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ORGANISATION & MANAGEMENT FUNDAMENTALS
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ORGANISATION(v)Establishment of formal reporting relationships : Another important step in theorganising process is the establishment of formal reporting relationships. This wouldhelp individuals to know what they should do, how they should do the work, towhom the matters must be referred and how particular jobs are related to each other,etc. Without establishing the formal reporting relationships, it becomes a hotchpotch because no one knows who has to handle the work. Only by establishing therelationship formally, people come to know who are their subordinates, who are theirsuperiors, who are their peers, etc. Similarly, each superior knows who are subordinatesto him, whom to delegate the authority, etc. (vi)Delegation of authority :

Authority is the right to act, to issue orders and extractobedience from others. Every manager shall be given sufficient authority withoutwhich he would not be able to perform the given tasks with confidence and showresults. Assignment of group activities to an individual should necessarily be followed by delegation of authority to the person-in-charge or head of the department. Fof instance, a finance manager shall be delegated authority to make payment to the dealerfrom whom the goods are procured, to pay the salaries to the staff etc. Withoutauthority being delegated to him, the finance manager will not be in a position todischarge his responsibility. 1.1.3. Organisation as a Structure

Organisation as a structure refers to the network of relationships among individuals andpositions in an organisation. According to William Newman “organisation structure describesthe organisation’s framework. Just as human beings have skeletons that define their parameters,organisations have structures that define theirs. It is like the architectural plan of a building” . Just as the architect takes into account various factors like cost, special features needed, etc.while designing a good structure, the manager also considers various factors like benefits of specialisation, communication problem in creating authority levels, etc., before designingorganisation structure.According to classicists like Fayol, Weber and Taylor, structure is essential for achievement of organisational goals. The concept of organisation as structure is also referred to as the static orclassical concept because it lays greater stress on the structure of relationships between the  positions

on one hand and the
 jobs
on the other.Organisation, from the point of view of structure, implies the following things :- .•Organisation is a purposive creation and the structure is a useful means of convertingthe disorganised resources of men, machines, money, materials intoproductive enterprise.•Structure, in general, takes the shape of pyramid. Though in social organisations thestructural aspect cannot be conceptually visualised, in business organisations thestructural aspects can be inferred from the actual operations and behaviour of theorganisation itself.

 
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ORGANISATION & MANAGEMENT FUNDAMENTALS
•The structural relationships in an organisation can be shown through organisationcharts.These charts depict the intended r...

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