Organising
Unit V. Covers Meaning, importance and process of organising; Organisation structure; Formal and informal organisation; Delegation and decentralisation.
About this unit
Organising is the management function that turns plans into action by arranging work, people and resources. This unit covers the meaning, importance and steps of organising, the two main forms of organisation structure (functional and divisional), the difference between formal and informal organisation, and the concepts of delegation and decentralisation, which explain how authority is shared within a firm.
Key ideas
- Organising identifies and groups activities, assigns duties and sets up authority relationships.
- Span of management decides the number of levels in a structure.
- Functional structure groups jobs by function; divisional structure groups them by product or market.
- Formal organisation is designed by management; informal organisation grows out of social interaction.
- Delegation has three elements: authority, responsibility and accountability.
- Decentralisation is the systematic delegation of authority at all levels.
How to prepare
- Memorise the four steps of the organising process.
- Prepare comparison points between functional and divisional structures, formal and informal organisation, and delegation and decentralisation.
- Practise choosing the right structure for a firm described in a short case.
Topics in this chapter
Meaning, importance and process of organising
Steps in the organising process.
5 questionsOrganisation structure
Functional and divisional structures.
5 questionsFormal and informal organisation
Features, merits and limitations of each.
5 questionsDelegation and decentralisation
Meaning, elements and importance; the difference between them.
5 questionsPractice questions
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