WHAT IS AN ORGANIZATION?

•         Social unit of people, systematically arranged and managed to meet a need or to pursue collective goals on a continuing basis. All organizations have a management structure that determines relationships between functions and positions, and subdivides and delegates roles, responsibilities, and authority to carry out defined tasks. Organizations are open systems in that they affect and are affected by the environment beyond their boundaries.

•         Organization

–        Deliberate arrangement of people to accomplish some specific purpose

–        Characteristics of an organization

•         distinct purpose

•         deliberate structure

•         people

–        Today’s organizations have adopted:

•         flexible work arrangements

•         open communications

•         greater responsiveness to changes

•         DEFINITIONS OF ORGANIZING

 “It is the grouping of activities necessary to attain the goals of the enterprise and the assignment of each grouping to a manager without authority necessary to supervise it”.

•          “Organisation refers to the relationship between the various factors present in a given endeavor”.

•          “Organisation is the process of defining and growing the activities of the enterprise and establishing the authority relationship among them”.

•          Organizing - the process of creating an organization’s structure

Organizational structure - the formal framework by which job tasks are divided, grouped, and coordinated

Organizational design - process of developing or changing an organization’s structure

THE FUNCTIONS OR PROCESS OF AN ORGANISATION:

1. Determining the activities to be performed.

2. Assignment of responsibility to personnel: Assigning the responsibility of carrying out the decision to certain employees.

Authority as a continuation of official and personal factor. Official authority is derived from the manager’s position and personal authority is derived from personal quality such as intelligence, experience, moral worth, past services etc.

Responsibility arises out of assignment of activity. In order to discharge the responsibility properly, there should be parity of authority and responsibility.

3. Delegation of authority: Process of getting things done through the efforts of other people. The modern age is an era of giant business corporations organized on a large scale. Therefore no individuals, how so ever talented or experience, can cope with all the affairs of the business enterprise and show masterly skill in all the branches of the undertakings. Delegation is the ability to get results through others.

4. Selecting right man for right jobs.

5. Providing right environment.

THE PRINCIPLES OR KEY ELEMENTS IN ORGANISATION PROCESS:

1. Departmentation:

Grouping of activities on the basis of similarity, into separate units.

2. Delegation:

Functions, assignment of duties and responsibilities, perform the assigned duties and responsibilities, accountability, a subordinate, to whom the duty has been assigned.

3. Centralization:

Is the systematic and consistent reservation of authority at central points in the organisation. Power at the central i.e., top management departmentation is opposite of centralization.

4. Decentralization:

“Is simply a matter of dividing up the managerial work, and assigning specific duties to various executive skills”. It refers to the pushing down of authority and power of decision making to the lower levels of the organisation.

5. Accountability:

When a subordinate is assigned some duties to be performed, he will be accountable to his superior for doing or not doing that work. A subordinate is made to answer for his success or failure in accomplishing his responsibility and exercising his authority.

NATURE OR CHARACTERISTICS OF AN ORGANISATION:

Division of work:

Every group of persona join together for common purpose has to divide his total efforts into different functions.

Co-ordination:

In an organisation, different persons are assigned different functions, and get all these functions have only one aim accomplishment of the objectives for that we require co-ordination.

Objectives:

Well-defined objectives should be there. Indicates the result that an organisation expects to achieve in the long run. Objectives or goals represent the end towards which all the managerial functions are directed. Objectives direct the individual efforts and activities of an organisation.

Authority – responsibility structure:

An organisation means an arrangement of positions into a graded series. The positions are so ranked that each of them is subordinate to the one above it and safer or to the one below it.

Communication:

Every organisation has its own channels and methods of communication. Effective communication is must for success.

THE IMPORTANCE OR PURPOSE OF ORGANIZING :

1. Facilitates administration.

2. Facilities growth and diversification.

3. Answer an optimum use of human resources.

4. Adoption of new technology.

5. Helps in giving importance to various activities.

6. Encourage creativity and initiative.

7. Facilitates training and development of personnel.

Classical and modern views of organizing

•         Mechanistic Organization

–        Rigidly and tightly controlled structure

–        Tries to minimize the impact of differing human traits

–        Most large organizations have some mechanistic characteristics

•         Organic Organization

–        Highly adaptive and flexible structure

–        Permits organization to change when the need arises

–        Employees are highly trained and empowered to handle diverse job activities

–        Minimal formal rules and little direct supervision

 

Mechanistic Vs Organic

Mechanistic	Organic
•         High Specialization •          Rigid Departmentalization •          Clear Chain of Command •          Narrow Spans of Control •          Centralization •          High Formalization	•         Cross-Hierarchical Teams •          Free Flow of Information •          Wide Spans of Control •          Decentralization •          Low Formalization