Organisation Function of Management

Organization can be defined as a system that makes the formal relations among the members of the company and retains the interest of the society as well. It is one of the most important management functions that makes the employees organized and accountable. Organization needs an effective coordination among the members that builds a mutual understanding among them. In the organization, managers required to delegate the authorities and responsibilities to the members for carrying out the assigned task.

Organization as a structure means, it is a hierarchical framework in which the organization assigns the task and responsibility. It is further helpful in identifying the lines of communication and path for the flow of information. Organization structure includes the activity-authority relationship that means organization can be able to know what task should be assigned to whom and how much authority should be given to them. Structure of the organization depends on the type of strategies and objectives that have been adopted by the company. Organization structure is way to an end.

Peter F. Drucker suggests four ways for the formulation of organization structure to attain the objectives. First is activity analysis in which organization needs to identify the key activities and all those areas that needs excellence for the better performance of the company’s objectives. Second is contribution analysis in this step all the activities are divided into four groups i.e. result producing activities, support activities, house keeping activities, and top management activities. Direct revenues are generated from result producing activities while support activities provide contribution towards the overall results. Housekeeping activities contribute indirectly to the overall results and their avoidance can affect the business. Segregation of activities helps in identifying that which activity needs more attention and which is not. Then we come to the third mean that is decision analysis in which authority and responsibility are given to various kinds of decisions based on their character i.e. impact of one decision on other functions, its occurrence are regular or rare. Decisions should be made at the lowest level. Fourth and the last way is relation analysis in which the relation of activity to the another is made and it should be noticed that the critical activity should be placed at the center and should be easily accessible.

Organizing helps in achieving the objectives at least cost in terms of money, pain, time etc. Through the organizing managers can able to do the work with sound management structure and making coordination among different departments.It is further helps in overcoming the limitations of span of management that means organization can able to identify how many subordinates can be handled by one manager depending on their job and ability. And it is also help in formulating the supportive policies apart from the main objectives.

As organization operates in highly dynamic environment whereby technology, political conditions etc. changes day by day in such a conditions it need not to be static. To sustain in the competitive market organization should be adaptive to the moving environmental conditions. Organizations have to redesign the structure according to the changing needs of the external market environment. As the taste and preference of the customers changes after a certain interval then organization have to make further provisions for better services to the customers. And the capacities of the workers grow, changes or sometimes decline with the change in the technology.