detailed information about organization

1. By :-Gourav Kottawar

2. “Thing big. Think Differently.
Think fast. Think Ahead. Aim
for the best.”
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3. 1.1 INTRODUCTION
What, then, are these powerful constructs that we call
organizations?
They are groups of people who work independently
towards some purpose. Organizations are not physical
structures; rather they are people who work to achieve
a set of goals. People who work in organizations have
structured patterns of interactions, meaning that they
expect each other to complete certain tasks in an
organised way.
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4. 1.1 INTRODUCTION
Who creates this organizations?
Often an individual or a group of people, who believe
that they possess the necessary skills & knowledge,
form an organization to produce goods & services.
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5. 1.1 INTRODUCTION
Before quoting a definition on organisation straight away,
it is advisable to explain its fundamental elements.
The elements are:
1. Coordination
2. Common goals
3. Division of labour
4. Integration
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6. 1.1. DEFINITION
An organization is defined as “the planned
coordination of the activities of a number of
people for the achievement of some common,
explicit purpose or goal, through division of
labour & function, & through a hierarchy of
authority & responsibility.”
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7. 1.2. NEED FOR ORGANIZATION
1. To increase Specialization & the Division of Labour
2. To use Large-scale Technology
3. To manage the External Environment
4. To Economize on Transaction Costs
5. To Exert Power & Control
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8. 1.3. PROCESS OF ORGANIZING
Organizing is a process of establishing work relation, flow of
work & information and grouping of activities, identification
of authority & responsibility of employees in the
organization.
various steps of organizing process are as follows:
1. Identification of tasks
2. Grouping jobs
3. Assigning work
4. Delegation of authority
5. Coordination
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9. 1.4. ORGANIZATIONAL STRUCTURE
Organization structure is the formal system of task &
authority relationships that control how people
coordinate their actions & use resources to achieve
organization’s goals.
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10. TYPES OF ORGANIZATIONAL STRUCTURES
The usual structures used in organizations include
1. Functional Structure
2. Product Structure
3. Territorial Structure
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11. 1. FUNCTIONAL STRUCTURE
1. The oldest & the most commonly used structure is the
functional type.
2. When it is used, the organization is departmentalised on the
basis of functions it needs to perform to reach its objectives.
3. Thus, one can see marketing, materials management,
production, finance & accounting, personnel & maintenance
departments in the functional design of a company engaged
in manufacturing.
4. The activities or functions of all these departments are
coordinated by the chief executive of the organization.
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12. 1. FUNCTIONAL STRUCTURE
CEO
Marketing
Finance &
Accounting
Production &
Operations
Management
Inventory
Managemen
t
Human
Resource
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13. ADVANTAGES OF FUNCTIONAL STRUCTURE
1. The structure permits division of labour & encourages
specialization.
2. It is easily understood by the employees. It needs no
specialised knowledge for them to understand that
there are several departments, each performing a
separate function, & all departments must work in
unity to achieve an organization’s goals.
3. It eliminates duplication.
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14. DISADVANTAGES OF FUNCTIONAL STRUCTURE
1. It fosters a limited point of view that focuses on a
narrow set of tasks. Employees may lose sight of the
organisation as a whole.
2. Horizontal integration across functional departments
often becomes difficult as the organization increases
the number of geographic areas served & the range of
goods & services provided.
3. There is no accountability of each function for total
results. Each department functions as a stand alone
unit.
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15. 2. PRODUCT STRUCTURE
1. The product design assigns worldwide responsibility for
specific products or product groups to separate
operating divisions within a firm.
2. It operates as profit center.
3. Managers of product division run the operations with
considerable autonomy, they have the authority to
make important decisions.
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16. Product Structure
Product
Division C
Product
Division B
Product
Division A
For EastAustraliaEuropeAfrica
South
America
SpainFranceGermanyUK
CEO
Function
s
Function
s
Function
s
Function
s
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17. ADVANTAGES OF PRODUCT STRUCTURE
1. If an organization produces a large number of diverse
products, the structure allows each major product line to
focus on the specific needs of its customers.
2. Under the product structure, the company is able to match
its marketing strategy to the specific needs of the
customers.
3. Because managers possess extensive knowledge, they are
more able to incorporate new technologies into their
products & respond quickly & easily to technological
changes that affect their market.
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18. 3.TERRITORIAL/PLACE STRUCTURE
Place structure involves establishing an organization’s
primary units geographically while retaining significant
elements of functional structure.
Place structure permits locating many tasks required to
serve a geographic territory under one manager, rather
than grouping functions under different managers or all
tasks in one cultural office.
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19. PLACE STRUCTURE
CEO
North
America
& Pacific
Division
Europe &
Latin
America
Division
US
A
UK
Venezuel
a
Italy Jamaica Canada
Function
s
Function
s
Function
s
Function
s
Function
s
Function
s
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