The document discusses organization from several perspectives:
1) It defines organization and discusses it as a process, structure, group of people, and system.
2) It outlines the key principles of organization including unity of objectives, specialization, lines of authority, and span of control.
3) It describes the process of organization as determining work needed, assigning tasks, and arranging decision-making frameworks.
4) It discusses organizational structure including elements like work specialization, departmentalization, and chain of command.
5) It presents different types of organizational structures such as functional, product, and territorial structures.
The document discusses organization from several perspectives:
1) It defines organization and discusses it as a process, structure, group of people, and system.
2) It outlines the key principles of organization including unity of objectives, specialization, lines of authority, and span of control.
3) It describes the process of organization as determining work needed, assigning tasks, and arranging decision-making frameworks.
4) It discusses organizational structure including elements like work specialization, departmentalization, and chain of command.
5) It presents different types of organizational structures such as functional, product, and territorial structures.
The document discusses organization from several perspectives:
1) It defines organization and discusses it as a process, structure, group of people, and system.
2) It outlines the key principles of organization including unity of objectives, specialization, lines of authority, and span of control.
3) It describes the process of organization as determining work needed, assigning tasks, and arranging decision-making frameworks.
4) It discusses organizational structure including elements like work specialization, departmentalization, and chain of command.
5) It presents different types of organizational structures such as functional, product, and territorial structures.
The document discusses organization from several perspectives:
1) It defines organization and discusses it as a process, structure, group of people, and system.
2) It outlines the key principles of organization including unity of objectives, specialization, lines of authority, and span of control.
3) It describes the process of organization as determining work needed, assigning tasks, and arranging decision-making frameworks.
4) It discusses organizational structure including elements like work specialization, departmentalization, and chain of command.
5) It presents different types of organizational structures such as functional, product, and territorial structures.
• According to keith Davis, "Organization may be defined as a group of individuals,
large or small, that is cooperating under the direction of executive leadership in accomplishment of certain common object."
• According to Louis A. Allen, "Organization is the process of identifying and grouping
the work to be performed, defining and delegating responsibility and authority, and establishing relationship for the purpose of enabling people to work most effectively together in accomplishing objectives."
• The term 'organization' is used in four different senses: as a process, as a structure
of relationship, as a group of persons and as a system Characteristics / Features of Organization
• Outlining the Objectives: Long-life objectives of profitable manufacturing and
selling its products
• Identifying and Enumerating the Activities: Identify total task involved and its break-up closely related component activities
• Assigning the Duties: Functional duties should be allotted to particular individuals
• Defining and Granting the Authority: Authority and responsibility should be well defined
• Creating Authority Relationship: After assigning the duties and delegations of
authority, the establishment of relationship is done Principles of Organization
• Unity of Objectives: Every enterprise prescribes certain basic objectives
• Principle of Specialization: Precise division of work facilitates specialization
• The Scalar Principle: Clear lines of authority
• The Principle of Authority: Responsibility delivered to every employee should be
given its related authority
• The Principle of Unity of Command: Supervision of one boss only
• Segregation of Line and Staff Functions: Should have line and staff manager
• The Principle Span of Control: Should be proportional 'span of management’
Principles of Organization
• The Principle of Definition: Contents of every position should be clearly defined
• The Principle of the Unity of Direction: there should be one objective and one plan for each group of people
• The Principle of Balance: Balance in grouping and assigning activities
• The Principle of Discipline: Maintain proper discipline in the enterprise
• • Adapt the changes: Be flexible and adapt new changes in organization
• The Principle of Human Element: Success or failure of an enterprise largely
depends on the handling of human element
• Communication: Good communication network
Process of Organization
• Organization process involves determining what work is needed to accomplish the
goal, assigning those tasks to individuals, and arranging those individuals in a decision-making framework
Process consists of five steps
1. Review plans and objectives: Objectives are the specific activities that must be completed to achieve goals
2. Determine the work activities necessary to accomplish objectives: List and analyze all the tasks that need to be accomplished
3. Classify and group the necessary work activities into manageable units: Break down the work and classify the activities Process of Organization
4. Assign activities and delegate authority: Assign the defined work activities to specific individuals
5. Design a hierarchy of relationships: Using the organizational chart, a manager
should diagram the relationships Structure of Organization
• An organization is the structural framework for carrying out the functions of
• In order to achieve the desired goals, sound and effective organizational structure is necessary
• Organizational structure, as we know is the system of job positions, roles assigned
to these positions and specifying authority, responsibility and task of every position Structure of Organization
Key Elements of Organizational Structure;
1. Work Specialization: Degree to which tasks in an organization are divided into
separate jobs
2. Departmentalization: It breaks down how jobs are grouped together to create
departments
3. Chain of command: Continuous line of authority that extends from upper
organizational levels to the lowest levels
4. Span of Control: It suggests how many employees each manager can handle within an organization
5. Formalization: Jobs within the organization are standardized
Structure of Organization
6. Centralization and Decentralization:
Centralization Decentralization Environment is stable Environment is complex, uncertain Lower-level managers are not as Lower-level managers are capable and capable or experienced at making experienced at making decisions decisions as upper-level managers Lower-level managers do not want to Lower-level managers want a voice in have say in decisions decisions Decisions are significant Decisions are relatively minor Organization is facing a crisis or the Corporate culture is open to allowing risk of company failure managers to have a say in what happens Company is large Company is geographically dispersed Effective implementation of company Effective implementation of company strategies depends on managers strategies depends on managers retaining say over what happens having involvement and flexibility to make decisions Types of Organizational Structure
Functional Organizational Structure
• The organization is divided into segments based on the functions when managing. This allows the organization to enhance the efficiencies of these functional groups.
• Functional structure is set up so that each portion of the organization is grouped
according to its purpose
• In this type of organization, for example, there may be a marketing department, a
sales department and a production department. Types of Organizational Structure
Product Organizational Structure
• It groups jobs by product line. Each manager is responsible of an area within the organization depending of his/her specialization
• Organization producing different types of products so they emphasize more on
division for each of the product.
• Product and product line is an important basis for this structure. It facilitates the use of specialized and specialist services of the divisional managers in their product line. Types of Organizational Structure
Territorial Organizational Structure
• It groups jobs on the basis of territory or geography.
• Organizations having their business all over the country may adopt divisional structure on the basis of area, such as north division, south division, east, west and central division
