This document defines organization and discusses different views and approaches to organization. It states that organization means a structured arrangement of levels and positions of authority and responsibility. From an economic perspective, organization is seen as the fourth factor of production. Socially, an organization is viewed as a multi-agent system where tasks are divided and roles are assigned. The document also discusses organizing as a process, different organization structures, departmentation, and the differences between formal and informal organizations.

1. BY T.VENKATARAMANAN.FCS.FICWA. 6/10/2011 1 ORGANISATION AND MANAGEMENT FUNDAMENTALS

2. DEFINITION 6/10/2011 2 Organization is a complex notion. It has several views ,several definitions, several approaches , several models This presentation aims at proposing a comprehensive view of this various notions.

3. Contd. 6/10/2011 3 Intuitive notions on organization In everyday life: an office In biology : a cell In society :a school, a hospital In computer science : software or hardware In business :a company and so on

4. 6/10/2011 4 Meaning of organization g t i n o a n a z i r o What do you see above ? A jumble of twelve alphabets

5. 6/10/2011 5 Now what happens to the 12 alphabets? t z a i o n n i O r g a I have arranged (organized ) the 12 alphabets in a particular Order to form a sensible word Therefore Organization means “ A structured arrangement of levels and positions of authority and responsibility “

6. 6/10/2011 6 In general what is it ? A structured patterned system of activity, knowledge ,culture memory, History and capabilities, or A decision and communication scheme , which is applied to a set of actors That together fulfill a set of tasks in order to satisfy predetermined goals ,or A division of tasks, a distribution of roles ,authority systems ,communication systems contribution and retribution systems, or An arrangement of relationships between components, which result into an entity, a system, that has a myriad of skills at the level of individuals or A Formalized , intentional , structure of roles and positions ? LET US EXAMINE.

7. 6/10/2011 7 ECONOMIC POINT OF VIEW: Man is a bundle of desires ,of innumerable wants , And wants are satiable. These wants for their satisfaction require goods and services which are to be produced .Economics classifies These factors of production into 1) land 2) labour 3)capital and 4)0rganisation. Therefore organization is the fourth factor of production which brings together The other three factors into a productive whole. Land labour, and capital are primary factors and organization is the Secondary factor, an intermediary factor between human wants and their satisfaction . Necessity is the mother of organizations and law under which the organization come into existence is father of organizations.

8. Social Point of View 6/10/2011 8 It may be considered a multi agent system. Consider the following :You want to construct a house. For this you want a plot. You want a plan an approved plan. Construction involves 1)earth work 2)concreting 3)brick masonry 4)lintel roofing 5)electrical 6)carpentry 7)plumbing 8) Sanitary sewerage etc 9)finishing painting 10)material like cement ,bricks ,stones, sand, wood electrical and sanitary wares etc and finally 11)money for all the above -all these are tasks to be carried out –require different skills.

9. What we do? 6/10/2011 9 With you as the head a construction organization is formed. You divide the work –assign the tasks –fix responsibility –supervision –reporting for progress of the work on day to day basis for control and coordination .All persons you employ are your agents ,you pay for their cooperation and skill. This is a miniature organization. Thus we find that an organization is a multi agent, dependence based coalition system with structural specifications, functional specifications and deontic specifications permissions and obligations).

10. 6/10/2011 10 We also find that organizations are the outcome of individual efforts to overcome ones limitations. Organizations are also formed to fulfill objectives that can be met collectively. It is a contrived social machine used for three reasons 1)enlarging ones abilities 2)save time 3)pool resources and take advantage of accumulated and available resources

11. 0rganizing - as a process 6/10/2011 11 Organizing as process involves the following steps : 1)Set up the goal or objective 2)Determine the activities necessary to achieve it. 3)Arrange them in groups 4)Assign them to persons. 5 )Establish communication and reporting channels. 6)Delegate authority and fix responsibility 7)Ensure control and coordination through proper systems The Approaches :1)Mechanistic 2)humanistic Mechanistic: Design and fit three M .s Humanistic: Select a team - fix the roles and reporting and review channels

12. Organisation as a structure 6/10/2011 12 Just like an architectural plan of a building, the organization structure refers to the formal arrangement of jobs ,functions , roles, and positions in an organizational setting, the network of relationship among individuals and positions in the organization.

13. Organisation structures 6/10/2011 13 sevaral type of organizational structures have been evolved .They are :1) Line structure 2) Functional structure 3) Line and staff stucture,4)vertical structure, 5) horizontal structure 6)Tall structure 7)Matrix 8) project 9) committee structure

14. 0rganization chart separate slides 6/10/2011 14 VP - Sales [Name] VP - Production [Name] VP - Marketing [Name] Manager [Department] [Name] [Phone/Email] Manager [Department] [Name] [Phone/Email] Manager [Department] [Name] [Phone/Email] Manager [Department] [Name] [Phone/Email] Manager [Department] [Name] [Phone/Email] Manager [Department] [Name] [Phone/Email] Manager [Department] [Name] [Phone/Email] Manager [Department] [Name] [Phone/Email] Manager [Department] [Name] [Phone/Email] Manager [Department] [Name] [Phone/Email] Manager [Department] [Name] [Phone/Email] Manager [Department] [Name] [Phone/Email]

15. 6/10/2011 15

16. DEPARTMENTATION 6/10/2011 16 Meaning : grouping of similar activities into departments divisions, And other homogeneous units for specialization , better control and coordination is known as departmentation . Bases of departmentation are product, process, function,territory, customer etc.( see p/52-58)

17. FORMAL & INFORMAL ORGANIZATIONS 6/10/2011 17 With every organization deliberately created for a purpose comes into existence an automatically created informal organization, built around people and their roles. Formal organizations are built around authority, accountability & responsibility where as informal organizations are built around status politics and power Unit & job are the foundations of formal organizations where as group and sentiments play a dominant role in informal organizations