For plus two commerce students

1. Prasanth.S.R
Assistant Professor of
Commerce Education

2. Introduction
Organization can be defined as a group of working
together in an interdependent and interrelated environment
to achieve predetermined unified objectives through efficient
and effective use of available resources through division of
work. Interrelationship is of cooperation, coordination and
communication and interdependencies is of delegation of
authorities and
responsibilities.

4. Organizing builds efficiency in management which is
very much necessary for the performance of other functions
of management like planning, staffing, directing and
controlling. Poor organization may result in duplication of
work and efforts and some of the important operations may
be left out. With better organization optimization of
resources will be there yielding to efficiencies.

5. With proper division of work people become
more specialized and enhance their abilities, which
not only improves their skill set also helps the
company to achieve the organization objectives.

6. Organization is an important means of bringing
coordination among the various departments of the
enterprise. It creates clear-cut relationships between the
departments and helps in laying down balanced emphasis
on various activities. It also provides for the channels of
communication for the coordination of the activities of
different departments. The synergies which develops help
the company in achieving larger objectives.

7. Sound organization helps in the growth and
expansion of the enterprise by facilitating its
efficient management. Sound organization helps in
keeping the various activities under control and
increases the capacity of the enterprise to
undertake more activities.

8. Sound organization helps it self to change
easily & quickly as per the changing business
environment, flexibility helps the company to
remain competitive in the market place.

9. Sound organization matches the job with the
individual and vice versa. It ensures that every
individual is placed on the job for which he is best
suited. This helps in better use of individuals
working in the enterprise.

10. An efficient organization provides reasonable
freedom and empowerment to the people and give
sufficient room for decision making this help people
to bring innovative ideas and creativity in the work
place.

12. This is the first step in organizing as without
any purpose or objective organizing has no meaning.
Organizing will define the different tasks which
have to be done for the achievement of the
objectives.

13. Once all the activities and work is defined the next
step to divide the entire work in a logical manner so
the people can contribute their
efforts effectively, there must be a rational division
of total activities of the
organization, like based on the similarity or
standardization or requirements . division of work
avoids duplication of efforts and provide better
coordination between different activities. Based on
the principle we see today departmentalization in
the organization.

14. Once the division of work is done, the next step is to
find out the requirements of jobs based on which the
suitable people will be assigned those jobs.

15. The organizing also involves establishing formal
relationships among people at different level so that there
is no chaotic condition in the organization, the roles and
responsibilities, the formal code of conduct and
communication should be well defined. People should know
what is expected from them to whom they are responsible
and for whom they are liable.

16. Authority is the power to take certain decisions, right
to issue instructions, allocate resources or enquire
explanations, organizing involves that sufficient amount of
authority should be given at each level so that people can
perform their duties.

17. Coordination should be well defined i.e. the
relationships in the organization are spelled clearly
so that activities and efforts of individual must be in
sync with each other.

18.  Organizational chart shows the division of work within the organization e.g. we can
see in picture above the organization is having departments like marketing, finance
etc.
 Show the responsibility and authority structure, the higher the level in the chart
greater will be the responsibility and authority. Lower level is responsible to the higher
level in the organization chart e.g the supervisor is responsible to shift in charge and
responsible for the foreman and workers working under him.
 Organizational charts also reflect the formal communication structure of the
organization the instructions will flow from higher level to lower level and feed back
and suggestions will flow from the lower to upper level.
 Charts show the relationships of the levels e.g. the departments may not have a direct
relationships in terms of authority e.g. a supervisor of Human Resource department
can not give instructions to the worker of production department.
 Organization chart is a tool to create awareness among employees about the
designations and person holding these designations.
 Organizational charts show the basis of departmentalization like product, process or
regions etc.

20. Organization should be done in a such a
way to achieve the objectives of the
organization, every part of the organization
must be an expression of the purpose of the
undertaking concern.

21. Organization should be done in a manner to
bring efficiencies in the organization by
optimization of resources, clear lines of authority
and responsibility and providing means for personal
development

22. The total task should be divided in such a
manner that the work of every individual in the
organization is limited as far as possible to the
performance of a single leading function. The
activities of the enterprise should be so divided and
grouped as to achieve specialization. However, the
principle of division of work does not imply
occupational specialization.

23. Each person should be accountable to only one
person i.e. one should receive orders from
only one superior. This is necessary to avoid
the problems of conflict in instructions, frustration,
uncertainty and divided loyalty and to ensure the
feeling of personal responsibility for results. This
principle promotes co-ordination but may operate
against the principle of specialization.

24. No person should be required to supervise
more subordinates than he can effectively manage on account
of the limitation of time and ability. There is a limit on the
number of subordinates that an individual can effectively
supervise. However, the exact number of subordinates will
vary depending on nature of work, the people employed and
skill of the individual.

25. The line of authority and responsibility should
be clear & unbroken and should be consistent from
the highest executive to the lowest executive.
Ideally chain of command should be short. The
clearer the line of authority from the ultimate
authority in an enterprise to every
subordinate position, the more effective will be
decision-making and organization communication.

26. The authority delegated to an employee should
be sufficient to carry out his responsibility in an
effective manner; secondly the lower order in the
organization should also have required
empowerment so that they can take decisions on the
spot of the situation.

27. The responsibility of the
subordinate to his superior is absolute. No
executive can escape responsibility for the
delegation of authority to his subordinates.

28. Orderly arrangement of group efforts and
unity of action in the pursuit of a unified
common objective.

29. Organization should have preparedness to
change, and should be too rigid given the
condition of prevailing market condition today
the changes are very rapid and very extensive.

30. Organization should ensure continuity of
efforts and processes, organization should be
done in such manner that one activity doesn’t
hamper flow of other.

31. There should be balance in the organization
pertaining to work, objectives, coordination,
authorities and responsibilities etc. so that each
factor is in harmony to the total organization.

32. Every manager should take all decisions
within the scope of his authority and only matters
beyond the scope of his authority
should be referred to higher levels of management.
In other words, routine
decisions should be taken at lower levels and top
management should concentrate
on matters of exceptional importance.