ORGANIZING

ORGANIZING

• Definition of Organization:

  • Organization can be defined as the process of identifying, grouping, and assigning work to be done, defining responsibilities and authority, and establishing relationships enabling people to work together towards accomplishing objectives.

• Purpose of Organizing:

  1. To divide the work into specific jobs and departments.

  2. To assign tasks and responsibilities associated with individual jobs.

  3. To coordinate diverse organizational tasks.

  4. To establish relationships amongst individuals and departments.

  5. To allocate and deploy organizational resources.

  6. To establish formal lines of authority.

CLASSIFICATION OF ORGANIZATIONS

• Types of Organizations:

  1. Formal Organizations:

     • Refers to planned relationships within an establishment as defined by official charts, rules, and regulations.

     • Characteristics of formal organization:

     1. Activities are clearly defined.

     2. Duties and rights of members are defined.

     3. Established to accomplish specific tasks; relatively permanent and complemented by growth.

  2. Informal Organizations:

     • Comprises interactions and relationships between members that are unofficial and not based on formal procedures or regulations.

     • Characteristics of informal organization:

     • It is spontaneous and arises from common attributes such as age, sex, tribe, and occupation.

• Advantages of Informal Organizations:

  1. Provide opportunities for social satisfaction of members.

  2. Foster a sense of belonging and make work enjoyable.

  3. Assist members in determining acceptable and unacceptable behaviors.

  4. Help each other in times of difficulty.

  5. Provide additional means of communication through informal channels (grapevine).

  6. Allow workers to influence formal decisions and policies informally.

  7. Support organizational goals and compensate for managerial weaknesses in certain areas.

• Disadvantages of Informal Organizations:

  1. Can encourage rumor and distortion of information.

  2. May lead to collective resistance to beneficial changes.

  3. Groups may exert coercive power against common goals.

PRINCIPLES OF GOOD ORGANIZATION STRUCTURE

• Centralization:

  • Centralization involves concentrating authority and responsibility in the hands of a few executives, restricting decision-making on important policy and operations matters.

  • Advantages:

  1. Ensures uniformity of policies and standards.

  2. Adherence to laid down policies and administrative control.

  3. Prevents conflicts and rivalries among executives.

  4. Allows top management to handle emergencies effectively.

  • Disadvantages:

  1. Can hinder creativity and discretionary use by lower management.

  2. Frustration among employees, especially managers.

  3. Causes delays and operational inefficiencies.

  4. Increases workload for top executives, reducing their effectiveness.

• Decentralization:

  • Decentralization is the delegation of decision-making authority to lower management levels within the organization’s hierarchy.

  • It often enhances initiative and flexibility, allowing subordinates to participate in decision-making.

  • Factors determining decentralization:

  • Size of the organization.

  • Management philosophy.

  • Advantages of Decentralization:

  1. Enhances individual training through significant work experience.

  2. Improves communication as people work more closely together.

  3. Reduces conflict between operational and divisional executives.

  4. Stimulates individual creativity and confidence through increased autonomy.

  5. Exposes ineffective managers early for training before causing organizational damage.

  6. Enhances job satisfaction among management and staff.

  • Disadvantages of Decentralization:

  1. Creates diversity in company policies, complicating coordination and control.

  2. May breed unhealthy competition among managers.

  3. Risks sectional interests affecting decision-making.

PRINCIPLES OF GOOD ORGANIZATION STRUCTURE (Continued)

1. Clarity of goals and duties.

2. Purposive activity.

3. Consideration for individuals.

4. Similarity of duties.

5. Unity of command (clear reporting lines).

6. Adequate resources.

7. Flexibility to accommodate new ideas.

8. Clear lines of communication of authority and information.

9. Commensurate authority (authority matching responsibility).

10. Possibility of coordination.

11. Consultation and participation in decision-making processes.

12. Specialization of tasks and functions.

13. Differentiation of roles and responsibilities.

ORGANIZATIONAL CHARTS

• Definition:

  • An organizational chart is a visual device that shows various departments within an organization and their relationships, demonstrating the structure of authority, responsibility, and the work to be done.

  • Types of charts: Vertical, horizontal, and circular.

• Advantages of Organizational Charts:

  1. Provide useful information at a glance.

  2. Serve as tools for managerial understanding, particularly for new employee orientation.

  3. Indicate the levels of authority and responsibility, facilitating easier coordination.

  4. Help improve organization control by identifying sources of problems.

  5. Facilitate easy communication between organization members.

  6. Clearly specify roles and responsibilities to avoid duplication of work.

• Disadvantages of Organizational Charts:

  1. Rigidity: They present a fixed view that may not adapt to new tasks or changes within the organization.

  2. May delay processes by enforcing rigid communication and decision-making channels.

  3. Potential for conflict due to misinterpretation of positions.

  4. Narrow interpretation of duties leading to reduced employee initiative.

  5. Charts may not adequately capture the dynamic nature of modern organizations, thus failing to represent informal relationships.