Organising:

Organising refers to identifying and grouping the activities in an organization

to achieve the desired goals. It is concerned with the relationship between
various departments of the organization. It also determined the style of
working of an Organisation.

Meaning of Organising:
It means to arrange everything in an orderly form for better utilization of
resources so that activities will be run smoothly. This is the second function of
management.
Every organization follows this function after the planning process because in
this function activities are arranged according to the manpower who will do the
work. On the other hand, we can say that organizing refers to creating the
departments and assigning the duties, and also creating the framework in
which activities of the organization are actually performed.

Process of Organising:
From the identification of activities, organizing ends with creating a
relationship between authority and responsibility. In the process, we will all
necessary points which are as follows:
1. Identification and division of work: According to the plan made by the
management, the next step is to divide the work into departments and make
sure that there will no overburden or any less burden on one person or
department. The management distributes the activities into small units which
are known as jobs.
2. Departmentalisation: In this step, similar nature jobs are grouped together
under one department. It includes:
3.Assignment of duties: A job description document is given to the
employees which defines the contents and responsibilities related to the job.
Each individual who is working in different departments must assign the duty
according to his skills and qualifications.
4. Establishing Reporting Relationship: The result of the assignment of
authority creates the superior-subordinate relationship and by this
subordinates (who are working in different departments according to the
specialization) can easily report to their immediate superior, in other words,
we can say that everyone will know to whom they will report.
Nature of Organisation:
1. Process:
Organisation is a process of defining, arranging and grouping the activities of
an enterprise and establishing the authority relationships among the persons
performing these activities. It is the framework within which people associate
for the attainment of an objective.

2. Structure:
The function of organising is the creation of a structural framework of duties
and responsibilities to be performed by a group of people for the attainment of
the objectives of the concern. The organisation structure consists of a series
of relationships at all levels of authority.

3. Dividing and Grouping the Activities:

Organising means the way in which the parts of an enterprise are put into
working order. In doing such, it calls for the determination of parts and
integration of one complete whole on the other. In fact, organisation is a
process of dividing and combining the activities of an enterprise.

4. Accomplishment of Goals or Objectives:

An organisation structure has no meaning or purpose unless it is built around
certain clear-cut goals or objectives. In fact, an organisation structure is built-
up precisely because it is the ideal way of making a rational pursuit of
objectives.

5. Authority-Responsibility Relationship:
An organisation structure consists of various positions arranged in a hierarchy
with a clear definition of the authority and responsibility associated with each
of these. An enterprise cannot serve the specific purposes or goals unless
some positions are placed above others and given authority to bind them by
their decisions.

Types of Organisation
• Formal Organisation
• Informal Organisation

Formal Organisation
In every enterprise, there are certain rules and procedures that establish
work relationships among the employees. These facilitate the smooth
functioning of the enterprise. Further, they introduce a systematic flow of
 interactions among the employees. Effectively, all of this is done through
a formal organisation.

Notably, the management is responsible for designing the formal

organisation in such a way that it specifies a clear boundary
of authority and responsibility. Coupled with
systematic coordination among various activities, it ensures achievement
of organisational goals.

Again, the management builds the formal organisation. It ensures smooth

functioning of the enterprise as it defines the nature of interrelationships
among the diverse job positions. Additionally, these ensure that the
organisational goals are collectively achieved. Also, formal
organisation facilitates coordination, interlinking and integration of the
diverse departments within an enterprise. Lastly, it lays more emphasis on
the work to be done without stressing much on interpersonal
relationships.

Informal Organisation
It’s easy to understand that if we interact with certain people regularly we tend to
get more informal with them. This is because we develop interpersonal
relationships with them which are not based solely on work purposes. Rather,
these relationships might arise because of shared interests, like if you get to
know that your colleague likes the same football club of which you’re a fan of.

As a matter of fact, informal organisation arises out of the formal organisation.

This is because when people frequently contact each other we cannot force
them into a rigid and completely formal structure. Instead, they bond over
common interests and form groups, based upon friendship and social
interactions.

Unlike formal organisation, informal organisation is fluid and there are no written
or predefined rules for it. Essentially, it is a complex web of social relationships
among members which are born spontaneously. Further, unlike the formal
organisation, it cannot be forced or controlled by the management.

Also, the standards of behaviour evolve from group norms and not predefined
rules and norms. Lastly, as there are no defined structures or lines of
communication, the interactions can be completely random and independent
lines of communication tend to emerge in informal organisation.
Authority - in context of a business organization, authority can be defined as the
power and right of a person to use and allocate the resources efficiently, to take decisions
and to give orders so as to achieve the organizational objectives. Authority must be well-
defined. All people who have the authority should know what is the scope of their authority
is and they shouldn’t misutilize it. Authority is the right to give commands, orders and get
the things done. The top level management has greatest authority.

Responsibility - is the duty of the person to complete the task assigned to him. A
person who is given the responsibility should ensure that he accomplishes the tasks
assigned to him. If the tasks for which he was held responsible are not completed, then he
should not give explanations or excuses. Responsibility without adequate authority leads to
discontent and dissatisfaction among the person. Responsibility flows from bottom to top.
The middle level and lower level management holds more responsibility. The person held
responsible for a job is answerable for it. If he performs the tasks assigned as expected, he
is bound for praises. While if he doesn’t accomplish tasks assigned as expected, then also
he is answerable for that.

Differences between Authority and Responsibility

Authority Responsibility

It is the legal right of a person or It is the obligation of subordinate to perform

a superior to command his the work assigned to him.
subordinates.

Authority is attached to the Responsibility arises out of superior-

position of a superior in concern. subordinate relationship in which subordinate
agrees to carry out duty given to him.

Authority can be delegated by a Responsibility cannot be shifted and is absolute

superior to a subordinate

It flows from top to bottom. It flows from bottom to top.

Span of Control

Span of Control can be defined as the total number of direct subordinates that a
manager can control or manage. The number of subordinates managed by a manager
varies depending on the complexity of the work.

For example, a manager can manage 4-6 subordinates when the nature of work is
complex, whereas, the number can go up to 15-20 subordinates for repetitive or fixed
work.

The term “Span of Control” is popularly used in business management and human
resource management. Because this term is related to the management and controlling
of employees, the meaning of the word is the total number of subordinates that a
manager or supervisor can manage.

Advantages

1. The manager can supervisor each of his subordinates intimately.

2. The nature of work is usually complicated.
3. Effective communication between the subordinates and their manager.
4. More layers in the hierarchy of management.

Disadvantages

1. Too much control over employees might hamper their original talent and creativity.
2. Extended hierarchy of control results in a long time in decision-making.
3. Narrow span of controlling prevents cross-functional problem-solving.