Types and function of different organization. How they establish and execute their functions.

1. Organization
Prepared by
Rajveer Bhaskar,
Assistant Professor,
RCPIPER, Shirpur, M.S.

2. Organization
 Essential part of life
 Organization as a structure – network of
relationships among individuals & positions in an
organization.
 McFarland: an identifiable group of people
contributing their efforts towards attainment of
goals.
 Organization as a process – process of
determining, arranging, grouping & assigning the
activities to be performed for attainment of
objectives

3. Nature of organization
 Common purpose
 Division of labor
 Authority structure
 People
 Communication
 Coordination
 Environment
 Rules & regulation

4. Steps in organizing process
 Identification of activities
 Grouping activities
 Assigning duties
 Delegation of authority

5. Need & significance of organization
structure
 Facilitates administration
 Facilitates growth & diversification
 Optimum use of technological improvements
 Encourage human beings
 Stimulate creativity

6. Principle/features of organizing
structure
 Unity of objectives
 Division of work
 Span of control
 Scalar principle
 Functional definition
 Exception principle
 Unity of command

7. Principle/features of organizing
structure
 Balance
 Efficiency
 Flexibility
 Continuity
 Facilitation of leadership
 Parity of authority & control
 coordination

8. Types of organization
 Formal –deliberately created by management
 Informal – pattern of activities, interactions
and human relationships which emerge
spontaneously due to social & psychological
forces operating at workplace.

9. Differences
 Origin- creation
 Nature-planned/unplanned
 Size-large/small
 Continuity- stable/unstable
 Focus- job/people
 Structure-structured/unstructured
 Goal-profit/satisfaction
 Control- rules & regulation/ group norms & valve
 Communication-specified/unspecified

10. Reasons of informal organization
 Socialize
 Job satisfaction
 Source of protection
 Communication device
 Training & development
 Coordination & control
 Overcoming managerial limitation

11. Organization structure
 Concerned with allocation of task & delegation of
authority
1. Line organization – military/scalar
2. Functional organization – specialization/functional
3. Line & staff organization
4. Project organization – division according to
projects
5. Matrix organization – project + functional
6. Committee organization – committee

12. Line & staff organization
 Combination of line & functional structure
 Advantages
1. Expert advice
2. Reduced workload
3. Training of personal
4. Quality decision
5. Flexibility

13. Line & staff organization
 Disadvantages
1. Line staff conflicts
2. Confusion
3. Ineffective staff
4. Expensive