The Nature of Organization

The Nature of Organization
Sasmira College of Management 1

Organization
“An identified group of people
contributing their efforts towards the
attainment of goal is called an
organization”
2Sasmira College of Management

Organizational structure
“Explicit and implicit institutional rules and policies designed to
provide a structure where various work roles and responsibilities
are delegated, controlled and coordinated.”
• Features of good organization
structure
 Clear line of authority.
 Application of ultimate responsibility.
 Minimum managerial levels.
 Unity of direction.
 Proper emphasis on staff activities.
 Simplicity.
 Flexibility.
-

Departmentation
“Departmentation is process of dividing the large
functional organization into small & flexible &
administrative unit.”
Types of Departmentation
 Departmentation by Product
 Departmentation by Function
 Departmentation by Region or Territory
 Departmentation by Customer
 Departmentation by Process

Line organization structure
 Similar activities are performed at a particular
level
 Each group activities is self contained unit & able
to perform the assigned activities without
assistance of others
Foramen
A
Foramen
B
Foramen C
Foramen D
Production Manager
workers workers workers workers

Departmental Line Organization Structure
 Entire activities are divided into different
department on the basis of similarity of
activities
 All department are controlled by departmental
head
Foramen
A
Spinning
Foramen
B
weaving
Foramen D
finishing
Production Manager
workers
workers
workers
workers
Foramen C
Dyeing

Characteristics of Line Organization structure
1. Lines of authority & instruction are vertical
2. The unity of command is maintained in straight &
unbroken line
3. All person at the same level of organization are
independent of each other
Advantages
1. Simplicity
2. Discipline
3. Prompt decision
4. Orderly communication
5. Easy supervision & control
6. Economical
Disadvantages
1. Lack of specialization
2. Autocratic approach
3. Problems of co-ordination
4. Not suitable for large scale organization

Line & staff Organization Structure
It structures refers to a pattern in which staff
specialist advice managers to perform their
duties.
General ManagerSecretary Public relation
Manager finance Manager HR
Manager Production
Manager Marketing
Production eng Sales officer
foreman Sales supervisor
worker salesman

Authority and Decentralization

Authority
It is the formal right given to a person to
command or to give order to perform a
certain task.
Authority is given to a manager to achieve the
objectives of the organization.
It is the right to get the things done through
others.

Decentralization
Every organization has to decide as to how
much decision – making authority should be
centralized, in hands of the chief executive
and how much should be distributed among
the managers at lower levels.
The Greater is the number of decisions made
at lower levels.

Implication of Authority
Expert authority: achieved through formal
mechanisms such as certifications or
education. Project Managers have several
formal certifications available from global
certification bodies such as the Project
Management Professional.
Lead person takes the decision.
Work burden is on subordinates.

Implication of Decentralization
Less burden on the lead person as in the of
authority
Subordinates get a change to decide and act
independently
Co-ordination to some extend is difficult to
maintain

CO-ORDINATION
MEANING:
Coordination is the unification, integration, synch
ronization of the efforts of group members so as
to provide unity of action in the pursuit of comm
on goals. It is a hidden force which binds all the o
ther functions of management.
Definition: According to Mooney and Reelay,
“Coordination is orderly arrangement of group eff
orts to provide unity of action in the pursuit of co
mmon goals”.

Why Co-ordination ?
According to management experts coordination is necessary
because:
 Coordination is the Essence of Management." I.e. Coordinat
ion affects all the functions of management, viz., Planning,
Organizing, Staffing, etc.
Coordination is a function of management.
 Coordination is a principle of management, and all other pri
nciples are included in this one principle, i.e. Co-
ordination is the "Mother Principle".

Structure of co-ordination

Characteristics of coordination
 Coordination is not an distinct
function but the very essence of
management .
 Coordination is the basic
responsibility of management and it
can be achieved through managerial
functions.
 Coordination does not arise
spontaneously or by force.
 Heart of coordination is ”unity of
action ”
 Coordination is dynamic process.
 coordination is required in a group
efforts not in individual efforts.
 Coordination has a common purpose
of getting organizational objectives
accomplished.

Organization Human factors
Meaning: Human factors and ergonomics (HF&E),
also known as comfort design, functional design, and
user-friendly systems, is the practice of designing
products, systems or processes to take proper
account of the interaction between them and the
people who use them.
 The field has seen contributions from numerous
disciplines, such
as psychology, engineering, biomechanics, industrial
design, physiology and anthropometry.

Importance of Human Factor in coordination:
Human resources are utilized to
the
maximum possible extent in order
to achieve individual and
organizational goals.
An organization’s performance
and productivity are directly
proportional to the quantity and
quality of its human resources.
Human factor is the most valuab
le asset of an organization, and
not the money
or physical equipment.

Effective organization structure
“An organizational structure defines how activities such as
task allocation, coordination and supervision are directed
towards the achievement of organizational aims.It can also be
considered as the viewing glass or perspective through which
individuals see their organization and its environment.”

Planning for the Ideal
 The search for an ideal organization to reflect
enterprise goals under given circumstances is
impetus to planning. The ultimate form established,
like all other plans, seldom remains unchanged, and
continuous remolding of the ideal plan is normally
necessary.
 An ideal organization plan constitutes a standard,
and by comparing the present structure with it,
enterprise leaders know what changes should be
made when possible.

Advantages of Organization Planning
 Planning the organization structure helps
determine future personnel need and required
training programs.
 Furthermore organization planning can disclose
weakness such as, duplication of effort, unclear lines
of authority, and overlong lines of communication.

Global Organizing
“Global organization means organization with an
international membership ,scope or
presence.”
Meaning of Global Organizing in Business
“It is an essential activity that every decision
maker must perform to keep pace in today’s
world.”

Characteristics of Global Organizing
 Overseas experience
 Deep Self-Awareness
 Sensitivity to cultural diversity
 Humility
 Lifelong curiosity
 Well-spoken
 Good negotiator
 Presence

Roles of Global Organizing
Collecting statistical information
Analyzing the trends in the variables
Making comparative study and disseminate
the information to all other countries
Types
Multinational corporation
Transnational corporation
Borderless organization

Goals
Profitability
Customer service
Retention
Efficiency
Growth

Motivation
An inferred process within an animal or an
individual that causes that organism to move
towards a goal.
Need, Drive
Goal 27Sasmira College of Management

Motivational Techniques
• Leads them
• Real examples are quicker than advice
• Way to influencing people
• Appeal to benefits
• Can motivate
• Mutual benefits to both of you
• Appeal to emotions
• People act quickly to emotions
• Positive manner
• Sustained by repeated inputs
• Appeal to needs & wants
• basic needs satisfaction
• Creative expression, recognition & challenges & love
• Appeal to expertise
• Abilities enhance his self-worth
• Put best effort to seek approval 28Sasmira College of Management

Goal-Setting
 Goals are desired result, purpose, or objective that one
strives to attain
 Goals are:
Specific
Measurable
Attainable
Relevant/Realistic
Time-Oriented.

Types of Goals
Short-term
A goal that can be achieved in a relative
short period of time.
Ex: To complete the course.
Long-term
A goal that takes a long period of time to
achieve.
Ex: Great success in career.

"Leadership is a function of knowing yourself,
having a vision that is well communicated,
building trust among colleagues, and taking
effective action to realize your own leadership
potential."

Types of Leadership
 Autocratic leadership.
Democratic leadership.
Laissez – faire leadership.
Paternalistic leadership.

Why Is Leadership Important ?
“Generally people think companies compete by
means of their products but they probably
compete more by means of their leaders and
their products. Better leaders develop better
employees and the two together develop better
products.”

Why Do We Need Leaders ?
Leadership is an attitude.
Leadership encourages us to realize our real
potential.
Leaders make us confident.
Leaders invoke the sense of responsibilities.
Leaders love their subordinates grow.

Group decision making
“Group decision-making is a situation faced
when individuals collectively make a choice
from the alternatives before them. The
decision is then no longer attributable to any
single individual who is a member of
the group.”

Steps to rational decision making model
 Define the problem.
 Identify the criteria.
 Allocate weights to the criteria.
 Develop alternatives.
 Evaluate the alternatives.
 Select the best alternatives.

Advantages
 Generates more
complete information &
knowledge
 Offers increased
diversity of views
 Generates higher quality
decisions
 Leads to increased
acceptance of a solution
Disadvantages
 More time consuming
 Conformity pressures in
groups
 Discussion can be
dominated by one or a
few members
 Decision suffer from
ambiguous responsibility

Communication
What is communication ?
 It is a process of exchanging
 Ideas
 Thoughts
 Feelings
 Emotions
Through
 Speech
 Signals
 Writing
 Behavior

What is organizational
communication?
• “Organizational communication is the
process by which activities of an organization
are collected and coordinated to reach
the goals of both individuals and the
organization”.
Sasmira College of Management 39

SENDER
Communication Process
Communication is the process of sending and
receiving information among people.
Medium
RECEIVER
Feedback
receiver
sender
Use of
channel to
transmit
the
message

Types of Business communication
 Internal communication: This is the communication
that takes place within an organization. In addition
to the usual face to face, telephone, fax or mail;
modern organizations may use technology to
communicate internally. Technology may be used
for e-mails or a linked internal communication.
 External communication: Communication between
the organization and those outside the organization.
The communicate with other businesses can be
through telephone, fax ,internet etc. 41Sasmira College of Management

The Structure and mode of organizational
communication
 Horizontal / Lateral Communication
The exchanges between and among agencies and personnel
on the same level of the organization chart.
Horizontal communication aims at:
– Task coordination: (Inter Personal & Departmental)
– Problem solving: (Discussion & Brainstorming)
– Information sharing: (Inter Personal & Departmental)
– Conflict resolution: (Inter Personal & Departmental)
 Vertical Communication
» Upward Communication
» Downward Communication
 Diagonal Communication

Upward communication
Upward communication -the process whereby the ideas, feelings, and
perceptions of lower-level employee are communicated to those at higher
levels in the organization.
Functions:
 It provides management with needed information for decision
making.
 It helps employees relieve the pressures and frustrations of the
work situation.
 It enhances employees’ sense of participation in the enterprise.
 It serves as a measure of the effectiveness of downward
communication.

Downward communication
Such communication is initiated by the organization’s upper management
and then filters downward through the “chain of command”.
 People are limited as to the amount of information they can
effectively absorb and react to.
 Therefore, management must, of necessity, restrict what it
communicates to subordinates.
 Organization implies some restriction of communication. Without
restrictions on communication, any organizational member could be
buried under an avalanche of incoming messages from all the other
members.

Diagonal Communication
 This occurs when communication occurs between workers in a
different section of the organization where one worker is on a
higher level.
 For example diagonal communication will occur when a
department manager converses with an employee in another
department.
 It allows cross communication between departments

Why Global Leading ?
 Organizations grow increasingly more global NOT less
so.
 Creating the right kind of organization to meet the
global economy is key.
 Talented managers with global mindset are not
enough – it requires structures, processes and
practices.

Objectives
 Provide state-of-art knowledge on global
mindset .
Offer inspiration from “company-specific” global
mindset practices.
 Assist in clarifying the potential contribution of
global mindset in your own organizational
context .
 Assist in identifying enablers and barriers that
either contribute to or hinder the development of
global mindset in own organization.

Why Global Mindset ?
• ”Global mindset is being comfortable with
being uncomfortable in uncomfortable
places.”

Benefits of Global Mindset
The content and processes of multinational
firms’ sense making systems can be a distinct
competitive advantage or disadvantage.
“A grasp of and insight into the needs of the
local market, it is also able to build cognitive
bridges across these needs and between these
needs and the company’s own global
experience and capabilities.

Thank You

The Nature of Organization

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (16)

Similar to The Nature of Organization

Similar to The Nature of Organization (20)

Recently uploaded

Recently uploaded (20)

The Nature of Organization