Organizational Management
Definition of Organization: An organization is a group of people
who work together for achieving organizational goals, like an association, a
charity, a union, or a corporation.
Organization is an instrument for achieving organizational goals. The
work of each and every person is defined and authority and responsibility is
fixed for accomplishing the organizational goals.
Characteristics of
organization:
1.
Division of Work:
Organization deals with the whole task of
business. The total work of the enterprise is divided into activities and
functions. Various activities are assigned to different persons for their
efficient accomplishment.
2. Co-Ordination:
Co-ordination helps in integrating and
harmonizing various activities. Co-ordination also avoids duplications and
delays. Various functions in an organization depend upon one another and the
performance of one influence the other. Unless all of them are properly coordinated,
the performance of all segments is adversely affected.
3. Common
Objectives:
All organizational structure is a means
towards the achievement of business goals.
4. Co-operative
Relationship:
An organization creates co-operative
relationship among various members of the group.
5. Well-Defined
Authority-Responsibility Relationships:
An organization consists of various
positions arranged in a hierarchy with well-defined authority and
responsibility.
Steps Involved in the Process of
Organizing an Organization
Main steps involved in
the process of organizing an Organization are: 1. Identification and Division
of Work 2. Departmentalization 3. Assignment of Duties 4. Establishing
Reporting Relationships
1.
Identification and Division of Work:
The process of organizing starts with the
identification and division of work. The whole work is to be divided into
manageable activities so that duplication is avoided and work can be completed
as per predetermined goals.
For example, the work in a bank may be
divided into four simple activities receiving cash, disbursing cash, processing
of loan applications and sanctioning of loans.
2. Departmentalization:
Departmentalization refers to the process
of grouping the activities of similar nature under same departments. This
facilitates specialization and coordination in the organization.
3. Assignment
of Duties:
Once the departments have been formed;
the next step is to assign the work to the employees according to their skills
and competencies.
4. Establishing
Reporting Relationships:
Establishing responsibility relationships
in an organization structure implies the allocation of authority and
responsibility among employees of the enterprise in such a way that each person
should know who is responsible to whom and for what.
This step involves providing information
to the workers regarding who they will be receiving orders from and who they
will be reporting to.
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