Concept and Principles of Organizing



Organising becomes necessary when two or more persons work together to achieve some common objectives. When a player is playing alone, there is perhaps no need of organising. But organizing becomes important when players are playing in a team.In that case, it is important to determine the role of each player and for the team as a whole to attain victory over the rival team.Similarly, in a one-man business, all the activities are performed by the owner himself.

But when the owner employs someone to assist him, he has to determine the work to be done by the employee and give him the right to use materials, machinery, equipment, etc. This is the point when organising becomes necessary. As more people are appointed, there has to be further division and sub-division of work among them.

When an organization becomes large, separate departments are created to perform different functions. Each department has to be divided into a number of smaller units. Ultimately, the work of the organization is divided into a number of positions of employees and managers. Relationships are then established among the different positions in the organisation.

The outcome of the organising process is a set of formal relationships which is known as organization structure. In this lesson, we shall study about the process of organising which leads to the setting up of an organization structure.



 The organising function is carried out on the basis of guidelines given by experts. These are known as rinciples of organisation. These principles have been developed by management experts from time to time. The principles of organisation developed by Lyndall Urwick are briefly stated below. You have already read about the principles of management given by Henry Fayol. Since organising is a part of management, you will find some of the principles at both the places.


(i) Purpose : All organisations and each part of any undertaking should be the expression of a purpose, either explicit or implied — the principle of objective.

(ii) Authority and responsibility: Formal authority and responsibility must be co-terminus and equal — the principle of correspondence.

(iii) Responsibility of supervision : The responsibility of higher authority for the acts of its subordinates is absolute — the Principle of responsibility.

(iv) Scalar Principle: There must be a clear line of formal authority running from top to the bottom of every organization — the scalar Principle.

Span of control : No supervisor can supervise directly the work of more than five, or at the most, six  Subordinates whose work interlocks — the Principle of Span of Control.

(vi) Specialization of functions: The work of every person in the orgnisation should be confined as far as possible to the performance of a single leading function — the Principle of specialization.

(vii) Coordination of Effort : The final object of all organisations is smooth, effective coordination — the Principle of co-ordination.

(viii) Definition : Every position in every organisation should be clearly described in writing — the Principle of definition.






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