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Seminar on

Organisation-Its Concepts and


Principles.

By
Ms. Muhsinath.A. R
2ND Year Msc (N)
INTRODUCTION:
• Organization is the formal structure of
authority calculated to define, distribute and
provide for the coordination of the tasks as
contribution to the whole.

• It consists of the relationship of individuals


to individuals and groups to groups which
are related as to bring about an orderly
division of labour.
terminologies
 Organization: arrangement of personnel for facilitating the
accomplishment of some agreed purpose through
allocations of functions responsibilities.
 Supervision: it is the process of overseeing the employees
at work.
 Bureaucracy: it refers to the tasks and procedures of
administration
 Integration: it means unification in administrative
languages or connecting one or more independent
organization with the rest.
 Disintegration: it means lack of unity.
Terminologies contd…
 Centralization: it means concentration at
or near the top.
 Decentralization: it means that the
central authority gives certain power to the
local authorities.
 Delegation: it means conferring of
specified authority by a higher authority.
 Organizational chart: it is the
diagrammatic representation of the
different positions in the hierarchy of an
institution.
DEFINITION
Organization is the process of combination of work
in which individuals and groups have to perform
with the faculties necessary for its execution.
____________Olive Sheldon
Organization is the arrangement of personnel for
facilitating the accomplishment of some agreed
purpose through allocations of functions and
responsibilities.
______________L. White
DEFINITION
contd…
 Organization can be defined as a process
of identifying and grouping the work to be
performed, defining and delegating the
responsibility and authority and
establishing relationships for the purpose
of enabling people to work together more
effectively in accomplishing the objectives.
Concepts of organization

CONCEPTS OF ORGANISATION

NATURE OF ORGANIZATION IMPORTANCE OF ORGANIZATION

UNITS OF ORGANIZATION
Nature of organization
 Organization is the process of dividing and combining the
activities.
 Organization
 makes careful determination of what jobs are to be done and
what workers are required to do them.
 Assess the amount of materials, tools and equipments needed
for the accomplishment of the work.

 The purpose of organization is to unify the human effort and a


clear understanding of human relationships which is necessary
for the desired outcome.
 To achieve this the organization should have four “P”s.
Nature of organization contd…

 P- Purposes; e.g.: health and family


planning, post and telegraph,
education, defense etc.
 P- Process: e.g.: law, personnel
 P- Person target group; e.g.: eligible
couples
 P- Place setting; e.g.: primary health
centers, hospitals
Importance of organization

Organization facilitates management activities.


Ensures specialization.
Encourages efficiency and effectiveness of the organization.
Organization facilitates coordination in the enterprises.
Facilitates optimum use of the human resources.
Stimulates creativity of the members/ workers.
Facilitates the growth.
Helps to determine the responsibility and authority.
Importance of organization contd…

Helps in the personal identity.


Facilitates supervision.
Determines the levels at which various types
of decisions are to be made.
Organization prevents the growth of laggards,
wire pullers, intriguers, or other forms of
corrupters.
Unsound organization becomes the breeding
ground of corruption, dishonesty and such
odd things.
Units of organization

Unit is the lowest or smallest post or


subdivision of a whole.
The primary unit of the organization would
be post or position.
In administrative terms unit indicates the
higher and the larger formulation such as
the section, the division, the branch, the
bureau and even the departments.
There are mainly two units of organization.
i.e. line unit and staff unit.
Units of organization contd…
The difference between the line and the staff units is a
qualitative or functional one, namely the difference between
the executive and the advisory functions.
The line units are executives i.e. concerned with the
operating or producing of the various service which the
administration has to provide for the people .
The staff units are those that advice or assist the line units in
their performance of their work.
Line units command, staff units only advise and help through
planning research coordination, supervision etc.
Units of organization contd…

For e.g. Ministries of different levels are line


units and their secretaries are staff units in
India.
Line units may be departments or
independent regulatory commissions or
government operations.
Staff units may be general staff, technical
staff, and auxillary staff.
Theories of organization

Scientific management or physiological


organization theory
Bureaucratic theory of organization
Classical theory of organization
Human relations theory of organization
Scientific management or
physiological organization theory
 This is the first coherent theory of organization.
 This concept was first used by Louis Brandis.
 The assumptions based on this theory include:
The application of methods of science to organization’s
problems leads to higher industrial efficiency. [observation,
measurement and experimental comparison are these
methods]
The incentive of high waves will promote the mutuality of
interest between workers and managers which in its turn
will lead to high productivity.
Bureaucratic theory of
organization

 The term bureaucracy was first coined by Vincent de Gournay


 It refers to the talks and procedures of administration as well
as a collective word for a body of administrative officials.
 The characteristics of bureaucracy such as precision,
continuity, discipline, strictness, reliability are technically most
satisfactory form of organization.
 The other features of bureaucracy as enumerated by Max
Weber are:
 The staff members are personally free, observing only the
impersonal duties of their officers.
 There is a clear hierarchy of officers.
Bureaucratic theory of
organization
The functions of the officers are clearly specified.
Officials are appointed on the basis of a contract.
They are selected on basis of professional qualifications.
They have a money, salary and pension rights.
The official’s post is his role or major occupation.
There is career structure and promotion.
The official may appropriate neither the post nor the
recourses which go with it.
It is subjected to unified control and disciplinary system.
Classical theory of organization

 According to Henri Fayol administration


comprises of five elements;
Forecasting
Planning
Organizing
Commanding
Coordinating
Controlling
Classical theory of organization

 Accordingly he propounded 14 principles of


administration.
 Later Luther Willick summed up principles of
administration in the word POSDCORB.
 The classical theory of organization is made
explicit in organization changes, rule books,
manuals, rules of procedures etc.
 It deals with what is called formed
organization- an organization which is
deliberately used, rationally designed to fulfill
the objectives of the organization.
Human relations theory of
organization
Elton Mayo and his colleagues conducted after conducting
some experiments in electrical company at Hawthorne proved
that men are not inert or isolated responding.
This theory focuses on the two aspects like:
 The structural approach of the mechanistic approach
emphasizes formal structure of an organization where
relationships are established by statute or by top
management. Under this approach an organization is seen as
mechanic and considering the workers as more cogs.
 The humanistic approach emphasizes the people in an
organization, human motivations and informal group
functioning rather than formal relationship determined through
charts or diagrams.
GENERAL PRINCIPLES OF
ORGANIZATION
The organization structure should be based on the
objectives of the enterprises.
Effective organization must promote the
specialization.
Span of control should be kept as minimum, as
there is limit to the number of persons that can be
supervised effectively by one manager.
The line of authority from the chief executive at the
top to the front line workers at the bottom must be
clearly defined.
Each subordinate should have only one superior.
Each manager should have enough authority to
accomplish the task assigned to him.
GENERAL PRINCIPLES OF
ORGANIZATION contd…
The superior should be held responsible for the acts
of his subordinates.
The authority of each manager must be clearly
defined.
The levels of management should be kept as far as
possible to the maximum.
The organization structure should be flexible and
permit expansion without disruption to the basic
design.
There should be balance in the size of various
departments, in the span of control, chain of
command etc.
There should be unity of direction.
GENERAL PRINCIPLES OF
ORGANIZATION contd…
 Organizational structure must ensure
optimum use of human resources and
encourage development programs.
 Organization may be departmentalized on
the basis of functions, products, place or
combination of the three.
Principles of organization

Span of control
hierarchy Integration vs
disintegration

Principles of organization
Centralization vs
delegation decentralization

Unity of command
hierarchy

 It means the rule or control of the higher to


lower.
Any organization is like a pyramid, broadest
at the base and tapering towards the top.
In any organization both vertical and
horizontal growth will be there.
When additional levels are added in the
organization it is called vertical growth.
When more functions and positions are
added it is called horizontal growth.
Hierarchy contd…

• E.g.:
Medical Superindent(1)
Nursing Superindent(1)
Deputy Superindent(3)
Assistant Superindent(6)
Staff nurses(30)
Advantages of scalar principles of
hierarchy
 It is an instrument of organizational integration
and coherence.
 The scalar chain serves as a channel of
communication upwards and downwards.
 The rule of through the proper channel created
by the scalar principle ensures that there will
be no short circuiting procedures or ignoring of
the intermediate links.
 It establishes below the top executive, a
number of subordinate levels each of which is
centre of decision for specified matters of a
less important nature.
Advantages of scalar principles of
hierarchy
 It establishes below the top executives , a
number of subordinate levels each of which
is centre of decision for specified matters of
a less important nature.
 It helps to clarify and define the relative
positions and responsibilities of each post in
the organization.
The general functions of the
hierarchical structure
 Fixing the responsibility.
 Providing the leadership with areas of description at
successive levels.
 Providing means for exerting influence and exercising
fellowship.
 Making any particular organization and the general
government manageable.
 Making it acceptable.
 Determining the levels at which the decision of various
kinds may be made.
 Providing for ready movement of decision making from
one level to another under agitation.
 Bringing to bear relevant, competing and complementary
interests, functions and points.
II. SPAN OF CONTROL

☺ Span of control means the number of


subordinates an officer can effectively
supervise.
☺ The number of subordinates that a
supervisor can personally direct or
supervise is known as span of control.
☺ The shorter the span of control the greater
will be the control and efficiency of the
work will be improved.
E.G FOR SPAN OF CONTROL

Chief nursing officer

Deputy nursing Deputy nursing Deputy nursing


officer officer officer

3 ANO 3 ANO 3 ANO

10 SN 10 SN 10 SN
SPAN OF CONTROL
The span of control varies with four
factors namely
function: type of work to be supervised
 Personality: competence of the supervisors
and the subordinates concerned
 Space: place where the work to be
supervised
 Time: age of the organization concerned.
III. Integration vs disintegration
 Integration means the unification of the organization.
It means connecting one or more independent
organization with the rest of the organizational
structure of the country by placing them under the
chief executive directly or through some department.
It involves the abolition of the independent status of
the agencies.
The disintegrated administrative system will not be
conferred by law or constitution and it will be dealt by
many people and there will not be any single chief
executive. In simpler terms lack of unity.
Integration vs. disintegration
contd…
 Integrated administration facilitates
coordination and disintegrated
administration creates anarchy
(lawlessness) and conflicts.
IV. Centralization vs. decentralization

 Centralization stands for concentration of authority


at or near top.
 The decision will be taken in the top level authority if
the administration is centralized.
Decentralization means that the central authority
gives certain power to the local authorities.
A decentralized organization is the one in which the
lower levels are allowed to decide most of the
matters which come up, reserving comparatively a
few bigger and more important problems only for
those in higher position.
V. Unity of command

 Unity of command means that no individual


employee should be subjected to the orders
of more than one immediate superior.
 The concept of unity of command requires
that every member of an organization
should report to one and only one leader.
 It helps increasing the coordination in the
organization.
VI. Delegation

Delegation means conferring of specified


authority by a higher authority.
Delegation implies transfer of certain
specified functions by the superior to the
subordinates authority.
In other words delegation of responsibility
always remains with the superior.
Essential aspects of delegation

Assignment of duties and tasks.


Grant of authority
Creation of accountability
Principles of delegation

 Delegation according to ability


 Absoluteness of responsibility
 Parity of authority and responsibility
 Definitions of results expected
 Unity of command
 Authority of levels
Steps of organization

 Determination and enumeration of objectives for each


activity.
 Grouping and assigning activities.
 Allocation of fixed duties to definite persons.
 Delegation of authority.
In a brief the important steps in organizing are:
 Determination of objectives of each activity.
 Deciding on the various types of activities to be undertaken
within the framework of the formulated plan to attain the
goals of organization.
 Grouping of activities according to their similarities,
interrelationships, competencies and capacities required in
performance of these activities, its importance in relation
to attainment of goals.
Steps of organization
 Deciding different group of activities according to the number of
staff, the eligibility requirement of staff, seating arrangement, the
materials and supplies, machines and equipments, funds and
methods for maintaining the moral of employees.
 Determining the authority, responsibility and accountability of
different members of staff, which includes
 Determining the lines to authority with the channels of
communication.
 The relationship between members, departments, supervisors,
peers, and subordinates
 Developing an organizational chart based on above.
 Allotment of duties to individuals.
 Integration between the identified group of activities through
relationship and organized communication system.
Organizational structure

 Each organization has a formal and an informal


structure and that governs work flow and
interpersonal relationship.
The formal structure is planned and published
whereas the informal structure is unplanned and
covert.
An organization’s formal structure is the official
management of positions into patterns of working
relationship that coordinate the efforts of workers
with diverse tasks and abilities.
The informal organization structure consists of
unofficial relationships among workers that influence
work effectiveness.
The organizational charts

 The organizational structure is generally depicted


in a diagrammatic form.
 The conventional organization chart is a line or
scalar chart, showing each layer of the
organization in sequence.
 Organization chart is the diagrammatic
representation of the different positions in the
hierarchy of an institution showing the channels of
communication and the formal line of authority
among these positions.
 It also provides opportunity to all from the top
level administrators to the work force, to
understand their positions, roles and to whom
they are accountable and/or answerable.
The organizational charts
contd…

 Organization charts helps in many ways in an


organization
 It serves as a tool for the management and
enables each employee for his/her placement
and relationships in the organization.
 It serves as an employees, to whom they are
accountable and answerable.
 It provides basis for classification of personnel
and evaluation system, where it plays role of
detecting deficiencies and inconsistencies.
The organizational charts contd…

 There are two types of organizational


charts
 The master chart.
 The supplementary chart.
The organizational charts contd…

The master chart depicts the entire


organization, showing all departments and
major positions of authority.
The supplementary chart for a department
gives specific details for the organizational
pattern of that unit, and the linkage of
authority in the direct chain of command
from highest authority to that derived by
the department chief
Advantages of the organizational
charts
 Maps lines of decision making authority.
 Helps people to understand their
assignments and those of their co-workers.
 Reveals to managers and new personnel
how they fit into the organization.
 Contributes to sound organizational
structure.
 Shows formal lines of communication.
Disadvantages of organizational
chart

 Shows only formal relationship.


 Doesn't indicate degree of authority.
 May show things as they are supposed to
be or used to be rather than as they are.
 Possibility exists of confusion.
Role and function of administrator/manager in
organizational structure
Evaluates the organizational structure frequently to determine if
management positions can be eliminated to reduce the chain of
command.
Encourage employees to follow the chain of command and gives
counseling and guidance to enable them to do so.
Supports personnel in advisory staff positions.
Models responsibility and accountability for subordinates.
Assists nursing staff to see how their roles are congruent with and
complement the common organizational tasks.
Facilitates informal group structure.
Encourages upward communication.
Explains organizational culture to subordinates.
Counsel employees who do not follow chain of command.

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