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TOPIC - CONCEPT AND
THEORIES OF ORGANIZATION
BEHAVIOUR:
PRESENTESD BY-
OM VERMA
ASSISTANT PROFESSOR
RELIANCE INSTITUTE OF
NURSING
CONCEPT AND THEORIES OF
ORGANIZATION BEHAVIOUR:
INTRODUCTION:
Organization is inescapable part of our life . “ we are
born in organization , educated by organization and
most of us spend much of our lives working for
organization . The company that employs us ; the
institution that impart education to many of us ; the
super bazars that supply groceries to us ;the post office
that handle our mail , the police agencies and the govt.
that gave us cradle – to –grave security are all
organization
Organisation are large ,small ,formal ,informal ,religious
,economic ,educational social or political-affect as
enormously .
DEFINITION:
Organization is defined as the setup where people work
together as a team to attain common organization goals.
ACCORDING TO PIFFNER :- Organization consist of the
relationship of individual to individual &group to group & which
are related as to bring about an orderly division of labour.
An organization is made to run an institution nothing can be
accomplish in a proper way without an organization .
NATURE OF ORGANIZATION:
NATURE OF ORGANIZATION
ORGANIZATION SHOULD HAVE 4P:-
P :- Purpose
P :- Process
P :- Person
P :- Place
Function means majour purpose to be
achived e.g.health,defence,education etc
Process is a technique or primary skill more or
less of specilized kind provide service to
public e.g.medical,nursing etc. body of person
served e.g. target group,area etc. Place i,e
teritorial justice consist of people to be served
e.g PHC,Hospital.
PRINCIPLES OF ORGANIGATION:
(1) HIERARCHY:
Hierarchy means the rule or control of higher to
lower . Hierarchy consist in the universal
application of superior subordinate relationship
through a number of level of responsibility reach
from the top to the bottom of structure.
(2) AUTHORITY & RESPONSIBILITY:
(Authority is the right or power to give order to the
subordinate. It is the right of a person to command
other person to do things and generally to get the
work done by them. Responsibility means the duty
which the subordinate is expected to perform by
virtue of his position in the organization.
(3) DIVISION OF LABOUR:
It refers to the division of work among various
individuals in the organization to bring about
specialization in every ativity .
(4) DISCIPLINE:
Discipline means getting obedience to rules and
regulation of organization. According Fayol
discipline is obedience to agreements reach
between parties in the organization good discipline
is the result in effective leadership and clear
understanding between management .
(5) UNITY OF COMMAND:
One sub ordinate should receive orders from one
superior only. If he receive order from more than
one superior he will not be able to carry out order
in proper manner. Fayol observed that if this
discipline violated the order will be disturbed.
(6) UNITY OF DIRECTION:
Fayol expressed this principle to mean one head
and one plan for a group of activities having the
same objectives. The principle of unity of direction
is useful for designing and functioning if the
organization structure that is creating departments
and sub departments
(7) CO-ORDINATION:
Coordination affects the people, groups
organizational units and all activities with in every
enterprise. Lack of coordination causes waste of
time effort and money.
(8) CENTRALIZATION V/S DECENTRALIZATION:
It means concentration of authority at one place or
at one level in the organization. On the other hand,
decentralization referral to the disperal of authority
to the levels in the organization. In small
organization managers orders go directly to
subordinates there is absolute centralization. Thus
centralization authority is always present to a
greater or less extent in every organization.
(9) INTEGRATION & DISINTEGRATION:
Administrative branch should be fully integrated.
According to integration principle, several
administrative unit combine together to make a
single whole organization. The disintegrated
administration, constitution vests in individual
departments right and authority to act freely..
IMPORTANCE OF ORGANIZATION :
1. Prevents overlapping of activities .
2. Increase managerial efficiency.
3.Ensure optimum use of human efforts.
4.Ensure balances between various activities .
5.Facilitate co-ordination.
6.Motivate creative and innovative ideas.
7. Prevents the growth of corrupters.
8. Prevents overlapping of activities
CONCEPT OF ORGANISATION
1.Organisation as a structure
2,Organisation as a process
3.Organisation as a group
(1)Organisation as a structure-:
Organisation structure describe the organisation
framework just as human being has skeleton it is like an
artichitectural plan of a building.
While designing good structure the manager too must
look into factor like; benefits of specialization,
communication problem and problem in creating
authority level and structure is essential for achieving
organisational goal.
MANAGER-----
1. Determine the work activities
2.Write job descriptions
3.Organizes people
4.Assigns them to superiors
(2)Organisation as a process--:
Process---
1. Differentiation of activities.
2.Integration of activities
3.Differentiation is the segmentation of
organisational system into subtype.
4.Integration is a process of achieving unity of
effort among the various sub system while
achieving goal.
(3)Organisation as a group---:
Organisation ---: Co-ordinate activities of two or
more person.
THEORIES OF ORGANISATION
(1)Scientific management of
physiological organisation theory.
(2)Classical theory of organisation.
(3)Neo-classical organisation theory.
(4)Modern organisation theory.
1.SCIENTIFIC MANAGEMENT OF
PHYSIOLOGICAL ORGANISATION
THEORY---:
This concept was first used by LOUIS
BRANDIS.
This theory pointed out that management is
a true science resting upon fixed laws, rules
and principle.
ASSUMPTION RELATED TO SCIENTIFIC
MANAGEMENT-:
 The incentive of high wages (sallery) will
promote the mutulity of interest between workers
and managers which in its turn will lead to higher
productivity.
(2)CLASSICAL THEORY OF
ORGANISATION --:
This theory was formed around four pillars. (
1)Division of work-: If the worker perform same work repeatetly
their efficiency will improve and they will be benificial for
organisation.
( 2) Scaler and functional processes- : There was growth in
chain of command,deligation of authority and unity of
command.
It provide a grading system of duty. Functional process deal
with division of organisation is specialized unit.
( 3)Structure -: It is a framework of formal relationship in the
organisation among various task activity and people.
( 4) Span of control- : It means number of subordinates a
superior can control at one time.
(3)NEO-CLASSICAL
ORGANISATIONAL
THEORY--:
 It focus on human beings in
organisation.
 Here two point were emphasized
i,e the organisation situation should
be viewed in social,economical and
tecniqual term
 The other point emhasized on
importance of formal and informal
form of organisation.
 This theories are having pillars
on which this theory was laid------:
(1) Division of work.
(2) Departmentation : - E.g school having
different department like education , nutrition,
auditorial etc.
(3)Coordination ---: E.g coordination between
student and teacher, higher level organisation to middle
level organisation.
(4)Human behaviour :-
E.g. adjustment with situation :- The neo-classical
theory provide flat structure which facilitate
communication between the superior and subordinates
and better then all structure of classical theory.
(4)MODERN ORGATION THEORY--:
The modern theory emphasis on the conceptual and
analytical base (cocept and end result). Two
approaches-: System approach. Contingency approach.
(1)System approach-: It study organisation in its totality
(total study) System can be well understood by
understanding various sub system with in it.
Each system can be identified by certain processes ,
roles, structure and norms of conduct. (2) Contingency
approach-: It suggest an organisational designe which
suits a perticular unit. This approach suggest the
needs,requirement,situation of perticular concern should
be considered while desigining an organisational
structure.
Internal and external factor influnce an organisation.
Environment. Technology. Size of operation. People.
Concept and theories of organization

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Concept and theories of organization

  • 1. TOPIC - CONCEPT AND THEORIES OF ORGANIZATION BEHAVIOUR: PRESENTESD BY- OM VERMA ASSISTANT PROFESSOR RELIANCE INSTITUTE OF NURSING
  • 2. CONCEPT AND THEORIES OF ORGANIZATION BEHAVIOUR: INTRODUCTION: Organization is inescapable part of our life . “ we are born in organization , educated by organization and most of us spend much of our lives working for organization . The company that employs us ; the institution that impart education to many of us ; the super bazars that supply groceries to us ;the post office that handle our mail , the police agencies and the govt. that gave us cradle – to –grave security are all organization Organisation are large ,small ,formal ,informal ,religious ,economic ,educational social or political-affect as enormously . DEFINITION: Organization is defined as the setup where people work together as a team to attain common organization goals. ACCORDING TO PIFFNER :- Organization consist of the relationship of individual to individual &group to group & which are related as to bring about an orderly division of labour.
  • 3. An organization is made to run an institution nothing can be accomplish in a proper way without an organization . NATURE OF ORGANIZATION: NATURE OF ORGANIZATION ORGANIZATION SHOULD HAVE 4P:- P :- Purpose P :- Process P :- Person P :- Place Function means majour purpose to be achived e.g.health,defence,education etc Process is a technique or primary skill more or less of specilized kind provide service to public e.g.medical,nursing etc. body of person served e.g. target group,area etc. Place i,e teritorial justice consist of people to be served e.g PHC,Hospital.
  • 4. PRINCIPLES OF ORGANIGATION: (1) HIERARCHY: Hierarchy means the rule or control of higher to lower . Hierarchy consist in the universal application of superior subordinate relationship through a number of level of responsibility reach from the top to the bottom of structure. (2) AUTHORITY & RESPONSIBILITY: (Authority is the right or power to give order to the subordinate. It is the right of a person to command other person to do things and generally to get the work done by them. Responsibility means the duty which the subordinate is expected to perform by virtue of his position in the organization. (3) DIVISION OF LABOUR: It refers to the division of work among various individuals in the organization to bring about specialization in every ativity . (4) DISCIPLINE: Discipline means getting obedience to rules and regulation of organization. According Fayol discipline is obedience to agreements reach between parties in the organization good discipline
  • 5. is the result in effective leadership and clear understanding between management . (5) UNITY OF COMMAND: One sub ordinate should receive orders from one superior only. If he receive order from more than one superior he will not be able to carry out order in proper manner. Fayol observed that if this discipline violated the order will be disturbed. (6) UNITY OF DIRECTION: Fayol expressed this principle to mean one head and one plan for a group of activities having the same objectives. The principle of unity of direction is useful for designing and functioning if the organization structure that is creating departments and sub departments (7) CO-ORDINATION: Coordination affects the people, groups organizational units and all activities with in every enterprise. Lack of coordination causes waste of time effort and money.
  • 6. (8) CENTRALIZATION V/S DECENTRALIZATION: It means concentration of authority at one place or at one level in the organization. On the other hand, decentralization referral to the disperal of authority to the levels in the organization. In small organization managers orders go directly to subordinates there is absolute centralization. Thus centralization authority is always present to a greater or less extent in every organization. (9) INTEGRATION & DISINTEGRATION: Administrative branch should be fully integrated. According to integration principle, several administrative unit combine together to make a single whole organization. The disintegrated administration, constitution vests in individual departments right and authority to act freely.. IMPORTANCE OF ORGANIZATION : 1. Prevents overlapping of activities . 2. Increase managerial efficiency. 3.Ensure optimum use of human efforts. 4.Ensure balances between various activities . 5.Facilitate co-ordination. 6.Motivate creative and innovative ideas. 7. Prevents the growth of corrupters. 8. Prevents overlapping of activities
  • 7. CONCEPT OF ORGANISATION 1.Organisation as a structure 2,Organisation as a process 3.Organisation as a group (1)Organisation as a structure-: Organisation structure describe the organisation framework just as human being has skeleton it is like an artichitectural plan of a building. While designing good structure the manager too must look into factor like; benefits of specialization, communication problem and problem in creating authority level and structure is essential for achieving organisational goal. MANAGER----- 1. Determine the work activities 2.Write job descriptions 3.Organizes people 4.Assigns them to superiors
  • 8. (2)Organisation as a process--: Process--- 1. Differentiation of activities. 2.Integration of activities 3.Differentiation is the segmentation of organisational system into subtype. 4.Integration is a process of achieving unity of effort among the various sub system while achieving goal. (3)Organisation as a group---: Organisation ---: Co-ordinate activities of two or more person.
  • 9. THEORIES OF ORGANISATION (1)Scientific management of physiological organisation theory. (2)Classical theory of organisation. (3)Neo-classical organisation theory. (4)Modern organisation theory. 1.SCIENTIFIC MANAGEMENT OF PHYSIOLOGICAL ORGANISATION THEORY---: This concept was first used by LOUIS BRANDIS. This theory pointed out that management is a true science resting upon fixed laws, rules and principle. ASSUMPTION RELATED TO SCIENTIFIC MANAGEMENT-:  The incentive of high wages (sallery) will promote the mutulity of interest between workers and managers which in its turn will lead to higher productivity.
  • 10. (2)CLASSICAL THEORY OF ORGANISATION --: This theory was formed around four pillars. ( 1)Division of work-: If the worker perform same work repeatetly their efficiency will improve and they will be benificial for organisation. ( 2) Scaler and functional processes- : There was growth in chain of command,deligation of authority and unity of command. It provide a grading system of duty. Functional process deal with division of organisation is specialized unit. ( 3)Structure -: It is a framework of formal relationship in the organisation among various task activity and people. ( 4) Span of control- : It means number of subordinates a superior can control at one time. (3)NEO-CLASSICAL ORGANISATIONAL THEORY--:  It focus on human beings in organisation.  Here two point were emphasized i,e the organisation situation should
  • 11. be viewed in social,economical and tecniqual term  The other point emhasized on importance of formal and informal form of organisation.  This theories are having pillars on which this theory was laid------: (1) Division of work. (2) Departmentation : - E.g school having different department like education , nutrition, auditorial etc. (3)Coordination ---: E.g coordination between student and teacher, higher level organisation to middle level organisation. (4)Human behaviour :- E.g. adjustment with situation :- The neo-classical theory provide flat structure which facilitate communication between the superior and subordinates and better then all structure of classical theory.
  • 12. (4)MODERN ORGATION THEORY--: The modern theory emphasis on the conceptual and analytical base (cocept and end result). Two approaches-: System approach. Contingency approach. (1)System approach-: It study organisation in its totality (total study) System can be well understood by understanding various sub system with in it. Each system can be identified by certain processes , roles, structure and norms of conduct. (2) Contingency approach-: It suggest an organisational designe which suits a perticular unit. This approach suggest the needs,requirement,situation of perticular concern should be considered while desigining an organisational structure. Internal and external factor influnce an organisation. Environment. Technology. Size of operation. People.