Norhaina M.

Mangondaya

Organizing

Meaning and Definitions of Organizing

- Organization is defined as social setting, composed of several group of people who bond and work
together to common purpose and common interest.

- Organization is the foundation upon which the whole organization is built. Without efficient
organization, no management can perform its function smoothly.
- The term organization connotes different things to different people. For example to the sociologists,
organization means a study of interactions of people, classes or hierarchy of an enterprise. To the
psychologists organization means an attempt to explain, predict and influence the behaviour of
individuals in an enterprise.
Characteristics of Organizing
- Organization as a group of individual
- Organization as a process
- Organization is a MEAN not an END
- Organization is related to its objectives
ORGANIZATION PROCESS & STRUCTURE
(i) As a Process
Organizing defines relationships amongst people through a process that aims to achieve
organizational goals efficiently.
- Identification of work
- Grouping of work into smaller groups
- Assigning work to every individual at every level in every department
- Defining its authority and responsibility, and
- Establishing relationships amongst people to make them contribute towards organisational goals in
an integrated manner.

(ii) As a structure
Organization structure specifies division of work and shows how different functions or activities are
linked; to some extent it also shows the level of specialization of work activities. It also indicates the
organization’s hierarchy and authority structure and shows its reporting relationships. — Robert H.
Mile
Organization structure and process are not independent concepts. They are complementary to each
other. Once the organization process is defined, organization structure is the end result or outcome of
that process. Organization structure is the result of organization process. Organization is, in fact, a
structured, on-going process that defines how to achieve pre-defined goals.

DEPARTMENTATION
- Departmentation involves grouping of operating tasks into jobs, combining of jobs into effective work
group and combining of groups into divisions often termed as ‘departments’.
- Dividing work on the basis of specialization. It is a mean of dividing larger organization into smaller units
Example: In a business organization, they are called division, department and section. In govt. department,
they are called departments, branch and bureau or section.

Basis of Departmentation
Functions- Based on the primary functions performed
Product- Based on the goods/services produced or sold
Customers- Based on the primary type of customer served
Territory- Based on the geographic segment of organizational structure
Process- Based on the production process used

TYPES OF ORGANIZATION
Line, Military or Scaler Organization
- Line organization is the simple and oldest type of organization and is also known of scalar or military
organization.
Line and Staff Organization
- In line and staff organization, the line authority remains the same as it does in the line organization.
- This structure combines the staff specialists/ experts with the line managers.

AUTHORITY, POWER AND RESPONSIBILITY

(i) Authority
- According to Henry Fayol “Authority is the right to order or command and is delegated from the
superior to the subordinate to discharge his responsibilities.
(ii) Power
- The power may be defined as the capacity or ability to influence the behaviour of other individuals
(iii) Responsibility
- Responsibility may be specific or continuing. It is specific when on being discharge by a subordinate,
it does not arise again.
CENTRALIZATION AND DECENTRALIZATION (Modes of working in any organization)
(i) Centralization
Centralization means retention or concentration of managerial authority in few key managerial
positions at the nerve centre of an organization i.e., at the top level.
(ii) Decentralization
Decentralization means dispersal of decision-making power to lower levels of the organization. In
decentralized setup, ultimate authority to command and ultimate responsibility for the results is
localized as far down in the organization.

Quiz (5 points)
Enumeration
1-2 Give at least two Characteristics of Organizing
- Organization as a group of individual
- Organization as a process
- Organization is a MEAN not an END
- Organization is related to its objectives
3-5 Give at least 3 Basis of Departmentation
- Functions
- Product
- Customers