According to Haimann, “Organization is the process of defining and grouping the activities of the enterprise and establishing the authority relationship among them.” The mentioned definition makes it clear that on the one hand organization is a process to define and classify the functions to be performed for the attainment of the objectives of the organization, and on the other hand, it is an art to establish sweet relationship among different persons.
There are two concept are prevalent about organisation. In the other word, there are two meaning of organization:
- Organizing as process: According to the first concept of organizing, it has been considered as a process. In the other word, organizing is not function that can be performed at a single stroke, but it is a chain of various functions. It includes getting information about objectives, deciding various activities and grouping them, determining important activities, allowing authority and responsibility, etc. Organizing is related to human being and human conduct is deeply affected by the condition of work, their competency and capability, changes in the internal and external environment of the organisation. The process of organizing has also to be changed according these changes. Hence, organizing as a process can also be described as dynamic element.
- Organizing as a structure of relationship: According to this concept, organizing is treated as a structure of relationship. Under this various posts are created or established and the mutual relationship of employees working on various posts, their authorities and responsibilities are defined. Relationship lays down as to who is the superior and who is the subordinate. Various posts in different department of the organization are mostly permanent. Therefore, organisation as a structure of relationship is called static element.
So far as the similarity between both the concepts is concerned, business organization is looked upon as a group of different parts under both the concepts. These parts are both tangible (like human, material, machine and money) and intangible (like authority, responsibility, function and objective). Both the concepts lay stress upon the establishment of relationship between these two parts.
On the contrary, there are certain different between both the concepts. According to the concept of “organizing as a process” organizing is that function which continues throughout the existence of the enterprise and changes go on taking place in it. Herein man is the central point. In the other words, many factors affect them and changes have to be introduced accordingly. On the other hand, according to the concept of “organizing as a structure of relationship”, posts are established in the organisation and authorities and responsibilities of each post are determined. Therefore, here under this concept more attention is paid to post which are stable than to men.
In order to complete the organizing function of management, there are eight steps had to be taken. First step in the process is to know about the objectives of the enterprise. Although the determination of the objectives of an enterprise is done under the first function of management, i.e., planning but before commencing the process of organizing clear and detailed information about these objectives has to be obtained. On the basis of the information about objectives various function designed to achieve these objectives are determined. For example, it can be the objectives of the enterprise to produce sport shoes. In this respect information about how many types of sport shoes will be manufactured, whether the necessary parts required for manufacturing sport shoes will be manufactured or purchased, how extensive the sales area will be or will it be state, the whole country or international? After having learnt about the objectives of the enterprise, necessary functions to achieve the objectives are determined. For example, a sport shoes manufacturing company can have different activities like purchase of raw material, purchase of manufactured parts production, advertisement, sales, arrangement of finance, research, accounts, correspondence, keeping stock of material, recruitment of employees, etc.. In order to achieve the objectives of the enterprise grouping of various activities is done. Under the grouping of activities all the similar type of activities are given to one particular department. For example, the activities like the purchase of raw material, purchase of ready-made parts, production, stocking the material, research, etc., are assigned to the production department. Similarly, advertisement and sales activities are given to the marketing department and department of finance take care of finance account and correspondence. Taking into consideration the importance and quantity of the work a department can be further divided into many branches or sub-departments. For example, under the department of production, purchase department, stock department, and research department, etc., can be established to get the benefit of specialization. It makes the optimum utilization of human and material resources possible. The forth step is to key activities signifies the importance of this activities in the achievement of the objectives of the enterprise. Such an activities needs special attention. It depends on the objectives on the organisation to determine the key activity. Thus, in all the organisations key activity can be different. In the given example of a sport shoes producing company the main problem can be of advertisement because only an effective and large scale advertisement can attract the attention of the consumers toward a new product. Thus, in this case the function of advertisement is the key activity which requires the utmost attention. For this purpose the advertisement activities should be taken from the purview of the marketing department and be handed over to the newly created advertisement department so that the superior officers are in direct touch with this department and they are in a position to pay full attention to it.
After dividing the various activities into different departments and sub-departments and having determined the activity that each individual is expected to perform, his responsibility is fixed. In other words, what they are to do for the attainment of the objectives of the organisation. For example, the purchase manager will be given the responsibility for the purchase of goods; the sales manager will be responsible for sales; the advertising manager will be responsible for advertisement and the finance manager will take care of the responsibility of finance. A person who is saddled with a responsibility must be given some authority too. Authority means the freedom of taking decision, guiding the subordinates and the freedom of supervising and controlling. Authority should be in proportion to the work or responsibility. If the responsibility is greater than the authority given and is insufficient to cope with the responsibility, the responsibility cannot be discharged successfully. For example, if a marketing manager is assigned the responsibility of increasing sales but has not been given the authority to appoint sales representatives needed for the job, the increase in sales cannot be expected. So long as the authority to discharge the responsibility is not given, the person concerned has not accountability. It is only after granting authority to an individual that he can be made accountable. When two or more than two persons work for the attainment o common goals their inter-relationship must be defined very clearly. Everybody should know who is his superior and who is his subordinate? For example, the purchase manager will be the superior for all the employees of the purchase department. They will receive order from him and will also be responsible to him. On the other hand, the purchase manager will get orders from the General Manager and will be responsible to him. Defining clearly the inter-relationship helps in establishing coordination. Organizing it is not only such an activity which includes determination of activities; and the defining of the inter-relationship but it also ensure the optimum utilization of human resources by providing physical resources and the right environment. For example, the factory and the office should be located at a proper place so that the employees can perform better.