command does
not hold good in the case of functional organization because employees in a
functional structure often report to multiple managers or supervisors within
their respective functions. Since employees are grouped based on their
specialized functions, they may receive instructions and guidance from
different functional managers. This means that they may have to work under the
authority of multiple supervisors, leading to a potential conflict of commands
and confusion. As a result, the principle of unity of command, which states
that an employee should have only one supervisor, is not applicable in a
functional organization.
Q.11. Name the type of organisation in which
(a) There is a direct flow of authority to from the chief
executive to subordinates.
(b) There is functional authority to individuals or
departments.
Ans. (a) The type of organization with a
direct flow of authority from the chief executive to subordinates is a Line
Organization.
(b) The type of organization with functional authority to
individuals or departments is a Functional Organization.
Q.12.What is meant by organisation?
Ans. Organization refers to the systematic
arrangement of individuals and resources to accomplish specific goals or
objectives. It involves establishing a formal structure, defining roles and
responsibilities, coordinating activities, and creating a framework for
decision-making and communication within a group or entity.
Q.13. Explain features of organisation?
Ans. Features of organization:
Structure: Organizations
have a formal structure that defines roles, relationships, and hierarchy.
Goals: Organizations
have specific objectives or goals they aim to achieve.
Division of Labor: Tasks
and responsibilities are assigned based on specialization and expertise.
Coordination: Activities
are synchronized to ensure smooth functioning and alignment.
Communication: Effective
communication channels facilitate information sharing.
Authority: There
is a clear distribution of power and decision-making.
Integration: Different
functions and departments work together towards common objectives.
Adaptability: Organizations
must be able to adapt to changes in the environment.
These features help organizations operate efficiently and
effectively.
SHORT ANSWER QUESTIONS
Q.1. Distinguish between formal and informal organistion
(Give three points only)?
Ans. Differences between formal and informal
organization:
Structure and Hierarchy: Formal
organizations have a defined structure and hierarchy with clear lines of
authority and reporting relationships. In contrast, informal organizations lack
a formal structure and operate based on personal relationships and informal
networks.
Communication Channels: Formal
organizations follow established channels of communication, such as official
meetings, reports, and documentation. Informal organizations rely on informal
and spontaneous communication, such as conversations, social interactions, and
grapevine communication.
Rules and Procedures: Formal
organizations have well-defined rules, policies, and procedures that govern the
behavior and operations of individuals. Informal organizations operate based on
social norms, personal understandings, and unwritten rules that emerge through
interactions among members.
These distinctions highlight the contrasting
characteristics and dynamics of formal and informal organizations.
Q.2. Give the meaning of informal organistion with the
help of suitable example?
Ans. Informal organization refers to the
unofficial and spontaneous relationships, interactions, and networks that
develop among individuals within a formal organization. These relationships are
not prescribed by the formal structure but emerge naturally based on personal
connections, shared interests, and social dynamics.
An example of an informal organization can be seen within
a workplace, where employees form friendships and social circles outside of
their formal work roles. They may gather during lunch breaks, organize
after-work activities, or engage in informal discussions and collaborations
that transcend the official reporting lines. These informal interactions
contribute to building a sense of camaraderie, trust, and support among
employees, which can positively impact morale, teamwork, and overall
organizational culture.
Q.3. Differentiate between of informal and informal
organisation on the basis of formation, purpose, structure and communication?
Ans. Differentiation between Formal and Informal
Organization:
Formation:
Formal Organization: It
is intentionally created and established by management to achieve specific
objectives and goals.
Informal Organization: It
emerges spontaneously based on personal relationships, shared interests, and
social interactions among individuals within the formal organization.
Purpose:
Formal Organization: It
exists to accomplish defined tasks, responsibilities, and objectives as
outlined in the organizational structure and job roles.
Informal Organization: It
serves social and personal needs of individuals, such as building
relationships, sharing information, and seeking support.
Structure:
Formal Organization: It
has a predefined structure with clear hierarchies, reporting lines, and formal
positions or roles.
Informal Organization: It
has a fluid and flexible structure that evolves based on personal connections,
interests, and social dynamics. It is not bound by formal roles or positions.
Communication:
Formal Organization: Communication
in a formal organization follows predefined channels and protocols, such as
official meetings, reports, and documentation.
Informal Organization: Communication
in an informal organization is more spontaneous, informal, and often occurs
through informal conversations, social gatherings, and informal networks.
Please note that while these points provide a general
differentiation between formal and informal organization, it's important to
consider that formal and informal aspects can coexist within an organization,
and the degree of formality or informality can vary.
Q.4. Explain briefly the steps in the process of
organisation?
Ans. The process of organization involves
several steps that help in structuring and arranging the resources and
activities of an organization. Here is a brief explanation of the steps
involved:
Determining Objectives: The
first step is to clearly define the objectives and goals of the organization.
This provides a clear direction for organizing efforts and helps in setting
priorities.
Division of Work: The
next step is to divide the work into specific tasks and responsibilities. This
involves breaking down the overall work requirements into smaller units and
assigning them to individuals or teams.
Establishing Relationships: Once
the work is divided, the next step is to establish relationships among
individuals and groups. This includes defining reporting relationships, lines
of authority, and communication channels.
Creating a Structure: Organizational
structure refers to the arrangement of individuals, departments, and functions
within the organization. This step involves creating a formal structure that
defines positions, their roles, and how they are interconnected.
Delegation of Authority: Authority
is the power to make decisions and take actions. In this step, authority is
delegated to individuals or positions based on their roles and
responsibilities. It clarifies who has the power to make decisions at different
levels.
Establishing Communication
Channels: Effective
communication is essential for smooth functioning and coordination. This step
involves establishing formal communication channels, such as reporting lines,
meetings, and information-sharing systems.
Coordinating Activities: Coordination
ensures that different individuals and departments work together towards common
goals. This step involves establishing mechanisms for coordination, such as
regular meetings, collaboration, and teamwork.
Monitoring and Control: The
final step is to monitor and control the organizational structure and
processes. This involves evaluating performance, identifying deviations from
plans, and taking corrective actions when necessary.
By following these steps, organizations can create a
well-organized structure, promote effective communication and coordination, and
ensure that activities are aligned with the overall objectives of the
organization.
Q.5. Give any three merits of organisation?
Ans. Three merits of organization are:
Efficient Resource
Utilization: Organization helps in efficient utilization of resources
by providing a clear structure and division of work. It ensures that tasks and
responsibilities are assigned to the right people, eliminating duplication of
efforts and reducing wastage of resources. This leads to improved productivity
and cost-effectiveness.
Improved Coordination: A
well-organized structure facilitates coordination among individuals and
departments. It establishes clear lines of communication and reporting, making
it easier to share information, collaborate on projects, and make decisions
collectively. This enhances teamwork and synergy, leading to better overall
performance.
Clear Roles and
Responsibilities: Organization clarifies roles and responsibilities of
individuals within the organization. It defines job descriptions, authority
levels, and reporting relationships, ensuring that everyone understands their
tasks and obligations. This reduces ambiguity and confusion, promotes
accountability, and enables employees to focus on their specific areas of
expertise.
These merits highlight the importance of organization in
optimizing resources, enhancing coordination, and providing clarity in roles
and responsibilities, leading to improved efficiency and effectiveness within
an organization.
Q.6. Explain briefly meaning of, organistion structure?
Ans. Organizational structure refers to the
framework or system that defines how an organization is designed, how tasks and
responsibilities are divided, and how information flows within the
organization. It establishes the hierarchy, relationships, and coordination
mechanisms among various roles, departments, and functions.
An organization structure typically
includes elements such as:
Hierarchical levels: It
outlines the levels of authority and management within the organization, from
top-level executives to middle management and frontline employees. This defines
the chain of command and reporting relationships.
Departmentalization: It
involves grouping individuals and functions into departments or divisions based
on their similarities, such as by function (e.g., marketing, finance, operations)
or by product/service lines.
Span of control: It
refers to the number of subordinates that a manager directly supervises. It
determines the extent of managerial authority and the level of decision-making
power at different levels of the organization.
Centralization vs.
decentralization: It defines the degree to which decision-making authority
is concentrated at the top of the organization (centralized) or dispersed among
lower-level employees (decentralized).
Formal reporting relationships: It
specifies the lines of communication and authority, indicating who reports to
whom and who is responsible for supervising and evaluating the performance of
others.
Communication channels: It
determines how information flows within the organization, including both formal
channels (e.g., official memos, reports) and informal channels (e.g.,
conversations, email).
The organizational structure helps establish clarity,
accountability, and efficiency within the organization by defining roles, responsibilities,
and reporting mechanisms. It influences decision-making, coordination, and
communication, and plays a crucial role in determining how work is organized
and executed.
Q.7.What is informal organistion? How is it different
from formal organisation on the basis of purpose and behavior of members?
Ans. Informal organization refers to the
unofficial, spontaneous relationships and interactions that develop among
individuals within a formal organization. It is based on social connections,
personal relationships, and common interests of the members.
Informal organization differs from formal
organization in terms of purpose and behavior of members in the following ways:
Purpose: The
purpose of a formal organization is typically defined by its official goals,
objectives, and tasks. It operates with a clear structure, hierarchy, and
defined roles to achieve specific outcomes. In contrast, the purpose of an
informal organization is not explicitly stated or defined. It emerges naturally
as individuals form social connections, seek support, and fulfill their social
and psychological needs within the formal organization.
Behavior of members: In a
formal organization, members are expected to adhere to established rules,
procedures, and codes of conduct. Their behavior is governed by authority,
policies, and professional norms. On the other hand, in an informal
organization, members' behavior is driven by social dynamics, personal
relationships, and informal norms. They may develop their own unwritten rules,
norms, and ways of interacting that may or may not align with the formal
organization's expectations.
In an informal organization, members may engage in
informal communication, share information, seek advice, form alliances, and
provide support to each other. They may establish networks, develop
friendships, and rely on informal leaders who may hold influence outside the
formal hierarchical structure. The behavior within an informal organization is
less formal, more flexible, and often driven by personal connections and trust.
While formal organization focuses on achieving specific
objectives and tasks, informal organization serves as a social fabric that can
enhance communication, collaboration, and morale among members. It can provide
a sense of belonging, social support, and opportunities for informal learning
and information sharing. However, informal organization can also create
challenges in terms of maintaining consistency, coordination, and alignment
with the formal structure and objectives of the organization.
Q.8. Describe the importance of an informal organistion?
Ans. The importance of an informal
organization lies in its ability to complement and support the formal structure
of an organization. Here are some key reasons why informal organization is important:
Communication and
Information Flow: Informal organization facilitates the flow of information
and communication among members. It provides channels outside the formal
hierarchical structure for exchanging ideas, sharing knowledge, and disseminating
information. Informal networks often reach across departments and levels,
enabling faster and more effective communication that can enhance collaboration
and decision-making.
Social Support and Morale: Informal
organization helps create a sense of belonging and camaraderie among members.
It fosters social interactions, friendships, and support networks that
contribute to a positive work environment and employee morale. Informal
relationships can provide emotional support, guidance, and mentorship, which can
increase job satisfaction, motivation, and engagement.
Flexibility and
Adaptability: The informal organization is often more flexible and
adaptable than the formal structure. It can respond quickly to changing
circumstances, emerging challenges, and new opportunities. Informal networks
can facilitate informal problem-solving, innovation, and the sharing of best
practices. They can also help individuals navigate the complexities of the
organization and find solutions outside the formal channels.
Identification of Opinion
Leaders: Informal
organization helps identify opinion leaders or influencers within the
organization. These individuals may not hold formal positions of authority but
have a significant impact on others due to their expertise, experience, or
personal qualities. Recognizing and leveraging these informal leaders can be
valuable in driving change, influencing behaviors, and promoting initiatives
within the organization.
Organizational Culture and
Norms: Informal
organization plays a role in shaping the organizational culture and
establishing informal norms. The shared values, beliefs, and behaviors that
emerge within informal networks can influence how work is done, how decisions
are made, and how individuals interact with each other. Understanding and
managing the informal organization can help align it with the desired
organizational culture and promote positive norms and behaviors.
It is important for organizations to recognize and
leverage the benefits of the informal organization while also ensuring that it
aligns with the overall objectives and values of the formal structure.
Balancing the formal and informal aspects of an organization can lead to a more
cohesive, productive, and harmonious work environment.
Q.9.What is an organisation? Discuss its importance in
management?
Ans. An organization is a structured and
coordinated entity composed of individuals working together towards a common
goal. It is a formal arrangement that outlines the roles, responsibilities,
relationships, and processes necessary to achieve the objectives of the
organization.
The importance of an organization in
management can be understood through the following points:
Goal Achievement: An
organization provides a framework for setting and achieving goals. It clarifies
the purpose and direction of the entity and aligns the efforts of individuals
towards a common objective. It helps in coordinating and integrating the
activities of different departments and individuals, leading to improved
efficiency and effectiveness in achieving goals.
Division of Work: Organizing
involves dividing the work into specific tasks and assigning them to
individuals or groups based on their skills and expertise. This division of
work enables specialization, where individuals can focus on their areas of
expertise, leading to higher productivity and quality of output. It helps in
utilizing resources efficiently and optimizing the use of available talent.
Coordination: An
organization facilitates coordination among different departments, teams, and
individuals. It establishes clear lines of authority, responsibility, and
communication channels to ensure smooth workflow and collaboration. Effective
coordination minimizes conflicts, reduces duplication of efforts, and enhances
the overall efficiency of the organization.
Resource Allocation: Organizing
involves allocating resources such as human resources, finances, materials, and
equipment to different areas of the organization. Proper allocation of
resources ensures their optimal utilization and prevents wastage. It helps in
identifying resource needs, budgeting, and making informed decisions regarding
resource allocation.
Decision Making: An
organization provides a framework for decision-making processes. It establishes
hierarchies, decision-making authorities, and communication channels that
enable timely and effective decision making at different levels of the
organization. Organizational structures, such as centralized or decentralized
decision making, influence the speed and quality of decision making.
Adaptability: Organizing
helps organizations to adapt to changes in the internal and external
environment. It allows for flexibility and agility in responding to market
trends, technological advancements, and competitive pressures. Organizational
structures can be modified to accommodate new strategies, initiatives, and
changing business conditions, ensuring the organization's sustainability and
growth.
Accountability and Control: An
organization provides a framework for establishing accountability and control
mechanisms. It sets clear responsibilities, defines performance expectations,
and establishes systems for monitoring and evaluating performance.
Organizational structures and processes help in identifying deviations,
addressing issues, and ensuring compliance with organizational policies and
standards.
In summary, organization is a fundamental function of
management that plays a crucial role in achieving goals, optimizing resources,
facilitating coordination, enabling decision making, and ensuring
accountability. It provides the structure and framework for effective
management and contributes to the overall success and growth of the
organization.
Q.10.What is formal organisation structure? Describe
features of formal organisation structure?
Ans. Formal organizational structure refers
to the systematic arrangement of roles, responsibilities, and relationships
within an organization. It provides a framework for organizing and coordinating
activities to achieve the organization's goals. Here are some features of formal
organizational structure:
Hierarchy: Formal
organizational structure typically involves a hierarchical arrangement of
positions or levels within the organization. It establishes a chain of command,
where authority and responsibility flow from top to bottom. Each level has a
designated role and specific responsibilities, and individuals report to their
immediate superiors.
Division of Labor: Formal
organizational structure involves the division of work into specialized tasks.
Different departments or units are established based on functional areas or
specific functions. Each department or unit focuses on a specific aspect of the
organization's operations, such as marketing, finance, operations, or human
resources. This division of labor enables specialization and expertise in
specific areas.
Clear Lines of Authority
and Communication: In a formal organizational structure, there are clear
lines of authority and communication. Each position has a defined level of
authority and responsibility, and individuals know whom they report to and who
they are accountable to. Formal communication channels are established,
ensuring the flow of information, instructions, and feedback in a structured
manner.
Departmentalization: Formal
organizational structure involves the grouping of individuals and tasks into
departments or functional units. Departmentalization can be based on various
factors such as function, product, geography, or customer segment. It helps in
organizing similar activities together, promoting coordination within
departments, and facilitating effective management of resources.
Rules and Procedures: Formal
organizational structure is characterized by the establishment of rules,
policies, and procedures. These guidelines provide a framework for
standardizing operations, decision making, and behavior within the
organization. Rules and procedures help in ensuring consistency, efficiency,
and fairness in the organization's activities.
Centralization or
Decentralization: Formal organizational structure can be centralized or
decentralized based on the concentration of decision-making authority. In a
centralized structure, decision-making authority is concentrated at the top
levels of the hierarchy, while in a decentralized structure, decision-making
authority is dispersed to lower levels or departments. The choice between
centralization and decentralization depends on the organization's size,
complexity, and strategic considerations.
Span of Control: The
span of control refers to the number of subordinates or employees that a
manager directly supervises. In a formal organizational structure, the span of
control can be narrow or wide. A narrow span of control means fewer
subordinates reporting to a manager, while a wide span of control means more subordinates.
The span of control affects the level of supervision, coordination, and
communication within the organization.
These features of formal organizational structure help
establish clarity, accountability, coordination, and efficiency within the
organization. They provide a framework for organizing work, assigning
responsibilities, and facilitating effective management and decision making.
Q.11. State any three circumstances in which functional
organisation is more suitable?
Ans. Functional organization is more suitable in
the following circumstances:
Specialized Expertise: Functional
organization is suitable when the organization's operations require specialized
knowledge and expertise in different functional areas. For example, in a
software development company, functional departments such as programming,
quality assurance, and user experience design may exist. Each department
focuses on its specific expertise, allowing employees to specialize and excel
in their respective areas.
Clear Functional Roles: When
there is a clear distinction between different functions or activities within
the organization, functional organization is appropriate. This is common in
industries where specific functions, such as manufacturing, marketing, finance,
and human resources, need to be well-defined and coordinated. Each function can
have its own department with a defined set of responsibilities and specialized
skills.
Efficient Resource
Utilization: Functional organization can be more suitable when the
organization wants to optimize resource utilization. By grouping employees with
similar skills and expertise into functional departments, the organization can
maximize their utilization. This arrangement allows for economies of scale and
efficient allocation of resources, as employees can focus on specific tasks and
activities related to their functional area.
It's important to note that while functional organization
has its advantages in certain situations, the choice of organizational
structure should be based on the unique needs, goals, and context of the
organization.
Q.12. Explain the nature and purpose of organisation?
Ans. The nature of an organization refers to
its essential characteristics and qualities, while the purpose of an
organization relates to its fundamental reason for existence and the goals it
aims to achieve. Here's an explanation of the nature and purpose of an
organization:
Nature of Organization:
Social Entity: An
organization is a social entity composed of individuals who come together to
achieve common goals and objectives. It involves the interaction and
coordination of people within a structured framework.
Goal-oriented: Organizations
are established with specific objectives in mind. These goals can be related to
profit generation, service delivery, social impact, or any other desired
outcomes. The structure, activities, and resources of the organization are
aligned towards achieving these goals.
Structure and Hierarchy: Organizations
have a formal structure that defines the relationships, roles, and
responsibilities of individuals within the organization. This structure may
vary depending on the type of organization, but it typically includes levels of
authority, reporting relationships, and division of labor.
Purpose of Organization:
Achieving Objectives: The
primary purpose of an organization is to achieve its predetermined objectives.
This could involve delivering products or services, generating profits,
advancing a cause, or meeting societal needs. The organization provides a
framework for coordinating and aligning the efforts of individuals towards
these goals.
Coordination and
Collaboration: Organizations bring together individuals with diverse
skills, knowledge, and expertise to work together towards common goals. They
provide a platform for coordination, collaboration, and synergy among team
members, enabling them to leverage their collective abilities and achieve
outcomes that would be difficult to attain individually.
Stability and
Sustainability: Organizations provide stability and continuity to their
operations. They establish systems, processes, and structures that enable them
to function efficiently over time. By planning, organizing, and managing
resources effectively, organizations aim to achieve long-term sustainability
and growth.
The nature and purpose of organizations can vary
depending on factors such as their size, industry, ownership structure, and
goals. However, the fundamental essence of an organization lies in its social
nature, goal orientation, and its ability to bring people together to work
towards shared objectives.
Q.13. Distinguish between’ formal and Informal organisation
’on the basis of the following:
(a) Origin (b)
Authority (c) Leadership
Ans. (a)
Origin:
Formal Organization: Formal
organizations are deliberately created and established by management with a
specific purpose in mind. They are planned and structured entities that follow
a predetermined design and framework.
Informal Organization: Informal
organizations emerge spontaneously among individuals based on their social
interactions and personal relationships. They are not intentionally created or
designed by management but develop naturally within the formal organization.
(b) Authority:
Formal Organization: In
formal organizations, authority is formally defined and delegated through the
hierarchical structure. It follows the principle of a formal chain of command,
where authority flows from top to bottom. Roles, responsibilities, and
decision-making powers are explicitly assigned to individuals based on their
position in the organization's structure.
Informal Organization: In
informal organizations, authority is not based on formal position or
designation. It is derived from personal characteristics, expertise,
experience, and informal influence. Individuals may hold informal authority or
influence within their social networks, irrespective of their formal position
in the organization.
(c) Leadership:
Formal Organization: In
formal organizations, leadership is typically assigned to individuals based on
their formal position or role. Leaders are appointed or designated to guide,
direct, and make decisions for their respective areas or departments. The
formal organization recognizes and empowers individuals with formal leadership
roles.
Informal Organization: In informal
organizations, leadership emerges naturally based on the influence, expertise,
and respect earned by individuals within the informal network. Informal leaders
may not hold any formal position or title but are recognized and followed by
others due to their personal qualities, skills, or knowledge.
In summary, formal organizations are intentionally
created, have formal authority structures, and assign leadership roles based on
formal positions. On the other hand, informal organizations emerge spontaneously,
authority is based on personal influence, and leadership is earned through
informal relationships and recognition.
Q.14. Distinguish between ‘functional and divisional
structure’ on the basis of the following:
(a) Coordination (b) Managerial development (c) Cost
Ans. (a) Coordination:
Functional Structure: In a
functional structure, coordination is achieved by grouping employees based on
their specialized functions or areas of expertise. Each functional department
focuses on its specific tasks and responsibilities, and coordination occurs
vertically within each department. Communication and coordination between
departments may be less direct, leading to potential coordination challenges.
Divisional Structure: In a
divisional structure, coordination is achieved by grouping employees based on
products, services, geographic regions, or customer segments. Each division
operates as a separate entity, with its own functional departments such as
marketing, finance, and operations. Coordination occurs horizontally between
divisions, as each division has its own set of functions and responsibilities.
This allows for better coordination within each division, but coordination
between divisions may require additional efforts.
(b) Managerial Development:
Functional Structure: In a
functional structure, managerial development tends to be focused on functional
expertise. Managers are groomed and developed within their specific functional
areas, gaining in-depth knowledge and skills related to their specialized functions.
This may result in limited exposure to other functional areas or
cross-functional experiences.
Divisional Structure: In a
divisional structure, managerial development is more focused on general
management skills. Managers are responsible for overseeing the operations of
their divisions, which requires a broader understanding of various functions.
They gain exposure to multiple functional areas and develop skills in managing
diverse teams and resources.
(c) Cost:
Functional Structure: In a
functional structure, there is potential for cost savings due to economies of
scale. Resources and expertise can be shared among functional departments,
leading to efficiencies and cost reductions. However, duplication of functions
across different departments may also occur, resulting in some inefficiencies.
Divisional Structure: In a
divisional structure, there may be higher costs due to duplication of functions
across different divisions. Each division operates independently with its own
set of resources and functions, which can result in higher costs compared to a
centralized functional structure. However, divisional structures may also offer
benefits in terms of better responsiveness to specific customer needs or market
demands.
In summary, functional structures emphasize specialized
functions and vertical coordination, while divisional structures focus on
divisions based on products, regions, or customer segments and emphasize
horizontal coordination. Managerial development differs in terms of functional
expertise versus general management skills. Costs can vary due to economies of
scale or duplication of functions.
Q.15. Differentiate between ‘formal and Informal
organisation ‘on the basis of:
(a) Origin (b)
Authority (c) flow of communication
Ans. (a) Origin:
Formal Organization: Formal
organizations are deliberately created and established by individuals or groups
with a specific purpose or objective in mind. They are intentionally structured
and designed to achieve specific goals. Examples of formal organizations
include corporations, government agencies, and non-profit organizations.
Informal Organization: Informal
organizations emerge spontaneously without any deliberate planning or
establishment. They are formed based on the natural social interactions and
relationships among individuals within a formal organization or a social group.
Informal organizations are not officially recognized or sanctioned by any
authority.
(b) Authority:
Formal Organization: In a
formal organization, authority is officially designated and defined through
hierarchical structures. It follows a formal chain of command, where authority
flows from top-level management down to lower-level employees. Authority is
based on job positions and roles within the organization. It is established
through formal mechanisms such as job descriptions, organizational charts, and
official policies and procedures.
Informal Organization: In
an informal organization, authority is not formally designated or assigned. It
emerges based on personal influence, expertise, and social dynamics among
individuals. Authority in informal organizations is derived from personal
relationships, informal networks, and the recognition and respect individuals
gain from their peers.
(c) Flow of Communication:
Formal Organization: In a
formal organization, communication follows predefined channels and structures.
It typically flows through official lines of authority and is governed by
established protocols and procedures. Communication in formal organizations is
often documented, formalized, and recorded. It may include formal meetings,
reports, memos, emails, and other official communication channels.
Informal Organization: In
an informal organization, communication is more spontaneous and flexible. It
does not strictly follow predefined channels or formal protocols. Communication
in informal organizations is often based on personal interactions, informal
conversations, and social networks. It may occur through casual conversations,
social gatherings, informal meetings, and informal communication channels like
social media or informal networks within the organization.
In summary, formal organizations are deliberately created
and structured, with authority flowing through defined hierarchical channels
and communication following established protocols. Informal organizations, on
the other hand, emerge naturally, with authority based on personal influence
and communication occurring through informal networks and personal
interactions.
Q.16. State any three limitations of Divisional structure
of an organistion?
Ans. Three limitations of a divisional structure
in an organization are:
Duplication of Resources: In a
divisional structure, each division operates as a separate entity with its own
resources and support functions. This can lead to duplication of resources such
as personnel, equipment, and facilities. It can result in inefficiencies and
increased costs as divisions may independently acquire and maintain their
resources, which could have been shared or centralized in a functional
structure.
Lack of Coordination: Divisional
structures often lead to limited coordination and communication between
divisions. Each division focuses on its own goals and objectives, which can
result in a siloed approach to decision-making and operations. This lack of
coordination may hinder the sharing of knowledge, best practices, and resources
among divisions, leading to suboptimal outcomes and missed opportunities for
synergy.
Difficulty in
Standardization and Control: With each division operating independently,
maintaining consistent standards and control across the organization can be
challenging. Different divisions may develop their own processes, policies, and
procedures, which can create inconsistencies and discrepancies in operations.
It may also be difficult for top-level management to exercise centralized
control and ensure uniformity in performance and adherence to organizational
policies and standards.
It's important to note that while divisional structures
have limitations, they also offer benefits such as increased flexibility, focus
on specific markets or products, and better customer responsiveness. The choice
of organizational structure should be based on the specific needs and goals of
the organization, considering both the advantages and disadvantages.
Q.17.What is meant by informal organisation? State its
any two advantages?
Ans. Informal organization refers to the
network of social relationships, interactions, and unofficial channels that
exist within a formal organization but are not formally defined or documented.
It arises naturally among individuals based on their common interests, personal
affiliations, and informal social interactions.
Two advantages of informal organization
are:
Enhanced Communication: Informal
organization facilitates informal communication channels that complement the
formal communication channels within the organization. It allows for more open
and spontaneous communication among employees, which can lead to better
information sharing, problem-solving, and innovation. Informal networks often
span across hierarchical levels, enabling information to flow more quickly and
effectively.
Increased Social Cohesion: Informal
organization fosters a sense of camaraderie, trust, and mutual support among
employees. It creates an informal social structure that promotes positive
relationships and a sense of belonging. This can enhance employee morale, job
satisfaction, and overall organizational culture. Informal relationships also
provide emotional support, collaboration, and informal mentoring opportunities.
It's important to note that while informal organization
can have advantages, it can also have some drawbacks, such as the potential for
spreading rumors or creating cliques. Organizations need to strike a balance
between formal and informal structures to harness the benefits of informal
organization while maintaining the overall effectiveness and cohesion of the
formal structure.
Q.18. State any three limitations of informal
organisation?
Ans. Three limitations of informal organization
are:
Lack of Control: Informal
organization operates outside the formal structure and management control of an
organization. This can lead to a lack of control over the information flow,
decision-making, and actions of individuals within the informal network. The
organization may struggle to influence or direct the informal interactions,
which can result in conflicts, resistance to change, or deviation from
organizational goals.
Potential for Rumors and
Misinformation: Informal organization relies on informal communication
channels, which can be prone to rumors, gossip, and misinformation. Information
may spread quickly through the informal network, leading to distorted or
inaccurate messages. This can create confusion, misunderstandings, and negatively
impact employee morale, productivity, and organizational cohesion.
Exclusivity and
Fragmentation: Informal organization often forms around common
interests, social groups, or personal relationships. While this can foster
collaboration and support within the informal network, it can also lead to
exclusivity and fragmentation within the organization. Cliques or subgroups may
form, creating divisions or favoritism, and excluding others who are not part
of the informal network. This can hinder effective communication,
collaboration, and teamwork across the entire organization.
It's important for organizations to recognize and manage
the limitations of informal organization while leveraging its potential
benefits. This can be done through clear communication, fostering a positive
organizational culture, and integrating formal and informal structures in a
balanced manner.
Q.19.What is meant by’ formal organisation? State its any
two advantages?
Ans. Formal organization refers to the
deliberate and planned structure, roles, and processes established by an
organization to achieve its objectives. It is characterized by clearly defined
roles, hierarchical relationships, formal communication channels, and established
rules and procedures.
Two advantages of formal organization are:
Clear Roles and
Responsibilities: In a formal organization, roles and responsibilities are
clearly defined and assigned to individuals. This clarity helps in avoiding
confusion and overlapping of tasks. Employees know their specific roles and the
expectations associated with them, which enhances efficiency and productivity.
Clear accountability also facilitates effective performance evaluation and
rewards systems.
Efficient Coordination and
Communication: Formal organization provides a structured framework for
coordination and communication within the organization. There are established
channels of communication, such as organizational charts, reporting
hierarchies, and official meetings. This facilitates the smooth flow of
information, decision-making, and coordination among different departments and
individuals. It helps in aligning efforts, resolving conflicts, and ensuring
that organizational goals are effectively communicated and pursued.
These advantages of formal organization contribute to
greater efficiency, clarity, and effectiveness in achieving organizational
objectives. However, it's important for organizations to balance the formal
structure with the need for flexibility, adaptability, and informal
interactions to fully harness the potential of their workforce.
Q.20. State any three features of informal organisation?
Ans. Three features of informal organization
are:
Emerges Spontaneously: Informal
organization is not deliberately designed or established by the management. It
emerges spontaneously among employees based on their interactions, shared
interests, and social relationships. It develops organically over time as
individuals form informal groups, alliances, and networks within the formal
organizational structure.
Based on Social
Relationships: Informal organization is primarily based on social
relationships and personal connections among employees. It is formed through
informal interactions, friendships, common interests, and shared values. These
social relationships often transcend formal hierarchical boundaries and
departmental divisions.
Influences Communication
and Behavior: Informal organization has a significant influence on
communication patterns and behaviors within the workplace. Informal
communication channels, such as grapevine or informal networks, often coexist
with formal channels and can be more efficient in transmitting information
quickly. Informal organization also shapes employee attitudes, norms, and
behaviors, leading to the development of informal norms, informal leaders, and
group dynamics that may affect decision-making and work outcomes.
These features highlight the spontaneous, social, and
influential nature of informal organization within the formal organizational
structure. While informal organization can foster collaboration, innovation,
and social support, it can also create challenges in terms of managing
conflicts, aligning individual and organizational goals, and maintaining
consistency in communication and decision-making.
Q.21.What is meant by’ functional structure? State its
any two advantages?
Ans. Functional structure refers to an
organizational structure where employees are grouped based on their common
functions or specialized areas of expertise. In a functional structure,
different departments or units are created for functions such as marketing,
finance, human resources, operations, etc. Each department is responsible for
carrying out specific tasks related to its function.
Two advantages of a functional structure
are:
Specialization and
Expertise:
Functional structure allows employees to specialize in their respective
functional areas. This promotes the development of specific skills and
expertise within each department. Employees can focus on honing their skills
and becoming proficient in their functional domain. This specialization can
lead to increased efficiency, improved quality of work, and better decision-making
within each department.
Clear Career Paths: Functional
structure provides clear career paths for employees within each functional
area. As employees work within a specific department, they have opportunities
for career growth and advancement by taking on more challenging roles or
positions with higher responsibilities. This promotes employee motivation and
retention as they see a clear progression path within their area of expertise.
These advantages highlight the benefits of functional
structure in terms of expertise development and career progression within
specialized functional areas. However, functional structure also has
limitations, such as potential coordination challenges between departments,
siloed communication, and slower response to changes or customer needs that
span multiple functions.
Q.22. Explain when and why the need is felt for having a
framework, within which managerial and operating tasks are performed to
accomplish desired goals. Name this framework also?
Ans. The need for having a framework within
which managerial and operating tasks are performed arises when an organization
aims to accomplish its desired goals efficiently and effectively. This
framework is commonly known as "Organizational Structure."
Organizational structure provides a formal framework that
defines how tasks, responsibilities, and authority are distributed within an
organization. It establishes the relationships between different positions and
departments, and it sets the overall hierarchy and reporting lines. The
organizational structure helps in establishing clarity, coordination, and
control within the organization.
The need for an organizational structure
arises due to several reasons:
Division of Labor: As
organizations grow in size and complexity, there is a need to divide tasks and
responsibilities among employees. Organizational structure facilitates the
division of labor, ensuring that each individual or department has specific
roles and responsibilities.
Coordination and
Communication: An organization's structure provides a framework for
coordination and communication. It determines how different departments and
individuals interact, collaborate, and share information. A well-designed
structure promotes effective communication, reduces duplication of efforts, and
ensures smooth coordination between various units.
Clear Authority and
Decision-Making: Organizational structure establishes the chain of command
and clarifies the authority levels within the organization. It defines
reporting relationships and decision-making processes, ensuring that tasks and
decisions are delegated appropriately. This clarity in authority helps in efficient
decision-making, faster problem-solving, and effective utilization of
resources.
Overall, the framework provided by the organizational
structure helps in achieving organizational goals by providing clarity,
coordination, and control. It establishes a framework within which managerial
and operating tasks are performed, allowing the organization to function
smoothly and efficiently.
Q.23. Explain by giving any three reasons why organizing
is considered as an important function of management?
Ans. Organizing is considered an important
function of management due to the following reasons:
Efficient Resource
Allocation: Organizing involves identifying and arranging the
necessary resources, such as human resources, materials, equipment, and
finances, in a structured manner. By organizing these resources effectively,
managers can ensure their optimal utilization and allocation. This leads to
improved productivity, cost-efficiency, and overall organizational performance.
Clarity and Direction: Organizing
provides a clear structure and framework within which work activities are
carried out. It establishes roles, responsibilities, and reporting
relationships, ensuring that every individual understands their tasks and knows
how they fit into the larger organizational context. This clarity provides
employees with a sense of direction, reduces ambiguity, and promotes smooth
workflow.
Facilitates Specialization
and Collaboration: Organizing allows for the division of labor and
specialization within an organization. By grouping similar tasks and creating
specialized departments or units, managers can tap into employees' skills and
expertise, leading to increased efficiency and quality of work. Additionally,
organizing enables effective collaboration and coordination between different
individuals and departments, fostering teamwork and synergy.
Scalability and Growth: As
organizations grow in size and complexity, organizing becomes crucial for
managing the expansion. Through proper organizing, managers can create scalable
structures, establish clear communication channels, and delegate authority
appropriately. This enables the organization to adapt to changes, accommodate
growth, and effectively manage increased workloads.
Overall, organizing is an important function of management
because it facilitates efficient resource allocation, provides clarity and
direction, enables specialization and collaboration, and supports the
scalability and growth of the organization. By effectively organizing the
resources and activities, managers can enhance organizational effectiveness,
optimize performance, and achieve the desired goals.
LONG ANSWER QUESTIONS
Q.1.What is formal organisation how does formal
organistion differ from informal organisation?
Ans. Formal organization refers to a structured
and planned arrangement of individuals within an organization to achieve
specific goals. It is characterized by established lines of authority, defined
roles and responsibilities, and formal communication channels. Formal
organization is typically documented through official documents, such as
organizational charts, job descriptions, and policies.
On the other hand, informal organization refers to the
network of relationships, interactions, and associations that develop
spontaneously among individuals within an organization. It is based on personal
connections, social interactions, and shared interests rather than formal
designations or positions. Informal organization emerges naturally as employees
interact and form social bonds in the workplace.
Differences between formal and informal
organization:
Structure: Formal
organization has a defined structure with hierarchical levels, reporting
relationships, and job roles clearly outlined. In contrast, informal
organization lacks a formal structure and operates based on personal relationships
and social dynamics.
Communication: In
formal organization, communication flows through official channels and follows
prescribed routes. It is typically documented and follows a formal protocol. In
informal organization, communication is more spontaneous, informal, and often
occurs through informal conversations, social interactions, and informal
networks.
Purpose: Formal
organization is established to accomplish specific organizational goals and
objectives. It focuses on achieving efficiency, coordination, and control
within the organization. Informal organization, while not officially designed,
serves to fulfill social and emotional needs of employees, fosters
collaboration, and facilitates information sharing.
Recognition: Formal
organization is officially recognized and acknowledged by the organization. It
is governed by policies, rules, and procedures. In contrast, informal
organization is not formally recognized or documented. It exists based on
personal relationships and social dynamics, often outside the purview of official
organizational structure.
Stability: Formal
organization tends to be more stable and resistant to change due to its
structured nature. Informal organization is more flexible and adaptable to changes
as it is based on informal social connections that can evolve and change over
time.
In summary, formal organization is a planned and
structured arrangement of individuals within an organization, whereas informal
organization emerges spontaneously through social interactions. Formal
organization operates through established channels and structures, while
informal organization operates through personal relationships and social
dynamics.
Q.2. Organising involves a series of steps that need to
be taken in order to achieve the desired goal explain these steps?
Ans. The process of organizing involves a
series of steps that help in structuring and coordinating the resources and
activities of an organization to achieve its goals effectively. The steps in the
process of organizing are as follows:
Identification and Division
of Work: The
first step is to identify the tasks and activities that need to be accomplished
to achieve the desired goals. The work is then divided into smaller, manageable
tasks that can be assigned to individuals or groups based on their skills and
expertise.
Departmentalization: Once
the work is identified and divided, the next step is to group related tasks and
activities into departments or units. Departmentalization can be done based on
functions (functional departmentalization), products or services (product
departmentalization), geographical locations (geographical
departmentalization), or customer segments (customer departmentalization).
Assignment of Duties and
Responsibilities: In this step, the duties and responsibilities associated
with each task or position are clearly defined and assigned to individuals or
groups. This includes determining the authority, accountability, and reporting
relationships for each role within the organization.
Establishing Reporting
Relationships: The next step is to establish a formal chain of command
and reporting relationships within the organization. This includes determining
who reports to whom, establishing levels of authority and decision-making, and
creating a hierarchical structure.
Delegation of Authority: Delegation
involves assigning decision-making authority and empowering individuals or
teams to make decisions and take actions within their assigned roles. It is
important to delegate authority appropriately to ensure effective
decision-making, accountability, and efficient workflow.
Establishing Communication
Channels: Effective
communication is crucial for organizational success. This step involves
establishing formal communication channels, both vertically (upward and
downward) and horizontally (between departments or teams), to facilitate the
flow of information, instructions, feedback, and coordination.
Coordination: Coordination
ensures that the activities of different individuals, teams, and departments
are synchronized and aligned towards the common goals of the organization. It
involves establishing mechanisms for collaboration, resolving conflicts, and
integrating the efforts of various units.
Establishing Organizational
Structure:
Finally, the organization structure is formally established, which
includes the arrangement and interconnection of various departments, positions,
and roles within the organization. This can be depicted through organizational
charts or diagrams that show the hierarchy, reporting relationships, and
coordination mechanisms.
By following these steps, the process of organizing helps
create a clear structure, clarify roles and responsibilities, facilitate
communication and coordination, and ultimately enable the organization to work
towards its goals efficiently and effectively.
Q.3. “Sound organisation is the foundation of efficient
management in the light of this statement, describe the importance of
organisation?
Ans. The importance of organization in
efficient management cannot be overstated. A sound organization serves as the
foundation for effective and successful management. Here are some key reasons
highlighting the importance of organization:
Clarifies Roles and
Responsibilities: Organizing helps in defining and clarifying the roles,
responsibilities, and authorities of individuals and teams within the
organization. It ensures that everyone understands their tasks, knows whom to
report to, and understands the scope of their authority. This clarity minimizes
confusion, duplication of efforts, and conflicts, leading to increased
productivity and efficiency.
Promotes Efficiency and
Productivity: A well-organized structure allows for efficient
allocation and utilization of resources, such as human resources, financial
resources, and physical assets. It helps in optimizing workflow, reducing
unnecessary delays and bottlenecks, and ensuring smooth coordination among
different functions or departments. This streamlined approach enhances
productivity and efficiency, as resources are utilized effectively to achieve
organizational goals.
Facilitates Decision-Making
and Communication: A sound organization provides clear channels of
communication and decision-making processes. It ensures that information flows
smoothly and timely between different levels and functions within the
organization. Effective communication fosters better collaboration,
coordination, and problem-solving. Additionally, a well-structured organization
enables faster decision-making, as roles and responsibilities are defined,
authority is delegated, and decision-making power is appropriately distributed.
Enables Growth and
Adaptability: An organized structure allows for scalability and
adaptability in the face of changing circumstances and growth opportunities. It
provides a framework that can accommodate expansion, diversification, or
restructuring of the organization. With clearly defined roles, flexible
processes, and efficient coordination mechanisms, the organization can respond
effectively to market changes, customer demands, and new business challenges.
Enhances Accountability and
Control: Organization
helps in establishing clear lines of accountability. Each individual or team is
responsible for specific tasks and outcomes, and they can be held accountable
for their performance. Well-defined reporting relationships and monitoring
systems enable effective control and evaluation of progress towards goals. This
accountability and control mechanisms promote discipline, commitment, and a
sense of responsibility among employees.
In summary, organization is crucial for efficient
management as it provides structure, clarity, and coordination within the
organization. It promotes efficiency, productivity, effective communication,
decision-making, adaptability, accountability, and control. By establishing a
sound organization, managers can optimize the utilization of resources, align
efforts towards common objectives, and ensure the overall success and growth of
the organization.
Q.4. Discuss briefly the principles of organisation?
Ans. The principles of organization provide
guidelines and frameworks for structuring and managing an organization
effectively. These principles help in achieving coordination, efficiency, and
clarity in roles and responsibilities. Here are some key principles of
organization:
Principle of
Specialization: This principle states that tasks and activities should be
divided and assigned to individuals or groups based on their specialized
skills, knowledge, and expertise. Specialization allows individuals to focus on
specific areas, leading to higher efficiency and productivity. It also enables
the development of expertise and promotes learning and improvement in specific
domains.
Principle of Unity of
Command: According
to this principle, an individual should have only one direct supervisor or
reporting authority. It ensures clarity in reporting relationships and prevents
conflicts arising from multiple instructions or commands. Unity of command
helps in maintaining discipline, accountability, and clear lines of communication
within the organization.
Principle of Scalar Chain: The
scalar chain principle emphasizes the importance of maintaining a formal chain
of command or hierarchy within the organization. It establishes a clear line of
authority and communication from the top management to the lower levels. The
scalar chain ensures that information flows through the organization in a
systematic manner and enables effective decision-making, coordination, and
control.
Principle of Span of Control: This
principle determines the number of subordinates or employees that a manager can
effectively supervise and manage. It suggests that managers should have a
reasonable and manageable number of subordinates to ensure effective
supervision, communication, and coordination. The appropriate span of control
varies depending on the complexity of tasks, skills required, and the
capabilities of managers.
Principle of Unity of
Direction:
The principle of unity of direction emphasizes the importance of
aligning and coordinating individual efforts towards common objectives. It
states that there should be a single plan of action and direction for all
individuals and groups within the organization. Unity of direction helps in
avoiding conflicts, promoting synergy, and ensuring that everyone works towards
the same goals.
Principle of Flexibility: This
principle acknowledges the need for flexibility and adaptability in
organizational structures and processes. It recognizes that organizations
operate in dynamic and changing environments. The principle of flexibility
encourages organizations to design structures and processes that can
accommodate future changes, growth, and new opportunities.
These principles provide managers with a framework to
design organizational structures, assign responsibilities, establish reporting
relationships, and ensure effective coordination and communication. By applying
these principles, organizations can enhance efficiency, effectiveness, and
overall performance. It is important to note that the principles of
organization should be tailored and adapted to the specific needs, context, and
goals of the organization.
Q.5. Organising is the process of defining and grouping
the activities of the enterprise and establishing the authority relationship
among them in the light of this statement, explain the steps in the process of
organizing?
Ans. The process of organizing involves a
series of steps to define, group, and establish authority relationships among
the activities within an enterprise. Here are the steps in the process of
organizing:
Identification and Division
of Work: The
first step is to identify and define the various tasks and activities required
to achieve the goals of the organization. This involves breaking down the work
into manageable units and determining the specific responsibilities and roles
associated with each task.
Departmentalization: Once
the work is identified, the next step is to group similar activities and tasks
together into departments or units. Departmentalization can be done based on
various factors such as function, product, geography, customer type, or
process. This step helps in creating logical units within the organization and
facilitates coordination and specialization.
Assignment of Duties and
Responsibilities: After departmentalization, duties and responsibilities
are assigned to individuals or positions within each department. This step
involves clarifying the roles, defining job descriptions, and allocating
specific tasks to individuals based on their skills, qualifications, and
expertise.
Establishing Authority
Relationships: The next step is to establish authority relationships
within the organization. This includes determining the hierarchy of authority,
defining reporting relationships, and assigning decision-making powers to
different positions or individuals. The formal chain of command is established
to ensure clear lines of authority and accountability.
Delegation of Authority: Once
the authority relationships are established, the process of delegation takes
place. Delegation involves granting authority and empowering individuals or
positions to make decisions and take responsibility for specific tasks or
areas. It allows for the distribution of workload, promotes autonomy, and
enhances efficiency.
Coordination: Coordination
is an essential step in organizing to ensure that the activities of different
departments and individuals work together harmoniously towards common goals. It
involves establishing mechanisms for communication, cooperation, and collaboration
among various units and individuals. Coordination ensures that work is
synchronized, conflicts are resolved, and overall organizational objectives are
achieved.
Establishing Reporting
Relationships: The final step in the process of organizing is to
establish reporting relationships. This includes determining the reporting
structure, lines of communication, and channels for information flow within the
organization. Reporting relationships facilitate the flow of information,
feedback, and decision-making throughout the organizational hierarchy.
By following these steps, an organization can effectively
organize its activities, establish clear roles and responsibilities, promote
coordination and collaboration, and create a structure that supports the achievement
of its goals. It is important to regularly review and adapt the organizational
structure and processes to accommodate changes in the business environment and
ensure ongoing effectiveness.
Q.6. Organisation is the harmonious adjustment of
specialized parts for the accomplishment of some common purpose or purpose in the
light of this statement explain any four points of importance of organizing?
Ans. Organizing plays a crucial role in
achieving the harmonious adjustment of specialized parts within an organization
for the accomplishment of common goals. Here are four points highlighting the
importance of organizing:
Optimal Resource
Utilization: Organizing helps in the efficient allocation and
utilization of resources within an organization. By defining roles,
responsibilities, and departmental structures, it ensures that resources such
as human capital, materials, and equipment are allocated effectively. This
leads to improved productivity, minimized wastage, and cost-effectiveness in
operations.
Clarity in Roles and
Responsibilities: Organizing provides clarity in roles and responsibilities
by defining job descriptions, establishing reporting relationships, and
assigning tasks. It eliminates confusion and ambiguity, ensuring that each
individual knows their responsibilities and how they contribute to the overall
objectives of the organization. Clear roles promote accountability, reduce
duplication of efforts, and enhance overall coordination.
Facilitates Specialization
and Expertise: Organizing enables the organization to structure its
activities based on specialization and expertise. By grouping similar tasks and
functions together, it allows individuals and departments to develop specific
skills and knowledge in their respective areas. Specialization leads to
increased efficiency, higher quality output, and innovation. It also promotes
the development of expertise within the organization.
Promotes Effective
Communication and Coordination: Organizing establishes formal lines of
communication and coordination within the organization. It creates a framework
for information flow, decision-making, and collaboration among individuals and
departments. Clear reporting relationships and well-defined communication
channels enable timely and accurate exchange of information, fostering
effective teamwork and problem-solving. Effective coordination ensures that
different parts of the organization work together cohesively towards common
objectives.
Overall, organizing is essential for achieving a
harmonious and purposeful functioning of an organization. It enables optimal
resource utilization, clarifies roles and responsibilities, promotes
specialization, and facilitates effective communication and coordination. By
organizing effectively, an organization can enhance its efficiency,
productivity, and ultimately achieve its desired outcomes.
Q.7. Give the meaning of Informal state it‘s any three
advantages?
Ans. Informal organization refers to the
unofficial and spontaneous social networks, relationships, and interactions that
develop among individuals within a formal organization. It is based on personal
connections, shared interests, and common goals that emerge naturally among
employees. Here are three advantages of informal organization:
Enhanced Communication and
Collaboration: Informal organization promotes informal communication
channels that are not bound by formal hierarchical structures. It allows for
open and free-flowing communication among employees at different levels,
departments, and functions. This informal communication fosters collaboration,
knowledge sharing, and problem-solving. It enables employees to connect,
exchange ideas, and work together effectively, leading to improved teamwork and
innovation.
Quick Dissemination of
Information: Informal organization facilitates the rapid spread of
information within the organization. Since employees in informal networks
maintain close relationships and interact frequently, information and updates
can be shared quickly and informally. This helps in disseminating important
information, news, and changes more efficiently than relying solely on formal
channels. It ensures that relevant information reaches employees in a timely
manner, enabling them to adapt, make informed decisions, and respond effectively
to organizational needs.
Social and Emotional
Support: Informal
organization provides a sense of community, social support, and camaraderie
among employees. It creates a positive work environment where employees feel
connected, valued, and supported by their peers. Informal networks often offer
emotional support, mentoring, and guidance, particularly during challenging
times or when facing work-related issues. This social support fosters employee
morale, engagement, and job satisfaction, contributing to a positive organizational
culture.
These advantages of informal organization highlight the
importance of recognizing and leveraging informal networks within the formal
organizational structure. While formal organization provides structure and
clarity, informal organization brings social connections, collaboration, and
support, enhancing overall organizational effectiveness.
Q.8.What is meant by divisional structure of an
organisttion for which type of business is this structure most by four
advantages of this form of organisation structure?
Ans. Divisional structure is an
organizational structure in which the company is divided into separate
divisions or units based on specific products, services, geographical
locations, or customer segments. Each division operates as a self-contained
entity with its own resources, functions, and decision-making authority. This
structure is most suitable for large organizations that have diverse business lines or operate in multiple markets. Here are four advantages of
divisional structure:
Focus on Specific Markets
or Products: Divisional structure allows each division to focus on a
specific market segment, product line, or geographic region. This
specialization enables divisions to develop expertise and tailor their
strategies, operations, and marketing efforts according to the unique needs and
demands of their respective markets. It promotes a customer-centric approach
and enhances the organization's ability to effectively serve diverse customer
segments.
Decentralized
Decision-Making: In divisional structure, decision-making authority is
decentralized to the division level. Each division has its own management team
responsible for decision-making related to their specific division. This
decentralization empowers divisional managers to make decisions quickly,
respond to market changes, and address specific customer needs without relying
on lengthy approval processes. It enhances flexibility, agility, and
responsiveness in decision-making, leading to faster problem-solving and improved
customer satisfaction.
Accountability and
Performance Measurement: Divisional structure facilitates clear
accountability and performance measurement at the division level. Each division
operates as a separate entity with its own set of objectives, targets, and performance
indicators. This allows for better evaluation and assessment of divisional
performance, as performance measures can be customized to suit the specific
goals and metrics of each division. It promotes a sense of ownership and
responsibility among divisional managers, driving performance and results.
Encourages Innovation and
Entrepreneurship: Divisional structure fosters innovation and
entrepreneurship within each division. Since divisions have autonomy and
authority over their operations, they have the freedom to experiment, introduce
new products or services, and pursue innovative strategies. This
entrepreneurial environment encourages creativity, risk-taking, and a focus on
continuous improvement. It enables divisions to adapt to market changes, seize
new opportunities, and drive growth within their specific areas of operation.
Overall, the divisional structure allows large
organizations to effectively manage diverse business lines, markets, or
customer segments by providing focused attention, decentralized
decision-making, clear accountability, and an environment conducive to
innovation.
Q.9. State any four features of informal organisation?
Ans. Four
features of informal organization are:
Emerges Spontaneously: Informal
organization arises naturally within a formal organization. It is not
intentionally designed or officially established by management. Instead, it
emerges organically as employees develop social connections, form friendships,
and establish informal networks based on common interests or shared objectives.
Based on Social
Relationships: Informal organization is characterized by social
relationships and personal interactions among employees. It is built on
informal social networks, such as friendships, trust, and common interests,
rather than formal hierarchical relationships. These social relationships often
transcend formal lines of authority and influence communication, decision-making,
and work dynamics.
Unofficial Communication
Channels: Informal
organization relies on informal communication channels that operate outside the
official formal communication channels of the organization. Informal
communication occurs through casual conversations, informal meetings, grapevine
or rumor mill, and electronic communication tools like social media or instant
messaging platforms. Information and knowledge often flow more quickly and freely
through informal channels.
Dynamic and Flexible: Informal
organization is dynamic and flexible, adapting to the changing needs and
circumstances within the formal organization. It can bridge gaps in formal
structures, fill communication voids, and facilitate the exchange of
information and support among employees. Informal networks can also facilitate
problem-solving, innovation, and collaboration, as they allow individuals to
connect with colleagues who possess relevant knowledge or expertise.
Overall, informal organization complements the formal
structure of an organization by fostering social relationships, informal
communication, and flexibility. It can enhance employee satisfaction,
facilitate collaboration, and contribute to the overall functioning and
effectiveness of the organization.
Q.10. Explain any two advantages and any two
disadvantages of informal organistion?
Ans. Two advantages of informal organization
are:
Increased Communication and
Information Flow: Informal organization encourages open and informal
communication among employees. It creates a supportive and friendly work
environment where employees feel comfortable sharing information, ideas, and
concerns. This free flow of communication can lead to better coordination,
problem-solving, and innovation within the organization.
Rapid Response to Change: Informal
organization is flexible and adaptable to changes in the organizational
environment. Informal networks can quickly disseminate information, react to
challenges, and mobilize resources. In times of change or crisis, informal
organization can be instrumental in facilitating quick decision-making and
action, as employees rely on their social connections to collaborate and
address emerging issues.
Two disadvantages of informal organization
are:
Lack of Formal Structure
and Accountability: Informal organization operates outside the formal
structure and hierarchy of the organization. As a result, there may be a lack
of clear roles, responsibilities, and accountability. Decisions made within
informal networks may not align with the organizational goals or policies, leading
to conflicts and confusion.
Formation of Cliques and
Favoritism: In informal organization, there is a risk of forming
cliques or exclusive groups based on personal relationships or interests. This
can lead to favoritism, exclusion of certain individuals or departments, and
the formation of informal power dynamics. It may undermine teamwork, fairness,
and overall organizational cohesion.
While informal organization can have its advantages in
promoting communication and adaptability, it is essential for management to
strike a balance between formal and informal structures. Clear communication
channels, strong leadership, and a supportive organizational culture can help
harness the benefits of informal organization while minimizing its potential
drawbacks.
Q.11. Explain:
(a) Benefits of specialization and
(b) Development of personnel as importance of organizing
Ans. (a) Benefits of Specialization:
Specialization refers to dividing tasks and
responsibilities based on individual skills, expertise, and knowledge. It plays
a crucial role in organizing and has several benefits:
Increased Efficiency and
Productivity: Specialization allows individuals to focus on tasks that
align with their skills and expertise. When employees specialize in specific
areas, they become more proficient and efficient, leading to increased
productivity. By concentrating on their strengths, employees can perform tasks
more effectively and deliver higher-quality outputs.
Time and Cost Savings: Specialization
enables employees to become experts in their specific roles, which can result
in time and cost savings. When employees are specialized, they require less
time to switch between tasks or acquire new skills, leading to improved
efficiency and reduced training costs. The division of labor also allows for
economies of scale, as processes can be streamlined and optimized.
Improved Quality and
Expertise:
Specialization allows individuals to develop deep knowledge and
expertise in their specialized areas. This leads to better quality outcomes as
specialized employees can apply their skills, experience, and knowledge to their
work. Additionally, specialization enables organizations to access specialized
talent and skills that may not be readily available in a generalist approach.
(b) Development of Personnel as Importance
of Organizing:
Organizing is important for personnel development within
an organization. It facilitates the following:
Career Growth and
Advancement: Organizing provides a structured framework
for defining roles, responsibilities, and career paths within the organization.
It helps identify opportunities for employees to develop and progress in their
careers. Clear job descriptions, reporting relationships, and hierarchical
structures enable employees to understand their career trajectories and work towards
their professional goals.
Skill Enhancement and Learning: Organizing
involves identifying the skills and competencies required for different
positions. It allows organizations to design training and development programs
to enhance employees' skills and capabilities. By aligning the organization's
goals with individual development needs, organizing promotes continuous learning
and skill enhancement.
Succession Planning: Effective
organizing ensures that there is a pipeline of talent ready to assume higher
positions within the organization. It involves identifying and grooming
potential leaders and successors for key roles. By providing opportunities for
personnel development, organizing ensures a smooth transition of
responsibilities and minimizes disruptions in case of retirements, promotions,
or departures.
Overall, organizing plays a vital role in personnel
development by creating a supportive and structured environment for career
growth, skill enhancement, and succession planning. It enables employees to
reach their full potential and contributes to the long-term success of the
organization.
Q.12. Explain:
(a) Adaptation to change and
(b) Effective administration as importance of organizing
Ans. (a) Adaptation to Change:
Organizing is important for adaptation to change within
an organization. It provides the necessary framework and structure to
effectively respond to internal and external changes. Here's how organizing
facilitates adaptation:
Flexibility and Agility: Organizing
allows for the allocation and reallocation of resources, roles, and
responsibilities based on changing circumstances. It enables the organization
to quickly adapt to new market conditions, technological advancements, customer
preferences, and other external factors. By having a well-structured and
adaptable organizational framework, the organization can respond swiftly and
efficiently to changes.
Coordination and
Collaboration: Organizing establishes clear lines of communication,
coordination, and collaboration within the organization. It ensures that
different departments, teams, and individuals work together towards common
goals. This collaborative environment enhances the organization's ability to
respond to changes as information flows smoothly, decisions are made
collectively, and resources are allocated effectively.
Innovation and Creativity: Organizing
can foster a culture of innovation and creativity within the organization. By
providing clear roles and responsibilities, it allows employees to focus on
their core tasks while also encouraging them to explore new ideas and
approaches. Effective organizing supports cross-functional collaboration and
the sharing of diverse perspectives, leading to innovative solutions and adaptability
in the face of change.
(b) Effective Administration:
Organizing is important for effective administration
within an organization. It establishes the structure, roles, and processes
necessary for efficient management and administration. Here's how organizing
contributes to effective administration:
Clear Roles and
Responsibilities: Organizing defines clear roles and responsibilities for
each position within the organization. It ensures that there is clarity
regarding who is accountable for specific tasks and decisions. This clarity
helps avoid confusion, duplication of efforts, and conflicts. It enables effective
delegation and empowers employees to take ownership of their roles.
Optimal Resource
Allocation: Organizing involves determining resource requirements and
allocating resources in an optimal manner. It ensures that resources such as
human capital, finances, and equipment are allocated based on the
organization's priorities and needs. Effective resource allocation maximizes
productivity, minimizes wastage, and supports efficient administration.
Streamlined Processes: Organizing
establishes efficient workflows and processes within the organization. It
defines the sequence of tasks, interdependencies, and reporting relationships.
Streamlined processes improve coordination, reduce bottlenecks, and enhance
overall operational efficiency. Effective administration relies on
well-designed processes that facilitate smooth and timely execution of tasks.
In summary, organizing enables an organization to adapt
to change and ensures effective administration by fostering flexibility,
coordination, innovation, clear roles, optimal resource allocation, and
streamlined processes. It sets the foundation for efficient management and
helps the organization navigate challenges and achieve its objectives.
Q.13. Explain:
(a) Expansion and growth and
(b) Optimum utilization of resources as importance of
organizing
Ans. (a) Expansion and Growth:
Organizing plays a crucial role in the expansion and
growth of an organization. It provides the necessary structure and framework to
support the organization's growth objectives. Here's how organizing contributes
to expansion and growth:
Scalability: Organizing
allows the organization to scale its operations as it expands. It ensures that
the organizational structure can accommodate an increasing number of employees,
departments, and functions. By defining clear lines of authority,
responsibilities, and reporting relationships, organizing enables the
organization to effectively manage growth without losing control or efficiency.
Coordination and
Integration: As the organization grows, the complexity of its
operations increases. Organizing helps in coordinating and integrating various
departments, teams, and functions. It ensures that different parts of the
organization work together towards common goals, avoiding duplication of
efforts and promoting synergy. Effective coordination supports smooth workflow,
reduces conflicts, and facilitates collaboration.
Specialization and
Efficiency: With growth, there is often a need for specialized roles
and expertise. Organizing allows for the specialization of tasks and the
development of specialized departments or teams. Specialization enhances
efficiency as individuals can focus on their areas of expertise, leading to
improved productivity and quality of work. It also enables the organization to
leverage the skills and knowledge of its employees more effectively.
(b) Optimum Utilization of Resources:
Organizing is essential for the optimum utilization of
resources within an organization. It ensures that resources are allocated
efficiently to achieve maximum productivity and minimize waste. Here's how
organizing contributes to the optimum utilization of resources:
Resource Allocation: Organizing
involves determining the resource requirements of different functions and
allocating resources accordingly. This includes human resources, financial
resources, technology, and other assets. By aligning resources with
organizational goals and priorities, organizing helps in avoiding resource
shortages or excesses, leading to their optimal utilization.
Task Assignment and
Coordination: Organizing assigns tasks and responsibilities to
individuals or departments based on their skills, capabilities, and
availability. It ensures that tasks are allocated to the most suitable
resources, optimizing their utilization. Furthermore, organizing facilitates
coordination among different tasks and functions, enabling efficient use of
resources by minimizing conflicts and redundancies.
Elimination of Duplication
and Waste:
A well-organized structure ensures that there is no duplication of
efforts or resources within the organization. By defining clear roles and
responsibilities, organizing helps in identifying and eliminating redundancies.
It promotes streamlined processes, reduces unnecessary costs, and minimizes
resource wastage, thereby improving overall efficiency.
In summary, organizing is important for the expansion and
growth of an organization as it facilitates scalability, coordination, and
specialization. It also enables the optimum utilization of resources by
ensuring efficient resource allocation, task assignment, and elimination of
duplication and waste. By effectively organizing its resources and operations,
an organization can achieve sustainable growth and maximize its potential.
Q.14. A steel manufacturing company has the following
main jobs:
(A) Manufacturing (b) Finance (c) Marketing
(d) Personnel (c) Research and development
Ans. To organize the steel manufacturing
company, the following divisional structure can be considered based on the main
jobs:
Manufacturing Division: This
division would be responsible for the core manufacturing activities of the
company. It would include departments such as production, operations, quality
control, maintenance, and logistics. The manufacturing division would focus on
efficiently producing steel products according to customer requirements and
industry standards.
Finance Division: The
finance division would handle all financial aspects of the company, including
budgeting, accounting, financial planning, and analysis. It would ensure the
proper management of financial resources, monitor costs, handle financial
reporting, and support decision-making related to investments, funding, and
financial strategies.
Marketing Division: The
marketing division would be responsible for promoting the company's steel
products, identifying market opportunities, conducting market research, and
developing marketing strategies. It would handle activities such as branding,
advertising, sales, customer relationship management, and market communication.
The marketing division would work closely with customers to understand their
needs and develop effective marketing campaigns.
Personnel Division (Human
Resources): The personnel division would manage all aspects related
to human resources. It would handle functions such as recruitment, training and
development, performance management, employee relations, compensation and
benefits, and organizational culture. The personnel division would focus on
attracting and retaining talented employees, fostering a positive work
environment, and ensuring compliance with labor laws and regulations.
Research and Development
(R&D) Division: The R&D division would be responsible for innovation,
product development, and technological advancements in the steel manufacturing
company. It would conduct research, design new products, improve existing
products, and explore new manufacturing processes or materials. The R&D
division would collaborate with other divisions to identify market needs,
develop competitive products, and stay ahead of industry trends.
Each division would have its own departmental heads and
teams responsible for managing and executing the respective functions. This
divisional structure allows for specialization, efficient coordination within
each division, and clear accountability for specific areas of work. It enables
the company to focus on the unique requirements of each main job while
fostering collaboration and cross-functional integration when necessary.
Q.15. With the help of any four points explain the crucial
role of organizing ‘function in an enterprise?
Ans. The organizing function plays a crucial
role in an enterprise for effective management. Here are four points explaining
its crucial role:
Clear Allocation of Tasks
and Responsibilities: Organizing ensures that tasks and responsibilities are
clearly defined and assigned to individuals or groups within the enterprise.
This clarity helps in avoiding confusion and overlapping of work. Each person
knows their roles and responsibilities, which leads to improved efficiency and
productivity. It also promotes accountability as employees are aware of their
specific duties and are held responsible for their performance.
Optimum Resource
Utilization: Organizing involves identifying and allocating resources
effectively to achieve the desired objectives. It ensures that resources such
as human capital, finances, materials, and equipment are allocated in the most
efficient and cost-effective manner. By aligning resources with the
organizational goals, organizing helps in maximizing their utilization and
minimizing wastage.
Coordination and
Collaboration: Organizing establishes a framework for coordination and
collaboration among different individuals, departments, and teams within the
enterprise. It facilitates effective communication, cooperation, and teamwork,
enabling the smooth flow of information and activities. Proper coordination
ensures that various parts of the organization work together towards common
goals, leading to better overall performance.
Adaptation to Change: Organizing
provides the flexibility and adaptability necessary for an enterprise to
respond to changes in the internal and external business environment. It allows
for the reorganization of tasks, roles, and structures as per the evolving
needs and circumstances. Through regular evaluation and adjustment, organizing
ensures that the enterprise remains agile and capable of meeting new challenges
and opportunities.
In summary, organizing plays a crucial role in an
enterprise by establishing clear roles and responsibilities, optimizing
resource utilization, facilitating coordination and collaboration, and enabling
adaptation to change. It provides the structure and framework necessary for
effective management and helps in achieving organizational objectives
efficiently.
Q.16.Explain the steps in the process of organizing?
Ans. The process of organizing involves a
series of steps to establish the structure, allocate resources, and define
roles and responsibilities within an organization. Here are the steps in the
process of organizing:
Determining Objectives: The
first step is to identify and determine the objectives or goals of the
organization. This provides a clear direction and purpose for the organizing
process. Objectives can include increasing productivity, improving efficiency,
expanding market share, or any other desired outcome.
Division of Work: In
this step, the work is divided into specific tasks and activities. Each task is
assigned to individuals or groups based on their skills, expertise, and job
responsibilities. The division of work ensures that all tasks are covered and
helps in establishing a systematic workflow.
Establishing Relationships: The
next step is to establish relationships among individuals or groups within the
organization. This includes defining the reporting hierarchy, establishing
lines of authority and communication, and creating a formal structure.
Relationships can be hierarchical, matrix-based, or project-based, depending on
the organization's needs and objectives.
Allocation of Resources: Resources
such as human resources, finances, materials, and equipment need to be
allocated effectively. This step involves identifying the resources required
for each task or activity and ensuring their availability and proper utilization.
It also involves budgeting and resource allocation decisions to optimize the
use of available resources.
Delegation of Authority: Delegation
of authority is the process of assigning decision-making authority to
individuals at various levels within the organization. This step involves
granting authority to individuals to make decisions, take actions, and be
accountable for their assigned tasks. Proper delegation empowers employees,
encourages initiative, and improves organizational efficiency.
Establishing Communication
Channels: Effective
communication is essential for smooth coordination and collaboration within an
organization. This step involves establishing formal and informal communication
channels to facilitate the flow of information, feedback, and instructions. It
can include meetings, reports, memos, emails, and other communication tools.
Coordination: Coordination
ensures that all activities and efforts within the organization are aligned
towards achieving the common objectives. This step involves establishing
mechanisms for coordination, such as regular meetings, teamwork, and
interdepartmental collaboration. It helps in avoiding conflicts, resolving
issues, and ensuring that everyone is working together towards organizational
goals.
Monitoring and Review: The
final step is to monitor and review the organizing process. This involves
evaluating the effectiveness of the established structure, identifying any gaps
or areas for improvement, and making necessary adjustments. Regular monitoring
and review help in maintaining an efficient and adaptive organizational
structure.
Overall, the process of organizing involves determining
objectives, dividing work, establishing relationships, allocating resources,
delegating authority, establishing communication channels, coordinating
activities, and monitoring progress. These steps ensure that the organization
is structured, well-coordinated, and aligned towards achieving its goals
effectively.
Q.17. Explain the concept of functional structure of an
organisation Also explain any four disadvantages of functional structure?
Ans. The functional structure of an
organization is a hierarchical arrangement where employees are grouped based on
their specific functions or areas of expertise. Each functional department or
unit is responsible for carrying out specific tasks related to their function.
For example, departments such as finance, marketing, human resources, and
operations are common functional units within an organization.
The concept of a functional structure
offers several advantages, such as:
Specialization and
Expertise:
Functional structure allows employees to specialize in their respective
functions and develop expertise in their specific areas. This specialization
promotes efficiency and enhances the quality of work.
Clear Career Paths: Functional
structure provides clear career paths for employees within their respective
functional areas. It allows for vertical growth and advancement within a
specific function, providing employees with opportunities to enhance their
skills and knowledge.
Efficient Resource
Allocation: Functional structure enables efficient allocation of
resources by centralizing similar resources within a functional department.
This facilitates better coordination and utilization of resources, leading to
cost savings and improved resource management.
Focus on Core Competencies: By
organizing the organization into functional units, the functional structure
allows the organization to focus on its core competencies. Each functional unit
can concentrate on its specific tasks and responsibilities, contributing to the
overall success of the organization.
However, functional structure also has
certain disadvantages, including:
Lack of Communication and
Coordination: Functional structure can create communication and
coordination challenges between different functional units. As each unit
operates independently, there may be limited communication and collaboration
between functions, leading to silos and information gaps.
Slow Decision-Making: In
functional structure, decision-making can be slow and bureaucratic, especially
when cross-functional decisions need to be made. The decision-making process
may involve multiple levels of approval and coordination, leading to delays and
inefficiencies.
Lack of Flexibility and
Adaptability: Functional structure may hinder flexibility and
adaptability in response to changing market conditions or organizational needs.
As departments are organized around specific functions, it can be challenging
to quickly reallocate resources or reconfigure the structure to address new
opportunities or challenges.
Potential for Functional
Bias: Functional
structure can lead to a narrow perspective and functional bias, where employees
prioritize their functional objectives over the overall organizational goals.
This can hinder collaboration and the integration of different functions
towards a common purpose.
It is important for organizations to carefully consider
these advantages and disadvantages when deciding on their organizational
structure and to find a balance that best suits their specific needs and
objectives.
Q.18.What is meant by functional structure of an
organisation? State any five advantages of this form of organistional
structure?
Ans. The functional structure of an organization
is a type of organizational structure where employees are grouped based on
their specific functions or areas of expertise. In this structure, departments
or units are created for different functions such as finance, marketing, human
resources, operations, and so on. Each department is responsible for carrying
out tasks related to their specific function.
Advantages of functional structure:
Specialization: Functional
structure allows employees to specialize in their respective functions and
develop expertise in their specific areas. This specialization leads to
increased efficiency and effectiveness in performing tasks.
Clear Hierarchy: Functional
structure provides a clear hierarchy within the organization. Employees know
their reporting lines and have a clear understanding of their roles and
responsibilities within their functional department.
Efficient Resource
Allocation: Functional structure enables efficient allocation of
resources by centralizing similar resources within each functional department.
Resources such as equipment, technology, and expertise can be concentrated and
utilized effectively.
Career Development: Functional
structure offers clear career paths for employees within their respective
functional areas. Employees can focus on developing their skills and knowledge
in their specialized function, leading to vertical growth and advancement
opportunities.
Expertise and Knowledge
Sharing: Functional
structure facilitates the sharing of expertise and knowledge within the same
function. Employees can collaborate, learn from each other, and develop best
practices that can benefit the entire organization.
Overall, the functional structure allows organizations to
effectively organize their activities based on functions and take advantage of specialization
and expertise within each functional area. It promotes efficiency, clear
hierarchy, and focused development of employees' skills, contributing to the
overall success of the organization.
Q.19. Differentiate between formal and informal organisation
on the basis of the following:
(a) Meaning (b) origin (C) Authority (d) Behaviour
Or
Write any four differences between formal organistion and
informal organistion.
Ans. Differences between formal organization and
informal organization:
Meaning:
Formal Organization: It
refers to the structured and planned arrangement of roles, responsibilities,
and relationships within an organization. It follows established rules,
procedures, and authority.
Informal Organization: It
refers to the spontaneous and emergent social structure that develops within an
organization based on personal relationships, interactions, and shared
interests among employees.
Origin:
Formal Organization: It
is intentionally created by the management or top-level authority of the
organization to achieve specific goals and objectives.
Informal Organization: It
arises naturally as a result of social interactions, shared interests, and
personal relationships among individuals in the organization. It is not
deliberately created or planned.
Authority:
Formal Organization: Authority
in a formal organization is derived from the official hierarchical structure
and is based on designated positions and roles. It is formalized through the chain
of command.
Informal Organization: Authority
in an informal organization is not based on formal positions or designations
but on personal influence, expertise, and social relationships. It is derived
from the trust and respect earned by individuals within the informal networks.
Behavior:
Formal Organization: Behavior
in a formal organization is governed by rules, policies, and procedures. It is
more task-oriented and follows the prescribed code of conduct.
Informal Organization: Behavior
in an informal organization is driven by personal relationships, social norms,
and shared values. It is more flexible, spontaneous, and influenced by personal
preferences and informal social dynamics.
These differences highlight that formal and informal
organizations differ in their structure, origin, authority, and behavior.
Formal organizations are planned and structured, while informal organizations
arise naturally based on social interactions. Authority in formal organizations
is derived from positions, while in informal organizations, it is based on
personal influence. Behavior in formal organizations is guided by rules, while
in informal organizations, it is shaped by personal relationships.
Q.20. Give the meaning of informal organisation and state
any five features of it?
Ans. Informal Organization:
Informal organization refers to the network of social
relationships and interactions that emerge spontaneously among individuals
within a formal organization. It is an unofficial and unplanned system that
exists alongside the formal structure and has its own patterns of
communication, influence, and social dynamics.
Features of Informal Organization:
Emergence: Informal
organization arises naturally among employees based on personal relationships,
shared interests, and social interactions. It is not deliberately created or
planned by the management.
Social Networks: It
is characterized by the formation of social networks and informal groups within
the organization. These groups can be based on factors such as friendship,
common interests, or shared experiences.
Informal Communication: Informal
organization relies on informal channels of communication that operate outside
the formal lines of authority. Informal communication includes informal
conversations, grapevine communication, and social interactions among
employees.
Influence and Power: Informal
organization can have its own system of influence and power, which is based on
personal relationships, expertise, and social connections. Individuals within
informal networks can have significant influence and impact on decision-making
and the overall functioning of the organization.
Flexibility and
Adaptability: Informal organization provides flexibility and
adaptability to the formal structure. It allows employees to collaborate, share
information, and respond quickly to changes or challenges that may arise in the
work environment.
These features highlight the informal aspects of an
organization, which are based on the social relationships, interactions, and
communication among employees. Informal organization plays a significant role
in shaping the organizational culture, employee satisfaction, and overall
effectiveness of the formal structure.
A. One Word or One line
Questions
Q. 1. What is
Organising?
Ans. Organising refers to that function of
management under which physical and human resources of the organisation are
organised in an appropriate structure.
Q. 2. What is the other
name of staff organisation?
Ans. Functional organisation.
Q. 3. What is
Divisional Structure?
Ans. Under divisional structure, an
organisation is divided in different divisions on the basis of the number of
products being produced.
Q. 4. What is formal
organisation?
Ans. Such an organisation which is
established by the management after deliberate planning is known as formal
organisation.
Q. 5. What is Informal
Organisation?
Ans. Such an organisation which
emerges automatically as a network of personal and social relations among
employees is known as informal organisation.
B. Fill in the Blanks
1. Formal
organisation is very stable due
to well defined structure.
2. Organisational structure
establishes authority-responsibility relationship between various positions.
3. In functional organisation subordinates receive orders from
many bosses.
4. In informal organisation, leader
is usually chosen by the group members.
5. Divisional
structure is suitable to an organisation which produces several products.
6. Divisional structure is not
suitable to small organisations.
C. True or False
1. A formal leader is usually chosen
by the group members. False
2. An informal organisation gets
created within a formal organisation. True
3. Delegation of authority does not reduce the
work load of a manager. False
4. Divisional structure promotes
specialization. True
D.
MCQ
1. In which respect, does formal organisation
differ from informal organisation?
(a) Financial
procedure
(b) Structure
(c) Production
process
(d) None of above.
Ans. (b) Structure
2. In an organisation,
organisational structure determines
(a) Level of
authority
(b) Responsibility
(c) Hierarchy
(d) All the above.
Ans. (d) All the above.
3. Which of the
following is an officially created structure?
(a) Formal
organisation
(b) Informal organisation
(c) Both of these (d)
None of these.
Ans. (a) Formal organisation
4. Who among the
following is not a shop specialist?
(a) Disciplinarian (b)
Inspector
(c) Gang boss
(d) Speed boss
(a) Disciplinarian
5. Functional structure
is based on:
(a) Experience of
persons (b)
Specialisation
(c) Relations among
persons (d) None of
these
(b) Specialisation
6. Which of the
following is a step in the process of organising?
(a) Division of
work (b) Delegation of
authority
(c) Both (a) and
(b) (d) None
of these.
(c) Both (a) and (b)
7. Which type of
organisation has no written rules and regulations?
(a) Formal
organisation (b) Informal organisation
(c) Both (a) and
(b)
(d) None of these.
(b) Informal organisation
Two
Marks Questions:-
Q. 1. Define
organising.
Ans. Organising refers to that
function of management under which physical and human resources of the
organisation are organised in an appropriate structure and in a systematic
manner so that plans may be implemented for achieving the objectives of the
organisation.
Q. 2. What is meant by
Functional Structure?
Ans. Such a structure in which all
the functions of the organisation are classified into various functional
departments, is known as functional structure. Under such a structure, all the
related or uniform activities are grouped together under one department and an
expert is appointed as head of each department. This head runs all the
activities of the department and gets the entire work of the department done by
his subordinates.
Q. 3. What is meant by
Divisional Structure?
Ans. Divisional Structure: Under divisional structure, an
organization is divided in different divisions on the basis of the number of
products being produced. Hence, under divisional structure, an organization is
a combination of many business units or divisions. Out of these, every division
performs multiple roles. The structure of every division is organized on the
pattern of functional structure.
Q. 4. What is formal
organisation?
Ans. Such an organisation which is
established by the management after deliberate planning so that objectives of
the organisation may be achieved, is known as formal organisation.
Q. 5. State the meaning
of informal organisation.
Ans. Such an organisation which
emerges automatically as a network of personal and social relations among
employees is known as informal organisation.
Four
Marks Question:
Q. 1. Write any four
features of organising.
Ans. 1. A System of Group of People: Any organisation is
a unique system of a group of people. This group of people is organised in a
specific structure under the process of organising so that objectives of the
organisation may be achieved.
2.
Basic Function of Management: Organising is also a basic function
of management. In order to achieve the objectives of the organisation,
management performs the function of organising.
3.
Based on Division of Work: The process of organising is based
on the division of work in the organisation. Under this process, the total work
of the organisation is divided in various tasks and activities.
4.
Goal of Achievement of Objectives: The goal of the
process of organising is the achievement of the objectives of the organisation.
Q. 2. Explain any four
points enumerating the importance of organising.
Ans. 1. Division of Work: Under the process of
organising, the total work of the organisation is divided and the
responsibility for every task is assigned to a specific employee. Hence, the
process of organising improves the efficiency of the organisation.
2.
Specialization: Under organising, every task is
assigned to a specific employee after division of work. Hence, organising
promotes specialization in the organisation.
3.
Optimum Utilization of Resources: Under the process of
organising, an ideal structure of the organisation is created for the optimum
utilization of physical resources, financial resources and human resources.
4.
Determination of Well Defined Functional Relations: Under the process of organising, it is clearly determined in the
organisation that from whom an employee will get orders and directions, and to
which superior that employee will be accountable. This helps to clearly
determine the functional relations in the organisation.
Q. 3. Explain any four
objectives of Organising.
Ans. 1. To Help Management: The primary objective of
organising is to help the management in the achievement of organisational
objectives. In order to do so, proper division of work, delegation of authority
and determination of responsibility are done under the process of organising.
2.
To Facilitate Growth and Diversification: Proper division of
work under organising results in the improvement of the efficiency which helps
in the growth and diversification of the organisation in the long run.
3.
To Increase Production: According to the principle of
division of labour, the responsibility for every task is assigned to an
efficient and expert employee. As a result, there is increase in production and
reduction in cost. These are also the objectives of organising.
4.
To Optimise Use of Resources: The process of organizing aims to
ensure optimum use of labour through division of labour. Likewise, it also
helps to ensure the optimum use of other resources.
Q. 4. Discuss any four
principles of organising.
Ans. 1. Principle of Objective: Under organising, in
order to create a suitable structure for the organisation, a common objective
must be determined for the whole organisation. All the activities of the
organisation must be focussed on the achievement of that objective.
2.
Principle of Division of Work and Specialization: According to this principle, all the functions of the organisation must
be divided among various employees in such a way that every employee gets
functions in accordance with his ability and skill. This helps to bring
specialization in the organisational functions.
3.
Principle of Unity of Command: According to this principle,
organisational structure should be such that an employee must get orders from
one superior only. If there are more than one superior of any one employee,
then it becomes difficult for the employee to follow the orders.
4.
Principle of Unity of Direction: According to this principle, there
should be 'One Head and One Plan' for all the activities of the organisation
having same objectives. If there are more than one head or more than one plan,
then the organisation has to face many difficulties.