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Organizing and Staffing

Meaning:

Organizing is the function of management which follows planning .It is a


function in which the synchronization and combination of humans, physical
and financial resources takes place. All these three resources are important
to get result.
Therefore, organizational function helps in achievement of result which in
fact is important for the functioning of a concern.
Definition:

In the words of Urwick Organizing is a process of dividing up of activates


which are necessary to any purpose and arranging them in a group which
are assigned to individuals.

Characteristics of Organizing:
It is one of the basic and important functions of management
to get the things done by others.
It is a goal oriented process
The organizing process primarily deals with group efforts
which are made to achieve common goals.
It is based on principle of division of work and specialization.
The process of organization aims at integrating, mobilizing
and coordinating the activities of employees.

It will establish the authority relationship of superior and


subordinate among the employees by assigning the activities and
delegating adequate authority to them.

Need and importance of Organizing:


The process of organizing helps in coordinating various jobs in the
department.
Every member knows very well that what he is expected to
contribute and what are the limits of his authority.
Organizing virtually means order and discipline both in respect to
working behavior of the employees and their role and relationship.
The structure of the organization facilitates formal
communication through line of authority , established from top to
low level

Organizing determines pattern of interaction


among various employees.

Organisation
Meaning:

Organization is a consciously coordinated social unit, Composed of


two or more people, which functions on a relatively continuous basis
to achieve a common goal or set of goals.
Definition:

In the words of C .David Organization is a harmonious adjustment


of specialized parts for accomplishment

Need/Purpose of Organization/ Merits


The purpose of organization is as follows:

1.It facilitates administration and Management:


A good organization increases efficiency, avoids delay, increases, and promptness and
motivates employees to perform their responsibility thus it leads to proper
administration.

2. Tool to achieve the objectives:


Organisation is an important tool used to achieve the goals set by the
management
3.Growth of Enterprise:

Asorganizationdealswiththedelegationofauthority,assignmentofresponsibility
etc.andprovidesscopefordiversificationofbusinessactivitieswhichrequire
employingmorepeopleandleadstothegrowthofenterprise.

4.Ensures optimum use of Human Resources:

Organization ensures optimum use of human resources by performing


various functions such as Recruitment, Training, Development, Orientation,
Placement etc. and motivates the workers to improve their efficiency.

5.Stimulates Creativity:
Organisation stimulates creative thinking and initiates new ideas among
employees. Delegation of authority gives freedom to employees and develops
independent thinking and creativity.
6.Adoption of New Technology:
A sound organization structure facilitates the optimum use of technological
improvements such as automatic techniques of production, control devices,
computer system etc.

7.Co-ordination in the Enterprises:


Different jobs and positions are joined together by structural relationship of the
organization. The organizational process contributes to the balanced co-ordination of
various activities of the organization to achieve a common goal.

8.Eliminates duplication of work:


As organizing helps in identifying and division of work to the employs based on their
abilities and clearly assign the duties. This helps in elimination of overlapping and
duplication of work.

9.Stability of Enterprise:
A sound organization has flexibility to adjust to the changes in the conditions, promotes
effective leadership, employee morale, delegates authority and develops co-ordination,
co-operation and ensures stability of the enterprise.

Nature of organization:
1.Organization as a process: Organization is a continuous process through which work is allotted
among the employees and optimum coordination is established in order to achieve goals of the
organization
2.A Creative Ideology: Organization is a creative ideology. It gives new thoughts, new ideas and
new styles with the combination of skilled and unskilled employees. The main aim of the
Organization is to create something new by teamwork.
3.Organizing as group: Organization is a group of recognized persons who contribute their efforts
for the attainment of goals.
4.Organization as a mechanism of management: Organization coordinates various other
functions of management. It directs, coordinates and controls all managerial activates of organization
hence it works as a mechanism of management.
5.Organization as function: Organization is one of the important functions of management. The
person behind this fact is that organization combines other activates of business.
6.Organization as system: It is a system of cooperative activates of two or more persons for the
attainment of a common purpose & whenever an analysis is been done, one has to do for the firm is
full consolidation. This way organization is a system.

7.Organization as a structure of relationship: Organization is also interpreted by


some writers as structure of relationship among positions and jobs for the purpose of
achieving enterprise objectives.
8. Organization as a Means and End: It is also another important fact about
the nature of organization that it is a means and not the end. Organization is
connecting port that defines, establishes and allots work, system, activities and it
directs and control all these allotted works also.

Purpose of an organization:
1.Minimize the conflicts between individuals over jurisdiction.
2.Facilities attainment of objectives through proper co-ordination of all
activities.
3.Decreases likelihood of run-arounds.
4.Eliminates over lapping and duplication of work.
5.Aids in wages and salary administration.
6.Facilitates easier and better communication at all levels of the
organizational hierarchy.

7.Permits effective delegation and decentralization.


8.Facilitates an orderly growth and expansion of the enterprise.
9.Provides optimum use of technological improvements and enhance
the efficiency of the workers qualitatively and qualitatively.
10.Creates clear cut line of authority and responsibility in an
organization, thus improving the activating and controlling
functions of the manager.

Principles of organization

Principles of organization refer to those well established


and accepted general statement which are to be used in
the process of organization to purpose a sound
organizational structure

Principle of Division of labor

This principle suggests that each job is assigned to individual & if


he performs it repeatedly for a long period of time and gets
specializes knowledge about it. Subsequently he would be able to
perform it with less effort and time which may lead to higher
efficiency. Thus this principle encourages job specialization,
increase efficiency of the employees and facilitates smooth flow of
working.

Principle of functional definition

This principle suggests that job, activities, role, relationship and


expected results should be specifically spelt out in terms of
function. The main objective of this to make the job holder
responsible

Principle of span of control:


This principle refers to the number of subordinates to be placed
under the command of the manager whose work he can manage
efficiently. It recognizes that there is a limit in each managerial
position of the number of subordinates; individual manager can
manage at a time.

Principle of scalar chain:

This
principle suggests that every employee is attached to the scalar
chain in the relationship of superior and subordinate. This
chain promotes smooth communication between superior and
subordinate and facilitates effective decision making, gives a
sense of confidence to manager while making decisions.

Principle of unity of command:


This principle implies one oneness of command and single source
of authority over subordinates. According to this principle at the
time of designing a structure of an organization, the rule of one
subordinate and one superior should be followed.it suggest that to
bring a great feeling of personal responsibility.

Principle of objective:

This
principle says that an organization should be designed in
perfect accordance with the goals of the business. In view
of the first, the objective of the business concern should
be clearly started.

Principle of responsibility:

This principle states that the


responsibility in consideration to the delegate authority must
be absolute and clear. No person should be free from the
defined responsibility. It means that the superior should be
held responsible for the acts of his subordinates to whom he
has delegated authority.

Principle of flexibility:

It states the adequate provisions of flexibility should be made in


respect of organizational structure. It suggests that the structure o
an organization should be designed to permit growth and
diversification.

Principle of efficiency:

The
organizational structure should be designed in such a way
as to facilitate efficient accomplishment of objectives. Since
the organization is an input-process-output system, it
should be designed and directed in such a manner wherein
with minimum inputs and maximum output is created.

Principle of continuity:
This principle suggests that while designing the structure of the
organization due care should be taken to maintain continuity in
respect of its existence and functioning. It may function
continuously only when it is capable of coping with the changing
environment and maintaining

Principle of parity between authority and responsibility:

This principle suggests that there should be complete


balance or parity between authority and responsibility,
only that much authority should be delegated which
needed for carrying out the assigned job.

Principle of cooperation:
This principle suggests that an organization is concerned as a
team work aimed at achieving objectives. Therefore all members
should perform the assigned work in corporation with each
other. Any kind of disagreement clash or conflicting situation
may lead to inefficiency and poor performance.

Factors influencing organization structure


A clear purpose:
A successful organization needs clear purpose .Without vital elements, time and money
will inevitably be wasted on an organization without common vision. The purpose of any
organization should be found on structure
People:
Employee and members must believe in the organization goals .The integration of the correct
type of people will drastically influence a sound organizational structure
Design:
Mission statements factor into the design of an organization. Mission statements,
departments and management, rules, regulations and more are a part of design process.
Training:
Proper training helps to encourage a healthy organizational structure. If proper training
is provided for the employers it helps in the development of the organization.
Mission statement:
Mission statement should be in a way that entire company should
understand, and then encourage managers and executives to reinforce the mission statement
each day. It helps to maintain a strong organizational structure

Types of Organisation

Formal Organisation
Meaning:
A formal Organisation is the relationship between members of the
Organizational is official, recognized and well structured. The flow of
communication among the Organisation members is well planned officially.
All rules and regulations of the Organisation are effectively farmed by the
top management well in advance.
Definition:

In

the words of Chester Barnard An Organisation is formal when the


activities of two or more persons are consciously co-coordinated towards a
common objectives

Types of Formal Organisation:

Line organization
Meaning:
Line
organization is a basic framework for the whole organization. This
is the simplest form of organization structure.
Definition:
In the words of J M Lundy It is characterized by direct lines of authority
flowing from the top to the bottom of the organizational hierarchy and line of
responsibility flowing in an opposite but direct manner.

Types of line organization:


The line organization can be of two types
1.Pure line organization
2.Department line organization

Pure line organization:


In pure line organization, activities at any level of organization
are same with each employee performing same type of work and
departments are created only to facilitate control and direction

Department line organization:


In this type of organization, the whole unit is divided into different
department that are convenient for control purpose. Again even within a
department, there may be several sub departments.
Characteristics of line organization:
Line organization has the following characteristics
1.In line structure, authority flows from the top to lower through various managerial
positions.
2.Flow of responsibility starts from lower levels to higher once.
3.There is direct reporting relationship between superior and subordinates
4.All managers work in a line authority in the relationship of superior and
subordinate and are known as a line manager
5.Line managers has line authority, he performs line activities and functions and is
directly responsible for achieving organizational goals.
6.The principle of unity of command is followed for designing line structure

Advantages of line organization:


1.Line structure is quite simple to understand and to implement and no
complications are involved in it.
2.There is a clear cut division of authority and responsibility among various
positions in the organization.
3.The operational cost of line structure is minimum as compared to these
forms.
4.In line organization, there is high degree of flexibility because when
organization grows in size & volume so new department can be created
easily.
5.Line structure serves as ground for training and development of all
managerial persons
6.It facilitates communication by providing line of command as channel.
7.Due to unity of command, Discipline can be maintained among employees.

Limitations of line organization


1.On account of excess working load their working efficiency is also bound to decrease.
2.Duplication of similar type of activitys in every department may future enhance
operating cost of organizational and it remains no more economical
3.Line organization doesnt encourage and permit use of specialized services from outside
and no provision are made to introduce specialized supportive services in organizational
structure
4.Line managers are preoccupied with heavy workload; they have to perform all kinds of
activities, not only key activities but supportive activities also.
5.One of the major drawbacks is that it tilts towards bureaucratic form and ignores human
need and values which are affecting affective working behavior of the employees.
6.The line managers dont normally possess required knowledge for performing each and
every activity assigned to them .but it is not possible for the line manager to acquire all
sort of specialization
7.In the event of growth and development of organization further differentiation in
activities is needed, this does not seem to be feasible in case of line organization.

Line and staff organization

Meaning:

Definition:
In the words of Louis Allen Line refers to those positions and elements
of the organization which have the responsibility and authority and are
accountable for the accomplishment of primary objectives. Stall elements
are those which have responsibility and authority for providing advice
and service to the line in the attainment of objective


General staff:
This staff consists of group of experts and service as assistant to top management. They
provide advice on certain matters. Special assistants, assistant management, deputy
chairperson are some examples of service staff departments.
Specialist staff:
A)Advisory staff: This is an important staff which provides counseling to line
managers. It makes a detailed study of problems faced by the managers, offers
suggestions and prepares plans for the use and help of the managers
B)Service staff: It provides a better service consisting of activities that been separated
from the line job. Personnel, R&D, Purchasing are some of the examples.
C)Control Staff: Staff who directly or indirectly have authority to control over other
units in an organization. They control directly by serving as an agent for a line
manager. Quality control staff, material inspection staff, performance appraisals staff
are some of the examples.

Characteristics of line& Staff organization:


1.In line and staff organization, there are two types of relationship i.e. line
and staff.
2.Line managers work in line authority give orders to subordinate and are
directly responsible for achieving organizational objectives.
3.Staffs specialists are having specialized knowledge of their respective
areas, perform supportive and auxiliary activities and guide, help and
advice the line managers.
4.Like line organization, this structure is also marked by unity of command.
5.Line managers and staffs specialists are not in the relationship of superior and
subordinate, because staff specialists are appointment beyond line of authority and they
work independently.

Features of lines and staff organization:


1.There are two types of staffs:
a. Staff assistants- P.A to managing director, secretary to marketing
manager. b. Staff supervisor- Operation control manager, Quality controller,
PRO.
2.Line and staff organization is a compromise of line organization. It is more
complex than line concern.
3.Division of work and specialization takes place in line and staff organization.
4.Efficacy can be achieved through the features of specialization
5.Power of command remains with the line executives and staff serves only as
counselors.
6.There are two lines of authority which flow at one time in a concern:
a. Line authority B. Staff authority

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