M.COM SEMESTER – IV (CBCS)

BUSINESS STUDIES (MANAGEMENT)

SUPPLY CHAIN MANAGEMENT LOGISTICS

Q.4 Explain the concept of organizing in
SCM in detail.

ANS:

Organizing includes developing a structure
for the people, positions, departments, and activities within the firm.
Managers can arrange the structural elements of the firm to maximize the flow
of information and the efficiency of work processes. They accomplish this by
doing the following:

● Dividing up tasks (division of labor)

● Grouping jobs and employees
(departmentalization)

● Assigning authority and responsibilities
(delegation)

A manager performs organizing function with
the help of following steps:

1. Identification of activities:

All the activities which have to be performed
in a concern have to be identified first. For example, preparation of accounts,
making sales, record keeping, quality control, inventory control, etc. All
these activities have to be grouped and classified into units.

2. Departmentally organizing the
activities:

In this step, the manager tries to combine
and group similar and related activities into units or departments. This
organization of dividing the whole concern into independent units and departments
is called departmentation.

3. Classifying the authority:

Once the departments are made, the manager
likes to classify the powers and its extent to the managers. This activity of
giving a rank in order to the managerial positions is called hierarchy. The top
management is into formulation of policies, the middle level management into
departmental supervision and lower level management into supervision of
foremen. The clarification of authority helps in bringing efficiency in the
running of a concern. This helps in achieving efficiency in the running of a
concern. This helps in avoiding wastage of time, money, effort, in avoidance of
duplication or overlapping of efforts and this helps in bringing smoothness in
a concern‘s working.

4. Coordination between authority and
responsibility:

Relationships are established among various
groups to enable smooth interaction toward the achievement of the
organizational goal. Each individual is made aware of his authority and he/she
knows whom they have to take orders from and to whom they are accountable and
to whom they have to report. A clear organizational structure is drawn and all
the employees are made aware of it.

5. Effective administration:

The organization structure is helpful in
defining the jobs positions. The roles to be performed by different managers
are clarified. Specialization is achieved through division of work. This all
leads to efficient and effective administration.

6. Growth and diversification:

A company‘s growth is totally dependent on
how efficiently and smoothly a concern works. Efficiency can be brought about
by clarifying the role positions to the managers, coordination between
authority and responsibility and concentrating on specialization. In addition
to this, a company can diversify if its potential grows. This is possible only
when the organization structure is well- defined. This is possible through a
set of formal structures.

7. Sense of security:

Organizational structure clarifies the job
positions. The roles assigned to every manager are clear. Coordination is
possible. Therefore, clarity of powers helps automatically in increasing mental
satisfaction and thereby a sense of security in a concern. This is very
important for job- satisfaction.

8. Scope for new changes:

Where the roles and activities to be
performed are clear and every person gets independence in his working, this
provides enough space to a manager to develop his talents and flourish his
knowledge. A manager gets ready for taking independent decisions which can be a
road or path to adoption of new techniques of production. This scope for
bringing new changes into the running of an enterprise is possible only through
a set of organizational structure.

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