Basics
Organizing is the building block for successful organizations
Defining organization:
Comprehensive concept of Organization:
it means that it consists of a group of individuals who participate together in any facility to achieve specific goals, meaning that there are 3 main elements that make up this organization, which are:
• Individuals.
• Participation.
• Specific goals.
The specific concept of Organization:
It is a clear definition of all the different competencies and tasks of all the main and subsidiary activities in the organization and the coordination of the various relations between them to serve the objectives of that organization and here the so-called organizational structure arises. It also defines the relationships between them, as it determines who in the organization has authority over whom, and who in the organization is accountable to whom.
The basic principles of organizations:
- Unity of goals:
The unity of goals means that the objectives are of great importance in determining the organizational structure of the organization.
- Unity of command:
This principle means that each person in any of the organizations should have only one supervisor.
- Chain of command:
The organization includes a functional hierarchy that shows the relationship between superiors and subordinates (lines of authority).
- Scope of supervision:
In the sense that it is not permissible for any leadership in any organization to occupy a number of departments that exceed the ability of this leadership. Rather, there must be a distribution of those departments and sections to all other divisions in the organization. In other words, no manager may entrust with the supervision to a large number of departments greater than his/her capabilities, and it means that it is not permissible to increase the main and sub-divisions that are subject to the supervision of one head.
- Proportionate authority and responsibility
This principle means that any person should not be assigned a specific responsibility unless he/she is given sufficient authority that enables him/her to assume that responsibility. An executive or at any level within the administrative unit must specify the authorities that correspond to the same amount of responsibilities.
- Clarity in defining responsibilities:
This principle means that the duties and responsibilities of each individual should be precise, clear, and understandable.
- Flexibility and simplicity:
These two principles mean allowing modification according to the requirements of development in the activities of the organization, and that the organization must be simple and not complicated.
- Delegation of authority:
This principle means that the manager entrusts some of his/her powers for the purpose of widening his/her supervision to a number of his/her assistants, which reduces his/her work burden and increases the time for thinking and innovation.
- Effective communication:
This principle means the need for the organization to include a clear communication network to ensure the transfer and flow of all data and information across all parts of the organization.
- Specialization:
This principle means that every job within the organization should include a specific job description and carry out by specialized individuals who are qualified and at the highest level of efficiency and work experience.
- Coordination:
Coordination is one of the basic elements for achieving integration in business and reducing the contradiction and duplication of work in the organization.
- Delegation of authority does not relieve responsibility:
As a result of the expansion in the size of organizations or activities, it may be necessary to delegate some responsibilities to the lower administrative levels, and here it should be clear that this delegation does not relieve the delegate’s responsibility (joint responsibility).
- Centralization and decentralization:
Mainly related to the principle of delegation of authority.
Centralization: the concentration of power in the hands of the highest administrative level Decentralization: distributing powers between the head and his/her assistant and delegating some of his/her powers to lower administrative levels. Here, it is necessary to reconcile absolute centralism and absolute decentralism.
Delegation Vs Non-Delegation:
Factors that influence delegation of authority:
- The seriousness of the decision and the extent of the cost of this decision and its impact on the facility (Authority should not be delegated if it is too costly or dangerous)
- The size of the organization (The larger the organization, the greater the need for delegation of authority).
- The extent to which the policy is unified (If the policy is unified, the authority is delegated).
- Decentralization of performance (the geographical expansion of the organization – the authority is delegated)
- The degree of growth of the facility: Meaning that if the project grows fast – there is no delegation if there is a degree of stability then delegation is permissible.
- Availability of competent managers who are able to carry out the assigned activity. Then delegation is preferred.
- The existence of a sound control system that ensures the follow-up of performance (delegation is permissible).
- Environmental conditions surrounding the facility: any economic / political variables / Social, technological, the issuance of new laws or regulations that affect the activity of the organization as a whole (it is not recommended to delegate until the environmental conditions are stabilized).
Management levels in an organization:
The organizational structure takes a hierarchical form, which is divided into a number of levels:
Senior management responsibilities:
This level represents the head of the organization and the senior managers who oversee the core sectors. Members of this organizational level are responsible for planning, drawing up policies, directing and controlling implementation, and making basic decisions to achieve the main goals.
Middle management responsibilities:
This level represents the heads of departments who take executive decisions, and this level is concerned with the production, marketing, supply chain, human resources management…. etc. It works in light of the plans approved by the senior management who submit their reports on the progress of implementation or obstacles to them.
Direct management responsibilities:
This level represents the lowest administrative level in the organization, such as direct supervisors. This level is concerned with directly supervising the front-line employees who are executing the smallest manageable tasks.
The relationship between the executive authority and advisory:
Executive Authority: It is the authority that flows from top to bottom and gives the right to make all decisions.
Advisory is the authority to suggest, advise or express an opinion to the higher authority.
Organization’s patterns:
- Simple:
- Hierarchy:
- Work teams: