2. Meaning
➜ An organization is a collection of
people working together in a
coordinated and structured fashion to
achieve one or more goals.
➜ Organisation is a system of
consciously coordinated activities or
force of two or more persons –
Chester . I . barnard
3. Meaning
➜ The word means a collection of resources that
are working together somehow to achieve a
common purpose.
➜ When we talk about an organization, we are
usually referring to a group of people.
4. ➜ Organization is a place where two or more
people work together in a structured way
to achieve a specific goal or set of goals.
Goals are fundamental elements of
organizations.
5. Definitions
Organization refers to a collection of people, who
are involved in pursuing defined objectives.
It can be understood as a social system which
comprises all formal human relationships.
The organization encompasses division of work
among employees and alignment of tasks
towards the ultimate goal of the company.
6. Definitions
➜ According to Mooney and Reiley:
➜ “Organisation is defined as the form of human
association for attaining common objectives.”
➜ According to Talcott Parsons:
➜ “Organisation is defined as a social unit which
is deliberately constructed and reconstructed
to seek specific goals.”
7. ➜ According to Amitai Etzioni:
➜ “Organisation has three characteristics:
➜ (i) Division of labour,
➜ (ii) Presence of one or more power centres, and
➜ (iii) Substitution of personnel.”
➜ According to him there are four characteristics
of organisation:
➜ (i) Communication,
➜ (ii) Cooperative efforts,
➜ (iii) Common objectives, and
➜ (iv) Rules and regulations.”
8. Features of Organisation
Composition of Interrelated Individuals
Deliberate and Conscious Creation and Recreation
Achievement of Common Objectives
Division of Work
Coordination
Co-operative Relationship
Well Defined Authority Responsibility Relationship
Group Behaviour
Performance
9. Mission
➜ All of the people in an organization should be
working toward a common purpose.
That purpose is often referred to as the mission.
The mission might be implied to its members or
explicitly expressed to them.
When explicitly expressed, it is often in the form
of a mission statement.
➜ The statement is often reviewed during a
process called strategic planning.
10. Importance/Significance of Organising
an Organisation
➜ Benefits in specialization
➜ Role Clarity
➜ Optimum utilization of resources
➜ Co-ordination and effective administration
Adoption to change
➜ Expansion and Growth
11. Elements of an Organization
People
Organizational
structure
Technology
Environment
12. Process of Organization
Step 1: Determination and classification of firm’s activities.
Step 2: Grouping of the activities into workable departments.
Step 3: Assignment of authority and responsibility on the
departmental executives for undertaking the delegated tasks.
Step 4: Developing relationship amidst superior and subordinate,
within the unit or department.
Step 5: Framing policies for proper coordination between the
superior and subordinate and creating specific lines of supervision.
13. PRINCIPLES OF ORGANIZATION
➜ Principle of unity of objectives:
When there is contradiction among
different level of goals desired goals can’t be
achieved.
➜ Principle of specialization:
An employee takes special type of
knowledge and skill in any area, it is known
as specialization
➜ Principle of coordination:
Coordination can be obtained by group
effort that emphasize on unity of action.
14. Principle of authority
Authority is the kind of right and power
through which it guides and directs the
actions of others so that the organizational
goals can be achieved.
➜ Principle of responsibility:
Only authority is not provided to the people
but obligation is also provided. So the
obligation to perform the duties and task is
known as responsibility.
15. . Principle of delegation
Process of transferring authority and
creation of responsibility between superior
and subordinates to accomplish a certain
task is called delegation of authority.
Principle of efficiency:
When the organization fulfill the objectives
with minimum cost, it is effective.
16. Principle of unity of command
subordinates should receive orders from
single superior at a time and all subordinates
should be accountable to that superior.
Principle of span of control:
This principle thus helps to determine
numerical limit if subordinates to be
supervised by a manager.
17. Principle of balance
The functional activities their establishment and
other performances should be balanced properly.
➜ Principle of communication:
Communication is the process of transformation
of information from one person to another of
different levels.
Principle of personal ability:
For an organization, human resources is
important.
Mainly training and development programs must
be encouraged to develop the skill in the employees
18. ➜ Principle of personal ability:
➜ For an organization, human resources
is important.
➜ Mainly training and development
programs must be encouraged to develop
the skill in the employees
19. Principle of flexibility
Organizational structure must be flexible
considering the environmental dynamism.
Sometimes, dramatically change may
occur in the organization and in that
condition, organization should be ready to
accept the change
20. Principle of simplicity
The structure of organization should be
simple with minimum number of levels do
that its member an understand duties and
authorities.
21. Types of Organization
➜ Formal Organization Structure: The
organization structure of jobs and
positions, with specified activities and
relationships, is known as formal
organization structure. It is created by
management, to attain the objectives of
the company.
22. TYPE OF ORGANIZATIONS
➜ The formal organization is a goal-oriented entity that
exist to accurate the efforts of individuals and it refers to
the structure of jobs and positions with clearly defined
functions, responsibilities and authorities
➜ Formal Organization is a system of consciously
coordinated activities of two or more persons toward a
common objective. -
➜ 1.Well defined rules and regulation
➜ 2.Arbitrary structure
➜ 3.Determined objectives and policies
➜ 4.Limitation on the activities of the individual
➜ 5. Strict observance of the principle of coordination
➜ 6. Messages are communicated through vertical chain
23.
24.
25. Line Organization
➜ Line organization is the oldest and
simplest pattern of orgnization, wherein
the supervisor has outright supervision
over the subordinate.
➜ The flow of authority is from the top
level executive to the person at the
lowest level of the organization’s
echelon.
➜
28. Functional Organization
➜ As the name suggests, functional organization
structure is one in which the thorough task of
managing and directing the employees, is
grouped as per the functions or type of work
involved.
30. Line and Staff Organization
➜ This type of organization structure is an
improvement over the traditional line
organization. In line and staff organization
primary and supportive activities are
related to the line of supervision by
appointing supervisor and specialist, who
are linked to line authority.
31.
32. Project Management Organization
➜ Project Organization is not an independent
organization, like the organization structure
discussed above.
➜ Instead it is a set up within an organization, so
as to accomplish a project or firm’s objectives.
➜ It is led by project manager, who is
responsible for project objectives.
33.
34. Matrix Organization
➜ Matrix organization is the emerging structure
of the organization, which is a combination of
functional organization and project
organization.
➜ In such an organization, the functional
departments such as production, accounting,
marketing, human resource, etc. constitute a
vertical chain of command, while project
division constitute horizontal line of authority.
35.
36. Advantages of Formal Organization
➜ The formal organisation clearly outlines the
relationships among employees. Hence, it
becomes easier to rack responsibilities.
➜ An established chain of commands maintains
the unity of command.
➜ As the duties of each member is clearly
defined, there is no ambiguity or confusion in
individual roles whatsoever. Further, there is
no duplication of efforts which eliminates any
wastage.
37. Advantages contd.
➜ In a formal organisation, there is a clear
definition of rules and procedures. This means
that behaviours and relationships among the
members are predictable. Consequently, there
is stability and no chaos existing in the
enterprise.
➜ Finally, it leads to the achievement of
organisational goals and objectives. This is
because there exist systematic and well
thought out work cultures and relationships.
38. Disadvantagrs of Formal
organization
➜ Decision making is slow in a formal
organisation. It is important to realise that any
organisational need has to flow through the
respective chain of commands before being
addressed.
➜ Formal organisation is very rigid in nature.
This means that there prevails perfect
discipline coupled with no deviations from the
procedures. Hence, this can lead to low
recognition of talent.
39. Contd.
➜ The formal organization does not take
into account the social nature of
humans as it talks about only structure
and work. Interestingly, we cannot
eliminate this integral part of
our nature. Hence, it does not entirely
display the functioning of the
organization.
40.
41. Informal Organization Structure
➜ The relationship between the employees, that
relies on personal attitudes, prejudices and
interests rather than procedures.
➜ It is system of personal and social connection,
whose creation is not needed by formal
organization.
42.
43.
44.
45.
46. Advantages of informal organization
➜ In this type of organisation, communication does not need to
follow the defined chain. Instead, it can flow through various
routes. This implies that communication in an informal
organisation is much faster relative to formal organisation.
➜ Again, humans are social animals. The needs to socialize
exists deep within our existence. The informal organisation
ensures that there is socialization within the enterprise.
Consequently, members experience the sense of
belongingness and job satisfaction.
➜ Informal organisation, getting true feedbacks and
reactions is not easy. Hence, in informal organisation,
various limitations of formal organisation is covered up.