AMA_MODULE2.pdf

BME_1101 : ADMINISTRATIVE MANAGEMENT AND AUTOMATION PRELIMS Reviewer MODULE 2: Office Organization and with it.” With the growing complexities of a Administration large-scale organization, the need and STEPS IN ORGANIZATION...

BME_1101 : ADMINISTRATIVE MANAGEMENT AND AUTOMATION PRELIMS Reviewer MODULE 2: Office Organization and with it.” With the growing complexities of a Administration large-scale organization, the need and STEPS IN ORGANIZATION MANAGEMENT importance of organization has grown Organizing refers to the grouping of ORGANIZATION = is one of the fundamental substantially. activities necessary for the attainment of functions of management. After having thought The importance of organization can objectives. It also indicates the authority and out the objective or goal of an enterprise and also be judged from the fact that a good the responsibility assigned to the individuals, the course of action to be followed, it is organization is now regarded as the foundation charged with the execution of their respective necessary to give a practical shape to the work of sound management. functions. The following steps are involved in to be performed to meet that objective. In the organizing the structure of an enterprise organization, we divide the work and prepare a CHARACTERISTICS OF AN ORGANIZATION (KDGD): structural plan. On a careful analysis of the above a. Knowledge of objectives. While definitions, the following characteristics of an organizing, it is important to bear in DEFINITIONS organization emerge mind the objectives or target of the “Organization is a group of people i. It is a group of individuals, which may organization or department. The who are cooperating under the direction of be small or large. objective must be determined, keeping leadership for the accomplishment of the ii. The groups in the organization work in view the environmental situation. common end.” – Ralph C. Davis under the direction of executive leadership. They must be clear, precise and iii. It is a function of arrangement. complete, and free from ambiguity or “Organization is the arrangement of iv. It consists of some direction confusion. Unless the manager or functions deemed necessary for the authority, which controls the collective efforts of supervisor knows the objective, he may attainment of the objective and is an the group. not be able to organize properly and indication of the authority and the v. It refers to a structure of duties and motivate people towards the attainment responsibility assigned to individuals with responsibilities. of the objective. the execution of their respective functions.” vi. It is established for the b. Division of work into activities. After accomplishment of a common objective. laying down objectives, the manager IMPORTANCE OF ORGANIZATION vii. It is a continuous function and is must identify the total work involved in The need for organization arises when preferred in varying degrees by all levels of achieving them. For instance, the total two or more people work together. A one-man management, from the first-line supervisors, to work involved in a manufacturing business will have no difficulty in the top executives of the enterprise. enterprise may be divided into co-coordinating the efforts of the buying, selling viii. It cannot be static for the simple production, finance, personnel, and other management functions of business. reason that an organization that is effective marketing, and other activities. “However, when the business starts to today, may not be satisfactory tomorrow. It c. Grouping the activities. The next step grow, separate departments created for needs periodic changes and modifications is to group the various activities into buying, sales, accounting administration, according to current needs and situations, in practical units, based on similarities and so on, the need for organization grows terms of objective, jobs, and personnel. and importance, and to indicate the BME_1101 : ADMINISTRATIVE MANAGEMENT AND AUTOMATION PRELIMS Reviewer person who would do the work. For ii. “Administration is largely c. Principle of definition. The duties, instance, purchasing, machining, and determinative, whereas management is responsibilities, authority, and relations assembling may be placed under essentially executed.” – Oliver Sheldon of everyone in the organizational manufacturing, while recruiting, training iii. “Administration includes broad structure should be clearly and job grading, and compensation may be policy-making and management is a part or completely defined, preferably in placed under personnel. element of administration.” – Prof. Walter writing. d. Defining and assigning activities to iv. The term administration is more d. Principle of work assignment. The jobs. Jobs must be clearly defined and often used in non-business enterprise or work assignment for each individual in the activities related to them must be government departments. The term the organization should be taken into clearly identified and assigned. This will management may be used for business and consideration the special strengths and help the management to fix the non-business enterprises. talents of the individuals. This means authority and responsibility of the that an individual should be given an employees concerned. PRINCIPLES OF ORGANIZATION assignment commensurate with his or However, there are certain principles her ability and interest. ADMINISTRATION which have more or less universal application, e. Principle of ultimate responsibility. There is a sharp difference of opinion and which have more or less organization and The responsibility of a higher authority among experts about the meaning and office. The task of the office manager of for the acts of his subordinates is significance of terms “administration”, planning organization becomes easier if he has absolute; that responsibility to his “management”, and “organization”. Some taken into consideration the following general workers to do a given job, and the writers maintain that there is no difference principles of organization (OIDWUFDDCE): worker commits a mistake, the between these terms, while others are of the a. Principles of objective. The objective supervisor is the one accountable to his view that they are not synonymous and have of an enterprise should be clearly laid superiors. He cannot escape different meanings. down. Within the enterprise, there responsibilities by saying that the should be unity and uniformity in the mistake was committed by a particular MANAGEMENT VS ADMINISTRATION policies and objectives of different worker. The term administration is that function departments. f. Principle of flexibility. of an enterprise which relates to the overall b. Principle of interrelated. Because g. Principle of division of work. determination of policies and major objectives. organizations no longer have mutually h. Principle of discipline. i. “Administration is the function of exclusive functions, but rather i. Principle of continuity of operations. determining the policies upon which the integrated functions, the functional j. Principle of employee participation. enterprise is to be conducted, while the area–for example sales, production, function of management is to carry out the finance, marketing, and personnel–are FORMAL AND INFORMAL ORGANIZATION policies laid down by the administration interrelated. They should have a mutual group.” – Leffingwell and Robinson purpose. FORMAL ORGANIZATION = is one in which positions, responsibilities, authority, and BME_1101 : ADMINISTRATIVE MANAGEMENT AND AUTOMATION PRELIMS Reviewer accountability at each level is clearly defined. A TYPES OF ORGANIZATION procedures of an formal organization is bound by the rules, enterprise. The process of organization involves systems, producers, and methods laid down by the grouping of activities and the establishment the top management from time to time. of authority relationships among these INFORMAL ORGANIZATION = An informal activities. But even this is not enough. The organization always exists together with a According to George R. Terry, there various activities have to be necessarily formal organization in every enterprise. In an are four (4) basic components of a formal coordinated for the accomplishment of organization, people evolve informal groups organization: organizational objectives. among themselves, which are bound together I. Work – which is divisionalised; There are four (4) different types of by common social, technological work, or other II. Persons – who are assigned to organizations: interests. perform the divisionalised jobs; I. Line organization. III. Environment – under which the work II. Functional organization. According to Davis, “An informal is done; and III. Line and staff organization. organization is that network of personal IV. Relationships – among persons or IV. Committee organization. and social relations, which is not work units. established by formal organization.” It is an accepted fact that wherever people work A formal organization is systematically together, social relationships and groups are planned and is based on the principle of the bound to arise on account of their frequent delegation of authority and responsibility. It FUNCTIONS OF ADMINISTRATIVE OFFICE contact with one another, which give rise to makes use of organizational charts and MANAGER (LEOCRRBR) informal organizations. attempts to maintain a balance among the A. Layout. various types of work to be done, each being Advantages. Limitations. It includes planning the layout, given the importance that its true value maintenance, and safeguarding of the building, i. It provides a useful i. It may tend to deserves. and providing a proper work environment in the channel of communication. act based on ii. It covers deficiencies of mob office. Advantages. Limitations. formal organizations. psychology B. Equipment. i. Avoidance of role i. It does not iii. It influences the formal (follow the It includes selection, purchase, conflict. recognize organizations to work trend or crowd). standardization, maintenance, and ii. Avoidance of informal carefully. ii. It may be a replacement of furniture, equipment, and office overlapping of authority relationships. iv. It brings about mutuality source of machines. and responsibility. ii. It creates among group members, rumors or a C. Organization. iii. Advantage of problems with who derive job satisfaction waste of time. specialization. communication. through an exchange of iii. It may tend It includes the preparation of iv. Defining and iii. It emphasizes ideas and views. to oppose organization charts and manuals, laying down standardizing systems, structure, rather change. the functions of departments and supervising rules, policies, and than people. departmental operations. BME_1101 : ADMINISTRATIVE MANAGEMENT AND AUTOMATION PRELIMS Reviewer D. Communication and Correspondence. It includes the handling of inward and outward mail, the organization and supervision of office correspondence and messenger service, telephone and intercommunication system, data communication system, etc. E. Records Management. It includes the organization and supervision of filing and indexing, sorting, classification, protection, and destruction of records. F. Reproduction. It includes duplicating, copying, printing, and other reproduction services. G. Budgeting and Cost Analysis. It includes the preparation of departmental and master budgets, allocation of revenues and expenses, and control of office costs. H. Reporting. It includes the preparation of reports and minutes, and the collection and presentation of data to the top management.