WHAT IS AN ORGANISATION?

Towards a Definition of Organizations ( Bank, hote, fa!tor" et!#$

They are composed of individuals and groups;
They exist in order to try to achieve certain goals;
They involve specialization, and require rational co-ordination and control;
They have some degree of permanence.
%irst of all, then, an organization is, essentially, a So!ia Entity.
In the se!ond place, it is generally agreed that organizations can be distinguished
from other social groupings by virtue of the fact that they exist to achieve certain
goas or obectives
The third characteristic of an organization is that it involves s&e!iaization and
requires !oordination .
! fo'rth point is that organizations have some degree of &er(anen!e, in the
sense that they usually have more than a momentary existence " or, even, an
existence tied to the achievement of one obective.
St'd"ing Organizationa Beha)io'r
It is the #ay in #hich people interpret the #orld " ho# they learn, process
information, form different attitudes and opinions, etc. " that condition, among
other things, their attitudes to#ards #or$ and the organization.
%ere, #e use aspects of &s"!hoog" .
! further aspect is the study of behaviour $no#n as anthro&oog". &e are all
products of a particular cultural system #ith its customs, values and beliefs, habits
and traditions.
The achievement of the goals of organizations, #hatever they might be and
#hoever may define them, is largely dependent on ho# effectively the various
resources are combined.
!lthough the 'people-based( disciplines can contribute much to the understanding
and management of organizational behaviour, they need to be combined #ith other
disciplines and functional areas.
The Organization in its *n)iron(ent
+olitical
*conomic
Social
Technological
*nvironmental
,egal frame#or$
*thical behaviour
ORGANI-ATIONA, GOA,S
the members of the organization are involved in activities in a co-ordinated
and on going fashion;
they are see$ing to achieve a particular purpose or purposes;
'a goal is a future state of affairs #hich the organization attempts to realize(
*.&ressing Goas?
)oals are fundamental to activity " they provide the focus for action. If they are to
provide that focus, they need to be specific. They need a clarity #hich allo#s
people to share understanding and put their coordinated efforts to a common
purpose. The ideal goal, therefore, is one #hich contains the follo#ing elements*
it is challenging, but achievable "
it is clear and relevant "
it includes a standard or target against #hich achievement may be measured
it includes some form of time constraint "
/issions, goas and o01e!ti)es
/ission ( +'r&ose$ What does the 0ank e.ist for22#?
!n organization+s mission is a generalized statement of its main purposes, often
encompassing the $ey values #hich underlie those purposes and the #ay in #hich
it see$s to achieve them.
Goas
)oals build on the mission statement and provide the long-term targets for
organizational activities. They are li$ely to be specified for each organizational
unit and sub-unit; thus for a ban$, there #ill be goals for each division " research
and development ,-./0, loans dept., mar$eting, personnel, etc.
O01e!ti)es
These derive from goals to provide detailed, short-term targets, generally in the
form of guidelines for action in a specified time span. They are almost al#ays
measurable and thus act as both planning aids and the criteria for performance
revie#. These are much more meaningful to staff in that they define exactly #hat
is expected of them and #hat it is their performance may be udged against.
A s'((ar" of the f'n!tions of goas are as foows3
To &ro)ide a standard of &erfor(an!e, 0" fo!'sing on the a!ti)ities of
the organization ( 0ank, or finan!ia instit'tion$ and the efforts of its
(e(0ers#
To &ro)ide a 0asis for &anning and (anage(ent !ontro#
To &ro)ide g'ideines for de!ision4(aking and the 1'stifi!ation for
a!tions taken, red'!ing 'n!ertaint" in de!ision4(aking
To inf'en!e the str'!t're of the organisation and he& deter(ine the
nat're of the te!hnoog" e(&o"ed#
To he& to de)eo& !o((it(ent fro( indi)id'as and gro'&s towards
the a!ti)ities of the organisation#
To gi)e an indi!ation of what the organisation is rea" ike, 0oth for
(e(0ers and the organisation5s stakehoders#
To a!t as a 0asis for the e)a'ation of !hange and the de)eo&(ent of
the organisation#
To ser)e as a 0asis for the o01e!ti)es and &oi!ies of the organisation#
+ro0e(s with Goas 4 -elating to its achievement
/ifficulties in formulation;
1oping #ith changes at the level; of the 1ompany, 2ociety,
1ulture, Economy, 1ompetition;
)oal conflicts " bet#een goals, in interpretation and in
commitment.
Ta and %at Str'!t'res
Tall structures have a number of disadvantages*
The profusion , )luts, plethora, abundance0 of levels ma$es the specification
of clear obectives difficult at each level and there is the possibility of
confusion as to functions and role across levels;
! large distance bet#een top and bottom leads to more communication
problems, #ith the number of levels increasing the chances of distortion,
filtering and omissions;
!dditional management levels tend to be costly, having a greater amount of
administrative activity associated #ith them;
Tall structures tend to be bureaucratic and rigid, lac$ing flexibility to
respond quic$ly to meet developments;
The long ladder of promotion may be discouraging to more unior staff
,although a narro# span of control in creases promotion possibilities0.
! flat organizational structure is one that has relatively fe# levels.
Henr" /intz0erg
/intz0erg5s /ode
The elements #hich ma$e up this structure are as follo#s*
,30 Strategi! A&e.3 2enior management ta$es the ultimate decisions for the
organisation. They establish the core values #hich are made manifest in the
mission statement of the organisation.
,40 /idde ,ine3 this reflects the authority structure ,infrastructure0 lin$ing
senior managers through middle managers5supervisors to the #or$ers in the
opening core. Information flo#s both #ays along this line.
,60 O&ening 6ore3 this consists of the people #ho ma$e the goods and7or
perform the services. In small organizations, this may be most of the
organisation.
,80 Te!hno str'!t're3 the function of this element is the co-ordination of the
#or$ of the organisation.
,90 S'&&ort Staff3 the function of this element is to provide the indirect
services required by the organization. %ere are found the legal, financial,
press and publications experts and professionals.
+anning, ,eading, Organising, and 6ontroing and %eed0a!k
+anning
:lanning is the process by #hich the organisation, or any particular part of it,
determines #hat is to be done.
forecasting
goal-setting
decision-ma$ing
,eading
;ead by example, do not only tell people #hat to do, do it in front of
them and they #ill follo#
Organising
<rganizing is the management process #hich actually arranges for the #or$ to be
done. It is concerned #ith the allocation of resources " both staff and others
,finance materials, time, etc0. /elegation and Empo#erment.
6ontroing fro( %eed0a!k
=anagement control is the process of monitoring and regulating performance to
ensure that it conforms to the plans and goals of the organisation.
/anage(ent Roes
=intzberg identified three general roles of managers*
Interpersona l " dealing #ith the maintenance of relationships #ith others
#ithin and outside the organisation;
Informational " dealing #ith the gathering and provision of information,
again #ithin and outside the organisation;
/ecisional " dealing #ith organizational and operational problems and
difficulties.
A S'((ar" of /anage(ent A!ti)ities
(a$ Deter(ining o01e!ti)es
!ll managerial #or$ involves identification of goals or obectives " deciding #hat
it is one is see$ing to achieve and ho# to achieve them.
(0$ Defining the &ro0e(s that need to 0e so)ed to a!hie)e the o01e!ti)es
(!$ Sear!hing together for so'tions to the &ro0e(s whi!h ha)e 0een s&e!ified
(d$ Deter(ining the 0est so'tions to the &ro0e(s 0" 0rain stor(ing sessions
(e$ Se!'ring agree(ent on i(&e(entation# Ask s'0ordinates to &ro&ose2#
(f$ +re&aration and iss'e of instr'!tions, &oi!ies and &ro!ed'res
(g$ *.e!'tion of agreed so'tions, kee& a0reast and work together for
i(&e(entations and fow4'&s#
(h$ De)ising and dis!harging an a'diting &ro!ess, to gather feed0a!k#