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U NIT IV ORGANISATIONAL PROCESSES. DEFINITION OF ORGANISATIONAL PROCESS A process is a series of connected steps or actions with a beginning and an end.

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Presentation on theme: "U NIT IV ORGANISATIONAL PROCESSES. DEFINITION OF ORGANISATIONAL PROCESS A process is a series of connected steps or actions with a beginning and an end."— Presentation transcript:


2 DEFINITION OF ORGANISATIONAL PROCESS A process is a series of connected steps or actions with a beginning and an end that can be replicated. Organizations should be viewed as a set or hierarchy of processes that produce outputs of value to a customer, as well as a set of functions such as engineering, manufacturing, accounting, and marketing. Organizational processes can be defined as collections of tasks and activities that together — and only together — transform inputs into outputs. Within organizations, these inputs and outputs can be as varied as materials, information, and people. Common examples of processes include new product development, order fulfillment, and customer service ; less obvious but equally legitimate candidates are resource allocation and decision making.


4 The stages or steps in the process of organisation are explained below:- 1. Fixing the objectives of the organisation At the top level, administrative management first fixes the common objectives of organization. At the middle level, executive management fix the departmental objectives. Lastly, at the lower level, supervisory management fix the day-to-day objectives. All the objectives of the organization must be specific and realistic. 2. Finding activities must for achieving objectives After fixing the objectives, the top-level management prepares a list of different activities (or works) which are required to be carried out for achieving these objectives. This list is prepared at random without following any sequence or order. This is a very important step because it helps to avoid duplication, overlapping and wastage of efforts.

5 STEPS INVOLVED IN ORGANIZATIONAL PROCESSES 3. Grouping the similar activities All similar or related activities having a common purpose are grouped together to make departments. For e.g. all activities or works which are directly or indirectly connected with purchasing are grouped together to make the Purchase Department. So various departments such as Purchase, Production, Marketing, Finance, etc. are made. The grouping of similar activities leads to division of labour and specialization. 4. Defining responsibilities of each employee The responsibilities (duties) of each employee are clearly defined. This will result in the selection of a right person for the right post / job. He / she will know exactly what to do and what not to do. Therefore, it will result in efficiency.

6 STEPS INVOLVED IN ORGANIZATIONAL PROCESSES 5. Delegating authority to employees Each employee is delegated (surrender or given) authority. Without authority, the employees cannot carry out their responsibilities. Authority is the right to give orders and the power to get obedience. The authority given to an employee should be equal to the responsibility given to him. 6. Defining authority relationship When two or more persons work together for a common goal, it becomes necessary to clearly define the authority relationship between them. Each person should know who is his superior, from who he should take orders, and to whom he will be answerable. Similarly, each superior should know what authority he has over his subordinates.

7 STEPS INVOLVED IN ORGANIZATIONAL PROCESSES 7. Providing employees all required resources After defining the authority relationships, the employees are provided with all the material and financial resources, which are required for achieving the objectives of the organisation. So in this step, the employees actually start working for a common goal. 8. Coordinating efforts of all to achieve goals This is the last stage or step in the process of organization. Here, the efforts of all the individuals, groups, departments, etc. are brought together and co-coordinated towards the common objectives of the organization.

8 TYPES OF ORGANIZATIONAL PROCESSES It is also essential to distingish the processes that workflow systems are concerned with. In this module, three types of organizational processes are distingished: material, information and human. Material Processes - Organizations have traditionally produced products in the form of materials. This is the standard interpretation of work. Information Processes - More recently, in the last few decades, organizations have been concerned with identifying, studying and optimizing their information processes. Much work is now concerned only with information, although the information processes are often used to drive material processes. Human Processes - Recently, organizations have realized that it is not enough to use information technology to address their crucial concerns. This realization and the present breakdown in the productivity of knowledge-based workers has lead to an identification of a new type of process - the human process

9 I MPORTANCE OF ORGANIZATIONAL PROCESSES The importance of organizing becomes clear with the help of the following points: (1) Benefits of Specialization: Under organizing all the activities are subdivided into various works or jobs. For all the sub works, competent people are appointed who become experts by doing a particular job time and again. In this way, maximum work is accomplished in the minimum span of time and the organization gets the benefit of specialization. (2) Clarity in Working Relationship: Organizing clarifies the working relations among employees. It specifies who is to report to whom. Therefore, communication becomes effective. It also helps in fixing accountability. (3) Optimum Utilization of Resources: Under the process of organizing the entire work is divided into various small activities. There is a different employee performing every different job.

10 I MPORTANCE OF ORGANIZATIONAL PROCESSES By doing so, there is no possibility of any activity being left out or any possibility of unnecessary duplicating any job. Consequently, there is optimum utilization of all the available resources (e.g., material, machine, financial, human resource, etc.) in the organization. (4) Adaptation to Change: Organizing process makes the organization capable of adapting to any change connected with the post of the employees. This becomes possible only because of the fact that there is a clear scalar chain of authority for the manager’s right from the top to the lower level. (5) Effective Administration:. The process of organizing makes a clear mention of each and every activity of every manager and also of their extent of authority. It is also made clear as to whom a manager order for a particular job shall. Everybody also knows to whom they are accountable. Consequently, effective administration becomes possible

11 I MPORTANCE OF ORGANIZATIONAL PROCESSES (6) Development of Personnel: Under the process of organizing, delegation of authority is practiced. This is done not because of the limited capacity of any individual, but also to discover new techniques of work. It provides opportunities of taking decisions to the subordinates. By taking advantage of this situation, they try to find out the latest techniques and implement them. Consequently, it helps them to grow and develop. (7) Expansion and Growth: The process of organizing allows the employees the freedom to take decisions which helps them to grow. They are always ready to face new challenges. This situation can help in the development of the enterprise. This helps in increasing the earning capacity of the enterprise which in turn helps its development.

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