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Revision: Principles and Functions of Management >> Organising CUET (UG) Organising

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Definitions [11]

Definition: Organising
  • Organising is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives. - Louis Allen
  • Organising is the process of defining and grouping the activities of the enterprise and establishing authority relationships among them. - Theo Haimman
Definition: Delegation

Delegation is the process a manager follows in dividing the work assigned to him so that he performs that part which only he because of his unique organisational placement, can perform effectively and so that he can get others to help with what remains. - Louis Allen

Definition: Delegation of Authority

Delegation of authority merely means the granting of authority to subordinates to operate within prescribed limits. - Theo Haimman

Definition: Delegation of Authority

Delegation of authority merely means the granting of authority to subordinates to operate within prescribed limits. - Theo Haimman

Definition: Delegation

Delegation is the process a manager follows in dividing the work assigned to him so that he performs that part which only he because of his unique organisational placement, can perform effectively and so that he can get others to help with what remains. - Louis Allen

Definition: Delegation of Authority

Delegation of authority merely means the granting of authority to subordinates to operate within prescribed limits. - Theo Haimman

Definition: Delegation

Delegation is the process a manager follows in dividing the work assigned to him so that he performs that part which only he because of his unique organisational placement, can perform effectively and so that he can get others to help with what remains. - Louis Allen

Define 'Decentralisation'.

Decentralisation refers to the dispersal of decision-making power among the middle-level and lower-level managers. The extent of decentralisation varies from one organisation to another.

Definition: Decentralisation
  • Decentralisation refers to systematic effort to delegate to the lowest level all authority except that which can be exercised at central points. - Louis Allen
  • Everything which goes to increase the importance of a subordinate’s role is decentralisation, everything that goes to reduce it is centralisation. - Henri Fayol

Define 'Decentralisation'.

Decentralisation refers to the dispersal of decision-making power among the middle-level and lower-level managers. The extent of decentralisation varies from one organisation to another.

Definition: Decentralisation
  • Decentralisation refers to systematic effort to delegate to the lowest level all authority except that which can be exercised at central points. - Louis Allen
  • Everything which goes to increase the importance of a subordinate’s role is decentralisation, everything that goes to reduce it is centralisation. - Henri Fayol

Key Points

Key Points: Organising
  • Organising is one of the Functions of Management.
  • It involves dividing work into groups and coordinating relationships among them.
  • The core purpose is to help people work effectively together to accomplish objectives.
  • It includes identifying, grouping, and delegating work, responsibility, and authority.
  • It also involves establishing authority relationships among activities of the enterprise.
  • Resources (human and material) are assembled and integrated into a unified whole.
  • Effective organising ensures resources are deployed effectively to attain desired results.
Key Points: Steps in the Process of Organising
  • Organising involves a series of steps to achieve a goal.
  • Work must first be identified, then divided into manageable activities to avoid duplication.
  • Similar activities are grouped into departments - this is called departmentalisation.
  • Duties are assigned based on the skills and competencies of employees.
  • Clear authority and reporting relationships form a hierarchy and enable coordination.
  • Without these steps, individuals working on their own cause confusion rather than results.
Key Points: Structure of Organisation
  • Organisation structure is the outcome of the organising process.
  • Effective structure increases profitability and helps handle growth and complexity.
  • Wrong structure can impair or destroy business performance.
  • Organisation structure provides a framework and coordinates resources.
  • Span of management determines levels of management in the structure.
  • Functional division of work (as in Sunita’s travel agency) creates clear lines of authority and responsibility.
Key Points: Concept of Delegation of Authority
  • Delegation = downward transfer of authority from superior to subordinate.
  • Three elements: Authority (command), Responsibility (obligation), Accountability (answerability).
  • Authority and responsibility flow in opposite directions - authority flows down, responsibility flows up.
  • Accountability cannot be delegated - it always stays with the superior.
  • Responsibility must be balanced with authority to be effective.
  • Delegation is the basis of the management hierarchy - it defines how power is structured across levels.
Key Points: Concept of Delegation of Authority
  • Delegation = downward transfer of authority from superior to subordinate.
  • Three elements: Authority (command), Responsibility (obligation), Accountability (answerability).
  • Authority and responsibility flow in opposite directions - authority flows down, responsibility flows up.
  • Accountability cannot be delegated - it always stays with the superior.
  • Responsibility must be balanced with authority to be effective.
  • Delegation is the basis of the management hierarchy - it defines how power is structured across levels.
Key Points: Concept of Delegation of Authority
  • Delegation = downward transfer of authority from superior to subordinate.
  • Three elements: Authority (command), Responsibility (obligation), Accountability (answerability).
  • Authority and responsibility flow in opposite directions - authority flows down, responsibility flows up.
  • Accountability cannot be delegated - it always stays with the superior.
  • Responsibility must be balanced with authority to be effective.
  • Delegation is the basis of the management hierarchy - it defines how power is structured across levels.
Key Points: Concept of Decentralization
  • Decentralisation = delegating authority to the lowest possible level.
  • Neither full centralisation nor full decentralisation is practical - organisations always use a mix.
  • Key benefit: faster decisions as authority lies near the point of action.
  • Builds future managers through independent decision-making experience.
  • Frees top management for strategic and policy work.
  • Must be balanced carefully to protect overall organisational interests.
Key Points: Concept of Decentralization
  • Decentralisation = delegating authority to the lowest possible level.
  • Neither full centralisation nor full decentralisation is practical - organisations always use a mix.
  • Key benefit: faster decisions as authority lies near the point of action.
  • Builds future managers through independent decision-making experience.
  • Frees top management for strategic and policy work.
  • Must be balanced carefully to protect overall organisational interests.
Comparison Between Delegation and Decentralization
Basis Delegation Decentralisation
Nature Compulsory act — no individual can perform all tasks on their own Optional policy decision done at the discretion of top management
Freedom of Action More control by superiors; less freedom for subordinates to take their own decisions Less control over executives; greater freedom of action
Status A process followed to share tasks The result of a policy decision of top management
Scope Narrow — limited to a superior and immediate subordinate Wide — extension of delegation to the lowest level of management
Purpose To lessen the burden of the manager To increase the role of subordinates by giving more autonomy
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