A group of individuals cooperating willingly and effectively for a common goal
Organizations are structured to promote better management
However, it is the people that fill the position that determines the success of the enterprise and not the organization itself.
The formal arrangement of individuals that are established to coordinate all activities in order to implement a given strategy.
Simple Organizational Structure
Structural Elements of an Organization ( 5 M's) Men - the different members of the organization Materials – represents the materials necessary in the distribution of functions or in the attainment of its objectives Machine – the tools necessary in producing its desired output Methods – the procedures and ways used in the course of its actions Money – the financial resources of the organization.
Principles of A Good Organization
1. OBJECTIVE 2. ANALYSIS 3. SIMPLICITY 4. FUNCTIONALISM 5. DEPARTMENTALIZATION 6. CENTRALIZATION OF AUTHORITY and RESPONSIBILITY 7. LIMITED SPAN OF CONTROL
OBJECTIVE – a clear and complete definition of the objective must be known... Any business concern or individual must adhere to a definite purpose or aim.
Ex. to build a house in 45 days.....
ANALYSIS – A sound business judgement attempts to build an organization through full knowledge of the requirements.
SIMPLICITY - the simplest organization that will serve to attain the desired objective is considered the best.
Principle no. 4
FUNCTIONALISM - the organization should be built around the main functions of the business and not around the individuals.
A function is a normal or characteristic way of doing a task that stands out distinctively by itself.
Principle No. 5 Departmentalization -
Principle No. 6 Centralization of Authority and Responsibility -