What is meant by Organisation / The process of organisation
Meaning of Organisation
The word “Organisation” is originates from the word “organism” which means a structure with its parts so integrated that their relation to each other is governed by their relation to the whole. It also means a system with parts which work together, or a system with parts dependent upon each other parts.
Thus, in any organisation the two important organs are:
1. parts, and
2. their relationship with on another, and with organisation as a whole.
The parts consist of human and physical resources, e.g., men, money materials, machine and methods (5 M’s). As for relationships, these means relationship –
1. between one individual and individual,
2. between an individual and his group,
3. between one group and other group,
4. between individuals and the work or activities to be performed by them, and
5. between individuals and the physical resources to be used by them to perform their work or activites.
According to Louis Allen, “Organisation is the process of identifying and grouping work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.”
Process of Organisation
The process of organizing involves the following steps:
1. Determination Objectives: Organisational are built around objectives. Process of organisation is largely dependent upon the short term and long term objectives of the business.
2. Enumeration of the Activities: After the determination of the objectives of the business, the group effort is divided into several essential activities such as production, financing, purchases, sales, personnel etc.
3. Categorisation of Activities: For specialisation, the various activities identified under the first step are then categorised into appropriate departments and divisions on the basis of functions, products, territories or customers etc. They may also be grouped on the basis of most use, most interest competition co-ordination and policy control, etc.
4. Assignment of tasks to individuals: Individuals are fixed up to perform different functions. The individual departments are then allotted to different individuals on the basis of their ability and aptitudes. Clear definitions of the responsibility or each individual becomes necessary to avoid duplication and over-lapping of effort. Every individual is made responsible for the specific job assigned to him. Right man is placed at the right job.
5. Delegation of authority: No one can discharge his obligations regarding a particular work in the absence of authority to do the same. They need delegation of authority. To secure co-ordination of individual effort different individuals must be linked horizontally or vertically by establishing formal authority. Relationships must be formed between them.
