7.1 Organising, organisation & organisational structure:
ORGANISING
= process of creating a structure for org that will enable its people to work effectively towards its vision, mission, goals
& objectives
Ongoing & interactive process
Assigning tasks necessary to achieve org’s goals to relevant business units, departments or sections &
Providing necessary coordination to ensure these sections work synergistically
Result = creation of an org
ORGANISATION = the end-result of the organising process
ORGANISATIONAL STRUCTURE = basic framework of formal relationships between responsibilities, tasks & people in
org
ORGANISATIONAL CHART = a graphic representation of the way an org is put together
Shows authority & communication relationships between jobs & units
Example of org charts of listed companies = annual reports
7.2 Importance of organising:
= these reasons direct org towards attaining vision, mission & goals
WHY ORGANISING IS IMPORTANT
= vital to the attainment of goals & objectives & contributes to:
Allocation of responsibilities:
Lead to org structure – clearly indicates who responsible for which task
Accountability:
Implies that responsible employees will be expected to account for outcomes, positive or negative, for that
portion of work directly under their control
Links directly to actions of individual, section, department or business unit
Establishing clear channels of communication:
Ensure effective communication
Info required at all levels reach them effectively & through correct channels
Resource deployment:
Help deploy resources meaningful, focusing on essential activities to attain org’s mission & goals
1
, Synergy:
Synergy principle enhances effectiveness & quality of work performed
Division of work:
Total workload divided into activities performed by an individual or group
Systematic grouping:
Organising means systematically grouping a variety of tasks, procedures & resources
Possible – organising process entails in-depth analysis of work to be done
Departmentalisation:
Related tasks & activities grouped together meaningful in specialised sections, departments or business units
Experts in various fields can deal with their specialised tasks
Coordination:
Org structure responsible for creating a mechanism to coordinate activities in entire org
7.3 Designing an organisational structure:
Steps of designing an orgs structure:
1. Vision, mission, goals & strategies (strategic plan)
2. Outline tasks & activities
3. Design jobs & assign to employees
4. Define worker relationships
5. Develop organisational design
6. Control mechanism
= start from top again
7.4 Principles of organising:
Principles of organisation guide managers in this process:
Unity of command & direction Authority
Chain of command Accountability
Span of control Power
Division of work Delegation
Standardisation Downsizing
Coordination Delayering
Responsibility
UNITY OF COMMAND Each employee should report to only 1 supervisor
Lack of unity of command = lack of clarity in org (conflicting
messages)
UNITY OF DIRECTION All tasks & activities should be directed towards same mission &
goals
2
, CHAIN OF COMMAND A clear, unbroken chain of command should link every employee
“SCALAR PRINCIPLE” with someone at a higher level, all the way to top of org
Creates a hierarchy – illustrated by means of org chart
SPAN OF CONTROL Number of subordinates reporting to one manager or supervisor
“SPAN OF Large no report to 1 manager = task becomes impossible
MANAGEMENT”
Fewer employees supervised
SMALL/NARROW SPAN
OF CONTROL
GREATER/WIDER SPAN More employees supervised
OF CONTROL
FLAT ORGANISATION Few levels of management with wide spans of control
TALL ORGANISATIONS Many levels of management with narrow spans of control
DIVISION OF WORK How workload is divided amongst business units, departments,
“DIVISION OF LABOUR” sections & individual employees in org
Managers moving up corporate ladder = less specialised functions
Differentiation = need to divide org into various departments
Integration = need to coordinate activities of various departments
in org
STANDARDISATION Developing uniform practices that employees need to follow in
doing their jobs
COORDINATION All business units, departments, sections & individuals within org
should work together to accomplish the strategic, tactical &
operational goals of org
Degree of coordination between tasks depends on their
interdependence
POOLED = units operate with little interaction
INTERDEPENDENCE Outputs of units pooled at org level
Failure of single unit could threaten entire org
SEQUENTIAL = output on 1 unit becomes input for next unit
INTERDEPENDENCE 2nd unit directly dependent upon 1st unit to finish its work before it
can begin assigned task
Found in production-line set-up = assembly plant of car
manufacturer or steel-manufacturing org
RECIPROCAL = situation in which outputs of 1 work unit becomes the inputs for the
INTERDEPENDENCE 2nd work unit & vice versa
3
ORGANISING
= process of creating a structure for org that will enable its people to work effectively towards its vision, mission, goals
& objectives
Ongoing & interactive process
Assigning tasks necessary to achieve org’s goals to relevant business units, departments or sections &
Providing necessary coordination to ensure these sections work synergistically
Result = creation of an org
ORGANISATION = the end-result of the organising process
ORGANISATIONAL STRUCTURE = basic framework of formal relationships between responsibilities, tasks & people in
org
ORGANISATIONAL CHART = a graphic representation of the way an org is put together
Shows authority & communication relationships between jobs & units
Example of org charts of listed companies = annual reports
7.2 Importance of organising:
= these reasons direct org towards attaining vision, mission & goals
WHY ORGANISING IS IMPORTANT
= vital to the attainment of goals & objectives & contributes to:
Allocation of responsibilities:
Lead to org structure – clearly indicates who responsible for which task
Accountability:
Implies that responsible employees will be expected to account for outcomes, positive or negative, for that
portion of work directly under their control
Links directly to actions of individual, section, department or business unit
Establishing clear channels of communication:
Ensure effective communication
Info required at all levels reach them effectively & through correct channels
Resource deployment:
Help deploy resources meaningful, focusing on essential activities to attain org’s mission & goals
1
, Synergy:
Synergy principle enhances effectiveness & quality of work performed
Division of work:
Total workload divided into activities performed by an individual or group
Systematic grouping:
Organising means systematically grouping a variety of tasks, procedures & resources
Possible – organising process entails in-depth analysis of work to be done
Departmentalisation:
Related tasks & activities grouped together meaningful in specialised sections, departments or business units
Experts in various fields can deal with their specialised tasks
Coordination:
Org structure responsible for creating a mechanism to coordinate activities in entire org
7.3 Designing an organisational structure:
Steps of designing an orgs structure:
1. Vision, mission, goals & strategies (strategic plan)
2. Outline tasks & activities
3. Design jobs & assign to employees
4. Define worker relationships
5. Develop organisational design
6. Control mechanism
= start from top again
7.4 Principles of organising:
Principles of organisation guide managers in this process:
Unity of command & direction Authority
Chain of command Accountability
Span of control Power
Division of work Delegation
Standardisation Downsizing
Coordination Delayering
Responsibility
UNITY OF COMMAND Each employee should report to only 1 supervisor
Lack of unity of command = lack of clarity in org (conflicting
messages)
UNITY OF DIRECTION All tasks & activities should be directed towards same mission &
goals
2
, CHAIN OF COMMAND A clear, unbroken chain of command should link every employee
“SCALAR PRINCIPLE” with someone at a higher level, all the way to top of org
Creates a hierarchy – illustrated by means of org chart
SPAN OF CONTROL Number of subordinates reporting to one manager or supervisor
“SPAN OF Large no report to 1 manager = task becomes impossible
MANAGEMENT”
Fewer employees supervised
SMALL/NARROW SPAN
OF CONTROL
GREATER/WIDER SPAN More employees supervised
OF CONTROL
FLAT ORGANISATION Few levels of management with wide spans of control
TALL ORGANISATIONS Many levels of management with narrow spans of control
DIVISION OF WORK How workload is divided amongst business units, departments,
“DIVISION OF LABOUR” sections & individual employees in org
Managers moving up corporate ladder = less specialised functions
Differentiation = need to divide org into various departments
Integration = need to coordinate activities of various departments
in org
STANDARDISATION Developing uniform practices that employees need to follow in
doing their jobs
COORDINATION All business units, departments, sections & individuals within org
should work together to accomplish the strategic, tactical &
operational goals of org
Degree of coordination between tasks depends on their
interdependence
POOLED = units operate with little interaction
INTERDEPENDENCE Outputs of units pooled at org level
Failure of single unit could threaten entire org
SEQUENTIAL = output on 1 unit becomes input for next unit
INTERDEPENDENCE 2nd unit directly dependent upon 1st unit to finish its work before it
can begin assigned task
Found in production-line set-up = assembly plant of car
manufacturer or steel-manufacturing org
RECIPROCAL = situation in which outputs of 1 work unit becomes the inputs for the
INTERDEPENDENCE 2nd work unit & vice versa
3
