Organising is the process of identifying and grouping activities, assigning duties, and establishing authority relationships to achieve organizational goals.
Key Elements of Organising:
Identification and Division of Work:
Breaking down the total work into smaller activities.
Ensures clarity and avoids duplication.
Departmentalisation:
Grouping similar activities into departments (e.g., marketing, finance).
Can be functional, geographical, or product-based.
Assignment of Duties:
Allocating tasks to individuals based on their skills and qualifications.
Establishing Reporting Relationships:
Creating a clear hierarchy.
Defines who reports to whom (authority-responsibility structure).
Importance of Organising:
Specialisation through division of work.
Clarity in roles and responsibilities.
Effective coordination and communication.
Optimal resource use.
Growth and expansion support.
Organisation Structure:
Functional Structure:
Departments created based on functions (e.g., production, sales).
Suitable for large firms with routine operations.
Divisional Structure:
Departments based on products, regions, or customers.
Suitable for diversified companies.
Delegation of Authority:
Responsibility: Duty assigned.
Authority: Right to command.
Accountability: Obligation to complete the task.
Decentralisation:
Systematic delegation of authority to lower levels.
Encourages initiative, quicker decisions, and managerial development.