Concept of Organising

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Questions and Answers

What role does the organizing function play in achieving business objectives?

  • It dictates the objectives themselves based on resource availability.
  • It ensures that efforts are directed towards attaining goals set during planning. (correct)
  • It primarily focuses on minimizing costs, irrespective of strategic goals.
  • It serves to create entirely new objectives, separate from the initial plans.

What is the primary aim of the organizing function?

  • To centralize power, ensuring all decisions are made by top management.
  • To streamline processes through the development of functional hierarchies.
  • To dictate employee behavior through strict rules and regulations.
  • To establish clear roles and relationships, eliminating ambiguity in task performance. (correct)

What is the most vital aspect of the 'Identification and division of work' step in the organizing process?

  • To promote social interaction to boost morale.
  • To evenly distribute tasks regardless of employee skillset.
  • To satisfy employees as a main goal, even if it lowers efficiency.
  • To prevent redundancy while optimizing workload distribution. (correct)

How does departmentalization contribute to organizational efficiency?

<p>By grouping similar activities together, fostering specialization. (B)</p> Signup and view all the answers

Why is it important to align employee skills with assigned duties?

<p>To ensure optimum completion and boost individual output. (A)</p> Signup and view all the answers

Why is it important to create clear lines of authority and reporting relationships in an organization?

<p>To ensure everyone knows who to report to and who to seek guidance from. (C)</p> Signup and view all the answers

How does organizing contribute directly to specialization?

<p>By allocating specific jobs systematically. (A)</p> Signup and view all the answers

How can clarity in the working relationships within an organization improved?

<p>By clearly defining communication channels and reporting structures. (B)</p> Signup and view all the answers

How does organizing lead to optimum resource utilization?

<p>By carefully aligning resources with assigned roles, preventing overlap and waste. (D)</p> Signup and view all the answers

How does effective organizing assist a business in adapting quickly and efficiently to environmental changes?

<p>By permitting the organization structure to be suitably modified and the revision of inter-relationships amongst managerial levels. (B)</p> Signup and view all the answers

How does organizing contribute to the professional development of personnel within an organization?

<p>By delegation and empowering subordinates with tasks. (C)</p> Signup and view all the answers

How does organizing assist in the expansion and diversification of an enterprise?

<p>By streamlining operations, allowing the organization to have more job positions, departments and to diversify their product lines. (C)</p> Signup and view all the answers

What is the purpose of an organizational structure?

<p>To facilitate the coordination of human, physical, and financial resources towards achieving desired goals. (C)</p> Signup and view all the answers

What does 'span of management' refer to in the context of organizational structure?

<p>The number of subordinates effectively overseen by a manager. (B)</p> Signup and view all the answers

What is the structure that groups jobs of a similar nature under functional departments?

<p>Functional structure. (B)</p> Signup and view all the answers

What is one of the primary benefits of a functional structure in an organization?

<p>Occupational specialization enhanced through focused roles. (B)</p> Signup and view all the answers

What is a potential downside of a functional structure?

<p>Potential for departmental goals to overshadow organizational objectives. (D)</p> Signup and view all the answers

What are some aspects that a company with a large size would need in regards to the structure?

<p>Large diversified structure with specialized operations. (C)</p> Signup and view all the answers

Which type of organizational structure involves separate business units or divisions, each with a divisional manager responsible for performance?

<p>Divisional Structure. (A)</p> Signup and view all the answers

How is manpower typically organized in a divisional structure?

<p>On the basis of manufactured product. (D)</p> Signup and view all the answers

What statement accurately describes the nature of each division in a divisional structure?

<p>Each division is multifunctional, integrating various functions to achieve a common goal. (B)</p> Signup and view all the answers

How does divisional structure contribute to management development?

<p>By preparing individuals for diverse top-management positions. (D)</p> Signup and view all the answers

What is a key advantage of divisional structure regarding accountability?

<p>Revenues and costs are easy to identify and assign. (D)</p> Signup and view all the answers

What happens to performance when an organization adopts a more rigid, formal structure?

<p>Organizations lose the ability to deviate from existing norms and taking up new challenges. (B)</p> Signup and view all the answers

What is a primary difference between a formal and informal organization?

<p>A formal structure has a systematic design that clearly defines authority, responsibility, and accountability. (D)</p> Signup and view all the answers

How does a formal organization impact decision-making?

<p>It often increases the time taken for decision making due to established procedures. (D)</p> Signup and view all the answers

What is considered to be one of the primary strengths of an informal organization?

<p>Its speed of information spread and feedback. (A)</p> Signup and view all the answers

What is a potential disadvantage of an informal organization?

<p>The potential for rumors and destructive forces against organizational interests. (B)</p> Signup and view all the answers

What is the definition of 'delegation'?

<p>The downward transfer of authority from a superior to a subordinate. (A)</p> Signup and view all the answers

Why is delegating authority important for effective management?

<p>It focuses management on high priority activities. (B)</p> Signup and view all the answers

What does authority refer to in the context of delegation?

<p>The right to command subordinates and take action. (A)</p> Signup and view all the answers

What is subordinates' responsibility in the context of delegation?

<p>The obligation to properly carry out an assigned duty. (B)</p> Signup and view all the answers

What is defined as 'accountability' in delegation?

<p>Being liable for the final outcome of assigned tasks. (B)</p> Signup and view all the answers

What happens to effective management when tasks have clearly been delegated?

<p>The managers are able to function more efficiently as they get more time to concentrate on important matters. (B)</p> Signup and view all the answers

What happens as a result of employee delegation?

<p>Employees gain a chance to utilize their talent and this may give rise to latent abilities in them. (C)</p> Signup and view all the answers

To create better coordination in the workplace, what elements help to define the powers, duties and answerability related to the various positions in an organization?

<p>Authority, responsibility and accountability. (C)</p> Signup and view all the answers

Flashcards

What is organising?

Organising is arranging resources to implement plans and achieve objectives, bridging planning and execution.

What is included in organisational structures?

Roles designed for appropriately skilled people.

What does organising imply?

A process coordinating efforts, assembling resources, and integrating them for unity.

What are the steps for organising?

Systematic steps to achieve goals, including identifying/dividing work, departmentaliation, assigning duties and establishing reporting relationships.

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What is Identification and division of work?

Dividing work into manageable activities to avoid duplication and share the load.

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What is Departmentalisation?

Grouping similar activities together to facilitate specialization.

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What is Assignment of duties?

Defining job positions and allocating work to suitable employees.

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What are Reporting relationships?

Establishing who reports to whom, ensuring accountability.

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What is the importance of Organising?

Organising optimizes resource use, promotes efficiency, and coordinates efforts.

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How does organising help with Specialisation?

Leads to systematic job allocation enhancing specialization and productivity.

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How does organising provide clarity in Work relationships?

Clarifies communication lines, specifies reporting structures, removes ambiguity.

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How does organising lead to the right utilisation of Resources?

Leads to proper usage of all resources, avoiding overlaps and wastage.

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How does organising help with Adaptation?

Allows adapting to changes by modifying structures and relationships.

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How does organising lead to Effective administration?

Provides clear job descriptions avoiding confusion and improving administration.

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How does organising help the Development of personnel?

Stimulates creativity, and allows delegation to develop new methods and areas for growth.

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How does organising help with Expansion and growth?

Facilitates diversification by enabling addition of new roles and depts.

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What is an organizational structure?

The structure that is the outcome of the organising process.

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What is the span of management?

Number of subordinates a manager can effectively handle.

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What defines a functional structure?

Grouping jobs of similar nature under specific departments.

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How does a functional structure improve occupational specialisation?

Specialization promotes focused expertise and enhances output.

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In a functional structure how does similarity in tasks improve control and coordination?

Similarity in tasks facilitates effective supervision and standardization.

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How do functional structures put emphasis on overall enterior objectives?

Can impede cooperation and communication between diverse functional areas.

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How can organizational structure lead to Inflexibility?

Inflexibility and a narrow perspective.

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When is a functional structure most suitable?

Better when activities large, diversified, and require high specialization.

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What is the organizational structure of separate business units or divisions?

Separate business units/divisions, each responsible for specific products.

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What is the role of a divisional manager?

Divisional manager is responsible for unit performance with authority over it.

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How is it grouped?

Grouping manpower by product, enabling diverse product manufacturing.

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Why are divisions multifunctional?

Multifunctional, functions are performed together to achieve a common goal.

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How does dividing structure help division heads?

Develops varied skills in divisional heads; prepares them for higher roles.

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What are business benefits?

New divisions can be setup, expanding growth

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How can conflict arise?

Arise among divisions on funds allocation, reducing profit at the expense of others divisions.

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How can you reduce increasing costs?

Costly duplication of activities across products can reduce expenditure.

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When is division structure suitable?

Suitable where a large variety of products are manufactured.

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What is an informal organisation?

A network of social relationships among employees.

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What is delegation?

Delegation is the downward transfer of authority from a superior to a subordinate.

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Study Notes

  • Wipro is striving to be among the largest, most successful IT services companies.
  • Restructuring was key for Wipro to become a global giant with improved customer focus.
  • Wipro split into subsidiaries by product line, each earning about $300 million annually, decentralized for growth.
  • Wipro aimed to empower business leaders with more growth responsibility by de-layering the organization.
  • Organising follows planning to organize resources for objective achievement.

Concept of Organising

  • Structuring an organization involves adapting to its dynamic business environment.
  • Organising ensures successful plan implementation by properly organizing the enterprise.
  • Key considerations for fruitful planning include needed resources, optimum utilization, attainable tasks, and workforce empowerment.
  • Wipro's customer-oriented, product-line diversified approach shows organizing's role in plan implementation.
  • Organising designs roles for skilled people, defines relationships to eliminate ambiguity, and clarifies authority and responsibility.
  • Organizing is important for productive cooperation, clarifying authority, responsibility, and logically grouping activities.
  • Organising coordinates human efforts, assembles resources, and integrates them into a unified whole.

Process of Organising

  • Organising involves steps to achieve goals.
  • The purpose of organizing is to implement plans, by clarifying jobs and working relationships, and deploying resources effectivelyto achieve the desired results
  • School fete organization involves dividing activities into committees (food, decoration, ticketing) under an official.
  • These committees operate under the official to ensure clarity on each group's contribution
  • Organizing can be understood through the example of students working in a library.
  • Confusion can arise if students unload books randomly without planning.

Steps in Organising

  • Identification and division of work, prevents duplication and reduces burden
  • Departmentalisation, involves grouping similar activities to facilitate specialisation
  • Assignment of duties, involves defining job positions and allocating work based on skills and competencies.
  • Establishing authority and reporting relationships, involves defining who takes orders from whom and their accountability.

Importance of Organising

  • Systematic allocation of jobs reduces workload and increases work force productivity.
  • Clear communication lines and reporting relationships avoid ambiguity and ensures clarity
  • Optimum resource utilization, avoids overlapping work and makes optimal use of resources, preventing confusion.
  • Adaptation to change, allows modification of organization structure and revision of interrelationships with business environment
  • Effective administration, clarity provided helps avoid confusion and duplication, for clear execution of work
  • Personnel development,Delegation reduces manager workload, giving time for innovation.
  • Expansion and growth, aids enterprise growth and diversification

Organisation Structure

  • Facilitates deviation from exiting norms and helps take up new challenges
  • Allows enterprises to introduce more departments and job roles and product diversification
  • It allows addition of current operation areas to new markets
  • It creates an environment for teamwork by preventing conflict among people

Defining Organisation Structure

  • It is the outcome of the organising process
  • Increased profitability of an enterprise is the result of an effective structure
  • Structure specifies relationships between, people, work and resources
  • Adequate organisation structure is crucial for companies growing in complexity or size
  • Facilitates coordination and correlation among all resources
  • Enables entities to achieve business goals

Types of Organisation Structure

  • Two categories exist; Functional and Divisional structures
  • The span of management is shaped by organisational structure
  • Number of subordinates effectively manage by superiors is called the span of management

Functional Structure

  • Jobs of similar nature are grouped together and these major tasks are organised separately
  • All departments need to report to a coordinating manager or head
  • Divisions of work into key functions include production, marketing, purchase, personnel and accounts

Advantages of functional Structures

  • Can lead to occupational specialization emphasis on particular function is placed
  • It is beneficial as similar tasks allow for higher efficiencies
  • Facilitates control and coordination within a department due to similarity of task
  • Makes employee training easier as task is only on a small scale
  • helps boost both managerial and operational efficacy and increased revenue
  • Ensures that every function is given attention

Disadvantages of functional structures

  • Less emphasis than overall enterprise objectives vs functional head
  • Empire of functional empires is practice is very possible
  • Pursuing sectional interests at the expense of agency interests can hinder connection between two departments
  • May result in issues for coordinating across functionally segmented departments
  • Incompatibility between departments may result in conflicts
  • Sales insisting on design may have effects on production
  • Inflexibility as people with the same skill may possess a restricted framework for other's point of reference
  • Functional managers lack exposure to top management roles and may not show ability

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