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Organising - Coggle Diagram
Organising
1. Meaning
Organising can be defined as a process that initiates implementation of plans by clarifying jobs and working relationships and effectively deploying resources for attainment of identified and desired results (goals).
- coordinates human efforts, assembles resources and integrates both into a unified whole to be utilised for achieving specified objectives.
4. Organisational Structure
- Organisation structure is the outcome of the organising process.
- The organisation structure can be defined as the framework within which managerial and operating tasks are performed. It specifies the relationships between people, work and resources.
- The organisation structure of a firm is shown in an organisation chart.
- Benefit: An effective structure leads to increased profitability.
- Need: When enterprise grows in size or complexity.
6. Delegation
Meaning
- Delegation refers to the downward transfer of authority from a superior to a subordinate.
- It enables a manager to use his time on high priority activities
- It also satisfies the subordinate’s need for recognition and provides them with opportunities to develop and exercise initiative
- No delegation of accountability.
Elements of delegation
Authority
Authority refers to the right of an individual to command his subordinates and to take action within the scope of his position.
- right to take decisions inherent in a managerial position to tell people what to do and expect them to do it.
- highest at the top management levels and reduces successively as we go down the corporate ladder
- flows from top to bottom, maintain order in the organisation, can be delegated, arises from formal position .
Responsibility
Responsibility is the obligation of a subordinate to properly perform the assigned duty. It arises from a superior– subordinate relationship.
- Flows upward from subordinate to superior, Arises from delegated authority, Cannot be entirely delegated
- If authority > responsibility, it may lead to misuse of authority.
- If responsibility > authority it may make a person ineffective.
Accountability
Accountability implies being answerable for the final outcome.
- Once authority has been delegated and responsibility accepted, one cannot deny accountability.
- It cannot be delegated and flows upwards.
- In conclusion, it can be stated that while authority is delegated, responsibility is assumed, accountability is imposed.
- Responsibility is derived from authority and accountability is derived from responsibility.
Advantages of effective delegation
- Effective management
- Employee development
- Motivation of employees
- Facilitation of growth
- Basis of management hierarchy
- Better coordination
Decentralisation
- Decentralisation refers to delegation of authority throughout all the levels of the organisation. Decision making authority is shared with lower levels and is consequently placed nearest to the points of action.
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Importance/ Advantages
(i) Develops initiative among subordinates
(ii) Develops managerial talent for the future
(iii) Quick decision making
(iv) Relief to top management
(v) Facilitates growth
(vi) Better control
Disadvantage
(i) lack of uniformity in the policies followed
(ii) Problem of coordination
(iii) Require qualified personnel
(iv) Conflict among the managers of different divisions
Centralisation
- The authority to make important decision is retained by top management.
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Disadvantages
(i) Bureaucratic Leadership
(ii) Delays in Work
(iii) Lack of Employee enthusiasm
(iv) Remote Control
Importance/ Advantages
(i) Clear Chain of Command
(ii) Focused Vision
(iii) Quick Implementation
(iv) Improved Quality of Work
(v) Reduced Costs
Steps in the process of organising
(i) Identification and division of work
(ii) Departmentalisation
(iii) Assignment of duties
(iv) Establishing authority and reporting relationships
3. Importance of organising
(i)Benefits of specialisation
(ii) Clarity in working relationships
(iii) Optimum utilisation of resources
(iv) Adaptation to change
(v) Effective administration
(vi) Development of personnel
(vii) Expansion and growth
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