Unit 3: Organizing
Organizing is one of the fundamental functions in the management
process, alongside planning, leading, and controlling. The primary
objective of organizing is to arrange resources, people, and tasks in
a structured and efficient way to achieve the goals of the
organization. In this section, we will explore the key concepts
related to organizing, including its importance, principles, types of
organizational structures, delegation, centralization vs.
decentralization, and coordination.
Concept of Organizing
Definition and Importance of Organizing in Management:
Organizing refers to the process of arranging tasks, people, and
resources in a structured way to accomplish the goals of an
organization. It involves determining what tasks need to be done,
who will do them, how the tasks will be grouped, who will report
to whom, and where decisions will be made.
The importance of organizing cannot be overstated as it:
1. Creates Clarity: By organizing the work, it ensures that
everyone understands their roles and responsibilities.
2. Improves Efficiency: Organizing resources effectively leads to
more efficient use of time, energy, and materials.
3. Facilitates Coordination: It helps to ensure that all parts of the
organization work towards the common goal.
4. Enhances Flexibility: Organizing allows a company to adapt to
changes in its environment by redefining roles and
responsibilities.
5. Reduces Confusion: A well-organized structure reduces
ambiguity and confusion about roles and authority.
Principles of Organizing
Organizing involves applying several principles to create an effective
organizational structure. These principles are essential for
achieving the desired outcomes and making sure that the
organization functions smoothly:
1. Span of Control:
o This principle refers to the number of subordinates that a
manager can effectively supervise. A narrow span of
control implies that a manager supervises a few
employees, while a wide span means the manager
supervises many employees.
o The ideal span depends on various factors, such as the
complexity of tasks and the ability of managers and
employees.
2. Unity of Command:
o According to this principle, each employee should receive
orders and instructions from only one superior. This
avoids confusion and ensures clear accountability.
o When employees report to more than one superior, it can
cause confusion, overlapping responsibilities, and conflict.
3. Division of Work:
o This principle refers to dividing tasks into specialized
roles so that employees can focus on what they do best.
Specialization leads to increased efficiency and
productivity.
o The division of labour helps in the proper allocation of
tasks based on individual skills and expertise.
Organizational Structure
Types of Organizational Structures:
Organizational structure defines the formal framework of authority,
responsibility, and communication within an organization. Several
types of organizational structures exist, each with its advantages
and disadvantages. The most common types include:
1. Functional Structure:
o In this structure, employees are grouped according to their
job functions (e.g., marketing, finance, operations).
o Advantages: Clear hierarchy, specialization, and efficient
use of resources.
o Disadvantages: Can lead to silos and a lack of
communication across departments.
2. Divisional Structure:
o Organizations that adopt this structure are divided into
divisions based on products, services, or geographical
locations. Each division operates semi-autonomously.
o Advantages: Greater flexibility, focus on specific products
or markets.
o Disadvantages: Duplication of resources, lack of
standardization.
3. Matrix Structure:
o The matrix structure is a hybrid of the functional and
divisional structures. Employees report to both functional
and divisional managers.
o Advantages: Better collaboration and resource utilization.
o Disadvantages: Can create confusion in authority and
decision-making.
o
4. Network Structure:
o In this structure, the organization is less hierarchical and
more decentralized, with the focus on establishing a
network of relationships with external partners,
contractors, and other stakeholders.
o Advantages: High flexibility, focus on core competencies.
o Disadvantages: Lack of control over external partners,
communication challenges.
Factors Influencing Organizational Structure:
The choice of an organizational structure is influenced by several
factors, including:
• Size of the Organization: Larger organizations tend to have
more complex structures, often requiring division into smaller
units.
• Nature of the Business: Organizations in dynamic or high-
growth sectors may adopt more flexible structures.
• External Environment: Changes in technology, competition, and
market conditions can necessitate a change in structure.
• Culture and Leadership Style: A culture that values innovation
may favor a more decentralized structure, while a more
traditional culture may lean toward a centralized, hierarchical
structure.
Delegation and Decentralization
Meaning and Importance of Delegation:
Delegation is the process of entrusting a subordinate with the
responsibility to carry out certain tasks and decision-making
duties. The manager remains accountable for the outcomes, but the
subordinate is empowered to act within the limits defined by the
manager.
• Importance of Delegation:
o Empowers Employees: Delegation allows employees to
take ownership of tasks and decisions, which fosters
personal growth and confidence.
o Increases Efficiency: By assigning tasks to the right
people, managers can focus on more strategic goals.
o Improves Time Management: Effective delegation allows
managers to distribute the workload and manage time
more efficiently.
o Develops Future Leaders: Delegating important tasks
helps employees develop the skills they need for future
leadership roles.
Process of Delegation and Barriers to Effective Delegation:
The process of delegation involves the following steps:
1. Selecting the Task: Identify the tasks that can be delegated.
2. Choosing the Right Person: Match the task to the skills and
capabilities of the employee.
3. Clarifying the Expectations: Clearly communicate the goals,
deadlines, and boundaries.
4. Providing Resources and Authority: Ensure the employee has
the tools and authority to complete the task.
5. Monitoring and Feedback: Provide feedback on progress and
ensure the task is completed successfully.
Barriers to Effective Delegation:
• Lack of Trust: Managers may be reluctant to delegate due to
concerns about the quality of work.
• Fear of Losing Control: Some managers may fear that giving up
control will lead to mistakes.
• Inadequate Training: Employees may not have the necessary
skills or experience to take on delegated tasks.
• Unclear Instructions: Lack of clarity regarding tasks and
expectations can lead to poor execution.
Centralization vs. Decentralization:
1. Centralization:
o In a centralized structure, decision-making authority is
concentrated at the top levels of management.
o Pros: Uniformity in decision-making, clear lines of
authority, and control.
o Cons: Slow decision-making, overburdening of top
management, and lack of flexibility.
2. Decentralization:
o In a decentralized structure, decision-making authority is
spread across various levels of management.
o Pros: Faster decision-making, greater flexibility, and
empowerment of lower-level managers.
o Cons: Risk of inconsistent decisions, lack of coordination,
and potential duplication of efforts.
The choice between centralization and decentralization depends on
the organization’s size, complexity, and strategic goals.
Coordination
Importance and Techniques of Coordination:
Coordination is the process of ensuring that the various parts of an
organization work together harmoniously towards common
objectives. It helps in managing interdependencies between
different functions, departments, and individuals.
Importance of Coordination:
• Ensures Efficiency: Coordination prevents duplication of efforts
and ensures that resources are used effectively.
• Prevents Conflicts: Clear coordination between departments
reduces misunderstandings and conflicts.
• Aligns Goals: Coordination ensures that everyone is working
toward the same organizational objectives.
• Improves Communication: It fosters effective communication
across different levels and departments.
Techniques of Coordination:
• Standardization: Establishing standardized procedures and
practices that everyone must follow.
• Mutual Adjustment: Encouraging direct communication and
collaboration among team members to solve problems.
• Planning: Effective planning helps align various activities with
the organization’s goals.
• Teamwork: Fostering teamwork and collaborative efforts can
improve coordination at all levels of the organization.
