ORGANIZING STEPS
A company notices inefficiency because one employee is handling ordering, invoicing, and customer service all at once. Management decides to split these into specialized roles.
What is identification and division of work?
A company assigns specific repetitive tasks to workers, which slowly improves their speed and efficiency over time.
What is specialisation through division of work?
A company groups employees into departments like HR, Marketing, and Finance.
What is functional structure?
In a company, all major and minor decisions are taken only by top management.
What is centralisation?
A manager assigns part of his work to a subordinate.
What is delegation?
Even though tasks are clearly divided, confusion arises because sales and finance teams keep overlapping responsibilities. Management restructures by clustering related functions.
What is departmentalisation?
In a firm, confusion arises when employees don’t know who to report to, leading management to introduce clear reporting lines.
What is clarity in working relationships?
A firm divides itself into cosmetics, garments, and footwear units, each handling all functions internally.
What is divisional structure?
Decision-making authority is pushed down to lower levels closest to actual operations.
What is decentralisation?
The power given to a subordinate to take decisions.
What is authority?
After hiring new employees, productivity drops because workers frequently ask, “Who is responsible for this task?” indicating a missing step in the organising process.
What is assignment of duties?
A business reduces wastage after ensuring no two employees are doing the same job unnecessarily.
What is optimum utilisation of resources?
Employees become highly skilled in one area because they repeatedly perform similar tasks in one department.
What is occupational specialisation (functional structure advantage)?
A business becomes slow in responding to market changes because every approval must come from headquarters.
What is disadvantage of centralisation (slow decision-making)?
The obligation of a subordinate to complete assigned work.
What is responsibility?
Two employees receive instructions from different managers for the same task, leading to conflict. This indicates a failure in defining who reports to whom.
What is establishing reporting relationships / authority?
A company reorganises itself so it can survive market changes like new technology and competition.
What is adaptation to change?
A conflict arises when marketing wants customer-friendly changes but production finds them difficult to execute.
What is inter-departmental conflict?
Employees at lower levels are given authority, which increases their confidence and helps them develop leadership skills.
What is advantage of decentralisation?
A manager assigns work but does not give enough decision-making power, resulting in delays and frustration among employees.
What is imbalance between authority and responsibility in delegation?
An organisation has a well-defined structure on paper, but in practice, overlapping efforts and confusion persist because integration between different levels and departments is weak.
What is ineffective implementation of organising function / poor coordination?
Even after assigning roles and setting structure, a firm grows efficiently because employees are developing skills while managers focus on innovation instead of routine tasks.
What is development of personnel and expansion of growth?
Managers struggle to handle top-level roles later because they only gain experience in one specialised area.
What is limited managerial development?
A company expands rapidly across multiple regions. Local managers make quick decisions based on on-ground knowledge, while top management focuses only on major policies to avoid overload.
What is balanced centralisation and decentralisation in an organisation?
A subordinate must explain the results of work to the superior.
What is accountability?