The structure of organization: Departmental activities
Organization involves the design of a departmental framework. Although there are several principles in this area, one is of major importance.
Principle of functional definition
The more a position or a department has a clear definition of the results expected, activities to be undertaken, and organization authority delegated and has an understanding of authority and informational relationships with other positions, the more adequately the responsible individual can contribute toward accomplishing enterprise objectives.
Process of organizing
The various principles of authority delegation and of department formation are fundamental truths about the process of organizing. They deal with phases of the two primary aspects of organizing — authority and activity groupings. There are other principles that deal with the process of organizing. It is through their application that managers gain a sense of proportion or a measure of the total organizing process.
Principle of balance
In every structure there is need for balance. The application of principles or techniques must be balanced to ensure the overall effectiveness of the structure in meeting enterprise objectives.
The principles of balance is common to all areas of science and to to all functions of the manager. The inefficiencies of broad spans of management must be balanced against the inefficiencies of long lines of communication. Losses from multiple commands must be balanced against the gains from expertness and uniformity in delegating functional authority to- staff and service departments. The savings of functional specialization in departmentalizing must be balanced against the advantages the advantages of establishing profit responsible semi-independent product or territorial departments. It is apparent, once again, that the application of management theory depends on the specific situation.
Principles of flexibility
The more that provisions are made for building flexibili0ty into an organization structure, the more adequately an organization structure can fulfill its purpose.
Devices and techniques for anticipating and reacting to change must be built every structure. Every enterprise moves toward its goal in a changing environment, both external and internal. The enterprise that develops inflexibilities, whether these are resistance to change, too complicated procedures, or too-firm departmental lines, is risking the inability to meet the challenges of economic, technical, biological, political, and social change.
Principle of leadership facilitation
The more an organization structure and its delegation of authority enable managers to design and maintain an environment for performance, the more they will help the leadership abilities of those managers.
Managerial effectiveness depends to a great extent upon the quality of leadership of those in managerial positions, it is important for the organization structure to do its part in creating a situation in which a manager can most effectively lead. In this sense, organizing is a technique of promoting leadership. If the authority allocation and the structural arrangements create a situation in which heads of department tend to be looked upon as leaders and in which their task of leadership is aided, organization structure has accomplished an essential task.