nature of organizing , formal and informal organization

NATURE OF ORGANIZING

NATURE OF ORGANIZING 2April 10, 2023

Learning Objectives Explain the Concept of Organizing Describe the importance of Organizing Explain the Element of Organizing Process of Organizing Explain the meaning, advantages and

disadvantages of formal and informal Organization

Distinguish between formal and informal Organization


What is Organizing

The grouping of activities necessary for attaining objective.

The process of creating an organization’s Structure .

A Process that initiates implementation of plans by clarifying jobs and working relationship and effectively deploying resources for attainment of identified and desired results


Definition

Organizing is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.

Louis Allen


Importance of Organizing

Benefits of specialization Clarity in working relationships Optimum utilization of resources Adaptation to change Development of personnel Expansion and growth


Purposes of Organizing

Divide work to be done into specific jobs and Departments

Assign tasks and responsibilities associated with individual

Coordinates diverse organizational tasks. Clusters job in to Units. Establish relationship among individuals , group , and

departments . Allocates and deploys organizational resources .


Elements in Organizing process

Work Specialization Departmentalization Chain of command Centralization and Decentralization Formalization Span of Control


Departmentalization

The Basis by which jobs are grouped together Five common form of Departmentalization

Functional

Geographical

Product

Process

Customer


Principle of the Span of management

There is a limit to the number of persons an individual can effectively manage .

Organization with Narrow Span Organization with Wide Span


Organization with Narrow Span

A

B C D

E F G H I J

K L


Advantage Disadvantage

Close supervision Close control Fast communication

between subordinates and superiors

Subordinates tend to get involved in Subordinates Work

Many Levels of Management

High Costs due to many levels

Excessive distance between lowest level and top level


Organization with Wide Span


Advantages Disadvantage

Superior are forces to delegate

Clear polices must be made

Subordinate must be carefully selected

Tendency of overloaded

Danger of superiors loss of control

Requires exceptional quality of Managers


Organizing Process

Identifying, analyzing and classifying the activities necessary to accomplish the objectives

Grouping these activities in the light of human and material resources available and the best way under the circumstances , of using them

Delegation of authority (Assignment of duties ) Horizontal and vertical coordination of authority and

information relationship


IDENTIFICATION AND

CLASSIFICATION OF

REQUIREDSACTIVITIES

HORIZONTAL AND VERTICAL

COORDINATION OF AUTHORITY AND

INFORMATION RELATIONSHIP

GROUPING OF ACTIVITIES IN

THE LIGHT OF RESOURCES AND

SITUATIONS

DELEGATION OF AUTHORITY

Feasibility studies and feedback

Organizing Process


Common Errors In Organizing

Unnecessary Lengthy Chain of Command Unsatisfactory Work Division Lack of parity between the Authority and

Responsibility Lack of Coordination and Control Failure to Classify Relationship Confusion of authority and relationship with

Informal Organization

Formal and Informal

Organization


Formal Organization

The Formal Organization is a system of well-defined jobs, each bearing a definite measure of authority, responsibility and accountability.

Louis Allen Formal Organization is a system of

consciously coordinated activities of two or more persons toward a common objective.

Chester Barnard


Features

It is deliberately designed by the top management It places more emphasis on work to be performed than

interpersonal relationships among the employees. It specifies the relationships among various job positions and

the nature of their inter-relationship. It lays down rules and procedures essential for achievement of

objective Efforts of various departments are coordinated, interlinked and

integrated through the formal organisation.


Formal Organizations


Features It is deliberately designed by the top management It places more emphasis on work to be performed

than interpersonal relationships among the employees. It specifies the relationships among various job

positions and the nature of their inter-relationship. It lays down rules and procedures essential for

achievement of objective Efforts of various departments are coordinated,

interlinked and integrated through the formal organisation.


Advantages

Easier to fix Responsibility No ambiguity in the role . This also helps

in avoiding duplication of effort. Behavior of Employee fairly predicted Unity of command through an established

chain of command Stability to the organization


Limitations

The formal communication may lead to procedural delays

Do not provide adequate recognition to creative talent More emphasis on Structure and Work, difficult to

understand all human relationships in an enterprise as it places


Informal Organization

An Informal organization is an aggregate of interpersonal relationships without any conscious purpose but which may contribute to joint results.

Chester Barnard Informal organization is a network of

interpersonal relationship that arise when people associate with one another .

Keith Davis


Features

Originates from within the formal organisation as a result of personal interaction among employees.

The standards of behavior evolve from group norms. Independent channels of communication without

specified direction of flow of information are developed by group members.

Emerges spontaneously and is not deliberately created by the management.


A

B C C

D E F G H I

J L N P R UK M 0 Q T V


Chess group

Bowling Team

Morning coffeee regulars

Cricket lovers


Advantages:

It helps to fulfill the social needs . Sense of belongingness in the organisation Faster spread of information as well as quick

feedback. It contributes towards fulfillment of

organizational objectives. For example, employees reactions towards plans and policies can be tested through the informal network.


Disadvantages:

It spreads rumors. This may work against the interest of the formal organisation.

The management may not be successful in implementing changes if the informal organisation opposes them. Such resistance to change may delay or restrict growth.

It pressurizes members to conform to group expectations.


Formal and Informal organisation: A Comparative view

Meaning Origin Authority Behavior Flow of Communication Nature Leadership


REFERENCES

Koontz,O’ Donnel & Weihrich

Management:A Global and Enterpreneurial Perspective

Stephen P. Robbins and Mary Coulter :Management,Pearson Education


Any Query ?


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