Environmental Issues in Managerial Effectiveness

Topics: Leadership, Management, Organizational culture Pages: 47 (13750 words) Published: October 11, 2012

Organization is an important management function and is the first step in implementing a plan or idea. Without efficient organization, no management can perform its function smoothly. Sound organization contributes greatly to the continuity and success of the enterprise. Organization as a process means bringing together physical, financial and human resources for accomplishing specific objectives. This becomes a major responsibility of manager.

Organization is defined as the management function of assigning duties, grouping tasks, establishing authority, and allocating resources to carry out a specific plan”.


Facilitates Administration- A well-defined organization facilitates both management and operation of the enterprise. It is only a sound organization that can remove all bottlenecks and drawbacks and make the administration meaningful. Facilitates growth and direction- an organization, if properly designed, can create conditions favorable for expansion and diversification of the activities of the undertakings. An alert manager anticipates the probable changes in the volume of sales, demand, profit etc., and can suitably adjust the organization and department operation. An efficient manager can also make arrangements to enter into new lines of business.

Facilitates adoption of new technology- the technological changes also increasingly influence the modern organizations. The organization should be flexible to accommodate the newly developed techniques in the field of production, distribution, marketing etc.

Stimulates creativity and initiative-A well knit organization provides an opportunity to the managers and other employees to display their talents. It also stimulates their creative independent thinking which adds on to the effectiveness of the organization and consequently to the success of the business. Intensive use of human resource- because of the actual determination of job requirement, right persons is placed in the right positions. The employees need not sit ideal waiting for instructions, orders and guidance. All these factors facilitate intensive use of capital.


Looking at organizing, as a process requires that several fundamentals be considered. In the first place, the structure must reflect objectives and plans, because activities derive from them. In the second place, it must reflect the authority available to an enterprise’s management. Authority in a given organization is a socially determined right to exercise discretion; as such it is subject to change. In the third place, organization structure, like any plan, must reflect its environment. Just as the premises of a plan may be economic, technological, political, social, or ethical, so may be those of an organizational structure. It must be designed to work, to permit contributions by members of a group, and to help people gain objectives efficiently in a changing future. In this sense, a workable organization structure can never be static. There is no single organization structure that work best in all kinds of situation. In the fourth place, since the organization is staffed with people, the grouping of activities and the authority relationship of an organization structure must take into account the managers strengths and weaknesses. The structure must be designed around individuals and their aspirations. The organizational design should have a human look rather than getting reduced to a hierarchical structure-oriented one. There is a fundamental logic to organizing.

The organizing process consists of the following six steps:
Establishing enterprise objectives
Formulating supporting objectives, policies and plans. The identification and classification of required activities necessary to accomplish these
Grouping of activities in the light of human and...
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