An organization is a social unit deliberately created to achieve specific goals within defined boundaries on an ongoing basis. It can be defined based on its function, purpose, ownership, size, and area. Key components include authority, span of control, chain of command, and hierarchy. Organization charts convey the activities, subdivisions, work, management levels, and lines of authority. Theories of organization include classical, behavioral, management science, systems, and various metaphors like machines, living systems, brains, political systems, and cultures. Effectiveness can be defined using goal attainment, system resource, constituency satisfaction, and internal process approaches.

1. Organisation

2.  Itis a collective social unit deliberately
created by a group of people to accomplish
specific goals and purposes within loosely
delineated boundary on a continuing basis
with enabling factors for sustained growth.
Nature of organization:
1. Social unit
2. Specific goal
3. Boundary
4. Continuing basis

3.  It is based on
1. function: can be a manufacturing or service
2. Purpose: profit or not for profit
3. Ownership: private or public
4. Size: small, medium or large
5. Area: global, national, regional & local

4. Various components of organization are:
 Authority – right to make decisions
 Span of control – number of people a superior
is responsible for
 Chain of Command – relationship between
different levels of authority in the business
 Hierarchy – shows the line management
in the business and who has specific respn
 Delegation – authority to carry out actions
passed from superior to subordinate
 Empowerment – giving responsibilities to
people at all levels of the business to make
decisions

5. Hierarchical Structure
Managing Director
Marketing
Sales Director Finance Director
Director
A B C D Market Strategy Purchasing Sales Accounts
Research Manager Manager Manager

7. Organization charts convey five major points about an
organization’s structure:
1. Activities of the organization: chart indicates the range
of activities in which the organization is involved.
2. Subdivisions of the organization: each box represents a
subdivision of the orgn responsible for a portion of work.
3. Type of work performed: the label in each box
indicates the department’s area of responsibility.
4. Levels of management: chart shows management
hierarchy; who report to the same individual are on the
same level, or horizontal level on the chart.
5. Lines of Authority: the lines that connect the boxes
show the official lines of authority and channels of
communication for the organization.

8. 1. Degree of responsibility and
authority of individuals
2. Degree of decentralization
3. Staff and line functions
4. Position status or importance
5. Lines of actual communication
6. Relationships among members and
7. The ‘informal’ organization.

9. Organization
Structure
Internal
Departme Span of Coordinati Factors
Height of
ntalization Control Hierarchy on
Formalizat
ion
Centraliza
tion
Complexit
y

10.  Organisation theory includes conceptual
framework for gaining insight into the way
orgnisations functions and the principles
governing it.
 Several theories of ogn have evolved through
times which are not mutually exclusive.
 Major theories have been evolved over a
period of time to give clear meaning for the
term orgnisation.

11. 1. Classical theories:
 Scientific management
 Administrative management
 Theory of bureaucracy
2. Behavioral science theory
 Human relations school
 Behavioral science contributors
3. Management science theories
4. Systems theories
 Open ended vs. Closed ended
 Contingency school

12.  Organisations do not carry & convey common
meaning to everyone.
 This complexity allows people to interpret
the organisational reality in ways convenient
to them.
 People view the realities in which they live
and work.
 Hence organisations carry different images in
the minds of people who work for the
organisations.

13.  Organisation as Machines
 Organisation as Living Systems
 Organisation as Brains
 Organisation as Political systems
 Organisation as Cultures
 Organisation as Psychic Prisons

14.  Term organisation is derived from Greek
word, Organon, meaning TOOL or INSTRUMENT.
 A good tool is one which has
precision, efficiency, reliability &
predictability.
 These are the most obvious features of an org.
 Orgn are built around systems, procedures and
rules.
 This image is the most popular & widely
perceived.
 It does suffer from being mechanistic
organisation.

15.  Organisations do not merely keep on
repeating their activities in an identical
manner overtime.
 That could be possible if org were insulted
from external environment.
 But org cannot exist in vacuum, they have to
change and adopt to the environment.
 This feature of the org makes them be
similar to living systems.
 It makes the org to be an open system.
 Org are influenced by environment.

16.  Takes inputs from the environment & transfer
them into usable outputs.
 The throughput processes are cyclical in
nature.
 They are differentiated.
 Provides feedback
 Tend to maintain the balance
 Dynamic in nature
 They tend to reach the same goal from
differing conditions.

17.  Org are proactive in their stance as they
select their operating environment.
 This indicates that the changes happening in
the organisation is not automatic but
depends on how org react to such changes.
 but it ascribes a certain conscious and
deliberate rationality to the
organizations, while ignoring its irrational
human content.

18.  In a more realistic perspective, political view
of org is not very surprising.
 Politics refers to the flow of power &
influence the process within a social system.
 Hence org has built in political process with
their hierarchy & authority relations.
 Org members enjoy power from various
sources.
 In org, people differ widely in terms of their
need for power & control.
 A modern manager also need to have
political skills.

20. EFFECTIVENESS WAS
DETERMINED BY FACTORS SUCH AS
PRODUCTION MAXIMIZATION,
COST MINIMALIZATION,
TECHNOLOGICAL EXCELLENCE,
Etc.

21. EFFECTIVENESS IS A FUNCTION OF
CLEAR AUTHORITY AND
DISCIPLINE WITHIN AN
ORGANIZATION

22. EFFECTIVENESS IS A FUNCTION OF
PRODUCTIVITY RESULTING FROM
EMPLOYEE SATISFACTION

23. meeting organizational objectives and
prevailing societal expectations in the
near future, adapting and developing in
the intermediate future, and surviving
in the distant future.

24.  Goal Approach: Effectiveness is the ability
to excel at one or more output goals.
 Internal Process Approach: Effectiveness is
the ability to excel at internal
efficiency, coordination, motivation, and
employee satisfaction.
 System Resource Approach: Effectiveness is
the ability to acquire scarce and valued
resources from the environment.

25.  Constituency Approach: Effectiveness is the
ability to satisfy multiple strategic
constituencies both within and outside the
organization.
 Domain Approach: Effectiveness is the
ability to excel in one or more among several
domains as selected by senior managers.

26. Flow Charts of Approaches to OE –
Goal Approach
INPUTS TRANSFORMATION OUTPUTS
GOAL APPROACH

27. Flow Charts of Approaches to OE –
Internal Process Approach
INPUTS TRANSFORMATION OUTPUTS
INTERNAL PROCESS APPROACH

28. INPUTS TRANSFORMATION OUTPUTS
SYSTEM RESOURCE APPROACH

29. Flow Charts of Approaches to OE –
Constituency Approach
INPUTS TRANSFORMATION OUTPUTS
STRATEGIC CONSTITUENCIES APPROACH

30. COMPARISON OF THE FOUR OE APPROACHES
Approach Definition When Used
An organization is effective Preferred when:
to the extent that:
Goal attainment it accomplishes its stated goals goals are clear, time
bound and measurable
System Resource it acquires needed resources a clear connection exists
between inputs & outputs
Constituencies all strategic constituencies constituencies have powerful
are at least minimally influence on the organization,
satisfied and the organization must
respond to demands
Internal Processes combines internal efficiency costs, outputs & satisfaction
and affective health are easily measurable