Definition: Organising means arranging people and resources in a planned way so that everyone knows their work, how to do it, and whom to report to in order to achieve organisational goals smoothly.
Organising is the process of:
- Bringing people and resources together
- Dividing work into tasks
- Assigning jobs to suitable people
- Creating clear working relationships
B – Bring resources together | D – Divide work | A – Assign duties | C – Create relationships
Organising also creates the structure of the organisation. It:
- Defines roles and responsibilities
- Clarifies authority relationships
- Groups similar activities
- Avoids confusion in reporting
“Clear roles, clear power, clear chain —
Then the organisation runs like a train.”
Managers must think about:
- Resources required
- Efficient use of resources
- Division of work
- Authority and responsibility
R – Resources required | E – Efficient use | A – Assign work | D – Delegate authority
Acronym: SCREDS
| Letter | Meaning |
|---|---|
| S | Specialization |
| C | Clear relationships |
| R | Resource utilization |
| E | Employee development |
| D | Deals with change |
| S | Supports growth |
“Special skills and clear relation,
Better use of every station.
Employees grow and changes fit,
Organising makes business legit.”
Acronym: IDARE
| Letter | Step |
|---|---|
| I | Identification & division of work |
| D | Departmentalization |
| A | Assignment of duties |
| R | Reporting relationships |
| E | Establish authority |
“Identify work, divide it fair,
Group the tasks with proper care.
Give the job to people right,
Set the chain and power tight.”
Definition: Organisation structure is the framework that shows relationships between people, tasks and authority in an organisation.
Span of Management vs Levels of Management
Span of Management: Number of subordinates a manager can supervise effectively.
Levels of Management: Different positions of authority in the organisation.
“Wide Span → Few Levels | Narrow Span → Many Levels.”
Acronym: FD (Functional & Divisional)
1. Functional Structure
Jobs are grouped according to functions (Production, Marketing, Finance, HR).
“Same work together, experts forever.”
Best Suitable When: Large organisation, specialization needed, stable activities.
2. Divisional Structure
Organisation is divided based on Products, Regions, or Customers.
“One company, many mini companies.”
Best Suitable When: Multiple products, different markets, need quick decisions.
Formal Organisation (CRT)
C – Clear relationships | R – Rules and roles | T – Target oriented
Adv: Clear responsibility, Unity of command. Disadv: Slow communication.
Informal Organisation (SFG)
S – Social relations | F – Flexible communication | G – Group norms
Adv: Faster communication, Social satisfaction. Disadv: Rumors, Resistance to change.
Delegation: Downward transfer of authority while manager remains accountable.
“Authority goes down, accountability stays up.”
Elements of Delegation (ARA)
| A | Authority | Flows ↓ |
|---|---|---|
| R | Responsibility | Flows ↑ |
| A | Accountability | Flows ↑ |
Decentralization
Systematic delegation of decision-making authority to lower levels.
Importance (IQGRBD): Initiative, Quick decisions, Growth, Relief to top, Better control, Development of managers.
| Delegation (TD) | Decentralization (OD) |
|---|---|
| Task delegation | Organisation-wide system |
| Temporary authority | Permanent authority |
| Individual level | Entire organisation |
“Delegation gives work, Decentralization gives power.”
- Organising Meaning: Arrange work & people
- Process: BDAC
- Importance: SCREDS
- Steps: IDARE
- Structures: FD
- Delegation Elements: ARA
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