Definition of organizing. Fundamental concept of organizing.

"Organizingis the process of identifying and grouping of the works to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most efficiently".- Louis A. Allen

Organizing involves the following aspects:

-Identifying the activities required to achieve organizational objectives.

-Grouping up of these activities into workable units (Departmentalization).

-Assigning duties and responsibilities to subordinates in order to achieve the tasks assigned.

-Delegating authority necessary and useful for the accomplishment of tasks assigned.

-Establishing superior-subordinate relationship.

-Providing a system of co-ordination for integrating the activities of individuals and departments.

An Organizing has been defined by E. F. L. Breach as "a system of structural interpersonal relationships. In it, individuals are differentiated in terms of authority, status and roles with the result that personal interaction is prescribed, and anticipated reactions between individuals tend to occur while ambiguity and spontaneity are decreased".

According to Louis A. Allen, Organizing is "the process of identification and grouping the 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".

James Mooney defines organizing as "the form of every human association for attainment of a common purpose".

Importance of Organizing

Organizing does the following:

· Ensures optimum utilisation of human resources: Every enterprise appoints employees for the conduct of various business activities and operations. They are given the work according to their qualifications and experience. Organizing ensures that every individual has the job position for which he is best suited.

· Facilitates coordination: It acts as a means of bringing coordination and integration among the activities of individuals and departments of the enterprise. It establishes clear-cut relationships between operating departments and brings proper balance in their activities.

· Facilitates division of work: Different departments are created for division of work, specialization and orderly working of the enterprise. Similarly, delegation relieves top level managers from routine duties.

· Ensures growth, expansion and diversification: Reasonable Organisation structure facilitates expansion/diversification of an enterprise. Organisation structure has in-built capacity to absorb additional activities and also effective control of them. A business enterprise brings diversification in its activities within the framework of its Organisation.

· Stimulates creativity: Organisation provides training and self-development facilities to managers and subordinates through delegation and departmentalization. It also encourages initiative and creative thinking on the part of managers and others.

· Facilitates administration: Effective administration of business will not be possible without the support of reasonable organisation structure. Delegation, departmentalization and decentralisation are the tools for effective administration.

· Determines optimum use of technology: Reasonable Organisation structure provides opportunities to make optimum use of technology. It facilitates proper maintenance of equipment and also meets high cost of installation.

· Determines individual responsibility: Responsibility is an obligation to do the assigned work. In such Organisation, the manager finds it easy to pinpoint individual responsibility when the work is spoilt.

Fundamental concept of organizing:

Ø DIFFERENTIATION: It means that an organization is composed of units that work on specialized tasks using different work methods and requiring employees with unique competencies.

Ø INTEGRATION: It means that the various units must be put back together so that work is coordinated.

NATURE OF organizing:

1. Group of Persons

2. Common Objectives

3. Division of Work

4. Cooperative Efforts

5. Communication

6. Central Authority

7. Rules & Regulations

8. Dynamic Element

õ Group of Persons:An organization is a group of people working together for the achievement of common objectives. The group may be large or small. An organization is a system of cooperative relationships of two or more persons.

õ Common Objectives: Every organization has a common objectives distinct from personal objectives of the members. The common goal is the basis of cooperation among the members. The objectives of the organization are usually are made explicit

õ Division of Work:An organization comes into existence when the total task is divided into the members of the group. Division of work is necessary not only because one individual cannot do all the work but specialization results in efficiency and effectiveness.

õ Cooperative Efforts:The members of an organization are willing to help each other for the achievement of desired goals. Cooperative relationships are stabilized both vertically and horizontally among different units of the organization:

õ Communication:People who form an organization communicates with each other in order to integrate or coordinate there efforts. The structure must be such that people can perform together efficiently.

õ Central Authority:In an organization, there is a central directing authority which controls the concerted efforts of the group. The chain of authority- responsibility relationships is known as the chain of command.

õ Rules and Regulations:For the orderly and systematic working of the members, rules and regulations are laid down and enforced by the central authority.

õ The Dynamic Element:An organization is not a mere mechanical structure but a living organism arising out of the sentiments, attitudes, and behavior of people. The people are the material of construction that holds the structure together and gives it vitality.

Importance of organizing.

IMPORTANCE OF organizing:

ù Facilitates Administration:Achievement of the objectives of an enterprise by providing a framework of coordination and control. It provides a system of authority and network for effective communication. Individual goals can be coordinated towards group goals. A properly balanced organization facilitated both management and operation of the enterprise.

ù Encourages Growth & Diversification:It has enabled organizations to grow and expand to giant sizes. Systematic division of work and consistent delegation of authority facilitate taking up of new activities and meeting new demands. It provides flexibility for growth without losing control over various activities.

ù Optimum Use of New Technology: It is made through a sound structure manned with competent employees. In addition, Optimum use of technology permits optimum utilisation of human resources. Sound organization ensures that every individual is placed on the job for which one is best suited.

ù Stimulates Innovation & Creativity:It stimulates creative thinking and initiative on the part of employees. It provides for effective management of change and responds favourably to changes in environment. It provides recognition for the professional and the specialist in terms of their achievement.

ù Encourages Good Human Relations:The assignment of right jobs to right person improves job satisfaction and inter-personal relations. Well-defined jobs and clear lines of authority and responsibility ensure good human relations.

ù Ensures Continuity of Enterprise:It provides scope for the training and development of future management. It provides avenues for development and promotions through delegation and decentralisation.

ù Coordination:It facilitates order and cohesiveness in the enterprise. Division of labor, better utility of technology and human talent helps to improve the efficiency and quality of work. Clear channels of communication among the members of the organization leads to coordination.

Process of organizing.

Process of organizing:

1. Identification of Activities:First step is to determine the tasks that must be performed to achieve the established objectives. Activities and jobs are building blocks of any organization. The activities to be performed depends upon the objectives, nature and size of the enterprise.

2. Grouping of Activities:The various activities are the grouped into departments or divisions according to similarity and common purpose. Such grouping is necessary for the purpose of specialization, coordination and control. It may be grouped on various basis i.e. functions products, territories, customers etc depending on requirements.

3. Assignment of Duties:Groups of activities or departments are then allotted to different positions. Every position is occupied by an individual best suited for it. The assignments of activities creates responsibility and ensures certainty of work performance. The process should be carried down to the lowest levels. It is basically done to avoid duplication of work and over-lapping efforts.

4. Delegation of Authority:Every individual is given the authority required to carry out the responsibility assigned to him. A chain of command is created through successive delegation of authority. Different positions are linked vertically and horizontally by establishing formal authority. Every individual must know to whom he is accountable and who are his subordinates.

Conclusion

Organization is the process of identifying and grouping of the works to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most efficiently.

Organizing involves the following aspects: identifying the activities required to achieve organizational objectives; grouping up of these activities into workable units (departmentalization); assigning duties and responsibilities to subordinates in order to achieve the tasks assigned; delegating authority necessary and useful for the accomplishment of tasks assigned.

Control questions:

1. Can you give the definition of organizing?

2. Give more information about process of organizing.

3. What do you know about coordination?

4. Give the reason why is so importance of organizing?

5. Give the fundamental concept of organizing.

Literature

1. English for economists and managers: textbook/ O. V. Ulyanov, S. V. Grishin; yurginskiy technological Institute. – Tomsk: Publishing house of Tomsk Polytechnic University-theta, 2011. – 111 p.

2. Besanko D.A, Brauetugam R.R, Gibbs M.J Microeconomics,2011, Chicago

3. Griffiths A, Wall S.Economics for business and management,2011, England

4. Varian H.R. Intermediate microeconomics,2010, University of California at Berkeley

5. Boyd, W. Harper. Marketing Management.- Boston, 2010

Motivation

The purpose: Consider the main aspects of motivation, qualities, basic model and process of motivation

Key words:motivation, human needs, energizes behavior, directs behavior, Six c’s of motivation

Questions:

9.1 Definition оf motivation

9.2 Qualities Of Motivation. Process of motivation

9.3 Six c’s of motivation. Basic model of motivation.

9.4 Theory of motivation. Case study

Definition оf motivation

Motivation - the driving force within individuals by which they attempt to achieve some goal in order to fulfill some needs or expectation.

* The degree to which an individual wants to choose in certain behavior.

Motivation is…

p Complex

p Psychological

p Physical

p Unique to each and every person

p Context sensitive

p Not fully understood

Basic motivational concepts

Motivation—the forces within the individual that account for the level, direction, and persistence of effort expended at work.

Reward—a work outcome of positive value to the individual

Extrinsic rewards—valued outcomes given to someone by another person.

Intrinsic rewards—valued outcomes that occur naturally as a person works on a task.

To achieve maximum motivational potential in linking rewards to performance …

Respect diversity and individual differences to best understand what people want from work.

Allocate rewards to satisfy the interests of both individuals and the organization.

Types of motivation theories:

-Content theories

-Human needs and how people with different needs may respond to different work situations.

-Process theories

-How people give meaning to rewards and make decisions on various work-related behaviors

-Reinforcement theory

-How people’s behavior is influenced by environmental consequences.