ORGANISING

• The term organisation is used in the following ways-

1. Organisation as Entity

• Organisation is defined as collectivity of people for achieving common objectives.

According to William Scott , “Organisation are collectivities of people that have been
established for the pursuit of relatively specific objectives on a more or less continuous basis.”

a) Identifiable aggregation of Human Beings.

• The identification is possible because human group is not merely a number of persons
collected at random, but it is a group of persons who are interrelated.

b) Deliberate and conscious creation.

• It implies that relationship between organisation and its members is contractual.

• The organisation can also recombine its personnel through promotion, demotion ,and
transfer.

• Organisations can continue for much longer period than their members.

c) Purposive creation.

• The organisation is a purposive creation, i.e., all the organisations have some objectives or
set of objectives.

• The objectives are mutually agreed upon by the members of the group.

d) Coordination of activities.

• The coordination is necessary because all the members contribute to commonly agreed
goals.

• The object of coordination is activities, not individuals, as only some of the activities of
individuals are relevant to the achievement of a particular objections.

e) Structure.

• the coordination of human activities requires a structure wherein various individuals are
fitted.

• The structure provides power centers which coordinate and control concerted efforts of the
organisation and direct them towards its goals.

f) Rationality.

• Every organisation has some specified norms and standards of behaviour;

 • The behaviour is governed by reward and penalty system of the organisation which acts as a
binding force on its members.

• To enforce rationality in behaviour, organisation also provides way for substitution of its
members.

2. Organisation as Group of People

i. An organisation always refers to people.

ii. The organisation is composed of people who interact among themselves.

iii. The interaction are specified by some sort of structure, i.e., who will interact with whom.

iv. The interactions are meant to achieve some sort of objectives.

3. Organisation as structure

Structure tends to be somewhat permanent with a provision of incorporating changes

wherever required.

4. Organization as process

Whenever it is used as process, it is termed as organizing rather as organization.

Organizing ,being a process, consists of the following elements :

a) Departmentation.

b) Linking Departments.

c) Defining Authority and Responsibility.

d) Precribing Authority Relationships.

Concept of planning

Planning and plan

1. Plan is a commitment to a particular course of action believed necessary to achieve specific

results.

2. Planning is an activity. It can be considered as consisting of a process.

3. The plans are prepared through the planning process which involves taking various activities
to arrive at what is to be achieved, how to be achieved, and when to be achieved. Planning is
taken as a process.

 Planning is a process of determination of future course of action.

 According to Terry “planning is the selection and relating of facts and making and using of
assumptions regarding the future in the visualisation and formalisation of proposed activities
believed necessary to achieve desired result.”
  According to McFarland “planning may be broadly defined as a concept of executive action
that embodies the skills of anticipating, influencing and controlling the nature and direction
of change.”

Features of planning

1. Planning is a process rather than behaviour at a given point of time.

2. Planning is primarily concerned with looking into future.

3. Planning involves selection of suitable course of action.

4. Planning is undertaken at all levels of the organisation because all levels of management are
concerned with the determination of future course all of action.

5. Planning is flexible as commitment is based on future conditions which are always dynamic.

6. Planning is a pervasive and continuous managerial function.

NATURE OF PLANNING

1) Planning: a Rational Approach

 Planning is a rational approach for defining where one stands, where one wants to go in
future, and how to reach there. In oganisational context, planning a rational approach tries
to fill the gap between actual status (current performance) and desired status (desired
performance).

2) Planning: An Open System Approach

 Planning adopts an open system approach.

 It takes inputs from the environment, processes these, and exports outputs to environment.

 The identification of gap between current status and desired status in future is influenced by
a variety of environmental factors-economic, political, legal, technological, socio-cultural,
etc.

Therefore managers have to take into account the dynamic features of the environment.

3) Pervasiveness of Planning

 Planning is pervasive and extends throughout the organisation. Every manager has a
planning function to perform.

4) Primacy of Planning. Planning precedes all other managerial functions. Managerial

operations in organising, staffing, directing , and controlling are designed to support the
execution of all other managerial functions.

STEPS IN PLANNING PROCESS

1. Perception of opportunities
 2. Establishing objectives

3. Planning premises

4. Identification of alternatives

5. Evaluation of alternatives

6. Choice of alternative plans

7. Formulation of supporting

8. Establishing sequence of activities

TYPES OF PLANNING

Dimensions types of planning

1. Coverage of activities Corporate and functional planning

2. Importance of contents Strategic and tactical/operational

planning

3. Time period involved long-term and short-term planning

4. Approach adopted proactive and reactive planning

5. Degree of formalisation Formal and informal planning

1) Corporate planning

 The term corporate planning denotes planning activities at the top level which cover the
entire organisational activities.

 The basic focus of corporate planning is a to determine the long-term objectives of the
organisation as a whole.

 To generate plans to achieve these objectives bearing in mind the probable changes in
environment.

 It is also called strategic planning.

2) Functional Planning

 Functional planning is segmental.

 It is undertaken for each major function of the organisation like production/operation,

marketing, finance, human resource/personnel, etc.

 Functional planning is undertaken for subfunctions within each major function.

 e.g. Planning at subfunctions of marketing like sales, sales promotion, marketing research ,
etc. is undertaken.
 3) Strategic planning

 Strategic planning sets the long-term direction of the organisation in which it wants to
proceed in future.

 E.g. planned growth rate in sales, diversification of business into new lines, type of products
to be offered etc.

 Strategic planning ranges between 3 and 5 years.

4) Operational planning

 Operational planning as also known as tactical or short-term planning.

 It is aimed at sustaining the organisation in its production and distribution of current

products or services to the existing markets.

Operational planning taken in this way answers the question about a particular function as follows:

1. Why is the action required?

2. What action is to be taken?

3. What are the results of the action required?

4. What objectives and conditions must be met?

5) Long-term Planning

6) Short-term Planning

7) Proactive Planning

8) Reactive Planning

9) Forms of organisation structure

10) Line organisation structure is also known as scalar, military, or vertical organisation and is
the oldest form.

11) There must be a single head who commands it. Line organisation can be designed in two
ways:

12) Pure line organisation.

13) Similar activities are performed at a particular level.

14) Production Manager

15)

16)
17) Formal Planning

 Formal planning is in the form of well-structured process involving different steps.

 The planning process that is adopted is rational, systematic, well-documented, and regular.

10) Informal Planning

 Informal planning is undertaken by smaller organisations.

 The planning process is based on managers’ memory of events, intuitions and gut-feelings
rather than based on systematic evaluation of environmental happenings.

1. Forms of organisation structure

• Line organisation structure is also known as scalar, military, or vertical organisation and is
the oldest form.

• There must be a single head who commands it. Line organisation can be designed in two
ways:

1. Pure line organisation.

• Similar activities are performed at a particular level.

• Departmental line organisation.

• Entire activities are divided into different departments on the basis of similarity of activities.

• All persons in the department are subject to control by the departmental head.

2. Line and staff organisation structure

• Line and staff organisation refers to a pattern in which staff specialists advise line managers
to perform their duties.

• The staff positions or departments are purely of advisory nature.

• They have the right to recommend, but have no authority to enforce their preference on
other departments.

General Manager
3. Functional Organisation Structure

• Functional organisation structure is the most widely used in the medium and large
organisations having limited number of products.

• Functional structure is created by grouping the activities on the basis of function required for
the achievement of organisational objectives.
 • All the functions required are classified into basic, secondary and supporting functions
according to their nature and importance.

• Functional structure is characterised by the following:

I. Specialisation by functions.

II. Emphasis on sub-goals.

III. Pyramidal growth of the organisation,

IV. Line and staff division,

V. Functional authority relationships among various departments,

VI. Limited span of management and tall structure

Divisional Organisation Structure

• While growth through expansion of same line of business forces a small organisation to
organise on functional basis, growth through geographic and product diversification
necessitates the adoption of divisional structure.

Scheduling

Pers
Free-form Organisation

• The free-form model is based on the premise that the organisation is an open system and
the basic task of a manager is to facilitate change in the organisation.

• Free-form structures reduce the emphasis on position, departments, and other formal units,
and on the organisational hierarchy.

• Free-form organisation are suitable for those industries which have to work in highly
dynamic environments.

ORGANISATION MANUAL

 An organisation manual supplements provides additional details to the information shown

by the organisation chart.
 Organisation chart cannot include all the detail which is often desirable and necessary for
understanding an organisation .

• Organization manual is a small book containing information about the organisational

objectives,

• Authority and responsibility of various positions,

• Methods and procedures followed.

• The manual can be prepared either for the organisation as a whole or parts thereof.

 There can be several manuals Organisation depending on its size and functioning.

 An organisation manual contains the following information:

1. Statement of organisational objectives and policies.

2. Job descriptions of major positions which include (i) functions performed, (ii) authority and
responsibility, (iii) relationships among various positions, particularly reporting relationships.

3. Organisational procedures, methods, rules, etc.

Before preparing the manual complete job analysis all position in the managerial
cadre.

USES OF CHART AND MANUAL

• Management tool.

• Charts and manuals give the broad picture of authority and responsibility relationships. They
provide clarity in interactional pattern of the organisation.

2. Avoidance of overlapping and Duplication

3. Solution of Organisational Conflicts.

4. Training guides. Organisation chart and manual normally prescribe what one is expected to
do in the organisation. They also act as the information centre. Therefore, they can be used
as a tool of on-the job training.

5. Reference for Outsiders.

Limitations of Chart and Manual

1. Rigidity

a) Many changes take place in the organisation while chart and manual are in written form.
Therefore incorporation of changes takes time.

b) Written documents demotivate people to bring changes.

2. Partial view.

Organisation chart and manual show only official relationships and procedures.

3. Inappropriate Description.

Organisation chart particularly provides inappropriate description of authority. The exact

quantum of authority and responsibility is not shown by the chart.

4. Psychological problems.

Organisation chart may develop a feeling of superiority or inferiority which may work against
the team spirit