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LESSON 1-INTRODUCTION TO ORGANIZATIONS.pptx
- 1. INTRODUCTION TO ORGANIZATIONS DR.THERESIA MUTETEI
- 2. An organization, or organisation (Commonwealth English; see spelling differences), is an entity – such as a company, an institution, or an association – comprising one or more people and having a particular purpose. Organization (British English: Organisation) is the idea of putting things together in a logical order. The verb is "to organize". An organization is a group of people who work together. Organizations exist because people working together can achieve more than a person working alone.
- 3. Some definitions Louis Allen, “Organization is the process of identifying and grouping work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.” In the words of Allen, organization is an instrument for achieving organizational goals. The work of each and every person is defined and authority and responsibility is fixed for accomplishing the same.
- 4. Wheeler, “Internal organization is the structural framework of duties and responsibilities required of personnel in performing various functions within the company………… It is essentially a blue print for action resulting in a mechanism for carrying out function to achieve the goals set up by company management”. In Wheeler’s view, organization is a process of fixing duties and responsibilities of persons in an enterprise so that business goals are achieved. Koontz and O’Donnell, ‘The establishment of authority relationships with provision for co-ordination between them, both vertically and horizontally in the enterprise structure.” These authors view organization as a coordinating point among various persons in the business.
- 5. Concepts of Organization: There are two concepts of organization: 1. Static concept-Under static concept the term ‘organization’ is used as a structure, an entity or a network of specified relationship. In this sense, organization is a group of people bound together in a formal relationship to achieve common objectives. It lays emphasis on position and not on individuals. .
- 6. 2. Dynamic concept-Under dynamic concept, the term ‘organization’ is used as a process of an on-going activity. In this sense, organisation is a process of organizing work, people and the systems. It is concerned with the process of determining activities which may be necessary for achieving an objective and arranging them in suitable groups so as to be assigned to individuals. It considers organisation as an open adoptive system and not as a closed system. Dynamic concept lays emphasis on individuals and considers organisation as a continuous process
- 7. Characteristics of Organizations: Different authors look at the word ‘organisation’ from their own angle. One thing which is common in all the viewpoints is that organisation is the establishment of authority relationship among persons so that it helps in the achievement of organizational objectives. 1. Division of Work: Organisation deals with the whole task of business. The total work of the enterprise is divided into activities and functions. Various activities are assigned to different persons for their efficient accomplishment. This brings in division of labour. It is not that one person cannot carry out many functions but specialization in different activities is necessary to improve one’s efficiency. Organisation helps in dividing the work into related activities so that they are assigned to different individuals.
- 8. 2. Co-Ordination: Co-ordination of various activities is as essential as their division. It helps in integrating and harmonizing various activities. Co-ordination also avoids duplications and delays. In fact, various functions in an organisation depend upon one another and the performance of one influences the other. Unless all of them are properly coordinated, the performance of all segments is adversely affected.
- 9. 3. Common Objectives: All organizational structure is a means towards the achievement of enterprise goals. The goals of various segments lead to the achievement of major business goals. The organizational structure should build around common and clear cut objectives. This will help in their proper accomplishment.
- 10. 4. Co-operative Relationship: An organisation creates co-operative relationship among various members of the group. An organisation cannot be constituted by one person. It requires at least two or more persons. Organisation is a system which helps in creating meaningful relationship among persons. The relationship should be both vertical and horizontal among members of various departments. The structure should be designed that it motivates people to perform their part of work together.
- 11. 5. Well-Defined Authority-Responsibility Relationships: An organisation consists of various positions arranged in a hierarchy with well defined authority and responsibility. There is always a central authority from which a chain of authority relationship stretches throughout the organisation. The hierarchy of positions defines the lines of communication and pattern of relationships.
- 12. Scope of Organisation Organisation, as an element of management, is concerned with the following aspects, called as scope of organisation: 1. Identifying and grouping of activities to attain corporate objectives and goals. 2. Assigning these activities to appropriate divisions, departments, sections and individuals. 3. Providing authority, delegation, co-ordination and communication 4.Providing facilities and equipment, i.e. physical factors of good work environment. There are four basic elements of all forms of living organizations around which any organisation centers – (i) The work (ii) The People, (iii) The authority, responsibility and (iv) The relationships.
- 13. Clear-cut division of work defines and prescribes each part of the work to be handled by each person, giving allocation of duties and responsibilities and defining authority or power at each position in the organisation chart. Co-ordination and integration ensure elimination of duplication of work and unity of action.
- 14. A good organisation has to fulfill four special functions: 1. It must enable the management to maximize the outputs through provision of an efficient man-machine system. 2. It must ensure smooth and effective net-work of communication and information. 3. It must offer interesting and meaningful jobs to all individuals working in the organisation. This alone will ensure job satisfaction. Organisation is developed for people. It must, therefore, be humanistic also and not merely mechanistic. Both the approaches can be reconciled. 4. It must create, maintain and develop its own image or individuality. This ensures customer goodwill. Investors will also have confidence in the enterprise. Employees can develop a sense of belonging to the organisation.
- 15. Organizational structure Organisation structure specifies division of work and shows how different functions or activities are linked; to some extent it also shows the level of specialization of work activities. It also indicates the organization’s hierarchy and authority structure and shows its reporting relationships. — Robert H. Miles Organizing as a structure is a network of relationships (authority- responsibility structure) amongst all those who are part of the organisation, working at different levels in different departments. Organisation defines relationships amongst jobs and people working at the jobs at various levels. It emphasizes more on positions than people
- 16. Traditional organizational structures come in four general types – functional, divisional, matrix and flat – but with the rise of the digital marketplace, decentralized, team-based org structures are disrupting old business models. Before you establish an innovative way to manage your enterprise, take some time to understand the old mold – then blaze a trail.
- 17. Functional Organization Structure Under a functional organization structure, people who do similar tasks are grouped together based on specialty. So all the accountants are placed in the finance department and so on for the marketing, operations, senior management and human resources departments. The advantages of this kind of structure include quick decision making, because the group members can easily communicate. They can also learn from each other, since they already possess similar skill sets and interests.
- 18. Divisional Structure Based on Products In a divisional structure, your company groups workers into teams based on the products or projects that meet the needs of a certain type of customer. For example, a bakery with a catering operation might structure the workforce based on key clientele, such as a wedding department and a wholesale-retail department. The division of labor in this kind of structure ensures workers making similar products can achieve greater efficiency and higher output
- 19. Matrix Structure Combines Functional and Divisional Models A matrix structure combines elements of the functional and divisional models, so it’s more complex. It groups people into functional departments of specialization, then further separates them into divisional projects and products. In a matrix structure the team members are given more autonomy and expected to take on more responsibility for their work.
- 20. This increases the productivity of the team, fosters greater innovation and creativity, and allows managers to cooperatively solve decision-making problems through group interaction. This type of organizational structure takes lots of planning and effort, making it appropriate for large companies that have the resources to devote to managing a complex business framework.
- 21. Flat Organizational Structure A flat organizational structure attempts to disrupt the traditional top-down management system of most companies. Management is decentralized so there is no everyday “boss.” Each employee is the boss of themselves, eliminating bureaucracy and red tape and improving direct communication. For example, an employee who has an idea doesn’t have to wade through three levels of upper managers to get the idea to the key person making the decision. The employee simply communicates directly with the target on a peer-based level. A company adopting this type of structure for everyday purposes typically establishes a special top-down management system for temporary projects or events.
- 24. Matrix structure
- 25. Flat structure