RATIONALS OF MANAGEMENT

Policies in an organization are most useful aids to decision-making. Once a policy or guide on various matters is laid down, this makes decision making on frequently occurring problems entirely routine. This means that delegating of such decisions can be carried down to very low management levels as the decisions have already been laid down by way of policy. A policy ensures that decisions will be consistent and fair, and in keeping with the objectives of the organization. A policy also allows decision to be made on similar problems without again going in to all the close details and analysis which were required initially to arrive at the policy. Policies are especially useful when an organization becomes large because the policies which are used in decision making ensure consistency throughout the organization. Policies regarding personnel matters should be made in consultations with those closest to the point of being affected by the decisions and with those in face to face contact with the employees.

Organizing is the process of identifying and grouping of activities required to attain the objectives, delegating authority, creating responsibility and establishing relationships for the people to work efficiently. As a process, organization refers to the process of determining, arranging, grouping and assigning the activities to be performed for the attainment of objectives. Thus, the organization is a mechanism or structure which helps the activities to be performed effectively. The organization is established for the purpose of achieving the business objectives. An organization structure should be designed to clarify who is to do what task and who is responsible for what results. The organization structure is designed both from mechanistic point of view. It is not only a mechanical structure of duties, activities and relationships, but also web of human interactions within social group with attitudes and aspirations. The success or failure of an organizing depends upon the principles to be followed in the organization.