This document discusses the concepts of organization and management. It defines organization as the structural framework that establishes duties, responsibilities, and authority relationships to coordinate business activities and achieve goals. Management combines business functions and works through the organizational structure to accomplish predetermined objectives. An effective organization clearly defines lines of authority, delegates responsibilities, keeps levels of management minimal, applies specialization, and maintains a reasonable span of control to facilitate coordination and goal achievement. The key benefits of organization include attaining objectives efficiently, resolving conflicts, enabling growth, streamlining communication, optimizing resource use, and reducing workload.
4. Meaning:
An entrepreneur organizes various factors of production
like land, labour, capital, machinery, etc. for channelizing
them into productive activities. The product finally reaches
consumers through various agencies. Business activities are
divided into various functions, these functions are assigned
to different individuals.
Various individual efforts must lead to the achievement of
common business goals. Organization is the structural
framework of duties and responsibilities required of
personnel in performing various functions with a view to
achieve business goals through organization. Management
tries to combine various business activities to accomplish
predetermined goals.
5. 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.
Koontz and O’Donnell,
6.
7. 1. The Lines of Authority should be Clearly Stated and should Run
from Top to Bottom of the Organization.
2. Each Person in the Organization should Report to Only One Boss
3. The Responsibility and Authority of each Supervisor should be
Established Clearly and in Writing
4. The Higher Managers are Responsible for the Acts of their
Subordinates
5.The Authority and Responsibility should be Delegated as far
Down the Hierarchical Line as Objectively Possible
8. 6. The Number of Levels of Authority should be as Few as
Possible
7. The Principle of Specialization should be Applied wherever
Possible
8. The Span of Control should be Reasonable and
9. Well Established
10. The Organization should be Simple and Flexible:
9. Importance / Benefits of Organization
Attainment of Objectives
Minimise Conflicts
Effective Administration
10. Elimination of overlapping and duplication
Facilitates growth and diversification
It decreases likelihood or run-around
