Importance-of-Organizing-in-an-Organisation-7.pptx

organization

1. Importance of Organizing in an Organization (7 Points)

2. I mportance of organizing in an organization are: Benefits of Specialization 2 . Clarity in Working Relationships 3 . Optimum Utilization of Resources 4. Adaptation to Changes 5. Effective Administration 6 . Development of Personnel 7 . Expansion and Growth .

3. 1. Benefits of Specialization: Under organising , the whole work is systematically allocated and divided into different parts. Right man is put at the right job. It increases the efficiency of workers and motivates them to put their best into the work. Repetitive performance of a specific job on a regular basis helps a worker gain experience and gets specialized in that job. As a result, organising leads to specialization.

4. 2. Clarity in Working Relationships: Organizing helps in establishing working relationship and clearly defines the lines of communication and also specifies who is to report to whom. This further helps in fixation of responsibility and also specifies the dimensions of authority which an individual can exercise.

5. 3. Optimum Utilization of Resources: Organizing provides fuller and efficient use of all human, physical and financial resources. Proper allocation of jobs helps in avoiding overlapping of work and ensures optimum use of resources without any wastage.

6. 4. Adaptation to Changes: Organizing helps business enterprises to adjust to the environmental changes. In order to ensure smooth functioning of the enterprise, organizing suitably modifies the organizational structure and various inter-relationships existing in the enterprise. Moreover, it also provides stability in the enterprise so that it continues to grow and survive inspite of changes.

7. 5. Effective Administration: Organizing helps in bringing about administrative efficiency because: ( i ) It leads to specialization which brings effectiveness in administration (ii) It clarifies centres of authority & power and thus results in proper execution of work. (iii) It provides a clear description of jobs and related duties which results in avoiding duplication of work.

8. 6. Development of Personnel: Organizing creates structure of an organization. That structure provides a basis or framework for assigning and performing various functions efficiently. Effective delegation allows managers to assign jobs of routine nature to their subordinates. The reduction in workload enables the managers to develop new methods and techniques of performing the jobs efficiently and to explore new areas for the growth of an organization. On the other hand, delegation develops an ability among the subordinates to deal effectively with the challenges and also helps them grow to realize their full potential.

9. 7. Expansion and Growth: Organizing promotes growth and diversification of an enterprise. It enables the enterprise to take up new challenges e.g. more job positions, departments, new product lines and also new geographical territories etc. for increasing sales and profit.

10. LIMITATION OF ORGANIZING An organization is a complex set of offices and functions under unified rule, which is meant to perform one or many general functions. It can be a government, corporation or an informal community group. Organizations are made up of individuals, each, presumably, having free will. Therefore, in any discussion of organizational life, the individual and the use of his freedom must be understood as a major limitation in the organization.

11. Decisions It is common to speak as if organizations "act." "The government of Iran declared war." Of course, the government is not a person that has willed to declare war. "IBM announced mass layoffs." This was a decision by a group of powerful, self-interested individuals making the decision to lay off. Therefore, using an organizational name when describing an action is problematic, if not entirely misleading. Organizations function because of the interest of the individuals within them.

12. Culture It is possible to speak of organizations as "actors" when dealing with a corporate or organizational culture. Such a culture can constrain actions as well as shape them. It is a power over and above individuals, shaping them as they function within their specific organizational tasks. Even here, phrases like "Toyota will improve its brake pads" might speak to a specific Japanese interest in mechanical perfection, or to the fact that major executives want Toyota's reputation to improve in America. Therefore, two major limitations on organizations are the individual, as well as the corporate culture. This latter, in turn, can be shaped by the interests of the subgroups — such as executives or shareholders — that dominate the organization.

13. External and Internal Limits An economic organization can be a firm, bank or union. These are economic actors due to their leadership, culture and pressures from customers or members. These might be considered "actors" with more or less autonomous status. The market constrains the actions of such institutions. A firm can only produce what is demanded and what will sell. A firm can only produce what its current labor force and productive capital can create. An economic organization is thus constrained both by internal factors — its own previous decisions — and external factors such as the market or government regulation.

14. Structure An organization of whatever type can be limited by other factors, such as transitions in leadership. The creation of a chaotic command structure given resignations, firings, or rapid promotion and demotion can limit a firm's effectiveness. It can create cynicism that further limits the action and effectiveness of the organization. Organizations function because of their leadership, mission and purpose. If any of these things begin to break down, the organization itself cannot function. These organizations are limited by their own purpose and sense of identity. If an organization is dependent on computers for its daily functioning, a virus or breakdown can paralyze it. Even more, if an organization is dependent on the presence of powerful or charismatic leaders, their absence can bring things to a halt. In other words, the very organizational concept of the group serves as a limitation to how and why it functions.

15. References The Handbook of Strategic Management; Applications and Limitations of Complexity Theory in Organization: Theory and Strategy; David Levy; 2000  Autonomous Cooperation and Control Logistics: Contributions and Limitations - Theoretical and Practical Perspectives; Bernd Scholz -Reiter, Michael Hülsmann , Katja Windt ; 2011