INTRODUCTION
The term organisation means different things to different people.
It is used widely to mean a group of people, a structure of relationships, a
process and function of management. Organizing is a basic function of
management. By organising, managers bring together the manpower and material
resources for the attainment of the objectives of an enterprise.
DEFINITION
1. Organisation
as a structure: is a structural relationship by which an enterprise is bound
together and the framework in which individual effort is coordinated. It is the
structural framework of duties and responsibilities required of the personnel
in performing various functions within the company.
2. Organisation as a process: involves assigning activities to
individuals and defining the authority and responsibility of each individual.
It is a series of activities rather than a one stop function. It is performed
by all managers and it is a continuous process. Organizing as a process
involves: determining activities, grouping activities, assigning duties,
delegating authority and coordinating activities.
IMPORTANCE OF ORGANISATION
- Effective administration.
- Growth and diversification.
– Adaptation of new technology.
– Optimum use of human resources.
– Specialization.
– Security and support.
– Coordination and communication.
–
Training development.
FORMAL AND INFORMAL ORGANISATIONS
Formal organisation: refers
to the structure of well-defined jobs each having a definite authority and responsibility.
The structure is deliberately designed to enable people to work together
effectively for accomplishment of common objectives.
Informal organisation:
people working together in the formal organisation interact with each other
daily. They develop friendly relations and form small social groups. The
network of these social groups based on friendship is known informal
organisation.
PRINCIPLES OF ARGANISATION
- Principles of objective.
- principle of functional definition.
– principle of division of labour.
- principle of unity of command.
- principle of authority and responsibility.
- principle of balance.
– principle of coordination.
– principle of exception.
- principle of simplicity.
– principle of flexibility.
– principle of efficiency.
– principle of a scalar chain.
- principle of span of
control.
TERMS RELATED TO ORGANISATION
Delegation of authority, the process by which a manager shares some of his functions and
authority with his subordinates within prescribed limits.
Empowerment, the process by which managers share power with group members,
thereby enhancing employees’ feelings of personal effectiveness. Delegation is
a specific way of empowering employees, thereby increasing motivation.
Authority the right and
power of a person to exercise discretion to make decisions, to issue orders, to
use organizational resources and to hire and fire employees.
Responsibility refers to the
obligation to perform the given task to the best of one’s ability.
Centralization refers to
systematic and consistent retention or concentration of authority for decision
making at higher levels of management.
Decentralization means
systematic dispersal of authority in all departments and at all levels of
management.
Accountability is the obligation of an individual to report formally to his superior about the work he has done to discharge the responsibility.
TYPES OF
STRUCTURE
1.Line organization characterized
by direct lines of authority flowing from the top to the bottom levels of the
organizational hierarchy and lines of responsibility flowing in an opposite but
equally direct manner.
2.Functional organisation refers to the organisation in which various activities are
classified into a number of functions.
3.Line and staff organisation is designed to maintain a proper balance between centralization
and division of work. It seeks to combine the advantages of specialization and
unity of command.
4.Committee organization, a group of competent and interested persons pool their thoughts for facilitating decision making process.
5.Project organisation, consists of a number of horizontal organizational units to complete projects of a long duration.
6.Matrix organization is otherwise known as grid organization is a hybrid structure combining two complementary structures: functional departmentation coupled with pure project structure.
DEPARTMENTATION
The process of subdividing work into departments , means dividing and grouping the
activities and employees of an enterprise into various departments. It implies
the division of the total work of an enterprise into individual functions and
sub-functions.
The most appropriate form of departmentalization is the one that
provides the best chance of achieving the organization’s objectives. The organization’s environment is an
important factor in this decision.
Functional departmentalization is an arrangement in which departments are defined by the function
each one performs, such as accounting or purchasing. Dividing work according to
activity is the traditional way of organizing the efforts of people. In a
functional organization, each department carries out a specialized activity,
such as information processing, purchasing, sales, accounting, or maintenance.
Territorial departmentalization is an arrangement of departments according to the geographic area
served. In this organization structure, all the activities for a firm in a
given geographic area report to one manager.
Product–service departmentalization is the arrangement of departments according to the products or
services they provide.
Customer departmentalization creates a structure based on customer needs. When the demands of
one group of customers are quite different from the demands of another,
customer departmentalization is often the result.
Combined or composite sometimes
, several basis of departmentalization may be used simultaneously .
REFERENCES
1-M.SAKTHIVEL MURUGAN, Management
principles and practices.
2-A.DUBRIN, Essentials of
management.
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