Based on
what you have learnt about organization, in not less than 15 pages, write all
you know about organization.
what you have learnt about organization, in not less than 15 pages, write all
you know about organization.
·
Definition
Definition
·
History
History
·
Types
Types
·
Structure
Structure
·
Importance
Importance
Definition of organisation
An
organization or organisation is an entity comprising multiple people,
such as an institution or an association,
that has a collective goal and is linked to an external environment. The word
is derived from the Greek word organon, which means “organ“.
organization or organisation is an entity comprising multiple people,
such as an institution or an association,
that has a collective goal and is linked to an external environment. The word
is derived from the Greek word organon, which means “organ“.
It
is a social unit of people that is structured and managed to meet a need or to
pursue collective goals. All organizations have a management structure that
determines relationships between the different activities and the members, and
subdivides and assigns roles, responsibilities, and authority to carry out
different tasks. Organizations are open systems–they affect and are affected
by their environment.
is a social unit of people that is structured and managed to meet a need or to
pursue collective goals. All organizations have a management structure that
determines relationships between the different activities and the members, and
subdivides and assigns roles, responsibilities, and authority to carry out
different tasks. Organizations are open systems–they affect and are affected
by their environment.
History of organisation
The
history of organizations
describes the general history of the rise of the organization. Since earliest
times humanity has endeavoured to develop the most appropriate systems of
organization to meet the challenges of a particular era. Inevitably the systems
of organization that developed were reflections of the wider values, tradition
and general organization of society at that time, moulded by the necessity of
withstanding threat and seeking to innovate whilst maximising benefits from
existing resources.
history of organizations
describes the general history of the rise of the organization. Since earliest
times humanity has endeavoured to develop the most appropriate systems of
organization to meet the challenges of a particular era. Inevitably the systems
of organization that developed were reflections of the wider values, tradition
and general organization of society at that time, moulded by the necessity of
withstanding threat and seeking to innovate whilst maximising benefits from
existing resources.
Human
development has continually necessitated a corollary of human and
organizational development designed to maximize effectiveness. This progression
is indicative of a civilizing process that has continually asked humanity to
reassess its relationship with itself and to increasingly value the welfare of
both the individual and wider society as a whole. The symbiotic relationship
between strategic leadership and organizational structure necessary to success
can be traced back to the beginnings of western civilization. Indeed, the very
term strategic owes its etymology to the ancient Greek words for ‘army’
or a ‘large body’ and a ‘leader’. In ancient Greece the ‘Strategikos‘
was the leader of the army.
development has continually necessitated a corollary of human and
organizational development designed to maximize effectiveness. This progression
is indicative of a civilizing process that has continually asked humanity to
reassess its relationship with itself and to increasingly value the welfare of
both the individual and wider society as a whole. The symbiotic relationship
between strategic leadership and organizational structure necessary to success
can be traced back to the beginnings of western civilization. Indeed, the very
term strategic owes its etymology to the ancient Greek words for ‘army’
or a ‘large body’ and a ‘leader’. In ancient Greece the ‘Strategikos‘
was the leader of the army.
In
1776 the political economist Adam Smith wrote on how specialization can boost human
productivity enormously. By specializing, people can use their talents, or
acquire skill. And they can employ labour-saving machinery to boost production.
Smith’s view was borne out by the effects of mass industrialization in the late
18th century which caused great change in how people worked and how work was
organized.
1776 the political economist Adam Smith wrote on how specialization can boost human
productivity enormously. By specializing, people can use their talents, or
acquire skill. And they can employ labour-saving machinery to boost production.
Smith’s view was borne out by the effects of mass industrialization in the late
18th century which caused great change in how people worked and how work was
organized.
On
this topic Lynda Gratton, the organizational
theorist, describes the “fundamental and irreversible
shift which changed the experiences of every worker.” She states that
prior to the Industrial Revolution, work was an “artisan activity engaged
largely in the home, using long held and meticulously developed craft
skills.” According to Gratton these skills “began to be transformed
as the manufacturing sector was developed and began to transcend the limits of
artisanal production”.
this topic Lynda Gratton, the organizational
theorist, describes the “fundamental and irreversible
shift which changed the experiences of every worker.” She states that
prior to the Industrial Revolution, work was an “artisan activity engaged
largely in the home, using long held and meticulously developed craft
skills.” According to Gratton these skills “began to be transformed
as the manufacturing sector was developed and began to transcend the limits of
artisanal production”.
The
late 18th and early 19th century was a period where the artisan and the
agricultural worker gave way to the burgeoning factory units that were beginning
to emerge. The enclosure of vast tracts of commonage in the countryside
facilitated a move from pastoral farming to grazing – forcing many from the
land, often in dire circumstances. This growing trend of migration from the
rural to the urban witnessed the growth of the metropolis, and the
industrialized city. The growth of a mass society meant that the relationship
with work was altered, it now became much more time centred and precise – a
standardized approach was in the process of being developed.
late 18th and early 19th century was a period where the artisan and the
agricultural worker gave way to the burgeoning factory units that were beginning
to emerge. The enclosure of vast tracts of commonage in the countryside
facilitated a move from pastoral farming to grazing – forcing many from the
land, often in dire circumstances. This growing trend of migration from the
rural to the urban witnessed the growth of the metropolis, and the
industrialized city. The growth of a mass society meant that the relationship
with work was altered, it now became much more time centred and precise – a
standardized approach was in the process of being developed.
Alongside
the migration of workers to the new factories (largely situated around energy
sources and communication networks – coal
deposits and canals etc. this period witnessed the emergence of global
corporations situated in key centres such as London and Paris, as trade
followed the flag in a wave of colonization. The shift from coal
to oil as the primary energy source for industry coupled with the
decolonization of empires in the 20th century would witness shifting paradigms
in the power relationships between major states. The issue of empire is
important in the sense that economic advantages accrued through imperialism were
a cornerstone in the advent of modernity, and the enforced homogeneity achieved
through Empire coupled with the technological improvements in transport and
technology that it funded made the world a lot smaller and lot more similar.
the migration of workers to the new factories (largely situated around energy
sources and communication networks – coal
deposits and canals etc. this period witnessed the emergence of global
corporations situated in key centres such as London and Paris, as trade
followed the flag in a wave of colonization. The shift from coal
to oil as the primary energy source for industry coupled with the
decolonization of empires in the 20th century would witness shifting paradigms
in the power relationships between major states. The issue of empire is
important in the sense that economic advantages accrued through imperialism were
a cornerstone in the advent of modernity, and the enforced homogeneity achieved
through Empire coupled with the technological improvements in transport and
technology that it funded made the world a lot smaller and lot more similar.
Whilst
recognising the significant impacts that the Industrial Revolution had, Gratton
states that the “real revolution” in people’s working lives began in
the mid-to-late-19th century when British scientists drove a culture of
innovation with the ideas of organisational and technological restructuring
based on changes in the energy that powered industry. Joel Mokyr puts a
timeframe of 1870-1914 on this “Second Industrial Revolution”, the
concept introduced by Patrick Geddes in his work Cities in Evolution. According
to Gratton: “Work became more regimented, more specialised. The workplace
and the work schedule became more compartmentalised and hierarchical.”
Gratton states that this was ‘the embryonic stages of Fordism – the rise of the
engineer as the organiser of economic activity, and the decline of the artisan.
recognising the significant impacts that the Industrial Revolution had, Gratton
states that the “real revolution” in people’s working lives began in
the mid-to-late-19th century when British scientists drove a culture of
innovation with the ideas of organisational and technological restructuring
based on changes in the energy that powered industry. Joel Mokyr puts a
timeframe of 1870-1914 on this “Second Industrial Revolution”, the
concept introduced by Patrick Geddes in his work Cities in Evolution. According
to Gratton: “Work became more regimented, more specialised. The workplace
and the work schedule became more compartmentalised and hierarchical.”
Gratton states that this was ‘the embryonic stages of Fordism – the rise of the
engineer as the organiser of economic activity, and the decline of the artisan.
Types of organisation
There
are a variety of legal types of organizations, including corporations, governments, non-governmental
organizations, political
organizations, international
organizations, armed forces, charities, not-for-profit
corporations, partnerships, cooperatives, and educational
institutions.
are a variety of legal types of organizations, including corporations, governments, non-governmental
organizations, political
organizations, international
organizations, armed forces, charities, not-for-profit
corporations, partnerships, cooperatives, and educational
institutions.
A hybrid organization
is a body that operates in both the public sector and the private sector simultaneously,
fulfilling public duties and developing commercial market activities.
is a body that operates in both the public sector and the private sector simultaneously,
fulfilling public duties and developing commercial market activities.
A voluntary
association is an organization consisting of volunteers. Such
organizations may be able to operate without legal formalities, depending on
jurisdiction, including informal clubs. Organizations
may also operate in secret and/or illegally in the case of secret societies, criminal
organizations and resistance movements.
association is an organization consisting of volunteers. Such
organizations may be able to operate without legal formalities, depending on
jurisdiction, including informal clubs. Organizations
may also operate in secret and/or illegally in the case of secret societies, criminal
organizations and resistance movements.
Structure of organisation
Formal organisational structures are categorised
as:
as:
(i) Line organisational structure.
(ii) Staff or functional authority organisational
structure.
structure.
(iii) Line and staff organisational structure.
(iv) Committee organisational structure.
(v) Divisional organisational structure.
(vi) Project organisational structure.
(vii) Matrix organisational structure and
(viii) Hybrid organisational structure.
1. Line Organisational Structure:
A line organisation has only direct, vertical
relationships between different levels in the firm. There are only line
departments-departments directly involved in accomplishing the primary goal of
the organisation. For example, in a typical firm, line departments include
production and marketing. In a line organisation authority follows the chain of
command.
relationships between different levels in the firm. There are only line
departments-departments directly involved in accomplishing the primary goal of
the organisation. For example, in a typical firm, line departments include
production and marketing. In a line organisation authority follows the chain of
command.
2. Staff or Functional Authority
Organisational Structure
Organisational Structure
The jobs or positions in an organisation can be
categorized as:
categorized as:
(i) Line position:
A position in the direct chain of command that is
responsible for the achievement of an organisation’s goals and
responsible for the achievement of an organisation’s goals and
(ii) Staff position:
A position intended to provide expertise, advice
and support for the line positions. The line officers or managers have the
direct authority (known as line authority) to be exercised by them to achieve
the organisational goals. The staff officers or managers have staff authority
(i.e., authority to advice the line) over the line. This is also known as
functional authority. An organisation where staff departments have authority
over line personnel in narrow areas of specialization is known as functional
authority organisation.
and support for the line positions. The line officers or managers have the
direct authority (known as line authority) to be exercised by them to achieve
the organisational goals. The staff officers or managers have staff authority
(i.e., authority to advice the line) over the line. This is also known as
functional authority. An organisation where staff departments have authority
over line personnel in narrow areas of specialization is known as functional
authority organisation.
In the line organisation, the line managers cannot
be experts in all the functions they are required to perform. But in the
functional authority organisation, staff personnel who are specialists in some
fields are given functional authority (The right of staff specialists to issue
orders in their own names in designated areas).
be experts in all the functions they are required to perform. But in the
functional authority organisation, staff personnel who are specialists in some
fields are given functional authority (The right of staff specialists to issue
orders in their own names in designated areas).
The principle of unity of command is violated when
functional authority exists i.e., a worker or a group of workers may have to
receive instructions or orders from the line supervisor as well as the staff
specialist which may result in confusion and the conflicting orders from
multiple sources may lead to increased ineffectiveness. Some staff specialists
may exert direct authority over the line personnel, rather than exert advice
authority (for example, quality control inspector may direct the worker as well
as advise in matters related to quality).
functional authority exists i.e., a worker or a group of workers may have to
receive instructions or orders from the line supervisor as well as the staff
specialist which may result in confusion and the conflicting orders from
multiple sources may lead to increased ineffectiveness. Some staff specialists
may exert direct authority over the line personnel, rather than exert advice
authority (for example, quality control inspector may direct the worker as well
as advise in matters related to quality).
3. Line and Staff Organisational
Structure:
Structure:
Most large organisations belong to this type of
organisational structure. These organisations have direct, vertical
relationships between different levels and also specialists responsible for
advising and assisting line managers. Such organisations have both line and
staff departments. Staff departments provide line people with advice and
assistance in specialized areas (for example, quality control advising
production department).
organisational structure. These organisations have direct, vertical
relationships between different levels and also specialists responsible for
advising and assisting line managers. Such organisations have both line and
staff departments. Staff departments provide line people with advice and
assistance in specialized areas (for example, quality control advising
production department).
4. Divisional Organisational Structure:
In this type of structure, the organisation can
have different basis on which departments are formed. They are:
have different basis on which departments are formed. They are:
(i) Function,
(ii) Product,
(iii) Geographic territory,
(iv) Project and
(iv) Combination approach.
5. Project Organisational
Structure:
Structure:
The line, line and staff and functional authority
organisational structures facilitate establishment and distribution of
authority for vertical coordination and control rather than horizontal
relationships. In some projects (complex activity consisting of a number of
interdependent and independent activities) work process may flow horizontally,
diagonally, upwards and downwards. The direction of work flow depends on the
distribution of talents and abilities in the organisation and the need to apply
them to the problem that exists. The cope up with such situations, project
organisations and matrix organisations have emerged.
organisational structures facilitate establishment and distribution of
authority for vertical coordination and control rather than horizontal
relationships. In some projects (complex activity consisting of a number of
interdependent and independent activities) work process may flow horizontally,
diagonally, upwards and downwards. The direction of work flow depends on the
distribution of talents and abilities in the organisation and the need to apply
them to the problem that exists. The cope up with such situations, project
organisations and matrix organisations have emerged.
A project organisation is a temporary organisation
designed to achieve specific results by using teams of specialists from
different functional areas in the organisation. The project team focuses all
its energies, resources and results on the assigned project. Once the project
has been completed, the team members from various cross functional departments
may go back to their previous positions or may be assigned to a new project.
Some of the examples of projects are: research and development projects,
product development, construction of a new plant, housing complex, shopping
complex, bridge etc.
designed to achieve specific results by using teams of specialists from
different functional areas in the organisation. The project team focuses all
its energies, resources and results on the assigned project. Once the project
has been completed, the team members from various cross functional departments
may go back to their previous positions or may be assigned to a new project.
Some of the examples of projects are: research and development projects,
product development, construction of a new plant, housing complex, shopping
complex, bridge etc.
6. Matrix Organisational
Structure:
Structure:
It is a permanent organisation designed to achieve
specific results by using teams of specialists from different functional areas
in the organisation.
specific results by using teams of specialists from different functional areas
in the organisation.
Importance of organisation
The importance of organising becomes clear with the
help of the following points:
help of the following points:
(1) Specialisation:
Under organising all the activities are subdivided
into various works or jobs. For all the sub works, competent people are
appointed who become experts by doing a particular job time and again. In this
way, maximum work is accomplished in the minimum span of time and the
organisation gets the benefit of specialisation.
into various works or jobs. For all the sub works, competent people are
appointed who become experts by doing a particular job time and again. In this
way, maximum work is accomplished in the minimum span of time and the
organisation gets the benefit of specialisation.
(2) Clarity in Working Relationship:
Organising clarifies the working relations among
employees. It specifies who is to report to whom. Therefore, communication
becomes effective. It also helps in fixing accountability.
employees. It specifies who is to report to whom. Therefore, communication
becomes effective. It also helps in fixing accountability.
(3) Optimum Utilisation of Resources:
Under the process of organising the entire work is
divided into various small activities. There is a different employee performing
every different job. By doing so, there is no possibility of any activity being
left out or any possibility of unnecessary duplicating any job. Consequently,
there is optimum utilisation of all the available resources (e.g., material,
machine, financial, human resource, etc.) in the organisation.
divided into various small activities. There is a different employee performing
every different job. By doing so, there is no possibility of any activity being
left out or any possibility of unnecessary duplicating any job. Consequently,
there is optimum utilisation of all the available resources (e.g., material,
machine, financial, human resource, etc.) in the organisation.
(4) Adaptation to Change:
Organising process makes the organisation capable
of adapting to any change connected with the post of the employees. This
becomes possible only because of the fact that there is a clear scalar chain of
authority for the manager’s right from the top to the lower level. Whenever a
managerial post falls vacant, it is immediately filled up by promotion. Since
every subordinate is well aware of the working of his boss, there is no
difficulty for his taking up the new post.
of adapting to any change connected with the post of the employees. This
becomes possible only because of the fact that there is a clear scalar chain of
authority for the manager’s right from the top to the lower level. Whenever a
managerial post falls vacant, it is immediately filled up by promotion. Since
every subordinate is well aware of the working of his boss, there is no
difficulty for his taking up the new post.
(5) Effective Administration:
It has generally been observed that there is always
a condition of doubt about the authority of the managers among themselves. The
process of organising makes a clear mention of each and every activity of every
manager and also of their extent of authority. It is also made clear as to whom
a manager order for a particular job shall. Everybody also knows to whom they
are accountable. In this way, the confusion on authority is put to an end.
Consequently, effective administration becomes possible.
a condition of doubt about the authority of the managers among themselves. The
process of organising makes a clear mention of each and every activity of every
manager and also of their extent of authority. It is also made clear as to whom
a manager order for a particular job shall. Everybody also knows to whom they
are accountable. In this way, the confusion on authority is put to an end.
Consequently, effective administration becomes possible.
(6) Development of Personnel:
Under the process of organising, delegation of
authority is practiced. This is done not because of the limited capacity of any
individual, but also to discover new techniques of work. It provides
opportunities of taking decisions to the subordinates. By taking advantage of
this situation, they try to find out the latest techniques and implement them.
Consequently, it helps them to grow and develop.
authority is practiced. This is done not because of the limited capacity of any
individual, but also to discover new techniques of work. It provides
opportunities of taking decisions to the subordinates. By taking advantage of
this situation, they try to find out the latest techniques and implement them.
Consequently, it helps them to grow and develop.
(7) Expansion and Growth:
The process of organising allows the employees the
freedom to take decisions which helps them to grow. They are always ready to
face new challenges. This situation can help in the development of the
enterprise. This helps in increasing the earning capacity of the enterprise
which in turn helps its development.
freedom to take decisions which helps them to grow. They are always ready to
face new challenges. This situation can help in the development of the
enterprise. This helps in increasing the earning capacity of the enterprise
which in turn helps its development.
