Organizational Process

Meaning of Organizational Process

Organizational process refers to the breaking up of activities by managers of the work to be done. In other words, dividing the work of an organization into steps and then doing it is called the organizational process. Its main objective is to attain maximum results from the activities of the organization, by minimum efforts.

Functions of Organizational Process

Under any process of a business organization, the following activities have to be performed

1. Determination and Division of Work of Organization

   Firstly it is to be seen, on the basis of the objectives of the organization which activities are necessary for the fulfilment of its objectives. All these activities are then divided into small and sub-activities, like – establishment of the organization, determination of place, office layout arrangement of required capital, production, financial arrangement, the appointment of employees, labor management, marketing, accounting, audit, etc. Sometimes, in very big organizations, as per the requirement, these activities can be further divided into more small activities and tasks. In this way, in the organizational process, first, the organizational activities are determined and then they are divided into small parts.

2. Classification and Grouping of Activities

   Classification after the division of work refers to all activities being classified into various groups in such a manner that one kind of activity comes only under one group.
   Similar and related activities are kept in one group. In this manner, in one department all activities which are similar in nature are kept together. Like – In the finance department, all activities related to finance, in the production department, activities related to production, in the distribution department, all activities related to the sale of products are categorized.
   Allotment of Duties and Responsibilities: After classifying all the activities into groups, the duties of various employees are determined. Duties are allotted to every employee, according to their ability. In this manner, after the division of work, each employee of the organization becomes responsible for the work, which is given to him.

3. Delegation of Authority

   After determining and distributing the duties and responsibilities of employees of the organization, they are given sufficient rights to carry on their work smoothly. This right is given by one level higher employee to his subordinate, like – the General Manager to the departmental manager

4. The departmental manager transfers the rights to his subordinate

   Transferring of rights is very important because by this only an immediate superior can take disciplinary action against his subordinate, due to the fear of disciplinary action the subordinate carries out his duties properly. If the upper-level official is not given rights for disciplinary action, then without any rights he shall face several problems in getting the work done by subordinates.

5. Coordination and Balance

   The last step in the organizational process in an organization is to establish coordination and balance between the activities of various departments, sub-departments, groups, and employees, by which all the activities of the organization are performed in one direction and no contradictions arise in them.