Organisation: Meaning, Principles, Structures, Span of Control and Delegation

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Organising is the management function that divides work, groups jobs into units and sets up lines of authority. Questions on types of organisation structure, span of control, centralisation and delegation are common in Nayab Subba and Section Officer exams. This note explains each idea with simple examples from government offices.

1. Meaning of organisation

  • As a process, organising means dividing work, grouping activities, assigning duties and setting authority–responsibility relations.
  • As a structure, an organisation is a framework of positions and relationships set up to reach common goals.
  • Chester Barnard defined organisation as a system of consciously coordinated activities of two or more persons.

2. Formal and informal organisation

Formal organisationInformal organisation
Created deliberately by managementGrows naturally from social relations among staff
Based on rules, positions and hierarchyBased on friendship, interests and trust
Shown in the organisation chartNot shown on any chart
Official communicationGrapevine (unofficial) communication

3. Types of organisation structure

StructureMain features
Line (military / scalar)Authority flows directly from top to bottom; simple and clear; unity of command
Line and staffLine managers decide; staff experts (legal, accounts, planning) advise; most government offices
FunctionalExperts control specific functions across departments; proposed by F. W. Taylor; breaks unity of command
MatrixStaff report to both a functional head and a project head; used in big projects
CommitteeA group of people decides or advises together; e.g. procurement committee

4. Principles of organisation

  • Unity of objective: everyone works for common goals.
  • Division of work and specialisation.
  • Scalar principle (hierarchy): a clear chain of authority from top to bottom.
  • Unity of command: one boss for each employee.
  • Parity of authority and responsibility: authority should match responsibility.
  • Span of control: the number of subordinates a manager can supervise effectively. A narrow span creates a tall structure; a wide span creates a flat structure. V. A. Graicunas showed mathematically how relationships grow as subordinates increase.

5. Centralisation, decentralisation and delegation

TermMeaning
CentralisationDecision-making authority kept at the top
DecentralisationAuthority spread to lower levels and local units; Nepal’s federal system decentralises power to provinces and local levels
DelegationA superior gives authority to a subordinate to do a task
  • In delegation, authority can be delegated but responsibility (accountability) cannot; the superior remains answerable.
  • Elements of delegation: assignment of duty, grant of authority and creation of accountability.
  • Benefits: reduces the manager’s workload, speeds decisions, develops subordinates.
  • An organisation chart shows positions and lines of authority in picture form.

6. Objectives and bases of organisation (departmentation)

Objectives of organisation:

  • Achieve the goals of the office through planned division of work.
  • Make authority, responsibility and reporting lines clear.
  • Coordinate the work of different units.
  • Use people, money and time efficiently.
  • Allow growth and adjustment to change.

Bases of organisation (departmentation): Luther Gulick described four bases, known as the 4 Ps:

BasisMeaningExample in Nepal
———
Purpose (function)Units grouped by the main function they serveMinistry of Health and Population, Ministry of Education, Science and Technology
ProcessUnits grouped by the skill or technique usedDepartment of Printing, accounting or legal sections
Persons (clientele)Units grouped by the people they serveMinistry of Women, Children and Senior Citizens
Place (area)Units grouped by geographical areaDistrict Administration Offices, provincial and area offices

Other bases include time (shifts) and product. Large organisations often mix more than one basis.

📌 Key points to remember

  • Bases of organisation (Gulick’s 4 Ps): purpose, process, persons (clientele) and place (area).
  • Organising divides work, groups jobs and sets authority relations.
  • Formal organisation is deliberate; informal grows from social relations (grapevine).
  • Line structure: direct authority; line and staff: experts advise line managers.
  • Functional structure was proposed by Taylor and breaks unity of command.
  • Matrix structure: dual reporting to functional and project heads.
  • Span of control: narrow span means tall structure, wide span means flat structure (Graicunas).
  • Authority can be delegated; responsibility cannot.
  • Delegation: assign duty, grant authority, create accountability.
📝 Quiz

Test yourself: Organisation

50 questions check what you read about Meaning of organisation, Principles of organisation and Objectives and bases of organisation (departmentation). Each attempt picks 25 at random.

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