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Why Organizations???
“To get things done”
Organizations do things that individuals
cannot do by themselves.
Organizations are a dominant component
of society.
Organizations have the capacity to do
great good or great evil.
Organizations have outcomes
(intentional or unintentional).
Scope
To increase Specialization and
division of labour.
To use large scale technology.
To manage the external environment.
To economize on transaction cost.
To exert power and control.
DEFINITION
“An Organization is a
consciously coordinated
social entity, with a relatively
identifiable boundary, that
functions on a relatively
continuous basis to achieve a
common goal or set of
goals.”
Consciously coordinated
Social entity
Continuing bond
Goals
“An organization is a collectivity with a relatively
identifiable boundary, a normative order (rules),
ranks of authority (hierarchy), communication
systems, and membership coordinating systems
(procedure); this collectively exists on a relatively
continuous basis, in environments, and engages in
activities that are usually related to a set of goals;
the activities have outcomes for organizational
members, for the organization itself and the
society”.
“An organization is a tool used
by people to coordinate their
actions to obtain something
they desire or value”.
Overview of various
components
Organizations and individuals.
Organizations and community.
Societal outcomes.
Organizations and social change.
Multinational organizations.
Voluntary organizations.
Organizational Structure
“Organizational Structure is the
formal system of task and
authority relationships that
control how people coordinate
their actions and use resources to
achieve organizational goals.”
By organizational structure we
mean “the distributions, along
various lines, of people along
various lines, of people among
social positions that influence
the role relations among these
people”
-BLAU
Variables used to define structural
dimensions:
Planning : Execution/doing
Business Operations
Advantages Disadvantages
It clarifies authority & Subordinates cannot
responsibility carry on orders.
relationship. Scope for conflict.
It helps in delegation
of authority
It makes management
simple & effective
it avoids conflict.
5.Unity of Direction.
“One head ,one plan”
Means group of activities having the
same objective should come under one
head & one plan.
6.Subordination of individual
interest to common goal.
In a business concern ,an individual is
always interested in maximizing his own
satisfaction through more money,
recognition ,status .
Hence they need to subordinate
individual interest to general interest.
7.Remuneration of personnel.
Compensation for the work done should
be fair.
It should satisfy both labour &
management.
It should be based on Cost of living
,general business condition, productivity
of the employees ,capacity of the firm to
pay.
8.Centralisation.
Concentration of authority at one level of
management.
Impersonal relationships
Official record
Group.
Phase-3 : Interviewing Programme.
Supervision.
importance of technology in
determining the appropriate structure
for an organization.
As with environment, no discussion of