Write down the essential elements of the organization process.

Write down the essential elements of the organization process.

Ans. The logical steps involved in the process of organization are –

(i) Determination of Objectives, Strategies, Plans and Policies – Organization is a tool which is applied for the attainment of the objectives of the business. Therefore, objectives should be clear, precise, and complete because the whole organization is to be built around the objectives of the enterprise. Objectives decide the purpose of organization and nature of work to be accomplished through the organization.

(ii) Determination of Activities In the next step, activities are determined, required to execute these plans and policies, and accomplish the objectives. From the objective of the company, the principle activities are determined. The work load is divided into component activities that are to be performed by all the employees. The activities are so split to determine the job that can be performed by an individual.

(iii) Separation and Grouping of Activities- It is essential to classify and group the activities in the best possible way. To obtain the advantages of specialization and division of labour, every company will separate its activities on the basis of primary function- finance, engineering, purchasing, production,

sales and industrial relations. All the similar or directly related activities are grouped together in the form of departments. They can be further subdivided into sections. As an example, the manufacturing function and the department handling may be subdivided according to the products, processes, or type of

equipment, and the selling department may be subdivided according the territory, type of product, or class of customers. The subdivision should be definite and avoid overlapping.

All groups must have approximately equal workload. If there is expansion of certain activities in one group, sub grouping or rearrangement of certain activities should be done. In small business unit, purchasing, storekeeping, machine operations, repairing, quality control are combined in one group, viz

production activities while in large scale industries, there are separate purchase department, stores, 1naintenance, quality control department etc.

(iv) Delegation of Authority– Authority is the right given to superior for directing and guiding the action of his subordinates to extract the work from them (smoothly and efficiently without any friction). Authority is essential for the performance of the job and so authority is delegated to the subordinates

for enabling them to carry out their work smoothly and efficiently.

(v) Delegation of Responsibility- Responsibility must always be accompanied by the authority. Responsibility may be described as the obligation and accountability for the performance of delegated duties. In one organization, the superior is held responsible fqr the actions of his subordinates and the

subordinates are accountable for the work to their superiors. Effective management necessitates a clear flow of formal authority and responsibility.

(vi) To Establish Inter-relationships – The grouped activities are placed in the overall organization structure at proper level. It is essential to integrate or tie these groups of activities –

(a) Through authority relationship horizontally, vertically and lateraly, and

(b) Through organized information or communication systems, that is, with the help of effective coordination and communication. By integration of activities, we have unity of objectives, team work, and team spirit. It establishes harmony of efforts of different individuals and groups avoiding the conflicts arising out of it.

(vii) Providing Physical Facilities and Appropriate Environment It is essential to provide right type physical facilities and generate environment for the smooth running and prosperity of the organization. Physical facilities may include machinery, tools, equipments, infrastructure etc. Right environment means proper lighting, ventilation, heating, cooling arrangements at the workplace, reasonable hours of work, rest pauses, safety devices, job security, job satisfaction and above all human approach by the management.

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