1. ORGANISATION
• Organization is the structural frame work of duties and
responsibilities required of personnel in performing
various functions with a view to achieve business goals
through organization. An organization as a purposeful
system with several subsystems where individuals and
activities are organized to achieve certain predetermined
goals through division of labor and co-ordination of
activities.
2. DEFINITION
• “Organizing is the process of defining and grouping the activities of the
enterprise and establishing the authority relationships among them” –
Theo Haiman.
• Organization is an identifiable group of people contributing their
efforts towards the attainment of goals” – Mc Farland.
• Organizing is the establishing effective authority relationship among
selected work, persons, and work places in order for th group to work
together efficiently” – G.R.Terry.
3. FEATURES OF AN ORGANISATION
• Division of labour: when the total work to be preformed is divided
into activities and functions so that the objectives of the organization
can be attained.
• Source of authority: securing compliance of individual members of the
group in contributing their efforts to common objectives. Directing
authority or supervisory agency is required to secure performance of
planned work. Example: some superiors are appointed above the
subordinates and gave them power to direct their work.
• Relationship: Establishing administrative and operating relationship is
very important to plan the work smoothly.
4. NATURE OF ORGANIZATION
• Group of persons: When two or more persons come together for
undertaking a common work then the organization comes into existence.
• Common objectives: The individual objectives of different persons and
developments also lead to the achievement of common organizational
objectives. .
• Division of work: It is not that one person cannot carry out many
functions but specializations in different activities is necessary to improve
one’s efficiency organization helps in dividing the work into related
activities is necessary to improve one’s efficiency organization helps in
dividing the work into related activities so that they are assigned to
different individuals.
5. • Co-ordination: When different persons are assigned different tasks then they try to attain
them in their own ways. There is a need to co-ordinate the activities of various persons so
that their efforts lead to the main goals.
• Authority-responsibility relationship: An organization consists of various positions
arranged in a hierarchy with well defined authority and responsibility. A relationship of
superior-subordinate is established clearly.
• Communication: An organization works with an effective communication system. Every
order or information passes on from upward to downward and reactions to such
communications go upward. The communication system informs various persons the
tasks they are to perform and performance reports from different jobs enable management
to assess the levels of achievement.
• Integration: Different functions performed by different persons in an organization need to
be combined together so as to achieve the consensual goal of the organization. This is
called integration. In different departments work independently without having regard to
each other. It may lead to chaos and may make achievement of the common goal uncertain
and difficult.
6. IMPORTANCE OF ORGANIZATION
• Effective delegation
• Facilitates administration
• Facilitates growth and diversification
• Allows optimum use of resources
• Initiative
• Co-ordination
• Avoid duplication
• Facilitates continuity
7. PROCESS
• Identification of activities: The entire work is broken down into component activities that are
to be performed by all the employees.
• Grouping of activities: The closely related and similar activities are grouped into departments
or divisions. The departmental activities are further divided into sections.
• Assigning activities: The grouped activities are assigned to various positions such as the
production manager, sales manager etc. The process of assignment of activities is carried down
to the operative level of management.
• Delegation of authority: To discharge the responsibility, the employees must given required
authority.
• Establishing structural relationship: a person will know from whom he has to receive
orders and to whom he is answerable.
8. FUNCTIONS OF ORGANISATION.
• Defining relationship: When a group of persons is working together
for a common goal
• Co-ordination of various activities:
• Grouping of activities:
• Nomination of activities:
• Delegation of Authority: Assignment of duties or allotment of duties
to specified persons is followed by delegation of authority.
• Allotment of duties to specified persons: In order to ensure effective
performance, the grouped activities are allotted to specified persons.
9. PRINCIPLES OF GOOD ORGANIZATION
• Unity of objectives: The objectives must be stated in clear and concise terms.
• Division of work: for better performance and control. This leads to specialization.
• Authority and responsibility: Authority is the official right of a manager.
Responsibility is the duty of a subordinate
• Simplicity: The organization structure should be kept simple with minimum
numbers of levels. for effective communication and co ordination.
• Balance: Authority and responsibility must always be equal. If responsibility exceeds
authority, the subordinate will not be able to perform the task. On the other hand, if
authority exceeds responsibility, there will be misuse of authority.
10. • Responsibility is absolute: must be held accountable for the
acts of his subordinates.
• Unity of command: It means that a subordinate should get
orders from one superior only Dual subordination result is
confusion and leads to indiscipline.
• Unity of direction: There must be one head and one plan for
a group of activities directed toward the some objective.
• Flexibility: There should be scope for expansion without
disrupting the basic design.
11. • Continuity: to enable people to gain experience in
positions of responsibility.
• Specialization: The organization should be setup in
such a way that every individual should be assigned
a duty according to his skill and qualification.
• Span of control: It means how many subordinated
can be supervised by a supervisor.
12. ORGANIZATION STRUCTURE
• the positions and official relationships between the various individuals
working in an organization
• It provides answers to the following questions.
• Who is the top most official in an organization?
• Who are the departmental heads?
• What are their functions?
• Who are the subordinate staffs in each department etc.?
13. MERITS
• They give a clear picture of the organization in a simple way.
• They show the levels of authority and relationship prevailing among
employees at a glance.
• Instructing work is simplified.
• Newly hired personnel can understand their role in the organization and
behave accordingly.
• The strengths and weaknesses of an organization are evaluated.
14. DEMERITS
• Most of just like photos taken in an instant.
• It is very difficult to maintain and ensure that the up-to-date.
• A false picture may be developed by following the over
simplified organization structure.
15. FEATURES OF A GOOD ORGANIZATION STRUCTURE
• It should be simple and clearly understood.
• 2. There should be a clear line of authority from top to bottom.
• 3. The delegation of authority should correspond to the assigned
responsibility.
• 4. As far as possible levels of management should be minimum layers.
• 5. A person should supervise only that number, which he can easily
control.
• 6. It should be flexible and dynamic.
16. FORMAL ORGANIZATION
• Formal organization is deliberately and consciously created for the
accomplishment of the enterprise objectives. The communication
channel is in a formal or official manner. It has well established rules
and procedures.
17. INFORMAL ORGANISATION
• Informal organization is the outcome of personal and social
relationship between the individuals in an organization. It is not
consciously or deliberately created. It develops spontaneously as a
result of interactions between persons. For example a salesman receives
orders or instructions directly from the sales manager instead of the
superiors.
•
18. CHARACTERISTICS OF FORMAL ORGANIZATION
• It is properly planned.
• It is based on delegated authority.
• It is deliberately impersonal.
• The responsibility and accountability at all levels of organization
should be clearly defined.
• Organizational charts are usually drawn.
• Unity of command is normally maintained.
• It provides for division of labour.
19. CHARACTERISTICS OF INFORMAL ORGANIZATION
• Informal organization arises without any external cause i.e., voluntarily.
• It is a social structure formed to meet personal needs.
• Informal organization has no place in the organization chart.
• It acts as an energy of social control.
• The rules and traditions of informal organization are not written but are commonly followed.
• Informal organization develops from habits, conduct, customs and behavior of social groups.
• Informal organization is one of the parts if total organization.
• There is no structure and definiteness to the informal organization.
