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INTRODUCTION
Organisations are a necessary part of human life andserve many important needs.
 An understanding of organisations is critical toeffective management
Organisations have an increasing impact on:
Individuals
Other organisations
Environment
ORGANISATION TYPES
Private or public sector
Profit or not-for-profit
Production or service
Classification
By major purpose (economic, protective, associative, publicservice or religious)
By Prime beneficiary (Mutual benefit, Business concerns,Service organisation, Commonweal organisations)
By primary activity (Productive or economic, Maintenance, Adaptive, Managerial)
Object moulding or People moulding
COMMON FACTORS INORGANISATIONS
Many different types of organisation
Size, shape, purpose
In ALL organisations; THREE (or four!) commonfactors
People
Objectives
Structure
Management
 
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Common Factors in Organisation
Interaction of efforts of PEOPLEin order to achieveOBJECTIVESChannelled and co-ordinatedthroughSTRUCTUREdirected and controlled by MANAGEMENT
Retail ShopBankSchoolHotelManufacturerHospitalGovernmentDeptUniversity Charity Hotel
ORGANISATIONS
Interrelationships of people, objectives and structuretogether with the efficient use of available human andnon-human resources will determine the success orfailure of an organisation (Mullins, 2002)
 Also
Characteristics of individuals making up organisation
 Variety of goals of individuals/groups plus impact onconflict
Interaction between organisation and generalenvironment
Basic components of anorganisation
Operating Component –Production (or provision of services)
 Administrative component –Supervision and co-ordination
Five components of an organisation
MiddleMgmt
TopMgmt
eg: objectives &Policy 
 
OperationalSupport
eg: quality control
OrganisationalSupport
eg: office servicescanteen
OperationalCore
 Assembly line,teaching
 
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Organisation chartsSpans of ControlPolicies and proceduresMission StatementsJob Definitions and descriptionsProduction Efficiency and effectivenessmeasuresPersonal Animosities and friendshipsGrapevinesGroup norms and sentimentsInformal leadersPrestige and power structuresEmotional feelings, needs and desiresEffective relationships between managersand subordinatesPersonal and group goals and perceptionsPatterns and habit
Formal Organisation:OvertInformal Organisation:Covert
ORGANISATIONAL ICEBERG
SYSTEMS VIEW
Objectivesand policy
Inputs
Activities/Transformationprocess
Environmentinfluences
Formulationof goals
Outputs
FEEDBACK: measure of achievement
Inputs toothersystemsOutputs fromOther systems
SYSTEMS VIEW
INPUTSPeople, raw materials,componentsCash; informationManagementstrategy PROCESSESProduction;Marketing;Recruitment trainingR&DOUTPUTSProduct; servicesEmploymentRevenueProfits; taxes; wasteFEEDBACKSales turnoverFinancial resultsCustomer surveysStaff turnoverLegal actionsGOALSMarket leadershipGrowthProfitInvestors in PeopleSatisfied customers
INTERNAL ENVIRONMENT
External EnvironmentExternal EnvironmentInternalInternalenvironmentenvironment
Organisational culture,Services and systemsTechnology and methodsStrategyPeople Activities and tasks
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