Organising Business Studies

Organising is a necessary phenomenon for performing any task with flexibility. In the case of a business, organising every step is critical because it can both increase and decrease your business’s efficiency and profit as per your organising strategy. In an organisation, you must differentiate between each member’s role, power and position, and assign different tasks through organisational processes. So, to run a successful business, each step must be organised and understanding this process, its type, and structure is critical. As a result, we will go over every aspect of organising in-depth in this article and read it till the end.

What is Organising? 

The main definition of organising is the process of identifying and grouping a business’ activities and establishing authority relationships among them.

Consider a situation where you are having a school festival, and the duties must be divided among the committee to organise it efficiently. This is referred to as organising. Now, let’s understand its importance in business. 

Importance of organising 

Organising can have a deliberate impact on an enterprise’s performance. So, let’s go over some of its significance.

• An enterprise can increase its profit while decreasing its workload by employing effective organisational techniques. 
• The formation of working relationships clarifies communication channels and specifies who reports to whom.
• The organising process enables a business enterprise to adapt to changes in the business environment.

• Organising provides a detailed description of jobs and related responsibilities. This reduces confusion and duplication. 

Organising an enterprise aids in growth and diversification by allowing it to deviate from established norms and take on new challenges.

Organising Structures

Organising Structures are the final result of the organising process. The more efficient an organisation is, the more profit an enterprise makes. So, first, let’s look at the different types of organisational structures.

Organising structures are of two types:

• Functional Structure 
• Divisional Structure

Functional Structure: 

In a functional structure, similar jobs should be grouped, and major functions should be organised as separate departments. Furthermore, each department must report to a coordinating head.

Advantages: 

• Following a functional structure allows employees to be promoted more efficiently because they perform similar tasks within the department, which improves their performance.
• With this structure, managerial and operational efficiency can be increased, resulting in a high profit.

Disadvantages

• A conflict may arise among the two departments when their interests are not compatible. 
• This structure leads to less emphasis on the overall objectives of the business as compared to their structure objectives.

Divisional Structure 

Many enterprises prefer divisional as compared to a functional structure. It comprises separate business units, and each unit has a divisional manager who is responsible for the whole unit’s efficiency. 

Each division is multifunctional as functions like production, marketing, purchase, etc., are performed together to achieve a common goal. 

Advantages

• Each division can be considered as an independent unit, so it promotes flexibility and initiative. 
• It facilitates the expansion and growth of a unit. 

Disadvantages 

• When the interests of the two departments are incompatible, a conflict may arise.
• This structure places less emphasis on overall business objectives than personal structure objectives.

Types of Organisation

There are two types of organisation, namely 

• Formal organisation
• Informal organisation

Formal organisation

The term “formal organisation” refers to the structure of an organisation that is designed by management to accomplish a specific task. It clearly defines authority and responsibility boundaries, and there is systematic coordination among the various activities to achieve organisational goals.

• It defines the relationships between various job positions and the nature of their interdependence.
• The formal organisation coordinates, interconnects and integrates the efforts of various departments.
• It is purposefully designed by top management to aid in the smooth operation of the organisation.

Informal organisation

An informal organisation is a collection of interpersonal relationships with no conscious purpose but may contribute to shared outcomes.

When people interact outside of their officially defined roles, an informal organisation emerges from within the formal organisation.

• Norms of behaviour emerge from groups rather than officially enacted rules and regulations.
• It emerges instantaneously and is not created on purpose by management.
• Because it is a complicated network of social friendships among members, it has no firm texture or form.

Conclusion 

Organising is a critical step in any business and understanding it is critical. It is critical to increase an organisation’s profit relationships with one another and remove ambiguity in an enterprise. It enables an organisation to expand and take on new challenges. It has two types of structures: functional and divisional and formal and informal. Formal organisations are usually formed to work on a specific task, whereas informal organisations improve interpersonal relationships. As both have their characteristics, for example, formal works on rigid rules and regulations, whereas informal does not. As a result, we can’t ignore business organisations.