The document discusses organizational structure and behavior. It describes four principles that determine organizational structure: hierarchy of authority, specialization, standardization, and centralization. It then discusses factors that influence organizational behavior such as organizational culture, power, change, learning, motivation, and attitudes. Finally, it contrasts autocratic and supportive management styles and their impact on information flow within an organization.

1. Presented By
Manshi Makati
Taught By
Asha Madam

2. Introduction
 In MIS an organization refers to a business organization.
 MIS structures and processes can be used in Business
organization as well as Non –Business organizations.
 An organization is any functional group with defined
objectives & regular activity.
Eg: A company, Hospital, NGO (Non Governmental
Organization) Club etc
 The people are arranged in hierarchical structures, with a flow of
information so that the organization functions as a stable unit.

3. Organization structure refers to the way in which the people, processes,
equipment & functions are arranged to fulfill the objectives of the
organization & also to provide stability to the organization and are designed
to make the flow of work authority and responsibility easy and clear.
This are four principles determine the structure of the organization:
1. Hierarchy of authority
2. Specialization
3. Standardization
4. Centralization

4. 1. Hierarchy of Authority:
Hierarchy of authority is a pyramid
 A person’s place in pyramid (level of authority) is determined by the number
of resources controlled, the risks allocated to that person and degree of
freedom to make decisions.
 A layer of persons is assigned by span of control and most effective control is
between four to seven persons.
2. Specialization:
 Specialization refers to the arrangement of similar & associated tasks
under one head.
Eg: Manufacturing specialization refers to manufacturing product.
Marketing specialization refers to all activities to market product.
 This principle of specialization is useful to help an organization choose
the right people for right job, to plan, direct & control various functions
in organization.

5. 3. Standardization:
 Standardization means people work on the basis of set rules,
procedures, systems, guidelines & policies.
 Standardization avoids duplication of work, leading to fewer
number of people employed & thus a leaner, more profitable
organization.
4. Centralization:
 When most decisions are made at one point in the organization, it is
referred to as Centralization.
 Centralization enables decision making to be Coherent & thus helps
to keep the organization focused on its goals.

6. Chief
Executive
Manager Manager
Commercial Technical
Executive Executive Executive
Marketing Finance Production

7. Organizations may be broadly classified as Business Organizations
and Non – Organizations.
I. Manufacturing Organizations: These business organization
are involved in the manufacture of product. MIS needs in such
an organization are typically for information on state of
production, level of inputs, quality of raw materials & finished
products, etc
II. Service Organizations: These are involved in providing a
service to customers. These include
Hotels, Restaurants, Telephone Services etc. Modern service
organizations are also highly dependent on technology, such as
ATMs in Banking , Wireless Technology etc. MIS needs in such
an organization are both technical as well human in nature.

8. Additional organization may also term as Organization Structure:
 Functional Organization: It is one where most of the functions are equal
importance. An information is not shared in a cross functional manner,
but is collected at the chief executive level and then sent down to other
functional areas.
 A Project Organization: It is one where the business activity is one – time
in nature & non – repetitive.
Eg: Building industry, where each set of residential/ commercial building
is treated as a project. In such an organization, business activity is one – time
in nature & has an effect on subsequent business activities.
 A Matrix Organization: It refers to an organization where information
flow is vertical as well as horizontal.

9. In this section we shall deal with decision making process
pertaining to an organization.
They are organized into functional units, and then report to a
controlling unit (manager) which may have different goals
altogether.
Thus, the organization becomes a hierarchy of goals, many of
which may be in conflict with each other.
Decision making is usually about the resolution of conflict.

10. Some methods of conflicts resolution are:
1) Allow local rationality in setting of goals: Where functional
interdependence is at a minimum, goals of individual functional units do
not greatly affect the corporate goals.
E.g.: Security Department, Legal Department, etc
2) Decision Making Rules & Systems: Functional units are given a set of
rules & systems within which they are permitted to set their goals.
Certain goals may be set by top management, while the unit may have
autonomy in framing other goals.
E.g.: Production, Sales & Materials functions are interdependent and may
need to given rules and procedures for goal setting.
3) Sequential Achievement Goals: Functional units may be permitted to
achieve their goals in sequential manner. This may involve having to
ignore conflicting goals within a certain limit.

11. The term Information Flow implies that information is not static, it
must flow between points in an organization.
The flow of information is dependent on the structure of the
organization.
Information flows upwards in all organization, but whether it also
flows horizontally / vertically / top /down depends on the way the
organization is structured.
The program or process may be shared with each other teams with
Intention of making the overall business unit more successful.

12. ORGAINZATIONAL BEHAVIOR
Organizational Behavior refers to the behavior of the organization as
a whole as well as of individual units within the organization.
An organization is composed of individuals with different goals &
their functional areas.
Organizational Behavior is the outcome of the following factors:
• Organizational Culture
• Organizational Power
• Organizational Change
• Organizational Learning
• Organizational Motivation
• Attitude

13. Organizational Behavior is the outcome of the
following factors:
A. Organizational Culture: It a collective behavior of people in an
organization, based on set of attitude, beliefs, norms, values and
understanding. Organizational culture affects the norms of quality &
acceptable behavior within the organization, when standard of quality are
high and are adhered within the organization, it said to have a quality
culture.
B. Organizational Power: It refers to the organizations ability to utilize
human, material and technological resources to achieve the stated goals of
the organization.
On an individual level, there are two kinds of power in an organizational
context.
 Positional Power which arises as a result of the position a person occupies
in an organization.
 Personal Power which comes about as a result of the personality of the
individual.

14. C. Organization Learning: Over a period of time, individuals in an
organization gather experiences which enable them to anticipate
and react to changes in the environment. This learning & behavior
modification affects the structure of the organization, leading to
greater degree of formalization.
D. Organizational Motivation: It refers to the process of getting
people to perform to their maximum extent in order to achieve
organizational goals. Monetary rewards, citation awards, job
security, etc are some of methods of motivating people.
 Leadership style also affects the motivation of the people within an
organization; such leadership style creates an atmosphere of
openness & trust to achieve more.
 Job Environment is another factor that affects organizational
motivation, if a person is allowed to “own” a particular process, he
tends to take greater pride in his work and thus performs better.

15. E. Attitude: Attitude can be said to be the organizational Culture
& Motivation in the organization. The level of motivation in the
organization affects the attitude of the people within the
organization. Every action taken by management will have seen to
be a means to exploit the workforce and the people within the
organizational will not be willing to give their best in terms of
performance.
This element that most affects motivation & ultimately productivity.

16. A Note on Management Style
It would be wise to study these two styles in greater detail with a view
to ultimately instituting a workable MIS in the organization, which
would fit in with the particular style within the organization.
 Autocratic: In such style, the leader / manager determines policy &
directs the activity required to carry it out. He rarely gives reason for
orders and commands are enforced by the leader’s ability to reward or
punish. Information flow in an organization can be upward with very little
information flowing downward. Autocratic style usually seen in traditional,
family run businesses.
 Supportive: In such style, the leader / manager solicits suggestions from
others & invites participation in decision making. They are aware of the
impact of decisions on subordinates & generally consult them for inputs on
such decision. Information flow in organizations in an organization is
usually top down as well as bottom up. Supportive have greater
information flow between functional areas, leading to horizontal
information flow as well. In such organization subordinates are encouraged
to use initiative.