The Nature of Organization by Muhammad Rawaha Saleem

1. THE NATURE OF ORGANIZATION
Muhammad Rawaha Saleem
MS Fall 2018
Department of Media & Communication Studies
Faculty of Social Sciences
International Islamic University Islamabad

2. INTRODUCTION & MEANING
• An organization is a collection of people who work together and
coordinate their actions to achieve a wide variety of goals.
• An organization is born when people began to cooperate and combine
together for fulfilling their requirement.
• Organization fulfil a greater variety of our social and personal needs
and affect our lives.

3. NATURE OF ORGANIZATION
• Formal Organization: Is a system of well defined jobs, each bearing a
definite measure of authority, responsibility and
accountability.
• Informal Organization: Is a network of Interpersonal Relationship that arises
when people associate with one another.

4. PRINCIPALS OF ORGANIZATION
• Division of Labour
• Unity of Command
• Authority & Responsibility
• Span of Control

5. DIVISION OF LABOUR
Breaking down of jobs into simple & repetitive tasks.
Advantages:
Repetition Improves performance.
Time saving
-------------
Disadvantage:
Lack of Specialization
Not suitable for large scale organization

6. UNITY OF COMMAND
• No member of organization should report to more than one superior.
• An employee is responsible to only one supervisor, who in turn is
responsible to only one supervisor, and so on up the organizational
hierarchy.

7. AUTHORITY & RESPONSIBILITY
• Authority is the right inherent in a manager to give orders & be obeyed.
Required to coordinate activities in an organization. Can be delegated to
subordinates for proper functioning & efficient performance.
• Responsibility comes with Authority
• Operating Responsibility: Can be delegated to subordinate
• Ultimate Responsibility: Cannot be delegated

8. SPAN OF CONTROL
• Refers to the number of people, the managers control. Difficult to
determine the optimum number. Narrow spam leads to many
hierarchies and a tall organizational structure.
• Scalar Principal: Authority & Responsibility should flow in a clear
unbroken line from top to bottom.
• Departmentalization: Breaking down activities into specialized groups

9. TYPES OF ORGANIZATIONS
• Public Sector Organization
• Private Sector Organization
• Non-Government (NGO)

10. PUBLIC SECTOR ORGANIZATIONS
• The public sector is usually comprised of organizations that are owned
and operated by the government and exist to provide services for its
citizens.
• Through the process of outsourcing, public sector organizations will
often engage private enterprises to deliver goods and services to its
citizens.

11. PRIVATE SECTOR ORGANIZATION
• The private sector is the part of a country’s economic system that is
run by the individuals and companies, rather than the government.
• Most of the private organizations are run with the intention of making
profit.

12. NON-GOVERNMENT ORGANIZATION
A non-government organization is a non-profit, citizen-based
organization that functions independently of government.

13. REALITY OF PRIVATE ORGANIZATION

14. TYPES OF ORGANIZATIONAL STRUCTURE
• Flat Organizational Structure
• Functional Organizational Structure
• Divisional Organizational Structure
• Matrix Organizational Structure

15. FLAT ORGANIZATIONAL STRUCTURE
A flat organization has an organizational structure with few or no levels
of middle management between staff and executives.

16. FUNCTIONAL ORGANIZATIONAL STRUCTURE
Functional Organization is a type of organizational structure that uses
the principal of specialization based on function or role.

17. DIVISIONAL ORGANIZATIONAL STRUCTURE
The structure of divisional organization groups each organizational
function into a division. Each division contains all the necessary
resources and functions within it.

18. MATRIX ORGANIZATIONAL STRUCTURE
Matrix Management is an organizational structure in which each
individual reports to more than one supervisor.